Banking Sector

FBN Holdings Soars to New Heights, Reports Staggering 231% Surge in Profits Amid Foreign Exchange Woes

Interest and Commission Income Propel Growth as Total Assets Reach Unprecedented Levels

Published

2 months ago

July 21, 2023

FBN Holdings has stunned investors and market analysts alike with an extraordinary 231% increase in half-year profits, catapulting the company’s earnings to a jaw-dropping N187.24 billion.

This incredible performance, compared to N56.602 billion during the same period in the previous year, has left the financial industry in awe.

According to the financial institution’s unaudited financial statement obtained by Investors King for the period ended June 30, 2023, interest income and fee and commission income were the driving forces of the reported growth in the period under review.

Interest income witnessed an impressive 69% increase to N383.29 billion while the fee and commission income rose to N88.85 billion, a significant jump from the N70.69 billion recorded in June 2022.

However, the foreign exchange income plunged to -N98.42 billion for the financial period, down from N16.510 billion reported in the same period of 2022.

Despite the foreign exchange setback, FBN Holdings showcased remarkable resilience in other areas. The total assets of the company reached an astounding N14.18 trillion, signifying a remarkable 34% growth compared to N10.58 trillion at the end of 2022.

Likewise, the total liabilities of the group saw a parallel increase, rising by 34% to N12.79 trillion.

Market analysts are attributing the soaring profits and burgeoning assets to effective financial strategies and a keen focus on diversified income streams.

FBN Holdings’ ability to leverage interest and commission income has undoubtedly contributed to its phenomenal success. Commenting on the results, The National Coordinator of the Progressive Shareholders Association,

Boniface Okezie, the National Coordinator of the Progressive Shareholders Association, who also commented on the company’s performance, said, “It is a commendable one. That shows that a lot of work has been put in place. Some of the debts that had been written off might have come in. Without that, I don’t think they would have grown their profits by these percentages.

‘The management had assured us at the last AGM that they would recover loans and outstanding debt and ensure that their subsidiaries are making moves to position themselves to grow their earnings and contributions to the group.”

According to Vice Chairman at Highcap Securities, David Adonri, this is the result of FBN Holdings’ heavy provisions in 2022.

“I think last year and the previous one, FBN was making heavy provisions, so what we are seeing now is a base effect because the profit was quite low last year,” he stated.

“Then they had not fully provided for their delinquent loans. I believe they have completed the provisioning and are now reporting normal profits.”

Investors and stakeholders eagerly anticipate the audited financial reports for the year-end to gain further insights into the remarkable journey of FBN Holdings in 2023.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Banking Sector

Access Bank, Others Collect N154 Billion in Electronic Banking Fees in H1’23, a 16.7% YoY Surge

Published

4 days ago

September 28, 2023

Samed Olukoya

In the first half of 2023, customers of Nigeria’s top nine commercial banks paid a whopping N154 billion in fees for utilizing electronic banking services, reflecting a robust 16.7% year-on-year increase compared to H1’22’s N131.97 billion.

The data, extracted from the financial statements of these banks, underscores the escalating trend of Nigerians embracing electronic payment channels.

Leading the pack in revenue generation from these fees is Access Bank, amassing N43.9 billion, followed by United Bank for Africa Plc (N51.07 billion), Zenith Bank (N22.27 billion), Guaranty Trust Bank (N21.2 billion), and others like Stanbic IBTC (N2.14 billion), First City Monument Bank (N7.4 billion), Unity Bank (N1.96 billion), Fidelity Bank (N1.85 billion), and Wema Bank (N3.13 billion).

Electronic banking services encompass a gamut of options, including internet banking, mobile banking, ATMs, and Point of Sale (PoS) systems.

Recent data from the Nigerian Interbank Settlement System (NIBSS) for Q1’23 indicates a substantial surge in electronic transactions.

Transaction volume increased by 209% YoY to 4.7 billion, and transaction value grew by 48% YoY to N137.52 trillion.

