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First Bank posts N36b in half-year profit

By on July 27, 2011

First Bank of Nigeria (FBN) Plc grew net profit by more than 23 per cent in the first half of this year, harnessing the gains of the recent restructuring to improve its market share and profitability.

Interim report and accounts of FBN for the first half ended June 30, 2011 released yesterday showed that the bank recorded double-digit growths in all key profit and loss items with gross earnings and operating incomes increasing by 14 per cent and 42 per cent.

The report indicated that gross earnings closed first half 2011 at N139.7 billion as against N122.3 billion recorded in comparable period of 2010. Operating income stood at N120.9 billion compared with N85.6 billion in 2010 while net interest income grew by 54 per cent from N57.5 billion to N88.2 billion. Non-interest incomes also increased by 16 per cent from N28 billion to N32.6 billion.

The report further showed a 13 per cent increase in pre-tax profit from N32 billion to N36 billion while net earnings after taxes stood at N31.3 billion as against N25.3 billion in comparable period of2010. This indicated possible earnings per share of N1.92 for 2011 compared with N1.74 posted in 2010.

Underlying performance ratios showed improvement in assets quality with the reduction in the proportion of non-performing loans to total loans from 5.8 per cent in to 3.8 per cent while increase in net interest margin from 5.7 per cent to 8.2 per cent evidenced increasing profitability of the bank’s core banking operations.

Group Managing Director, First Bank of Nigeria, Mr Bisi Onasanya, said the performance of the bank in first half reflected the benefits of the transformational initiatives it embarked on in recent years.