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FBN Holdings projects 20% return on average equity for 2013

By on June 17, 2013

FBN Holdings Plc has projected  a 20 per cent returns on average equity for the financial year 2013, even as it pledged superior returns to all stakeholders.

The company also disclosed that it has completed its holding company structure as demanded by the Central Bank of Nigeria (CBN) and will continue to support the private sector through loan disbursement that would be channel to the productive sectors of the economy.

Speaking on the facts behind its figure for the financial year 2012 to members of the capital market community at the Lagos floor of the Nigerian Stock Exchange (NSE), Chief Executive Officer, FBN Holding, Mallam Bello Maccido, said the company is poised to consolidate its first position among Nigeria’s financial institutions.

According to him, “The 20 per cent  projection on  returns on average equity is  based on conservative figures. We are first in Nigeria by total assets, gross loans and total deposits, with strong local franchise. We recorded total assets of N3.186billion, representing a growth of 11per cent from the 2012 figure. For first quarter 2013, we recorded total assets of N3,459 billion, representing a growth of  16 per cent  from the figure in first quarter 2012. Our gross loans stood at N1.581billion.

While commenting on its financial performance, Maccido said, Gross earnings grew by 31.4 per cent Year on Year to N360.3billion for 2012.  It was primarily driven by interest income from loans and advances (32 per cent ), and – investment securities (92 per cent ) as at 2012.

He stated  that during the first quarter 2013,  gross earnings was driven by an 11.5 per cent increase in interest income and 16.7 per cent growth in non-interest income;  Non-interest revenue for 2012 was driven by fee and commission growth of  26 per per cent.  This was largely due to growth in commission on turnover (57 per cent) and  electronic banking fees (77 per cent ), account maintenance (66 per cent), as well as funds transfer and intermediation (31 per cent).  Profit before tax for 2012 increased 158.5 per cent Year on Year to N92.7billion  form  N35.9bn in 2011, benefitting from revenue growth and lower impairment charges.

The FBN Holdings boss stated that its banking arm will continue on  aggressive mobilisation strategy via alternative distribution channels and innovative product development, adding that the First Bank currently control 30 per cent of the card market.

On future outlook, Maccido, said  FBN  Holdings will continue to push top line growth across its group with an emphasis on:  customer acquisition (reflective of the very strong headroom for growth in all our markets), high growth products and segments, and pricing . We will drive cost efficiency by  continuing to leverage shared distribution platforms across the group.

[Vanguard]