FBN Holdings posts N49.5bn profit

FBN Holdings Plc has recorded N49.5bn Profit After Tax for the half year ended June 30, 2020.

This represents an increase of 56.65 per cent when compared with the N31.6bn achieved in the corresponding period of 2019. The Profit Before Tax grew by 14.36 per cent to N41.4bn from N36.2bn.

The unaudited results released by the Nigerian Stock Exchange show that gross earnings stood at N296.4bn from N280.3bn in 2019, an increase of 5.74 per cent.

Also, its total assets stood at N7.1tn, an increase of 14.9 per cent against the N6.2tn achieved in December 2019. Its customer deposits rose to N4.4tn from N4tn.

The Group Managing Director, Mr. Urum Eke, said the results re-confirmed the bank’s consistent focus on enhanced shareholder value.

“The H1 2020 financial results are impressive and re-confirm our consistent focus on enhanced shareholder value. Despite the difficult operating environment, the H1 results demonstrate our resilience and capacity to deliver on long-term ambitions.

“The growth in PAT for the period is a testament to the strength of our organisation to continually deliver exceptional services to our customers in these unprecedented times.

“We have been able to achieve this feat by leveraging our agent banking network, innovative e-banking capabilities, and operational efficiency, utilising technology,” he said.

Eke explained that FBN Holdings successfully divested from the underwriting businesses to focus on banking operations.

“We are confident this will enhance greater value to our stakeholders and strengthen the group’s resolve to consolidate its leadership of the banking sector.

“Following the divestment, FBN Holdings injected Tier 1 capital into FirstBank, effectively increasing its capital adequacy ration to 16.5 per cent. This provides a comfortable buffer against regulatory requirements with the potential to support any emerging business opportunities.”

While expressing confidence in the bank’s strength to withstand any future challenge towards enhanced performance, he noted that the firm would always remain cautious.

Chief Executive Officer, FirstBank, Dr. Adesola Adeduntan, said the commercial banking group, during the period, increased its gross earnings and PBT.

“Over the period, the commercial banking group increased its year-on-year growth in gross earnings and PBT by 6.1 per cent and 9.2 per cent respectively, despite the economic shutdown and varying degrees of challenges in the operating environment.

“Notwithstanding, we have continued to provide services to our customers with minimal disruption in a safe environment, supported by seamless transactions through our increasing agent banking network and digital platforms,” said Adeduntan.

He added that continuous focus on operational efficiency remained a priority, as improvement in non-performing loan ratio had been sustained.

“As the economy re-opens gradually in Nigeria and other key markets, as in the rest of the world, we are adopting a pragmatic approach with optimism on propelling our performance for enhanced profitability through customer-led innovation and disciplined execution,” he said.

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