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.