The earnings of FBN Holdings Plc, the parent company of Nigeria’s oldest bank, First Bank rose to the highest in at least 13 years in the first half of 2024, according to its latest unaudited financial statement.
The group’s after-tax profit rose to N360.2 billion, a 93.6 percent from N186 billion in H1 last year. Its interest income, which often accounts for the lion’s share of lenders’ revenues, surged by 155.4 percent growth to N947.6 billion, driven mainly by loans and advances to customers at N568 billion, investment securities at N307 billion, and loans and advances to banks at N71 billion.
FBN Holdings’ net interest income rose to N514 billion in the first half of 2024, a 117.7 percent increase from N235.3 billion recorded in the same period of last year.
The holding company saw its interest expense grow 219 percent to N432.7 billion on the back of N262.7 billion expense on deposits from customers, deposit from banks expense which stood at N103.6 billion, borrowings and others at N66.3 billion as of June 2024.
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FBN Holdings’ revenue from external customers arrived at N1.4 trillion which comprised commercial banking business group (N1.3 trillion), merchant banking and asset management business group (N55 billion), and others (N4 billion) for the period ended June 2024.
Net fee and commission income during the period stood at N110.8 billion in the first half of 2024, up 54 percent from N71.9 billion in the same period of last year.
However, foreign exchange income increased to 68.1 percent to N165 billion from N98.1 billion in the period reviewed.
Net gains on the sale of investment securities dropped to N11.8 billion in the first six months from N43.2 billion in the similar period of 2023.
Dividend income grew 81.8 percent to N8 billion in the first half of 2024 from N4.4 billion in the same period of last year.
Other operating income increased by 641.1 percent to N37.8 billion in H1 from N5.1 billion in the same period last year.
Furthermore, the analysis of the cash flows of the holding company reveals net cash flow generated from operating activities amounted to N1.2 trillion in the first half, up from N402 billion as of June 2024.
Net cash flow used in investing activities stood at a negative N1.3 trillion from N962 billion in the period reviewed.
Net cash flow used in financing activities stood at N329 billion in the first half of 2024 from N241 billion in the first six months of 2023.
Cash and cash equivalents rose to N2.84 trillion in the first half of 2024 from N1.54 trillion the previous year.
FBN Holding’s basic and diluted earnings per share rose to N9.96 in the first six months of the year from N5.16 in the same period of last year.
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