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.
The company disclosed this in its 2020 audited result released by the Nigerian Stock Exchange on Thursday.
The profit was higher when compared with N73.7 billion achieved in the comparative period of 2019.
Also, profit before tax rose by 11.2 per cent to N83.7 billion in contrast with N75.3 billion posted in 2019.
Its operating income stood at N426.3 billion from N417.5 billion in 2019, while gross earnings dropped marginally by 1.9 per cent to N579.4 billion from N590.4 billion in the previous year.
The company’s total assets rose by 23.9 per cent to N7.7 trillion in contrast with N6.2 trillion achieved in the corresponding period of 2019.
All the appointments are subject to regulatory approval and shareholders’ approval, it noted.
Highlighting the milestones last year, the group said First Bank of Nigeria issued a $350 million five year senior unsecured Eurobond; completed the sale of 65% FBN Holdings Plc ownership in FBN Insurance Limited to Sanlam Emerging Markets Limited; grew its FirstMonie Agent banking network to over 86,000, among others.
Commenting, the Group Managing Director, U.K Eke, said “FBNHoldings is pleased to close the year in a healthy financial position despite the difficult operating environment that has been characterized by unprecedented events as a result of the pandemic and challenging economic environment.”
Key Highlights
Profit before tax grew by 3.8% to N78bn.
Profit after tax declined by 0.2% to N66bn.
Net Assets grew by 14.3% from N661bn to N756bn.
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FBN Holdings Plc has announced the appointment of former Managing Director/CEO of Guinness Nigeria, Mr. Seni Adetu, and two others as new Board Directors.
This is according to a notification signed by the company’s secretary, Seye Kosoko, and sent to the Nigerian Stock Exchange this afternoon, as seen by Nairametrics.
The new appointees are; Mr. Seni Adetu and Mrs. Juliet Anammah who were appointed as Independent Non-Executive Directors, and Mr. Otu Hughes who was appointed as a Non-Executive Director of FBN Holdings Plc.
The disclosure which is in line with NSE’s provision is, however, still subject to statutory approvals from the Central Bank of Nigeria and the shareholders at the next Annual General Meeting of the Company.