FBN Holdings gross earnings surged by 181% in Q1

FBN Holdings’ gross earnings skyrocketed by 181.43% to reach N1.60 trillion in the first quarter of 2024.

In a statement released on Sunday, the group highlighted that its exceptional results demonstrate its ability to thrive despite difficult economic conditions.

FBN Holdings demonstrated significant financial progress, with a notable shift in its revenue streams. Interest income accounted for 60% of total earnings, while non-interest income experienced a remarkable 153.67% growth, surging to N601.70 billion.

The Holdco profit before tax also increased by 25.15 per cent to N350.59bn in Q1 2024.

“Nigeria’s premier financial services group, FBN Holdings, further consolidated its top-tier ranking with a strong performance in the 2023 financial year and the first quarter of 2024, reporting significant growth in gross earnings and pre-tax profit of 95.7 per cent to N1.60trn and 126.86 per cent to N350.59bn, respectively, for the 2023 financial year,” it stated.

It added that the growth was achieved despite the headwinds of rising operating costs and foreign exchange impairments.

Analysts at Proshare Strategic Advisory Group highlighted that those results reflected FBN Holdings’ ability to navigate internal and external challenges effectively.

The analysts attributed the sterling performance to the strategic leadership of its former Managing Director, Adesola Adeduntan, who led the executive management team for nine years before stepping down in April.

“Insiders say that the bank’s performance is a testament to the strong leadership provided by erstwhile group managing director, Dr Adesola Adeduntan-led executive management team, who resigned his position in April after serving a record nine years at the helm.

The analysts attributed the sterling performance to the strategic leadership of its former Managing Director, Adesola Adeduntan, who led the executive management team for nine years before stepping down in April.

“Insiders say that the bank’s performance is a testament to the strong leadership provided by erstwhile group managing director, Dr Adesola Adeduntan-led executive management team, who resigned his position in April after serving a record nine years at the helm. A member of that team has since succeeded him, further affirming a transition that should lead to better outcomes,” the statement read.

Customer deposits rose by 49.68 per cent to N10.66tn, and its shareholders’ funds improved by 75.45 per cent to N1.75tn.

In 2023, the bank also reported a 126.8 per cent increase in profit before tax, reaching N350.59bn for the financial year.

Additionally, the group’s digital banking initiatives yielded N66.34bn, marking a 20.41 per cent increase over the previous year, indicating enhanced digital penetration and product usage.

The Holdco revealed plans to raise N300b in fresh capital to meet new regulatory requirements.

Analysts expressed optimism about the company’s prospects for continued growth, driven by its robust financial foundation and strategic initiatives aimed at sustaining momentum.