FBN Holdings Remains Resilient as Total Assets Hits N10.58trn
Kayode Tokede
Amid growing customer loans & advances and customer deposits, FBN Holdings Plc crossed the N10trillion mark in total assets to N10.58trillion in audited 2022 financial year, an increase of 18.4 per cent from N8.93 trillion reported in 2021 financial year.
The growth in total assets demonstrated improving earning asset position, cash and balances with central Banks, loans to banks & customers and investment securities constitute now 88.9per cent of total assets versus 87.2per cent in the prior year.
Both Customer loans & advances and customer deposits grew by 32per cent and 22per cent to N3.79 trillion and N7.21 trillion in 2022 on the heels of severe competition in the banking sector.
The group reported N805.1billion gross earnings in 2022, a growth of 6.3 per cent from N757.3billion reported in 2021.
The growth in gross earnings was driven by strong growth in interest income (49.6per cent y-o-y) to N551.9 billion from N369.0 billion in 2021.
The increase in interest income benefited primarily from 31.5 per cent y-o-y growth in loans to customers. This was further supported by the higher interest rate environment, which positively impacted yields.
On the other hand, interest expense growth of 34per cent y-o-y to N188.7 billion from N140.8 billion in 2021, was contained following strategic growth in deposit mobilisation and funding at optimised rates. As a result, net interest income improved impressively by 59.2 per cent y-o-y to N363.2 billion from N228.2billion in 2021.
With about nine per cent growth in total operating expenses to N364.1billion in 2022 from N334.2billion in 2021, Profit before tax dropped by 5.4 per cent to N157.7billion in 2022 from N166.7billion in 2021.
Profit for the year also dipped by 10 per cent to N136.1billion in 2022 from N151.1billion reported in 2021.
The group, thus, proposed dividend of N0.50 per share in 2022 from N0.35 kobo paid to shareholders in 2021 financial year.
The Group Managing Director, FBN Holdings, Mr. Nnamdi Okonkwo while commenting on the results stated that, “FBNHoldings continues to make good progress in transforming the enterprise despite the uncertain and complex operating environment, leveraging the execution capabilities of top talents across the Group to generate sustainable value for all our stakeholders.
“In 2022, we grew net interest income by 59.2per cent y-o-y to N363.2 billion which ultimately delivered a robust profit before tax of to N157.7 billion from the ordinary business of the Group.
“As a reaffirmation of our commitment to drive revenue and profitability leveraging on the strengthened balance sheet, loans and advances grew 31.5 per cent y-o-y to N3.8 trillion and total asset 18.4 per cent y-o-y to N10.6 trillion, while our investments in technology and strong transactional and digital banking capabilities continue to support non-interest income generation.
In line with our strategic priorities, we are driving further revenue and profitability growth through a carefully evaluated delivery model of service offerings, with a focus on owning the customer journey while deepening our unique value proposition across markets.
“We are re-imagining our digital client acquisition and product offerings and accelerating next generation capabilities to exceed current requirements of existing and potential customers. In addition, we remain committed to enhancing our operational efficiency with a focus on optimising processes through technology and digital platform delivery while ensuring its availability and stability.
“Finally, we see endless possibilities ahead, as we keep defining frontiers of financial services, optimising the depth and breadth of our unique portfolio of businesses to unlock the full potential of FBNH.”
