FBN Holdings Plc announced it generated during the first quarter of 2023, N50 billion profit after tax, which according to the analysis of the Nigerian Observer, was supported by the hike in the benchmark interest rate. The Q1 profit amounted to an increase of 53.3 percent over the N36.6 billion made as PAT in the corresponding period of 2022.

The double digits growth in Q1 2023 PAT was due to a 64 percent increase in interest income, and 53.6 percent growth in net interest income during the quarter.

Interest income rose to N179.61 billion up from N109.45 billion realised as of Q1 2022. Net interest income surged to N111.85 billion at the end of the first quarter of this year compared to N72.79 billion as of Q1 2022.
Net fee and commission income stood at NN35.29 billion as of March 2023 compared to N27.32 billion last year March.

Apart from the Q1 2023 unaudited results, the firm also released its full year 2022 audited financial statements.

And in line with its tradition of rewarding its shareholders, FBN Holdings has proposed a 50 kobo dividend per share for its shareholders, for the financial year ended 31 December 2022.

“The Board of Directors, pursuant to the powers vested in it by the provisions of Section 426 of the Companies and Allied Matters Act (CAMA) 2020, has recommended a dividend of 50 kobo per ordinary share, amounting to N17,947,646,398 (2021: N12,563,352,477). Withholding tax will be deducted at the time of payment,” FBN Holdings announced last week.

In 2022, the holdings company realised N805.1 billion as gross earnings, representing an increase of 6.3 percent when compared to N757.3 billion realised in 2021. Interest income of N551.9 billon in 2022 was higher than N369 billion made in 2021 by 49.6 percent.

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Profit for the year 2022 however fell by 10 percent to N136.1 billion, down from N151.1 billion in 2021, overwhelmed by interest expense and operating expenses.

Consequent upon the hawkish stance of the Central Bank of Nigeria that raised the benchmark interest rate, the Monetary Policy Rate four times in 2022, interest expense of FBN Holdings rose by 34 percent to N188.69 billion in 2022, up from N140.81 billion in 2021.

Operating expenses also increased by 23.3 percent to N218.48 billion in 2022, from N177.13 billion in the previous year.

Total assets increased by 18.4 percent to N10.58 trillion, from N8.9 trillion in 2021. Loans and advances to customers rose by 31.5 percent to N3.79 trillion, compared to N2.88 trillion in 2021. Customer deposits increased to N7.12 trillion in 2022, as against N5.5.85 trillion in 2021.

Nnamdi Okonkwo, FBN Holdings’ group managing director, attributed the company’s financial results to the Nigerian uncertain business environment, even as he said the firm generated sustainable value for all the stakeholders.

He said: “FBN Holdings 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 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.”