First Bank Wows with 2011 Earnings, Net Income N 44 billion, Proposes 80 kobo Dividend

First Bank released its 2011 audited financial statements today.

Key Highlights for the full year

 27.6% growth in gross earnings to N296.3 billion (2010: N232.1 billion)

 45.6% growth in operating income to N259.2 billion in 2011 (2010: N178.1billion)

 92.9% growth in profit before tax and exceptional item to N65.6 billion (2010: N34 billion)

 48.2% growth in profit before tax of N50.1 billion (2010: N33.8 billion)

 Strong improvement in cost to income ratio to 56.8% (2010: 67.0%), 55.1% ratio recorded in the Bank (2010: 65.8%)

 Provision for losses of N44.8 billion (2010: N21.6 billion), of which loan loss provision was N32.9 billion (2010: N22.4 billion)

 Exceptional item of N15.5 billion, arising from loss on sale of performing and non-performing loans to AMCON

 Improved asset quality, with a decline in non-performing loan ratio to 2.6% (2010: 7.8%)

 Headline growth of 9.2% in net loans and advances1 to N1.2 trillion (2010:N1.1 billion), with adjusted growth in loans to customers of 40.6%

 Total deposit growth of 34.3% to N1.9 trillion (2010: N1.5 trillion), driven by low cost current and savings accounts, leading to a further reduction in total funding costs to 1.7% from 3.1% in the previous year

 Tier 1capital ratio of 18.1% (2010: 17.7%)

 Robust liquidity profile, with a 68.2% liquidity ratio (2010: 50.9%)

 Proposed dividend of 80 kobo per share

 

Commenting on the results, Bisi Onasanya, Group Managing Director of FirstBank said:

“We have made significant progress in achieving our strategic goal of being the number one financial services group in Nigeria. Our results are reflective of the benefits being reaped from the implementation of our transformation agenda which has improved customer focus, acquisition, satisfaction, business generation and enhanced the sustainability of our earnings base. This has brought about considerable improvements in our interest and non-interest earnings generation capabilities, margin expansion, operational efficiency as well as reduced funding costs. Testament to this is the decline in our cost to income ratio by over 10 percentage points to 56.8%.

During 2011, we opened a representative office in the United Arab Emirates and acquired the Banque Internationale de Crédit of Democratic republic of Congo – one of the most profitable banks in the region.

We remain focused on enhancing shareholder returns by continuing to drive efficiencies and synergies to our current operations, leveraging opportunities across the Group as well as assessing new avenues of growth.”

 

The company will hold its AGM on May 31st at the eko Hotel.