By Segun Lawal
FBN HOLDINGS PLC. REPORTS GROSS
FBN Holdings Plc. (“FBNH” or “FBNHoldings” or the “Group”) today announces 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
2017 ∆% Key Ratios % H1
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.
– ENDS –
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.
Click here to access the presentation.
The document below is also available on our website https://www.fbnholdings.com/investor-relations/
• H1 2018 financial statements (unaudited) Click here
For further information please contact:
Tolulope Oluwole (Head, Investor Relations) +234 1 905 2720
FBN Holdings Plc.
FBN Holdings Plc.
FBN Holdings Plc.
– Notes to Editors –
FBN Holdings Plc. (ISIN: NGFBNH000009) is the most diversified financial services group in Nigeria. FBN Holdings Plc. was incorporated in Nigeria on 14 October 2010, following the business reorganisation of the FirstBank Group into a holding company structure. The Company was listed on the Nigerian Stock Exchange under the ‘Other Financial services’ sector on 26 November 2012 and now has in issue and fully paid-up share capital of 35,895,292,792 ordinary shares of 50 kobo each (N17,947,646,396). More information can be found on our website www.fbnholdings.com.
The subsidiaries of FBNHoldings offer a broad range of products and services across commercial banking in 10 countries (Lagos, Nigeria; London, United Kingdom; Paris, France; Beijing, China; Kinshasa, Democratic Republic of Congo, Accra, Ghana; Banjul, Gambia, Conakry, Guinea, Freetown, Sierra Leone and Dakar, Senegal), merchant banking and asset management as well as insurance. The Group, with about 8,679 staff, has 889 business locations (615 local branches, 143 QSPs and agencies for FirstBank (Nigeria) and 131 (local and international) subsidiary locations). FBN Holdings Plc. is structured essentially under three business groups, namely: Commercial Banking, Merchant Banking and Asset Management as well as Insurance.
Commercial Banking comprises First Bank of Nigeria Limited, FBNBank (UK), FBNBank DRC , bank subsidiaries in West Africa , a representative office in Beijing, a branch office in Paris as well as First Pension Fund Custodian. This group provides both individual and corporate clients/ customers with financial intermediation services. This business segment includes the group’s local, international and representative offices with operations in 10 countries offering commercial banking services.
Merchant Banking & Asset Management comprises FBNQuest Merchant Bank group and FBNQuest Capital group. Both FBNQuest Merchant Bank Limited and FBNQuest Capital Limited are wholly owned by the holding company. The FBN Merchant Bank group comprises FBN Merchant Bank and its subsidiaries FBN Securities Limited and FBN Capital Asset Management Limited. The FBN Capital group comprises FBN Capital Limited and its subsidiaries FBN Trustees Limited, FBN Funds Limited and FBN Capital Partners Limited. The group creates value by providing advice, finance, trading, investing and securing services to large institutions (corporations and government agencies) and individuals.
Insurance comprises FBN Insurance Limited and FBN General Insurance Limited (both owned by FBNHoldings 65% and Sanlam 35%) as well as FBN Insurance Brokers (100% owned subsidiary). The business group offers Life and General insurance services as well as insurance brokerage services.
Cautionary note regarding forward looking statements
This release contains forward-looking statements which reflect management’s expectations regarding the Group’s future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as “anticipate”, “believe”, “expects”, “intend”, “estimate”, “project”, “target”, “risks”, “goals” and similar terms and phrases have been used to identify the forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to the Group’s management. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking statements. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally. Forward-looking statements therefore speak only as of the date they are made.
FBNHoldings cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and undue reliance should not be placed on the forward-looking statements. For additional information with respect to certain risks or factors, reference should be made to the Group’s continuous disclosure materials filed from time to time with the Nigerian Stock Exchange. The Group disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Union Bank to provide water to 6 geo-political zones
Union Bank of Nigeria (UBN), said on Friday that it would provide potable water to the six geo-political zones in the country as part of its support and Corporate Social Responsibility to Nigerians.
Mrs Ogochukwu Ekezie-Ekaidem, Head, Strategic Corporate Communications and Marketing, UBN, made the disclosure at a Virtual Media briefing organised for Financial Correspondents in Lagos.
According to her, citizenship is a key pillar of how we want to build up our brand and support Nigerians.
“What we want to do for our employee volunteer year this year is with the token our employees will donate and the small donations which the bank will bring.
“We want to give the gift of potable water to the six geo-political zones in the country.
“We will be working with a non-governmental organisation to deliver this.
“Employee volunteer year is a year set aside for all employees to come out and give back to the society and engage in some kind of community initiative.
“Last year across the country over 1,500 of us with our families and friends came out, this year obviously we cannot physically gather because of the pandemic,” she said.
Ekezie-Ekaidem added that one of the ways to fight COVID-19 pandemic and infections generally was through washing of hands and keeping a hygienic and sanitary environment.
In addition, she said that the bank was exploring how it could hold the third edition of its annual education fair – ‘Edu360’ – virtually this year.
She said that in spite of the pandemic the bank would continue to engage customers and members of the public through all the available social media channels.
She encouraged customers to make use of the bank’s electronic channels, Union Mobile, to transact their businesses saying that it was safer and convenient.
Ekezie-Ekaidem added that the bank would continue to focus on supporting and delivering businesses seamlessly to customers while assuring that its priorities remained the health and safety of its employees.
FIRSTBANK UPGRADES ITS MOBILE BANKING APPLICATION, REINFORCES ITS EDGE AT PUTTING CUSTOMERS AHEAD IN ELECTRONIC BANKING
First Bank of Nigeria Limited, Nigeria’s leading financial inclusion services provider, has announced that its mobile banking application, FirstMobile has been upgraded with new and improved features to promote safe and convenient Mobile Banking experience for customers.
