FBN Holdings Plc turned the table from a 64 percent upsurge in credit loss expenses at the end of the third quarter of last year to a decline at full year. The turnaround happened in the final quarter when management mowed down loan loss expenses figures by 88 percent quarter-on-quarter.
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Loan impairment expenses remained huge at over N50 billion at the end of the 2020 financial year but it is a marginal decline from N51 billion in the preceding financial year. The development enabled the bank to maintain a trend of declining loan impairment charges for four years running from 2017.
Reversing a high speed upward run on credit loss expenses in the interim reports was a pleasant surprise from the bank at the end of the 2020 financial year. Cost saving gained from the big cut in loan impairment expenses boosted profit capacity in the final quarter.