FBN Holdings N40.79bn, As Loan Loss Charge Drops By 36.54%

The board of FBN Holding released its long-awaited audited financials for the nine-month ended September 30, 2021, showing drops in gross revenue profit before and after-tax, which was mitigated by the N17.056bn or 36.54% reduction in an impairment charge for losses for the period from N46.675bn to N29.619bn.

According to details of the result, submitted to the Nigerian Exchange on Monday, interest income fell from N297.713bn in the corresponding period of 2020, to N260.118bn; while interest expense dropped to N97.157bn, up from N104.976bn, resulting in a net interest income of N162.961bn, compared to the N192.737bn reported in the preceding nine months.

Gross earnings income for the period stood at N429.273bn, the lion’s share of which came from the commercial banking group at N396.127bn. Net interest income after impairment charge for losses stood at N133.342bn, up from the previous N146.062bn; fee and commission income rose from N87.592bn to N103.766bn; driven by income from electronic banking fees, which rose to N42.023bn from N34.595bn; followed by letters of credit commissions and fees from N8.405bn to N12.573bn; account maintenance yielded N11.742bn from N8.81bn; credit-related fees, N8.735bn from N5.388bn; and custodian fees, N5.496bn from N4.8bn; among others. Fee and commission expense rose from N14.604bn to N17.867bn, resulting in net fee and commission income N85.899bn, compared to the previous N72.988bn.

The group recorded a huge boost in foreign exchange income of N5.907bn, as against the loss of N624m; net gains on the sale of investment securities, however, dropped to N21.466bn from N41.182bn; net gains from financial instruments at face value soared to N29.615bn from N7.719bn; dividend income was flat at N3.547bn from N3.634bn. Other operating income rose to N2.978bn from N2.082bn; personnel expenses increased from N74.175bn to N79.321bn; depreciation of property and equipment stood at N14.745bn from N13.477bn; amortization of intangible assets rose slightly to N5.82bn from N5.085bn; other operating expenses rose from N117.027bn to N129.568bn.

Operating profit dropped to N53.3bn from N63.28bn; profit before tax stood at N52.933bn, down from N63.313bn; income tax expense rose to N12.082bn from N8.958bn. Net profit stood at N40.851bn from N54.355bn.

On the balance sheet, total assets rose to N8.505tr at the end of the nine months, compared to N7.689tr at the end of last financial year; boosted by customer loans and advances which grew from N2.217tr to N2.766tr; while total liabilities increased to N7.751tr from N6.923tr, lifted by customer deposits that jumped from N4.894tr to N5.415tr. Shareholders’ funds however dropped from N756.086bn at the end of last December to N743.797bn