First Bank grosses N417bn in 9 months

FBN Holdings Plc, the holding company for First Bank of Nigeria and its other subsidiaries, grew its top-line by 7.0 per cent to N417.3 billion, although the group continued to struggle with depressed bottom-line.
The interim report of FBN Holdings for the third quarter ended September 30, 2016 showed that gross earnings rose by 7.0 per cent to N417.3 billion in third quarter 2016 as against N390 billion recorded in comparable period of 2015. Net-interest income had risen by 5.2 per cent to N202.9 billion in 2016 as against N192.9 billion in 2015. Non-interest income jumped by 56.5 per cent to N131 billion in third quarter 2016 as against N83.7 billion in third quarter 2015.

Operating income rose by 20.7 per cent to N333.9 billion as against N276.6 billion. The group increased impairment charge for credit losses from N46.6 billion to N114.7 billion while operating expenses reduced by 5.1 per cent to N161.8 billion as against N170.4 billion. Profit before tax thus declined marginally by 3.5 per cent from N59.6 billion to N57.5 billion. Profit after tax also dropped by 15.3 per cent to N42.5 billion in third quarter 2016 as against N50.2 billion in third quarter 2015.

The group however retained its leading position as the largest bank in Nigeria, in terms of balance sheet position. Total assets rose to N5.1 trillion by September 2016, representing 21.6 per cent growth on N4.2 billion recorded at the beginning of this year. Customer deposits rose by 10.9 per cent to N3.3 trillion as against N2.97 trillion recorded by the year ended December 31, 2015. Net customer loans and advances closed September 2016 at N2.2 trillion, an increase of 22.2 per cent on N1.8 trillion recorded at the beginning of the year.

Group managing director, FBN Holdings, Mr. UK Eke, said the performance of the company has again demonstrated its underlying resilience despite the ongoing macroeconomic and business challenges.

According to him, the performance in the third quarter was achieved through sustained revenue generation as well as increased cost efficiencies.

Read also: Union Bank grosses N93.4b as profit rises to N13.3b in Q3

“Although the current currency weakness is a challenge for our remedial process, we are steadfastly progressing on improving the overall risk management culture, governance and technology as well as the degree of compliance across the Group,” Eke said.

He assured that the group remains committed to ensuring sustained improvement in its performance with a view to restoring shareholder value.

Managing director, First Bank of Nigeria Limited, Dr. Adesola Adeduntan, said the bank has continued to push to improve the performance of its business despite the tough operating environment exacerbated by the currency weakness.

“Furthermore, having addressed the structural and organisational challenges of our risk management architecture and as we remain focused on the remediation and recovery efforts, we are progressing with the Enterprise Resource Planning and Risk Management implementation project as well as other transformational initiatives to drive further operational efficiencies, service delivery excellence and enhanced earnings,” Adeduntan said.

 

 

RipplesNigeria …without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now