FBN Holdings Plc wednesday announced its results for the full year ended December 31, 2017, showing a growth of 179 per cent in profit after tax (PAT) to N47.8 billion, up from N17.1 billion in 2016.
In the audited results, FBN Holdings Plc ended the year with gross earnings of N595.4 billion, up marginally by 2.3 per cent from N581.8 billion in 2016. Net interest income rose by 15.9 per cent from N405.3 billion to N331.5 billion, while non-interest income fell by 31 per cent from N165.5 billion to N113.7 billion.
Impairment charges for credit losses also dropped by 33.5 per cent to N150.4 billion, from N226 billion in 2016.
The financial institution tried to curtail operating expenses, which grew by only 7.7 per cent to N238 billion, from N221 billion the previous year. Consequently, profit before tax jumped by 147.6 per cent to N56.8 billion, compared with 22.9 billion in 2016. But PAT grew fast by 178.9 per cent to N47.8 billion from N17.1 billion in 2016. Earnings per share improved from 39 kobo to 121 kobo. The directors are recommended a dividend of 25 kobo per share.
A further analysis of the results showed non-performing loan ratio improved from 24.4 per cent to 22.8 per cent, just as liquidity ratio reduced from 52.7 per cent to 51.1 per cent. Capital adequacy ratio stood at 17.1 per cent compared with 17.8 per cent in 2016.
Commenting on the performance, the Group Managing Director of FBN Holdings Plc, Mr. UK Eke, said the initiatives they put in place were producing encouraging results ahead their projections.
“It is noteworthy to highlight that this progress has not been detrimental to our commitment to cost containment, illustrated by the 7.7 per cent increase in opex which is significantly below the headline inflation rate of 15.4 per cent. This result was also made possible by the successful implementation of our digitisation initiatives, that have allowed us to serve our customers in a more efficient and effective way.”
Despite the improved performance, Eke said they recognised the need for accelerated resolution of their legacy assets to demonstrate sustainable improvement in asset quality.
“This was largely as a result of the impairment of 9mobile, which was across the industry, as well as the foreign currency translation impact on our existing portfolio. These are one-off events and we assure that appreciable progress would be made on NPL in 2018 in line with our three years strategic plan.