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FBN Holdings grows post-tax profit by 48% in H1 2022

FBN Holdings Plc has posted a 48% increase profit after tax of N56.5 billion for the first half (H1) of the financial year 2022, up from N38.1 billion posted the same period in 2021.

In a filing on the Nigerian Exchange, the holding company put profit before tax at N65.7 billion from N45.2 billion year-on-year, a 45.3% increase.

Also, gross earnings rose 22.4% to N359.2 billion from N293.4 billion during the period in review.

Commenting on the result, the Group Managing Director, FBN Holdings, Nnamdi Okonkwo, said the financial services company demonstrated resilient performance despite the challenging operating environment.

He said: “FBN Holdings continues to demonstrate resilient performance despite the challenging operating environment with an impressive improvement in revenue and profitability.

“For the half year 2022, gross earnings and profit before tax grew by 22 per cent and 45 per cent to N359.2 billion and N65.7 billion respectively.

“Furthermore, we continue to see good progress across our performance metrics, which remain in line with our focus on driving sustainable growth.

Our strategic intent remains unchanged in optimising opportunities that drive growth in revenue, profitability, capital accretion and overall operational efficiency that delivers sustainable value to our stakeholders.

“The Group remains committed to its transformation drive, which has resulted in a stronger balance sheet and better asset quality with non-performing loans closing at 5.4 per cent at H1 2022.

“Similarly, risk management capacity remains robust across the Group supporting the drive for enhanced earnings for sustainable capital accretion,” Okonkwo said. He said that the company would continue to deliver sustainable value to its stakeholders.

“Our strategic intent remains unchanged in optimising opportunities that drive growth in revenue, profitability, capital accretion and overall operational efficiency that delivers sustainable value to our stakeholders.”

Key initiatives

Similarly, the Chief Executive Officer, First Bank of Nigeria Ltd., Dr Adesola Adeduntan, said the commercial banking group remained focused on executing key initiatives to position the Group for improved profitability in 2022, amidst a challenging operating and dynamic regulatory environment in H1 2022.

He said: “Our half-year results further reinforced our drive toward our ‘Quantum Profitability Leap’ agenda. Our gross earnings are up 22.6 per cent to N338.5 billion and net interest income up 49.3 per cent to N152.9 billion, respectively.

“On the back of the impressive growth recorded in our top line, our profit before tax recorded a strong growth of 40 per cent to N60 billion.

“Profit after tax also grew by 42.3 per cent to N53.3 billion as the bank continues to reap the dividends of the successful restructuring of its balance sheet and revamping of our risk management architecture.

“We continue to record progress in driving down our non-performing loan ratio which now stands at 5.4 per cent at the end of H1 and we are on target to bring it within the regulatory limit of five per cent by end of 2022.”

Adeduntan reassured that the current momentum of generating impressive returns from the quality risk assets portfolio already created would be sustained.

“We will continue to strengthen our dominant digital banking capabilities in providing best-in-class services to all segments of our customers across all our footprints in sub-Saharan Africa and beyond,” he said.

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