• Tuesday, June 25, 2024
businessday logo


FBN Holdings’ half-year profit more than triples to N187bn

First Bank set to raise N300bn in new capital to meet CBN limit

FBN Holdings Plc has reported a 231.1 percent growth in its profit after tax for the first half of 2023, compared to the same period of last year.

The holding company of First Bank of Nigeria Limited saw its after-tax profit jump to N187.2 billion in H1 2023 from N56.5 billion a year earlier, according to its unaudited financial statements.

Its gross earnings rose 82.8 percent to N656.6 billion in H1 2023 from N359.2 billion in the same period of 2022.

Nnamdi Okonkwo, its group managing director, said: “FBNHoldings has continued to deliver a strong financial performance despite the complex operating environment, thanks to our reinforced foundations, deep market understanding, strong risk management, and execution capabilities.

“On the back of this and in line with our focus on driving further improvement in revenue generation and profitability, the group delivered strong growth in gross earnings and profit before tax resulting in N656.6 billion and N206.3 billion respectively, for the first half of the 2023 financial year.”

He expressed FBN Holdings’ commitment to leveraging technology via digital platforms to enhance operational efficiency.

“Although the current operating environment remains challenging, we are confident of successfully navigating the terrain in our transformation journey to deliver sustainable value to our stakeholders,” Okonkwo said.

Read also: Investors gain N1.3trn as banking stocks drive 3.89% rally

FBN Holdings saw its non-interest income more than doubled to N257.9 billion in H1 2023 from N120.6 billion in the same period of 2022.

It recorded net interest income growth of 55.2 percent to N237.3 billion, up from N152.9 billion in H1 2022.

Its operating income increased to N495.3 billion from N273.5 billion.

Impairment charges for losses stood at N57.6 billion, indicating a 165.4 percent increase from N21.7 billion in the same period.

FBN Holdings’ operating expenses increased to N231.6 billion from N186 billion.

Basic earnings per share stood at 519 kobo in H1 2023, a 234 percent increase from 155 kobo in the same period of 2022.

First Bank of Nigeria Limited, FBN Holdings’ commercial banking segment, recorded a 228.3 percent growth in profit after tax to N174.9 billion in H1 2023 from N53.3 billion a year earlier.

The bank’s profit before tax more than tripled to N188.8 billion from N60 billion.

Adesola Adeduntan, chief executive officer of FirstBank, said: “In the first half of 2023, FirstBank Group delivered the strongest financial performance in the almost 130 years of the bank’s history; with solid business momentum, increased revenue, and excellent returns.

“The result reflects the continued positive impact of our strategy and the tremendous progress that we have made in growing and transforming the group. The result also highlights the resilience of our business model, customer relationships, and institutional capabilities.”