FBN Holdings reports 137.3% increase in profit to N736.73bn 

FBN Holdings Plc has announced its 2024 unaudited result and accounts, declaring N736.3 billion profit after tax, about 137.3 per cent increase over N310.48billion reported in 2023.

FBNH reported a 158.4 per cent increase in interest income to N2.42 trillion in 2024FY, surpassing the N2.00 trillion mark for the first time.

The surge in interest income was primarily driven by higher yields in the fixed income market and a 69.4per cent YTD expansion in earning assets to N18.99 trillion.

In nominal terms, the group saw significant growth across key income lines, including loans and advances to customers (+123.7per cent  to N1.36 trillion), investment securities (+205.0per cent to N849.66 billion), and advances to banks (+327.1 per cent to N206.42 billion).

Interest expenses also surged by 163.5 per cent to N1.03 trillion, driven by higher costs on deposits from customers (+135.2 per cent to N591.86 billion) and financial institutions (+427.4 per cent to N275.84 billion), despite an improved funding mix (CASA 2024FY: 81.6 | 2023FY: 81.2).

Similarly, borrowing costs rose by 86.3 per cent to N160.98 billion. Consequently, net interest income (ex-LLE) grew by 205.3 per cent to N980.93 billion after accounting for credit impairment charges of N410.81 billion.

Further down, operating expenses increased by 73.4 per cent to N965.82 billion, primarily driven by an increase in personnel expenses (+82.1 per cent to N320.23 billion), AMCON levy (+56.5 per cent  to N80.03 billion), depreciation and amortisation (+41.8 per cent to N60.79 billion), and NDIC premium (+46.9 per cent to N41.27 billion).

Analysts at  Cordros Research in a report stated that  FBNH delivered a strong 2024FY performance, aligning with its expectations as both funded and non-funded income expanded.

“The group reported an EPS of NG20.40/s, slightly outperforming our estimate of NGN19.18/s, underscoring the HoldCo’s strong fundamentals and resilience.

“Looking ahead to 2025E, while we anticipate a moderation in fixed income yields by year-end, we still expect core income growth, supported by the continued expansion of earning assets. Our estimates are under review,” the firm added.

Related Articles

Back to top button