FBN Holdings Plc. (“FBNH” or “FBNHoldings” or the “Group”) has announced its unaudited results for the six months ended 30 June 2018.
• Gross earnings of N293.3 billion, up 1.6% year-on-year (y-o-y) (Jun 2017: N288.8 billion)
• Net-interest income of N149.6 billion, down 8.8% y-o-y (Jun 2017: N164.1 billion)
• Non-interest income of N61.3 billion, up 21.4% y-o-y (Jun 2017: N50.5 billion)
• Operating income of N210.9 billion, down 1.6% y-o-y (Jun 2017: N214.4 billion)
• Impairment charge for credit losses of N52.8 billion, down 15.4% y-o-y (Jun 2017: N62.4 billion)
• Operating expenses of N119.3 billion, up 2.3% y-o-y (Jun 2017: N116.6 billion)
• Profit before tax of N38.9 billion, up 9.1% y-o-y (Jun 2017: N35.6 billion)
• Profit after tax N33.5 billion, up 13.7% y-o-y (Jun 2017: N29.5 billion)
Statement of Financial Position
• Total assets of N5.3 trillion, up 1.3% year-to-date (y-t-d) (Dec 2017: N5.2 trillion)
• Customer deposits of N3.3 trillion, up 4.1% y-t-d (Dec 2017: N3.1 trillion)
• Customer loans and advances (net) of N1.9 trillion, down 7.1% y-t-d (Dec 2017: N2.0 trillion)
• Post-tax return on average equity of 10.0% (Jun 2017: 9.9%) ,
• Post-tax return on average assets of 1.3% (Jun 2017: 1.2%)
• Net-interest margin of 7.1% (Jun 2017: 8.5%)
• Cost to income ratio of 56.5% (Jun 2017: 54.4%)
• NPL ratio of 20.8% (Jun 2017: 22.0%)
• 55.0% liquidity ratio (FirstBank (Nigeria)) (Jun 2017: 50.4%; Dec 2017: 51.1%)
• 18.1% Basel 2 capital adequacy ratio (FirstBank (Nigeria)) (Jun 2017: 17.6%, Dec 2017: 17.7%)
• 12.6% Basel 2 CAR (FBNQuest Merchant Bank) (Jun 2017: 26.7%, Dec 2017: 15.7%)
• FirstBank indicated its intention to call the 8.25% US$300million FBN Finance Company B.V. Subordinated callable note due in 2020
• FirstBank opened a digital laboratory as part of its strategy to drive innovation in the digital banking space
• FirstBank commissions a strong initiative to implement enterprise-wide Customer Relationship Management solution to drive service excellence and improve customer experience
Selected Financial Summary
Gross earnings 293.3 288.8 1.6 Post-tax return on average equity 10.0 9.9
Interest income 225.4 232.4 -3.0 Post-tax return on average assets 1.3 1.2
Net-interest income 149.6 164.1 -8.8 Earnings yield 10.7 12.1
Non-interest income 61.3 50.5 21.4 Net-interest margin 7.1 8.5
Operating Income 210.9 214.4 -1.6 Cost of funds 3.5 3.5
Impairment charge for credit losses 52.8 62.4 -15.4 Cost to income 56.5 54.4
Operating expenses 119.3 116.6 2.3 Gross loans to deposits 67.0 74.5
Profit before tax 38.9 35.6 9.1 Liquidity (FirstBank(Nigeria)) 55.0 50.4
Profit after tax 33.5 29.5 13.7 Capital adequacy (FirstBank (Nigeria)) 18.1 17.6
Basic EPS (kobo) 187 164 13.7 Capital adequacy
(FBN Merchant Bank)11 12.6 26.7
Statement of Financial Position NPL/Gross Loans 20.8 22.0
2017 ∆% NPL coverage 82.3 52.7
Total assets 5,306.5 5,236.5 1.3 PPOP /impairment charge (times) 1.7 1.6
Customer loans & advances (Net) 1,858.2 2,001.2 -7.1 Cost of risk 4.7 5.4
Customer deposits 3,270.7 3,143.3 4.1 Leverage (times) 8.1 8.0
Non-performing loans 455.8 520.0 -12.4 BVPS 18.4 17.0
Shareholders’ funds 660.2 678.2 -2.7
Commenting on the results, UK Eke, the Group Managing Director said:
“FBNHoldings continues to make steady progress towards delivering on its strategic targets. This has been demonstrated with a 13.7% y-o-y increase in profit after tax, 21.4% y-o-y growth in non-interest and 15.4% y-o-y decline in impairment charge. Clearly, the Group is on its way to delivering its promises on asset quality, enhancing revenue generating capacity through non-interest income and driving further efficiencies.”
“As we ramp up initiatives to grow interest income, we remain focused on the implementation of key initiatives across our subsidiaries and further strengthen our businesses towards delivering sustainable performance as well as optimising returns to our shareholders.”
