FBN Holdings profit in record plunge as forewarned

FBN Holdings profit in record plunge as forewarned

Tuesday, April 26, 2016 6:21 pm


FBN Holdings: a bad year

FBN Holdings: a bad year

FBN Holdings Plc  has finally released its audited accounts for 2015 confirming its earlier profit warning.

Although gross earnings increased to  N505.2 billion for the financial year from the N481.8 billion posted in 2014, the company’s gross profit and profit after tax went southwards.

Profit after tax stood at N15.1 billion against N84 billion in the preceding period of 2014, a decrease of 82 per cent. year-on-year. Profit before tax dropped by 77.1 per cent to N21.5 billion against N94.1 billion recorded in 2014.

The company  reported impairment charge for credit losses of N119.3 billion against N25.9 billion in 2014. Its non-interest income dropped to N99.4 billion in contrast to N112.99 billion in 2014, a decrease of 12 per cent.

 

The company’s figures in other areas were however much better.

Its net interest income stood at N265 billion against N243.9 billion achieved in 2014, an increase of 8.7 per cent.

 

Also, its operating income grew by 2.3 per cent to N364.4 billion against N356.2 billion in the previous year.

Its operating expenses decreased by 5.6 per cent to N223.6 billion in contrast with N236.8 billion in 2014.

Total assets dropped marginally to N4.2 trillion against N4.3 trillion, a decrease of 4.1 per cent, while customer deposits stood at N2.97 trillion compared with N3.1 trillion in the comparative period of 2014.

Commenting on the results, Mr UK Eke, the company’s Group Managing Director, said that it had been a very difficult time in the history of the institution.

“Despite the tough macroeconomic and regulatory backdrop during the year, our underlying business remains strong as reflected in the gross earnings growth of 4.9 per cent to N505.2 billion.”

He explained that the holding company platform had provided support in mitigating the impact of credit losses and the vulnerabilities experienced by its commercial banking business.

“In coming periods, our primary focus is to drive efficiency and operational excellence across all operating companies,” Eke stated.

FBN Holdings Plc in February notified the Nigerian Stock Exchange (NSE) that its expected earnings for the financial year ended Dec. 31, 2015 would be below 2014 figures.

The company in the letter signed by Mr Tijjani Borodo, FBN Holdings Company Secretary, said that its earnings would be materially below 2014 figures.

It stated that the reduction in earnings was due to the recognition of impaired charges on some specific accounts resulting from a reassessment of the loan portfolio of its commercial banking business


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