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FBN Holdings’ Q1 profit rises by 8.7%

By on April 28, 2015

FBN Holdings Plc said its profit before tax for the first quarter 2015 climbed by 8.7 per cent to N26.94 billion, as against the N24.8 billion it made as at the comparable period of 2014.

The unaudited results for the three months ended 31 March 2015 released at the weekend, also showed the financial institution’s profit after tax improved by 4.9 per cent to N22.6 billion, from N21.6 billion as at March 2014. Similarly, it recorded gross earnings of N126.8 billion, up by 23.5 per cent year-on-year, compared with the N102.6 billion realised as at March 2014, just as its net interest income climbed by 1.3 per cent to N59.6 billion.

Also, while the bank recorded a 51.2 percent increase in non-interest income of N29.3 billion, operating income of N88.8 billion, impairment charge for credit losses of N4.1 billion, operating expenses of N57.8 billion, its total assets as at the period under review, hit N4.5 trillion.

Commenting on the results, the Group Chief Executive Officer, FBN Holdings, Mr. Bello Maccido said: “In spite of the volatile political and macroeconomic environment that has characterised the first quarter, we returned a profit before tax of N 26.9 billion, a nine per cent increase over the same period in 2014.

“Given this we are cautiously optimistic about the rest of the year, as the country and economy benefits from improving confidence, and remain focused on managing effectively the macroeconomic challenges.

“We expect improved traction from investments committed in the prior year to diversify revenue streams and enhance profitability. We will continue building a resilient business and drive efficiencies towards delivering sustainable returns to our esteemed shareholders.”

He noted that as a result of the intense competition and increased interest payments on funds impacting interest expense, FBN Holdings’ cost of funds closed higher at 3.8 per cent, from 2.9 per cent as at March 2014, as average yields on interest earning assets closed marginally higher at 11 per cent, from 10.7 per cent last year.

“We expect cost of funds to improve in coming periods as we see increased liquidity and cheaper funding from our transaction banking initiative as well as from our extensive distribution network. While these initiatives are NIMs supportive, we will ensure assets are optimised and appropriately priced as we continue to reallocate assets and investments at the shorter end of the curve in the increasing interest rate environment. As such, we expect NIMs to be in line with guidance as we progress into the year,” he added.

 

[ThisDay]