FBN Holdings Plc has announced a 142% year-on-year (y-o-y) increase in Profit Before Tax (PBT) to N862 billion for the year ended December 31, 2024.
In the unaudited financial statements obtained by Investors King, the Group recorded growth across key financial metrics as strategic market positioning bolstered earnings.
Gross earnings rose 113% y-o-y to N3.33 trillion while net interest income surged by 155% to N1.39 trillion. Improved revenue from fund transfers, digital channels and intermediation fees aided non-interest income by 43.3% to N846.9 billion in the period under review.
Despite a N411 billion impairment charge, the Group’s underlying performance remained strong. However, without the impairment charge, PBT would have reached N1.3 trillion.
The Group’s loan portfolio expanded with total loans to customers rising by N2.797 trillion to N9.4 trillion on increased lending from the Commercial Banking Group and the impact of naira depreciation on foreign currency (FCY)-denominated loans.
Customer deposit liabilities surged by 62% to N17.29 trillion, driven by sustained deposit mobilization, digital banking investments and FX translation effects.
Total assets climbed to N26.54 trillion, up from N16.94 trillion in 2023, reinforcing the Group’s financial strength.
The firm also recorded a higher average earnings yield of 16.71%, supported by loan volume expansion despite a rise in the cost of funds to 5.79% from 3.36% in 2023.
Net interest margin (NIM) improved from 6.11% to 9.61%, reflecting the impact of the CBN’s Monetary Policy Rate (MPR) hikes, which increased from 18.75% in December 2023 to 27.25% in December 2024.
FBN Holdings attributed the growth in non-interest income to increased fee and commission earnings as digital banking platforms recorded higher transaction volumes during the period.
The Group maintained its risk management framework, ensuring stability amid market volatility while emphasizing its commitment to enhancing governance, operational efficiencies and shareholder value.