The Bank’s award-winning and dynamic mobile banking application has been redesigned with improved security and self-service features to ease the navigation capability and proficiency of customers. Its unique cool blue colour background gives it a more appealing interface for customers to enjoy a unified and streamlined banking experience whilst going about their day to day activities.
FirstMobile is now embedded with a card protection service for customers to enable and disable cards on channels, account switch off as well as second-factor authentication and device registration. With the upgraded FirstMobile, customers can remotely initiate the request for a new debit card as well as the replacement of a lost or damaged one, whilst managing activities on their card and account, thus balance enquiry and statement, amongst others.
The biometrics for transactions is another innovative security upgrade on the application to validate transactions. This feature includes fingerprint for transactions, allowing the customer to use his or her fingerprint to consummate all transactions.
Other added features include frequent transaction; dashboard flexibility and personalisation; smoother transaction experience and improved beneficiary management.
With the frequent transaction feature, the user is able to easily access his or her frequently completed transactions – airtime, transfers and bill payments – and reinitiate such with the clicks of a button. This is an additional menu which can easily be accessed from the dashboard. Airtime top-up and data purchase have also been improved, as customers are able to select phone numbers directly from their phone contacts.
The application has been upgraded with a smoother experience on funds transfer, bill payments and airtime transactions as customers can add and delete beneficiary without having to repeatedly enter the recipients’ details over and over again. Users can also take a photo or select from the Avatar (available icons) to personalize their dashboard and beneficiaries for Transfers, Bills Payment & Airtime Transactions by uploading a picture to associate with their beneficiary, especially the more frequent ones.
The dashboard has been designed to reflect the lifestyle and social pattern of the user as it can be customized by adding any profile picture of choice. The dashboard also enables users to monitor their spending patterns over a period. It shows the inflow and outflow of funds on their account.
In need of a loan to meet that pressing need, FirstMobile has you covered and puts you at an advantage with the FirstAdvance and Nano Loan features.
Keen on watching the next blockbuster in your favourite cinema, with FirstMobile, you can book for movie ticket(s) ahead of time, thereby averting the risk of being told the movie is sold-out upon getting to the movie theatre. You can also book for flights at your earliest convenience on FirstMobile.
“The upgraded FirstMobile is built to reflect FirstBank’s resolve at reinforcing the digitisation of our payment systems, whilst putting our customers at an edge to conveniently meet their everyday needs at any time, irrespective of where they are. Indeed, this upgrade makes the application new, as it is designed to suit the social pattern and lifestyle of our customers.” said Chuma Ezirim, Group Executive, e-Business & Retail Products.
“With over 3.7million active users on FirstMobile across android and ios devices, we remain steadfast at regularly reinventing our services on the App with dynamic and innovative capabilities to resonate our focus to deliver state of the art digital solutions to all our customers at all times, irrespective of where they are” he concluded.
Only recently, FirstMobile was awarded the “Best Mobile Banking App” in the country at the Global Business Outlook Awards.
COVID 19 Rebound: We are building Entrepreneurs and supporting financial Inclusion through Xpress Point Agents – Ecobank
Ecobank Nigeria has reiterated that its agency banking scheme, also known as Xpress Points, is building entrepreneurs and pushing financial inclusion to the large unbanked and under-banked population in Nigeria. The Ecobank Xpress Point enables eligible Agents to carry out financial transactions on behalf of Ecobank (www.Ecobank.com) and earn commission on every transaction processed. The consumer experience is very good as customers can do simple deposit, payment and transfers in their own neighbourhood rather than travel for hours to a bank branch. Ecobank Xpress Points is also a channel that can be used for the deployment of national social intervention programmes of the Government.
The aim of the Xpress Point is to let every Nigerian and household have access to Ecobank services within their neoghbourhood to provide easy banking services.
Speaking in Lagos, Nike Kolawole, Head, Agency Banking, Ecobank Nigeria, said unemployed and retired persons should avail themselves the opportunity to earn extra income by keying into services offered by the bank as Xpress point agents. According to her, the Ecobank Xpress point which are in various neighbourhoods across the country, are well positioned to facilitate basic financial transactions, with the process and services simplified to attend to a broad spectrum of the society.
She further disclosed that agency banking in general, brings about economic and youth empowerment by way of job creation and earning extra income, adding that small savers can easily do their savings at home or near their home. This leads to financial inclusion of the underbanked in the country.
For now, Ecobank has over 43,000 agents across Africa. The agents carry out financial transactions on behalf of Ecobank and earn commission per transaction processed. Xpress Points can also be used as a channel for the deployment of national social intervention programmes, especially at this time that we are fighting the impact of lockdowns due to the COVID-19.”
Kolawole listed the services offered by the Xpress point agents as; cash in, cash out, fund transfer, bills payment, airtime recharge, remittance and account opening, among others. She added that the services are available for “sole proprietors, partnerships, co-operative societies, microfinance banks, companies with large distribution network – like petrol stations, FMCGs, telecommunication companies, super agents, aggregators and unregistered businesses such as petty traders, hair saloon and others.”
Ecobank boasts of a bouquet of digital channels comprising solutions aimed at delivering convenient, accessible and reliable financial services. For instance, users of the bank’s USSD code, *326# carry out transactions without paying session charges. The USSD platform, *326#, makes it possible to open an Xpress account and Xpress Save account instantly. The bank’s mobile banking app, Ecobank Mobile offers the option of generating a virtual card; this comes in handy as customers are continually turning to web payments for their shopping and payments. The Ecobank virtual card offers the flexibility and convenience of creating a shopping card that is not linked to a customer’s account but is fully capable of carrying out online payments. The virtual card can also be shared with loved ones as a gift card for their own shopping.
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