FBN generates N757.3bn in FY 2021, cites high inflation, currency devaluation as challenges

First Bank of Nigeria Holdings revenue grew 28.2% year-on-year, to N757.3 billion in 2021, against the N590.7 billion grossed during the corresponding period a year before.

During the same period, FBN‘s interest income declined 4.1% to N369.0 billion in 2021, due to the moderated interest rate environment, which is negatively impacting yields; as a result, however, in FY 2020, it posted N384.8 billion.

According to the Full Year financial statements for 2021, it was gathered that interest expense was ₦140.8 billion, growing 5.7%, in contrast to the N133.2 billion of 2020.

In response, the Net interest income declined by 9.3% to N228.2 billion this year, below the N251.6 billion the company recorded in the corresponding period.

Read also :First Bank subsidiary acquires Access Bank’s pension business

The financial statements further disclosed that, “In 2021, FBNH operated in a challenging operating environment that was pressured by high inflation and currency devaluation, the effect of which increased operating expenses by 14.2% to ₦334.2 billion (Dec 2020: ₦292.5 billion).

“However, this 14.2% is below the inflation level (Dec 2020: 15.6%) whilst regulatory cost also rose during the period, up 23.2% y-o-y. Despite the inflationary push factors, operating income grew 35.5% to ₦592.8 billion (Dec 2020: ₦437.6 billion), resulting in an improvement in cost to income ratio to 56.4% (Dec 2020: 66.8%).” the statement reads.

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