Despite Forex Headwinds and Other Challenges, FBN Holdings Grows Profit by 1,162% in Q3, 2022

Nigeria’s leading financial institution, FBN Holdings Plc reports a 45% jump in interest income from N99.100 billion recorded in the three months through September 30, 2021 (Q3) to N144.011 billion in Q3 2022.

In the bank’s unaudited financial statement obtained by Investors King, interest expense increased by 18.6% to N47.390 billion year-on-year, up from N39.962 billion.

Still, FBN Holdings was able to grow net interest income to N96.621 billion, a 63.3% increase when compared to N59.138 billion recorded in the same period of 2021.

Growth was broad-based as net interest income after impairment charge for losses also improved to N81.621 billion year-on-year. Another 60% growth from N51.013 billion.

While fee and commission income stood at N40.148 billion from N34.689 billion. Net fee and commission income expanded by 14.4% in the period to N32.628 billion.

Despite losing N14.375 billion to forex differential, FBN Holdings was able to broaden net gains on sale investment securities by 8,625% from N52 million achieved in Q3 2021 to N4.537 billion.

Similarly, net gains from financial instruments at FVTPL increased by 47.7% from N7.187 billion to N10.616 billion. Also, other operating income did a turnaround from -N9.076 billion in Q3 2021 to N2.887 billion in the period under review.

Accordingly, operating profit increased by a whopping 401.9% from N7.900 billion in Q3 2021 to N39.655 billion. FBN Holdings realised N114 million as its share of profit from associates to post a profit before tax of N39.769 billion.

The bank paid N5.082 billion as company income tax to report a 1,162% jump in profit after tax to N34.666 billion from N2.746 billion attained a year earlier.

Commenting on the bank’s strong performance, Mr. Nnamdi Okonkwo, the Group Managing Director, FBN Holdings said “FBNHoldings has again in Q3 2022 delivered a stellar performance, growing sustainable income from our core businesses. This is a testament to the success of our focus on carefully growing the business and driving profitability.

“As a result, Gross earnings grew 26.6per cent y-o-y to N546.2 billion, while profit before tax doubled y-o-y to N105.5 billion. I am particularly delighted by the significant improvement in our credit risk portfolio.”

FBN Holdings’ non-performing loan in the quarter stood at 4.7%, below CBN five percent threshold.

“Furthermore, during the period under review, in attestation of the progress made by the Group, Fitch upgraded the credit ratings of FBNHoldings and FirstBank to ‘B’ with a Stable Outlook.

“Value creation remains our overarching objective as we continue to leverage the strengths of our unique brand and heritage to optimise our diverse business portfolio.

He added that, “We are confident of making further progress, with the capacity to generate sustainable performance that delivers superior returns to all our stakeholders.”