FBN Holdings Grows PAT by 43.2% in Q3, 2019

• FBN Holdings Grows PAT by 43.2% in Q3, 2019

FBN Holdings Plc grew Profit After Tax (PAT) by 43.2 percent in the third quarter (Q3) of 2019.

In the bank’s financial results released through the Nigerian Stock Exchange (NSE) on Monday, PAT grew from N11.4 billion in the same period of 2018 to N20.11 billion in Q3, 2019.

While net interest income declined by 9.96 percent from N71.88 billion in Q3, 2018 to N64.72 billion in Q3, 2019.

However, net income after impairment charge for losses rose by 16.9 percent from N48.511 billion in the same quarter of 2018 to N58.369 billion in Q3, 2019.

This was attributed to a 72.8 percent decline in impairment charge for losses from N23.375 billion in Q3 2018 to N6.352 billion in Q3, 2019.

The lender grew operating profit from N12.45 billion in Q3, 2018 to N20.16 billion in Q3, 2019.

Similarly, profit before tax rose from N12.46 billion to N20.16 billion during the period under review.

The Group Managing Director, Urum Kalu Eke, FBN Holdings, attributed the solid performance to an effective diversification strategy.

“Our performance in the third quarter reflects the growth trajectory over the first nine months of the year, with significant strides made in transforming the Group’s asset quality and diversifying our revenue streams across board.

“During the third quarter, our NPL declined further to 12.6 per cent as we approach the end of the curve in the resolution of our legacy portfolio.

“We are confident of further reducing this to under 10% by the end of the current financial year,” Eke stated.

He added that the management focus is to enhance the risk framework of the bank in order to improve its loan book.

“Concurrently, we have also continued our drive towards ensuing long-term operational efficiency, resulting in a one-off cost increase pushing our Cost Income Ratio for the first nine months.

“In terms of our revenue generation, we have delivered further increases in our non-interest income, on the back of growth in electronic banking fees as well as improvements in transaction-led income.

“Overall, we are pleased with the progress we are making on numerous fronts and remain committed to not only enhancing shareholder value but also adhering to the long-standing principles of this great financial institution,” Eke said.