Business Groups :
• Gross earnings of N264.7 billion, up 1.4% y-o-y (Jun 2017: N261.0 billion)
• Net interest income of N140.8 billion, down 9.8% y-o-y (Jun 2017: N156.0 billion)
• Non-interest income of N49.6 billion, up 28.5% y-o-y (Jun 2017: N38.6 billion)
• Operating expenses of N105.3 billion, up 0.9% y-o-y (Jun 2017: N104.4 billion)
• Profit before tax of N32.3 billion, up 16.2% y-o-y (Jun 2017: N27.8 billion)
• Profit after tax of N28.3 billion, up 22.7% y-o-y (Jun 2017: N23.0 billion)
• Total assets of N5.1 trillion, up 0.9% y-t-d (Dec 2017: N5.0 trillion)
• Customers’ loans and advances (net) of N1.9 trillion, down 7.2% y-t-d (Dec 2017: N2.0 trillion)
• Customers’ deposits of N3.2 trillion, up 3.5% y-t-d (Dec 2017: N3.1 trillion)
The Commercial Banking business contributed 90.2% (Jun 2017: 90.3%) to the Group’s gross earnings and 84.0% (Jun 2017: 78.3%) to the Group’s profit before tax.
Commenting on the results Dr. Adesola Adeduntan, the MD/CEO of FirstBank and its Subsidiaries said:
“The Commercial Banking Group reported a relatively strong set of results and I am pleased to report consistent improvement towards our strategic objectives. This is reflected in a strong 28.5% y-o-y increase in non-interest income, 15.5% y-o-y reduction in the impairment charge and a marginal increase of 0.9% y-o-y in operating expenses, despite the high inflationary environment. It is clear that our efforts to enhance our revenue generating capabilities, strengthen the risk management and control environment as well as to optimise efficiencies within our business are paying off.”
“We remain focused on maximizing the potential of our business, innovating to expand access to new markets and increasing the contribution of our international subsidiaries, using technology as a key enabler. We expect further improvements in the coming periods, from growth in the quality and yields of the loan book to enhanced remediation efforts, service delivery excellence and the risk and control environment. I am confident in the capacity of our business to deliver the expected results.”
Merchant Banking & Asset Management (MBAM) / FBNQuest
• Gross earnings of N18.5 billion, down 2.8% y-o-y (Jun 2017: N19.0 billion)
• Profit before tax of N3.7 billion, down 38.1% y-o-y (Jun 2017: N6.0 billion)
• Total assets of N220.8 billion, up 1.8% y-t-d (Dec 2017: N216.9 billion)
The Merchant Banking and Asset Management business contributed 6.3% (Jun 2017: 6.6%) to the Group’s gross earnings and 11.1% (Jun 2017: 17.5%) to the Group’s profit before tax.
• Gross earnings of N10.1 billion, up 24.6% y-o-y (Jun 2017: N8.1 billion)
• Profit before tax of N3.4 billion, up 43.6% y-o-y (Jun 2017: N2.4 billion)
• Total assets of N63.8 billion, up 25.0% y-t-d (Dec 2017: N51.1 billion)
The insurance business contributed 3.2% (Jun 2017: 2.8%) to gross earnings of the Group and 7.4% (Jun 2017: 6.5%) to profit before tax..
FBNHoldings will host a question and answer teleconference call with analysts and investors on the unaudited results for the six months 30 June 2018 on Monday 30 July 2018 at 3:00pm UK / 3:00pm Lagos / 10:00am New York / 4:00pm Johannesburg & Cape Town.
The teleconference call facility can be accessed by dialing:
+234 1 277 2430 (Nigeria); 0800 358 6377 or +44 (0)330 336 9128 (United Kingdom); +1 888 599 8686 or +1 323 994 2093 (United States); and 0800 998 654 or +27 11 844 6054 (South Africa) and then entering the following confirmation code: 8528539#
Participants are advised to register for the call at least five minutes before the start of the call. For those who are unable to listen to the live call, a recording will be posted on the Company’s website. Replay facilities are also available for a week after the call by dialing:
0808 101 1153 or +44 20 7660 0134 (United Kingdom); +1 719 457 0820 or +1 888 203 1112 (United States); 0800 980 995 or +27 11 062 3065 (South Africa)
and then entering the following code: 8528539#
An investor presentation will be available ahead of the call on the FBNHoldings website.
The document is also available on our website https://www.fbnholdings.com/investor-relations/
• H1 2018 financial statements (unaudited)
urther information could be obtained via,
Tolulope Oluwole (Head, Investor Relations) +234 1 905 2720
FIRSTBANK BOOSTS TECHNOLOGICAL ADVANCEMENT IN BANKING, SETS TO HOST FINTECH SUMMIT
In line with its corporate strategy to drive transformation through its products, processes and services, FirstBank has announced a 3-day FINTECH summit themed the future of banking – the role of AI and big data. The event is convened to increase technological support and collaboration with the tech community whilst deepening the Bank’s technological inclusion framework to improve its product offerings and services delivery experience.
