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Thursday, 31 October 2024

FBN Holdings Reports 126% Surge in Pre-Tax Profits to N610.9 Billion for First Nine Months of 2024


FBN Holdings (FBNH) has announced a significant financial performance in its unaudited nine-month results for 2024, with pre-tax profits soaring by 126% to N610.9 billion from the same period in 2023. The substantial increase reflects the bank's ability to leverage the favorable interest rate environment.

The report shows that FBNH’s interest income surged by 157.7%, reaching N1.63 trillion compared to N633.8 billion in 9M 2023. This growth was largely driven by strong gains from customer loans and investment securities, resulting in a net interest income of N873.9 billion, up 131.4% year-on-year. The bank’s net interest margin improved to 7.2%, up from 5.7% the previous year, though interest expenses rose to N759.1 billion due to increased costs on customer deposits and interbank funding, pushing the Cost of Funds up to 5.5% from 3.4% in 9M 2023.

Fee and commission income also saw a healthy increase of 44.0% year-on-year, reaching N171.3 billion, driven by higher fees from electronic banking and trade-related commissions. Meanwhile, trading revenues grew by 73.9% to N335.6 billion, and despite a 92.1% rise in operating expenses, FBNH’s cost-to-income ratio improved by 358 basis points to 46.4%, demonstrating greater operating efficiency.

The bank’s pre-provision operating profit grew by 121.9% to N781.9 billion. After accounting for loan impairment provisions of N171.4 billion—an increase of 108.1% due to expected credit losses and a rise in the Cost of Risk to 2.8%—the pre-tax profit reached N610.9 billion, marking a 126.0% year-on-year growth.

Net profits for the period were reported at N520.7 billion, resulting in earnings per share (EPS) of N14.51, a 121.7% increase year-on-year. Return on average equity (ROAE) also strengthened to 32.3%, while return on average assets (ROAA) rose to 3.2%, underscoring the bank’s robust financial health and profitability.

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