FBN Holdings Plc, one of Nigeria’s premier financial institutions, has reported an impressive financial performance for the year ending December 31, 2023.
The audited results reveal a remarkable profit before tax of N359 billion, a significant 127.3% increase from the N157.7 billion declared in 2022.
The group’s profit after tax also saw a substantial rise, reaching N310.5 billion, up 127.8% from N136.3 billion in the previous year. This surge in profitability underscores the institution’s resilience and capacity for sustainable growth amidst a challenging macroeconomic landscape.
In light of the strong financial results, the board of directors has recommended a dividend of 40 kobo per ordinary share of 50 kobo each, amounting to N14.36 billion for the 2023 financial year. This is in contrast to the N17.95 billion paid to shareholders in 2022, reflecting a strategic adjustment in dividend distribution.
FBN Holdings’ gross earnings for 2023 stood at N1.6 trillion, a significant increase of 95.7% from N815.2 billion in 2022. The growth in gross earnings was primarily driven by a 74% rise in interest income, which totaled N960.3 billion in 2023 compared to N551.9 billion in 2022. This interest income constituted 60.2% of the gross earnings, bolstered by a favorable rate environment that saw earning yields climb to 10.7% from 8.8% in the previous year. Net interest margin also improved, rising to 6.1% from 5.8% in 2022.
Aligned with the strategy to enhance transaction-based offerings, non-interest income surged by 153.6% to N601.7 billion. This includes trading and mark-to-market income of N382.7 billion. Excluding these elements, non-interest revenue rose by 52.4% to N219.0 billion from N143.7 billion, driven by a robust 63.8% growth in net fee and commission income. This increase highlights the strength of the group’s core banking and related services.
Group Managing Director, Nnamdi Okonkwo, commented on the results, stating, “The Group’s strong performance underscores the resilience and sustainable growth despite the challenging macroeconomic landscape. Notably, gross earnings grew 95.7% to N1.6 trillion, while profit before tax increased by 127.3% to N358.9 billion.”
Okonkwo emphasized the group’s commitment to enhancing revenue and profitability through technology, a strengthened value proposition, refined governance, and maximized operational efficiencies. He assured that the disciplined execution of strategic initiatives positions FBN Holdings for improved profitability and excellence in performance, aimed at surpassing stakeholders’ expectations.
The group’s deposit from customers also experienced significant growth, rising to N10.7 trillion, a 49.7% increase from N7.1 trillion in 2022. This growth was attributed to enhanced customer acquisition through digital platforms and increased penetration of the unbanked segments via the agency banking network, boosting financial inclusion.
Total assets reached N16.9 trillion in 2023, a 60.1% increase from N10.6 trillion in 2022. This growth was driven by a 67.8% increase in customer loans and a 20.5% growth in investment securities, thereby enhancing earning capabilities and overall asset position.
Additionally, the Group’s gross loans improved to N6.6 trillion in 2023, up by 68.8% from N3.9 trillion in 2022, due to growth in lending and the increase in foreign currency loans following currency devaluation. Despite the volatile business environment, the non-performing loan (NPL) ratio remained well within regulatory thresholds at 4.7%. The coverage ratio also improved from 80.5% in 2022 to 91.7%, maintaining a strong asset quality profile, which remains a top priority for the bank.
