THE First Bank Nigeria, FBN Holdings Plc has unveiled its financial results for the half year ended June 30, 2015, recording profit before tax of N52.1 billion. A breakdown of the half year performance presented on Wednesday, July 22, showed that FBN Holdings grew net interest income by 15 percent, from N115.1 billion in 2014 to N132.7 billion in 2015. Impairment charges soared by 239 percent from N6.66 billion to N22.6 billion.
Personnel charges followed the same trend, rising by 23 percent from N38.7 billion to N47.5 billion, while operating expenses grew by 10 percent from N58.1 billion to N64.2 billion. Consequently, the growth in operating profit was reduced to nine percent at N52.1 billion, compared to N47.7 billion recorded in the corresponding period of 2014.
After making provision for tax, FBN Holdings closed the period with a profit after tax of N40 billion, up from N37 billion in 2014. A further analysis of the performance indicates that the financial conglomerate grew customers’ deposits from N3.05 trillion to N3.126 trillion. Loans and advances declined from N2.178 trillion in 2014 to N2.085 trillion in 2015. However, the firm ended the period with a balance sheet size of N4.418 trillion, compared with N4.342 trillion in 2014.
FBN Holdings had in 2014 a profit after tax of N82.8 billion for the year ended December 31, 2014, paid a cash dividend of 10 kobo per share and a bonus of one new share for every 10 shares already held.
Commenting on 2014 results, Bello Maccido, group chief executive officer, FBN Holdings, had said, “The group recorded a strong financial performance in 2014 in spite of the highly challenging operating environment particularly for our flagship business, First Bank of Nigeria. As such, the performance by the Banking Group is a testament to the underlying strength of our commercial banking business which is built on an extensive retail network and a robust information technology platform.”
Maccido had assured stakeholders that the company remain focused on diversifying its revenue streams through the extraction of value from bank acquisitions, consolidating its position in the investment banking space, especially with the acquisition of Kakawa, and expanding its insurance business scope.
— Aug 3, 2015 @ 01:00 GMT