Business
FBNH posts strong earnings amid ownership and legal tussle
Amidst billionaires fist cuff fight for who maintains the highest stake in the holding company, FBN Holding Plc has demonstrated strength and determination to continue on the part of high performance
The holdco declared N206.3 billion profit after tax in its unaudited financial statements for the first half (H1) of the year ended June 30, 2023.
Its results which were released on the NGX showed profit before tax grew by 213.8 per cent from N65.7 billion in H1, 2022 to N206.3 billion in H1, 2023.
While Profit after tax rose by 231.1 per cent to N187.2 billion as against N56.5 billion in H1, 2022, earnings per share also rose by 234 per cent to N5.19 higher than N1.55 in 2022.
A careful assessment of the results showed that gross earnings up by 82.8 per cent to N656.6 billion from N359.2 billion in H1, 2022. Interest income appreciated by 69.3 per cent from N383.3 billion compared to N226.4 billion in the corresponding period of 2022, while non-interest income amounted to N257.9 billion as against N120.6 billion.
Operating income leapt by 81.1 per cent from N273.5 billion in H1, 2022 to N495.3 billion, while impairment charges for losses stood at N57.6 billion from N21.7 billion.
Total assets rose by 34.0 per cent to N14.177 trillion as against N10.578 trillion as at December 31, 2022. Customer loans & advances recorded 38.9 per cent year-to-date as at June 30, 2023 to N5.261 trillion from N3.789 trillion, while customer deposits stood at N 9.042 trillion, a year-to-date growth of 26.9 per cent from N7.124 trillion.
While commenting on the results, Nnamdi Okonkwo, the Group Managing Director stated that: “FBN Holdings has continued to deliver a strong financial performance despite the complex operating environment, thanks to our reinforced foundations, deep market understanding, strong risk management and execution capabilities.
On the back of this and in line with our focus of driving further improvement in revenue generation and profitability ,the Group delivered strong growth in gross earnings and profit before tax resulting in N656.6 billion and N206.3 billion respectively, for the first half of 2023 financial year.
Across our businesses, we continue to focus on customer-centric innovations with strong transactional and digital capabilities supported by sound risk management practices to anticipate and creatively deliver products and services that delight the different customer segments that we serve. Furthermore, we are committed to leveraging technology via digital platforms to enhance operational efficiency. Although the current operating environment remains challenging, we are confident of successfully navigating the terrain in our transformation journey to deliver sustainable value to our stakeholders.”
Also Commenting on the results, Dr. Adesola Adeduntan, Chief Executive Officer of FirstBank (Commercial Banking Group) said: “In the first half of 2023, FirstBank Group delivered the strongest financial performance in the almost 130 years of the Bank’s history; with solid business momentum, increased revenue, and excellent returns. The result reflects the continued positive impact of our strategy and the tremendous progress that we have made in growing and transforming the Group.
According to him,”The result also highlights the resilience of our business model, customer relationships and institutional capabilities. While the uncertainties in the macroeconomic and operating environment persist, I am confident that our purpose – driven strategy remains the right one and that our strong financial performance, alongside our business model and resilient portfolios, position the Group well to continue to provide the required support to our customers as well as create robust and sustainable value to our shareholders’’.
‘’ Given our extensive and diversified customer base of over 42 million customer accounts, our digital technology enabled processing capabilities that ensure we process over 12% of industry’s payment volume, our future-proof and cutting-edge digital banking platforms with over 22 million users that enable us to process more than 95% of H1 2023 Results Press Release Page 3 of 8 customer-induced transactions on digital channels, the robustness of our balance sheet, and our institutionalised risk management culture and capabilities, we see a resilient franchise today and into the future.” He said
Analysts at Cordros believe the bank’s performance was remarkable during the period and aligned with our expectations.’’ For 2023FY, we believe the group will sustain this profitability growth momentum driven by (1) the high interest rate environment and (2) FX revaluation gains’’.
Meanwhile, an ownership and legal tussle is currently unfolding in the high-stakes arena of Nigeria’s corporate banking, as business titans fight for the control of the oldest financial institution in the country, First Bank of Nigeria (FBN) Plc.
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Fidelity Bank reclassified as Medium Price Stock
…as investors gain 64% YTD
Following a bullish run in the stock market in recent months, the Nigerian Exchange Limited (“NGX”) on Friday announced the reclassification of Fidelity Bank Plc. from small price stock to medium price stock.
A statement by the NGX said the reclassification became necessary because Fidelity Bank Plc. shares have been trading above the N5.00 mark since February 2023.
“Rule 15.29 of the Rulebook of The Exchange, 2015 (Dealing Members’ Rules) notes that equities priced above N5 per share for at least four of the most recent six months of trading, or new security listings priced above N5 per share at the time of listing on NGX are classified as medium price stock,” the statement said.
“According to NGX, Fidelity Bank Plc. traded above the N5.00 mark on 20 February 2023 and has remained above the N5 mark up until close of business on 30 June 2023.
“This indicates that FIDELITYBK has been trading above N5 for at least four (4) months in the last six (6) months. Therefore, it should be reclassified from small price stock to medium price stock.”
The Nneka Onyeali-Ikpe-led bank has continued to post commendable financial performance every quarter as it cements its position amongst tier-one banks in the country.
Meanwhile, Fidelity bank’s stock has gained over 64 per cent year-to- date from N4.75 per share in January 6, 2023 to close at N7.82 per share on Friday 21, 2023.
Fidelity bank has been one of the formidable financial institutions in Nigeria over the years.
