*As gross earnings rose by 15.7% to N581bn
The much- awaited First Bank Holdings (FBNH) Plc audited result for the period ended 31 December 2016, has shown resilience and commitment to growing investors’ funds with remarkable growth in key measuring indices.
The result released by the Nigerian Stock Exchange (NSE) on Thursday showed that irrespective of the harsh macroeconomic environment, the holding company’s total assets peaked at N4.7 trillion, indicating 13.7 per cent growth, from N4.2 trillion recorded in 2015 financial year.
The 2016 audited result for FBNHoldiing’s gross earnings peaked at N581.8billion, reflecting 15.7 per cent year-on-year, compared with N502.7 billion posted in 2015 financial year.
The result which has elicited positive reactions on the floor of the Exchange, saw the company’s stocks reacting positively to the result as more investors’ buy mandate pitched demand against supply, leading to remarkable growth in its equity price.
The FBNH audited result for the 2016 financial year further showed that Net-interest income grew by 14.8 per cent y/y to N304.4 billion, against N265.2 billion posted in the corresponding period of 2015.
Reflecting the company’s commitment to boosting its income base, non-interest income rose to N165.5 billion, reflecting 68.9 per cent growth, against N97.9 billion posted in 2015.
Operating income buoyed to N469.9 billion, a 29.4 per cent growth y/y, which in 2015 stood at N363.1 billion.
FBNH impairment charges for credit losses grew by about 100 per cent to N226.0 billion, from N118.8 billion recorded in 2015 financial year. Operating expenses recorded insignificant decline by 0.8 per cent to N220.9 billion, against N222.7 billion recorded in 2015v financial year.
However, Profit and Loss (P/L) lines recorded significant growth as profit before tax (PBT) of N22.9 billion was recorded, indicating 6.3 per cent y-o-y, against N21.6 billion posted in the corresponding period of 2015, while profit after tax (PAT) increased in 2016 by 10.3 per cent year on year, to N17.1 billion, against N15.5 billion recorded in 2015.
The bank’s result further reflected that, Non Performing Loan (NPL) ratio rose to 24.4 per cent, from 18.1 per cent in 2015 financial year.
The bank’s liquidity ratio grew by 52.7 per cent, against 58.6 per cent in 2015, while a 17.8 per cent growth was recorded in line with the basel 2 capital adequacy ratio (CAR), which in 2015 grew by 17.1 per cent.
Mr UK Eke, the Group Managing Director, commenting on the results, said that 2016 was characterised by significant uncertainty in the operating environment, yet, FBNHoldings delivered a solid performance while focusing on addressing the pre-existing issues in the loan book which resulted in the current loan loss.
He said that the sterling performance by FBNHoldings in 2016, was achieved through ongoing initiatives in driving efficiency across the various businesses, “transforming the risk management and control environment, containing cost, as well as enhancing revenue generation from the banking and non-banking subsidiaries,” Eke said.
“We expect an improved economic environment through 2017 and are confident that the foundations we have put in place will drive improved financial performance and consequently enhance shareholder returns,” he added