First Bank of Nigeria Holdings has declared N59.7 billion profit after tax, its audited result made available to the Nigerian Stock Exchange, NSE, as shown. FBNH has N279.983 billion market capitalisation as its shares traded at N7.50. The performance which analysts have commended came strong as the holding company raised year on year profit take by 58.23 percent from its continuing operations. The holdings co plans to pay 26 kobo per its share in 2018 as against 25 kobo in 2017.
At the headline, FBNH recorded N583.477 billion as its gross earnings in the financial year 2018 result compare with N595.45 billion the group made in 2017. Interest income came a bit lower just as expenses incurred in funding expanded, thus resulted to 14.28 percent decline in the holdings net interest income position.
More than 42 percent decline in impairment charge for credit losses was recorded. In 2018, FBNH booked N86.911 billion against its income statement compare with more than N150 billion in 2017.FBNH net insurance premium revenue also rose by about 52 percent from N10.234 billion in 2017 to N15.541 billion in 2018 just as fees and commission income expanded by about 25 percent.
In 2018, the group recorded fee and commission income that closed the year at N92.72 billion as against N74.45 billion achieved in 2017. The audited result however shows an increase in personnel expenses, from N85.678 billion to N93.395 billion it had reported in 2017. This translates to more than 9 percent uptick year on year but below average rate of inflation for the period.
Overall operating expenses at the holdings level expanded 9.78 percent, from N134.799 billion to N147.976 billion. It closed financial year 2018 with total investment in assets at N5.568 trillion as against N5.236 trillion in 2017. This represents more than 6 percent increase in assets but liabilities of the group also expanded by 10.52 percent in the year.
As against N4.558 trillion in 2017, FBNH total liabilities settled at N5.037 trillion and its shareholders funds were reduced by about 22 percent. Total shareholders fund berthed at N530 billion compare to N678 billion it carried forward into the year. FBNH earnings per share closed the year at N1.66 as against N1.05 kobo in 2017 with an increase of 102.23 percent in return on equity from 5.56 percent to 11.24 percent.
A former banker who was part of the turnaround management put together by the former Central Bank Governor, Sanusi Lamido Sanusi said; “The bank is just recovering from a major downturn. The new management team seem to be achieving progress with turnaround”.
“I was part of turnaround management team put together by Sanusi Lamido Sanusi, now Emir of Kano”, he said.
FBN Holdings Plc provides commercial banking activities. The Company offers merchant, investment banking, trusteeship, fund management, registrars, and advisory services through its subsidiaries. FBN also sells insurance policies and mortgages via subsidiary companies.
With 35.9 billion shares outstanding, FBNH Plc opened at N7.80 on Friday. The stock has a market cap of N269.215billion, a PE ratio of 4.6