FBN Holdings Plc, the parent company of First Bank Plc and First Capital Ltd, amongst other financial institutions has posted a 21% rise in its Gross Earnings.
The company released its audited financial statements by email yesterday.
Key highlights of the Group’s performance are:
- Gross earnings of N480.6 billion, up 21.3% year-on-year (Dec 2013: N396.2 billion)
- Net interest income of N243.9 billion, up 6.0% year-on-year (Dec 2013: N230.1 billion)
- Non-interest income of N111.8 billion, up 66.1% year-on-year (Dec 2013: N67.3 billion)
- Operating income of N355.1 billion, up 19.8% year-on-year (Dec 2013: N296.4 billion)
- Impairment charge for credit losses of N25.9 billion, up 27.7% year-on-year (Dec 2013: N20.3 billion)
- Operating expenses1 of N236.8 billion, up 27.5% year-on-year (Dec 2013: N185.8 billion)
- Profit before tax of N92.9 billion, up 1.7% year-on-year (Dec 2013: N91.3 billion)
- Profit after tax of N82.8 billion, up 17.3% year-on-year (Dec 2013: N70.6 billion)
- A cash dividend of N0.10k per 50 kobo share and a scrip (bonus) issue of one (1) Share for every ten Shares held amounting to a total distribution of N1.05k per share (Dec. 2013: N1.10k), and 11.0% dividend yield
Commenting on the results, Bello Maccido, the Group CEO said: ‚The Group recorded a strong financial performance in 2014, in spite of the highly challenging operating environment particularly for our flagship business, First Bank of Nigeria. As such, the performance by the Banking Group is a testament to the underlying strength of our commercial banking business which is built on an extensive retail network and a robust information technology platform. Notwithstanding the tough operating environment, the Group showed commendable growth across all the key performance indicators buoyed by the complementary performance of our non-bank subsidiaries with gross earnings growing by 21.3% to N480.6 billion and Profit before tax at N92.9 billion‛. ‚We remain focused on diversifying our revenue streams through the extraction of value from our recent bank acquisitions, consolidating our position in the investment banking space, especially with the acquisition of Kakawa, and expanding our insurance business scope. Our investment in technology, human capital and portfolio expansion are beginning to shape the long-term fundamentals of the Group and will deliver a positive return on investment over the longer term. However, in the short to medium term we continue to ensure our business remains as resilient as can be to the shifts in the regulatory and macro-economic environment; shore up our risk management processes; and, drive efficiencies across the Group.‛
Other Notable activities during the Group’s financial year are listed below:
- FBN Holdings completed the acquisition of 100% equity of Kakawa Discount House Limited (Kakawa) which is now a direct subsidiary of FBNH.
- FBN Insurance Limited completed the acquisition of 100% equity interest in Oasis Insurance Plc.
- FirstBank acquired ICB Senegal to complete the acquisition of the International Commercial Bank’s (ICB) West African operations.
- FirstBank concluded a US$450 million subordinated Tier 2 debt issuance in the international markets for general banking purposes.
- Dr. Adesola Adeduntan (FCA) was appointed as Executive Director and the Chief Financial Officer for FirstBank following the appointment of Mr Adebayo Adelabu as a Deputy Governor of the Central Bank of Nigeria.
- Dr Hamza Sule Wurro Bokki was appointed as an Independent Non-Executive Director following the retirement of Lt. General Garba Duba (rtd). Additionally, in January 2015, Mr Omatseyin Akene Ayida and Otunba (Mrs.) Bosede Adebola Osibogun were appointed as Non-Executive Directors.