FBN Holdings Plc, one of the leading financial institutions in Nigeria, grew gross earnings by 6.32% from N757.296 billion recorded in 2021 to 805.128 billion in the 2022 financial year.

Operating expenses rose by 23.35% to N218.481 billion in the period under review from N177.130 billion in 2021.

In the audited financial statement released on the Nigerian Exchange Limited, net interest income expanded by 59.15% to N363.249 billion from N228.242 billion achieved in 2021.

The increase in operating expenses dragged on profit before tax as it dropped by 5.26% from N166.662 billion filed in 2021 to N157.902 billion. While the profit after tax dipped by 9.87% from N151.079 billion in 2021 to N136.173 billion in 2022.

The Board of Directors, pursuant to the powers vested in it by the provisions of Section 426 of the Companies and Allied Matters Act (CAMA) 2020, has recommended a dividend of 50 kobo per ordinary share, amounting to N17,947,646,398 (2021: N12,563,352,477). Withholding tax will be deducted at the time of payment.

In 2022 while commenting on the Group’s performance, the Group Managing Director, FBN Holdings, Mr. Nnamdi Okonkwo said, “I am very proud to have assumed the role of Group Managing Director of this great organisation in January 2022 and I am excited about building on the momentum of recent positive developments.

“As a Group, we are acutely aware of the macroeconomic challenges facing businesses and remain focussed on carefully navigating the environment through innovation and by putting our customers at the centre of our attention.

“As a financial service holding company, driving synergies remains a critical part of our strategy and has been integrated into every aspect of our delivery model.

“We pride ourselves in the uniqueness of our diversified portfolio and the collaborative ecosystem that we have built around our lines of business, our customers, and the unique value proposition that we deliver. “

“We are also increasingly leveraging technology – artificial intelligence, robotics, and other next-generation technological advancements, to deepen collaboration and further drive operational efficiency across the Group.

“Highlighting revenue and profitability, the Group delivered a stellar performance growing gross revenue by 28.2per cent to N757.3 billion and profit before tax by 99.1per cent to N166.7 billion.

“The 30 per cent growth in loans and advances to N2.9 trillion and 16.2per cent growth in total asset to N8.9 trillion reaffirms our commitment to drive revenue and profitability as we complete the balance sheet clean-up.

He added that, “In 2022, our strategic focus is on revenue generation through digital channels and retail product offerings, further driving our synergy potential as well as continuing to improve our operating model to deliver more efficiencies”.

The Board of Directors of the African Development Bank Group has approved an equity investment of $20 million in the Africa50 Infrastructure Acceleration Fund I, in support of its target to mobilize private capital for infrastructure across the continent.

The Africa50 Infrastructure Acceleration Fund I is a pan-African infrastructure private equity fund that is mobilizing up to $500 million for investment and value creation in strategic infrastructure sectors. These include power, energy, digital and social infrastructure, transportation, logistics, and water and sanitation.

The fund is sponsored by Africa50, an infrastructure investment platform established by governments and the African Development Bank. Africa50 brings infrastructure project development and financing under one umbrella.  Africa50 has a strong track record of investments in the private sector and of projects undertaken under a Public Private-Partnership (PPP) framework.

The mobilization of private capital is critical to closing the infrastructure financing gap in Africa, especially given the limited fiscal space of African governments which currently provide the largest source of infrastructure funding on the continent.

The Africa50 Infrastructure Acceleration Fund I was established as a vehicle to help execute Africa50’s mandate of mobilizing private capital and accelerating further investment flows into African infrastructure by targeting private and institutional investors.

African Development Bank Director for the Industrial and Trade Development Department, Abdu Mukhtar said the Bank’s investment in the Fund underlined its strategic nature and the fact that the Bank prioritizes investing in strategic infrastructure sectors that contribute to closing Africa’s infrastructure financing gap (estimated at $68-108 billion annually).

“The Bank’s investment will support Africa50 to crowd-in private capital into African infrastructure through a private equity fund vehicle that private investors better understand and are more comfortable investing in,” Mukhtar said.

Commenting on the approval, Wale Shonibare, African Development Bank’s Director for Energy Financial Solutions, Policy and Regulations said the Bank’s support for the Africa50 Infrastructure Acceleration Fund I aligned with its High Five objectives. “It also strengthens the Bank’s already existing partnerships with the Africa50 Group on initiatives such as the African Sovereign Investors Forum and the Alliance for Green Infrastructure in Africa,” Shonibare added.

Alain Ebobissé, CEO of the Africa50 Group, said: “We are highly appreciative of the African Development Bank’s support for the Africa50 Infrastructure Acceleration Fund I. We look forward to continuing to work collaboratively with the African Development Bank and other investors to make a meaningful contribution to improving the infrastructure landscape on the continent.”

By leveraging private capital for infrastructure investment, The Africa50 Infrastructure Acceleration Fund I can help create jobs, strengthen healthcare access, improve education access through digital technologies, enhance access to financial services and financial inclusion through fintech investments, and reduce the impact of climate change. The fund is projected to create 3,278 full-time equivalent jobs over the period 2023-2035, including 1,676 jobs for women. In addition, the fund is expected to contribute to fostering regional integration through improvements in transport and logistics infrastructure that can lead to increased inter and intra-regional trade.

The African Development Bank and partners in the new fund will continue to provide growth capital and infrastructure equity to support the urgent need to accelerate private sector funding toward bridging the infrastructure financing gap in Africa.

A new study by Juniper Research, the foremost experts in payments, has found that the value of digital prepaid card transactions will exceed $3.98 trillion globally by 2028, up from $528.7 billion in 2023. 

Open-loop Prepaid Cards Drive Adoption

By 2028, the value of digital prepaid card transactions will represent just under 60% of total prepaid cards spend, up from 15% in 2023; demonstrating the rapid growth of digitisation. It also reflects the greater use of digitally issued open-loop prepaid cards as loyalty rewards; replacing more traditional gift cards. Open-loop systems, where payments can be made anywhere cards are accepted, will lead to an increasingly blurred line between prepaid cards and gift cards. This will make the much wider loyalty market increasingly addressable for prepaid card vendors, compared with the closed-loop system, where payments can only be made at specific vendors.

A digital prepaid card is a virtual form of a prepaid card that exists entirely in digital format and can be accessed through a mobile app or online platform.

New Growth Markets for Digital Prepaid Cards

•    The number of prepaid cards issued digitally is expected to surpass 940 million by 2028.

•    Prepaid cards are highly appealing to the unbanked; offering the functionality of payment cards without the need of an account with a financial institution.

Financial inclusion remains a key issue for the millions of unbanked and underbanked across the world. However, advances in digitalisation, smartphone availability, and the ease with which vendors can now issue prepaid cards digitally and instantly, mean that financial inclusion is within near reach of a growing number of users.

Research co-author Nick Maynard explained: “Financial inclusion use cases can significantly accelerate the success of prepaid cards, but vendors must keep the costs very low to ensure prepaid cards remain competitive for these use cases versus mobile money apps or central bank digital currencies.”