FBN Holdings releases 2023 audited accounts, grew profits by 128%

FBN Holdings Plc, the parent company of FirstBank, has released its financial result for   the year ended December 2023, posting profit after tax of N310.4billion, a significant increase from the N136.3 billion reported for the same period in 2022.

This marks the highest profit ever declared by the financial services giant in its more than 130-year history.

Although the company published its interim full-year results in January, the release of the audited accounts was delayed for several weeks due to awaiting regulatory approvals from the Central Bank of Nigeria (CBN)..

The company result submitted at the Nigerian Exchange yesterday showed a growth trend across various financial metrics for the period.

The company revenue rose by N778.834 billion or 95.67 per cent to N1.595 trillion from N815.166 billion reported in the preceding year.

Net Interest Income grew to N548.9 billion, rising by 51 per cent  from N363.2 billion in the previous year while the Impairment Charge up by 231 per cent to  N227.4 billion compared to N68.6 billion in 2022.

Also, Fees and Commissions went up by 64 per cent  to N193.1 billion, against N117.6 billion achieved in the comparable period of last year.

The group’s operating profit increased  by 127 per cent  standing at N358 billion from N157.7 billion reported in the preceding year.

The company deposit grew by 53 per cent, to N12.4 trillion compared to N8.1 trillion in the previous year while Total Assets saw a growth trend of 61 per cent , rising  to N16.9 trillion from N10.5 trillion recorded in the comparative period of 2022.

 In recent weeks, the company has also undergone significant leadership changes, including the appointment of a new Managing Director and Chairman for its flagship bank, as well as new board members for both the holding company and the bank.

Key Highlight of the Group’s Performance in the year under review

FBN Holdings Plc reported significant growth across various financial metrics for the year ended December 2023.

Net Interest Income rose to N548.9 billion, marking a 51% increase from N363.2 billion in the previous year.

The Impairment Charge surged by 231%, reaching N227.4 billion compared to N68.6 billion in 2022. Fees and Commissions increased by 64% to N193.1 billion, up from N117.6 billion.

The group’s Operating Profit grew by 127%, reaching N358 billion from N157.7 billion.

Profit After Tax saw an impressive increase of 128%, rising to N310.4 billion from N136.1 billion.

Earnings Per Share more than doubled, increasing by 129% to N8.59 from N3.75.

Loans and Advances nearly doubled, increasing by 108% to N8.3 trillion from N4 trillion.

Deposits grew by 53%, reaching N12.4 trillion compared to N8.1 trillion in the previous year.

Total Assets saw a substantial increase of 61%, climbing to N16.9 trillion from N10.5 trillion.

Commentary: A major contributor to the bank’s profit was a N680.6 billion gain in Net Gains from financial instruments.

This increase can be attributed to the surge in foreign currency balances and financial instruments, which followed the unification of the naira and its subsequent depreciation. This trend was observed across many banks in Nigeria.

Another notable observation is the bank’s updated majority ownership. Barbican Capital now holds 8.67% of the shares, while billionaire investor Femi Otedola owns 5.65%.

The bank also confirmed that these shareholdings have been verified by the CBN.