FBN Holdings Plc, on Thursday presented its unaudited financials for the first quarter ended March 31, 2022, reporting a significant 107.69% growth in net profit for the period, after impairment charge for losses fell from N13.175bn to N8.751bn, while foreign exchange income grew from N2.681bn to N5.746bn, among others.
According to the result presented to the Nigerian Exchange Limited, a day after the submission of its 2021 audited financials, FBN Holdings which a turbulent full-year leading to the dissolution of its board and that of the flagship subsidiary- First Bank of Nigeria Limited, reported a first quarter gross earnings income of N181.71bn, up from.. A total of N169.394bn came from the commercial banking group, which contributed N169.394bn; while merchant banking and asset management contributed N10.493bn
Interest income amounted to N109.448bn, up from N78.357bn; while interest expense rose from N25.564bn to N36.652bn; resulting in a net interest income of N72.796bn, compared to the previous N52.793bn.
Fee and commission income dropped slightly from N34.027bn to N33.71bn, driven by the N12.19bn earned from electronic banking, a drop from N14.412bn; while expense increased to N6.387bn from N5.6bn; following which net fee and commission income dropped to N27.323bn from N28.427bn.
Apart from the foreign exchange gain, net gains on sale of investment securities dropped to N14.589bn from N17.864bn; net gains from financial instruments at FVTPL soared from N3.119bn to N14.795bn at the end of the 2022Q1. Other operating income stood at N2.183bn from N501m; personnel expenses rose marginally from N24.806bn to N25.816bn; depreciation, amortization and impairment increased to N7.254bn from N6.51bn; and other operating expenses from N42.015bn to N59.305bn, the bulk of which was the N29.063bn termed “regulatory cost,” from N15.326bn; and maintenance which rose from N7.226bn to N9.414bn; resulting in an operating profit of N36.59bn, compared to the previous N18.905bn.
Profit before tax improved from N18.905bn to N36.518bn; while income tax expense of N4.076bn, up from N3.285bn let net profit at N32.442bn, up by N16.822bn from the N15.62bn reported in the previous first quarter. Earnings per share for the period rose from N0.43 in the corresponding period of last year to N0.89 each.
A further breakdown of the result showed that commercial banking contributed N104.243bn to interest income, up from N74.301bn in the 2021Q1; and was responsible for N32.197bn interest expense, up from N23.018bn, up from N13.076bn; N8.673bn impairment charge for loss, from N13.076bn; and N30.111bn of net profit, an improvement over the previous N13.949bn.
By geography, FBN Holdings earned N152.706bn revenue from the domestic environment, compared to the previous N113.327bn; and N27.777bn from outside Nigeria, up from N23.248bn.
Meanwhile the group has recommended the payment of a final dividend of 35 kobo per 50 kobo ordinary shares for members whose names appear in the register of members at the close of business on June 13, 2022, a day before it is scheduled to close. The dividend will be paid electronically to qualified shareholders on June 21, 2022.