The FirstBank 2018 FINTECH summit is scheduled to kick off with a 2-day coding competition – Hackathon – billed for Thursday and Friday 11th and 12th October 2018 whilst the summit holds Wednesday 17 October 2018 with over 700 Fintech players, key stakeholders and tech lovers in attendance.
The Hackathon is projected to focus on Artificial Intelligence and Big Data. 10 teams will be contesting for the grand prize of N3million in a competition to show off their technological and artificial intelligence capabilities with the second and third best teams carting away the sum of N1.5million and N750 thousand respectively.
The 10 teams will also have an opportunity to showcase their solutions at the Fintech summit scheduled for 17 October 2018.
To attend the main event on 17 October 2018, kindly click here to register. Interested participants can also interact with the Bank on Instagram – @firstbanknigeria; twitter – @firstbankngr and First Bank of Nigeria Limited on Facebook
First Bank Launches Xplorefirst Savings Promo for Students
In alignment with its financial inclusion drive, First Bank of Nigeria Limited has announced a promotional campaign aimed at rewarding its youth segment customers for using their FirstBank XploreFirst Savings accounts whilst also encouraging healthy savings habit. The promo which kicked off on October 1, 2018 is scheduled to run for 6 months to March 30, 2019.
XploreFirst is a FirstBank savings account variant designed specifically for students between the age range of 18 – 29 years. A minimum amount of N1, 000 is required to open the account and account holders are to maintain a minimum balance of N200 to run the account.
To participate in the promo, XploreFirst customers are encouraged to save or maintain a minimum amount of N10, 000 in their accounts during the promo period to be eligible for the scholarship raffle draw. Incremental deposits of N10,000 in the account entitles the account holder to multiple tickets for the raffle draw.
A total of 198 winners would emerge from the promo with 18 account holders (3 from each of the six geopolitical zones) being rewarded with scholarships of N150, 000 in a grand finale raffle draw and N5,000 airtime as consolation prizes to 180 account holders (5 from each of the six geopolitical zones).
According to the Group Head, Products & Marketing Support, Mr. Abiodun Famuyiwa, “FirstBank recognises the impact of a healthy savings culture in promoting financial inclusion amongst individuals, especially the youth. And with the saying, the youth are the leaders of tomorrow, we believe that with XploreFirst account, the youths are well positioned to take the lead in their financial activities through the exciting benefits the account offers.”
So, if you are a student between the ages of 18 – 29 years, take a walk into any FirstBank branch near you to open an XploreFirst account. Start your journey to financial freedom today with Firstbank”.
Africa Prudential Partners Cooperative Societies on Technology Adoption
Africa Prudential Plc, a leading share registration and investor services firm has partnered with the International Co-operative Alliance-Africa (ICA) to deploy technology solutions for a more efficient administration of co-operatives and thrift societies across Africa. The commitment was made public at the 12th African Ministerial Co-operative Conference which was held on October 2 to 5, 2018in Abuja, Nigeria.
The theme for this year’s conference centred on leveraging the recently signed African Continent Free Trade Area (AfCFTA) Agreement. According to the World Co-operative Monitor, the Co-operative bodies provide jobs to the 10 percent of the World’s employed population and generate a towering USD2.1 trillion annual gross turn-over.
Chairman of Africa Prudential Plc, Chief (Mrs.) Eniola Fadayomi, while addressing dignitaries at the conference, noted that Africans need to take the lead in solving the continent’s problem through greater collaborations among countries and the Co-operative Movement. She emphasised that among other benefits, the AfCFTA will create opportunities for greater bargaining power and employment creation on the continent; ultimately reducing the vulnerability of Africa to global shocks. “When we consider the current contribution of the Co-operative sector to economic development in the respective countries on the continent, its role in actualising the objectives of the AfCFTA becomes even more prominent”, she noted.
The Managing Director/CEO of Africa Prudential Plc, Mr. Obong Idiong also noted in his recommendations on technology inclusion in cooperative management, that the company has long recognised the strategic relevance of Cooperatives to economic development across Africa, and that it has been partnering both with Alliance-Africa, and the Co-operative Federation of Nigeria (CFN). “We currently have more than 500,000 cooperators activated on our cooperative manager solution—EasyCoop—which offers end-to-end financial management and member administration, and with a capacity for over 10,000,000 unique users” he explained.
While delivering his Keynote Address, Nigeria’s Vice President, Professor Yemi Osinbajo, who was represented by the Honourable Minister of Agriculture and Rural Development, Chief Audu Ogbeh confirmed that Cooperatives hold a strategic responsibility in the implementation of the county’s Economic Recovery and Growth Plan.
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