Under Otedola’s Leadership, FBN Holdings Doubles Half-Year Profits

FBN Holdings, Nigeria’s oldest financial institution, has doubled its pre-tax profit to a record N411.9 billion in the first half of 2024.

This is the bank’s best-ever half-year performance and highlights the transformative impact of new leadership under Chairman Femi Otedola and Managing Director/Chief Executive Olusegun Alebiosu.

Femi Otedola, a billionaire investor, assumed the chairmanship of FBN Holdings in January, and Olusegun Alebiosu took over as acting MD/CEO in April. Their leadership has been instrumental in driving the bank’s remarkable growth as evidenced by the latest financial results.

The second-quarter results for 2024 revealed a pre-tax profit of N177.79 billion, representing an increase of 18.9% year-on-year.

A major factor contributing to growth is the rise in Net Interest Income, which surged by 132% to N288 billion from N124.3 billion.

This growth was primarily driven by loans and advances to customers as well as income from investment securities. These factors combined to produce an interest income that was 2.5 times higher than the N197 billion reported a year earlier and surpassed the N446 billion reported in the first quarter of 2024.

Furthermore, Net Fees and Commission rose to N58.4 billion from N37.5 billion, a 55.7% growth.

Operating Profit also grew by 18.8% to N177.7 billion, up from N149.5 billion. The company’s pre-tax profit for the second quarter climbed 14.2% from N136.6 billion to N156.1 billion, while Earnings Per Share stood at 40 kobo.

Loans and advances to customers increased 42.8% to N9 trillion from N6.3 trillion to show the bank strengthened lending activities.

Similarly, customer deposits expanded from N10.6 trillion to N15.1 trillion, representing a 42.4% increase. Net Assets stood at N2.2 trillion, up from N1.7 trillion.

Despite reporting a net foreign exchange loss of N66.45 billion and a total half-year loss of N165 billion, FBN Holdings recorded N143.3 billion in net gains from instruments at fair value.

In terms of segment performance, the commercial banking group contributed N366.1 billion to total profits, while the Investment Banking and Asset Management group added N37.1 billion.

These contributions underscore the diversified nature of FBN Holdings’ revenue streams and its strategic focus on strengthening various business segments.

Femi Otedola’s influence has been seen as a significant vote of confidence, signaling to the market and other investors the bank’s strong growth potential.

Since his appointment, several board changes have taken place, with Olusegun Alebiosu stepping in as Managing Director/Chief Executive.

Their leadership has focused on streamlining operations, reducing non-performing loans, and leveraging new technologies to enhance customer engagement and operational efficiency.

As FBN Holdings gears up for its own recapitalization exercise, the bank’s share price remains down 11% year-to-date, standing at N21 per share.