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FBN Holdings Post Gross Earnings of N505 Bn, Post Tax Profit Drop by 82%

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FBN Holdings Plc has declared gross earnings of N505.2 billion for the financial year ended Dec. 31, 2015. It also posted N481.8 billion in 2014.

The report contained in the company’s audited result released on Tuesday in Lagos, showed an increase of 4.9 per cent when compared with figure for 2014.

The company’s net interest income stood at N265 billion against N243.9 billion achieved in 2014, an increase of 8.7 per cent.

The company’s non-interest income dropped to N99.4 billion in contrast to N112.99 billion in 2014, a decrease of 12 per cent.

Also, its profit after tax stood at N15.1 billion against N84 billion in the preceding period of 2014, a decrease of 82 per cent. year-on-year.

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The profit before tax also dropped by 77.1 per cent to N21.5 billion against N94.1 billion recorded in 2014, while its operating income grew by 2.3 per cent to N364.4 billion against N356.2 billion in the previous year.

The company also reported impairment charge for credit losses of N119.3 billion against N25.9 billion in 2014.

Its operating expenses decreased by 5.6 per cent to N223.6 billion in contrast with N236.8 billion in 2014.

Total assets dropped marginally to N4.2 trillion against N4.3 trillion, a decrease of 4.1 per cent, while customer deposits stood at N2.97 trillion compared with N3.1 trillion in the comparative period of 2014.

Commenting on the results, UK Eke, the company’s Group Managing Director, said that it had been a very difficult time in the history of the institution.

“Despite the tough macroeconomic and regulatory backdrop during the year, our underlying business remains strong as reflected in the gross earnings growth of 4.9 per cent to N505.2 billion.”

He explained that the holding company platform had provided support in mitigating the impact of credit losses and the vulnerabilities experienced by its commercial banking business.

“In coming periods, our primary focus is to drive efficiency and operational excellence across all operating companies,” Eke stated.

He said that the company would focus on moderating risk appetite, risk management practices and culture, disciplined cost containment, asset optimisation and synergy realisation to eliminate the value eroding factors.

“We will be sustaining the drive to improve cross sell initiatives, improve performance and returns from our subsidiaries to provide diversified and sustainable revenue for the Group.

Whilst acknowledging the challenges facing the group, we are committed to achieving our set tasks,” he added.

Eke said that the major priority of the company was to restore shareholder value whilst building long-term sustainability into our businesses.

FBN Holdings Plc had in February notified the Nigerian Stock Exchange (NSE) that its expected earnings for the financial year ended Dec. 31, 2015 would be below 2014 figures.

The company in the letter signed by Tijjani Borodo, FBN Holdings Company Secretary, said its earnings would be materially below 2014 figures.

It stated that the reduction in earnings was due to the recognition of impaired charges on some specific accounts resulting from a reassessment of the loan portfolio of its commercial banking businesses.

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