The nine banks collectively raked in N66.7 billion in account maintenance fees and commissions during H1’23, reflecting a 14.7% YoY rise.

Zenith Bank led this category with N21.02 billion, trailed by Access Bank (N13.36 billion), Guaranty Trust Bank (N10.5 billion), and United Bank of Africa (N9.6 billion).

Overall, the banks’ cumulative net fees and commission income registered a substantial 20.7% YoY growth, reaching N448.47 billion in H1’23 from N371.43 billion in H1’22.

Banking Sector

Access Holdings Posts 52.6% Profit for the First Half of the Year

Parent Company of Access Bank Celebrates Remarkable Financial Performance in H1’23

Published

6 days ago

September 26, 2023

Investors King

Access Holdings Plc, the parent company of Access Bank, has reported a 58.9 percent surge in gross revenue to N940.3 billion for the first half of 2023.

The financial services giant also recorded remarkable growth in Profit Before Tax (PBT) and Profit After Tax (PAT) at 71.4 percent and 52.6 percent, respectively, culminating in N167.6 billion for PBT and N135.4 billion for PAT during the same period.

These financial milestones were unveiled as part of Access Holdings’ Audited Consolidated and Separate Financial Statements for the period concluding on June 30, 2023.

The driving force behind this unprecedented growth can be attributed to a potent combination of factors. A 63.0 percent growth in interest income and a 51.9 percent increase in non-interest income fueled the surge in gross revenue.

Access Holdings also witnessed a 35 percent year-to-date growth in customer deposits, capping the first half of 2023 at an impressive N12.5 trillion. This remarkable achievement encompassed all business segments, reinforcing the Group’s status as Nigeria’s largest financial institution by total assets.

The company’s total assets grew by 39.0 percent year-on-year to N20.9 trillion while shareholders’ funds surged by 40.6 percent to N1.7 trillion.

These astounding figures underline the Group’s ability to generate value from a diversified business portfolio, spanning banking, asset management, and payment services.

Herbert Wigwe, the Group Chief Executive Officer of Access Holdings Plc, commented on the company’s positive performance, saying, “Our growth plans for the African continent remain firm and clear, driven by the strong long-term growth prospects and trade opportunities seen across many of the countries.”

He went on to emphasize the company’s commitment to its 5-year cyclical strategy, stating, “Our primary objective remains to transform Access Holdings Plc into a leading financial and ecosystem player, fostering opportunities for shared prosperity among all stakeholders.”

Banking Sector

Central Bank of Nigeria Postpones 293rd Monetary Policy Committee Meeting

Published

1 week ago

September 22, 2023

Investors King

The Central Bank of Nigeria (CBN) has announced the postponement of its 293rd Monetary Policy Committee (MPC) meeting, originally scheduled for September 25th and 26th, 2023.

Dr. Isa AbdulMumin, the bank’s Director of Corporate Communications, released a statement on Thursday confirming the decision.

In the statement, Dr. AbdulMumin stated, “The Monetary Policy Committee of the Central Bank of Nigeria has deferred its 293rd meeting, which was initially planned for Monday and Tuesday, September 25th and 26th, 2023, respectively. A new date will be communicated in due course. We regret any inconvenience this change may cause our stakeholders and the general public.”

While the CBN did not provide an official reason for the postponement, some industry experts suggest it may be related to the pending approvals for the newly appointed governor and deputy governors of the bank.

President Bola Tinubu recently nominated Yemi Cardoso as the potential head of the CBN. Additionally, Tinubu has endorsed the nominations of four new deputy governors for the apex bank, who are expected to serve for an initial term of five years, pending confirmation by the Senate.

The nominated deputy governors are Emem Usoro, Muhammad Abdullahi-Dattijo, Philip Ikeazor, and Bala Bello. However, the appointment of the CBN governor is contingent upon Senate confirmation, which is currently on a yearly recess.

The CBN assures stakeholders and the public that the rescheduled MPC meeting date will be communicated promptly as soon as it is confirmed.