FBN Holdings Grows Profit by 95% to N365 Billion
FBN Holdings Plc experienced strong earnings growth in the first half of the financial year 2024, according to the group financial scorecard submitted on the Nigerian Exchange.
Its unaudited financials showed that profit after tax grew by more than 95% year on year to N365 billion at the end of first half of financial year 2024 from N187 billion 12 months earlier.
According to the details from the unaudited financial statement, FBN Holding earnings per share printed at N10.11 in the period from N5.19 in the prior period in 2023.
Further breakdown revealed that the financial services group delivered a 155.4% year on year increase in interest income, reaching N947.69 billion in H1-2024 from N371 billion in the comparable period in 2023.
The surge, according to analysis of the result, was largely driven by the elevated yield in the fixed income and rising earning assets. The financial services company details showed that the group recorded higher income from loans and advances to customers.
In the same period, interest expense advanced by 196.5% year on year to N432.76 billion as the group incurred higher costs on its deposits from customers and financial institutions due to the elevated interest rates.
Net interest income of N514.933 billion posted in the first half of 2024 was about 119% above N235.4 billion reported in the first half of 2023. With the interest rate tightening which altered market dynamics, the financial services group incurred higher costs on its borrowing in the period.
Ultimately, the group’s net interest margin (NIM) increased by 190 basis points to 7.7% in the first half of the year. The results also showed that FBN Holdings non-interest income surged by 71.1% to N435.73 billion
The group’s operating expenses increased by 95.1% year on year to N445.69 billion, primarily driven by an increase in personnel expenses, AMCON levy, depreciation and amortization, and NDIC premium.
Foreign exchange loss expanded by more than 68% year on year to N165 billion over continual negative exchange rate fluctuation, from N98 billion in the comparable period.
FBN Holdings Plc profit after tax grew by 951.6% year on year to N365.30 billion from N187.176 billion in the comparable period in 2023. # FBN Holdings Grows Profit by 95% to N365 Billion Access Holdings Rated Buy on 56% Upside Potential
