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FBNHOLDINGS RECORDS N294.2BN GROSS EARNINGS FOR H1’19, REPORTS IMPROVED NPL AT 14.5% DOWN FROM 25.9%

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By Babajide Komolafe (VANGUARD)

 

FBN Holdings Plc, the parent company of First Bank of Nigeria Limited, yesterday, said it recorded gross earnings of N294.2 billion for the six months ending June 30, 2019 (H1’19).

 

This represents 0.3 percent growth when compared with the N293.3 billion recorded as gross earnings in the corresponding period of 2018 (H1’18). The company disclosed this in a statement announcing its financial results for the six months period ending June 2019. The results also showed that the company recorded profit before tax of N39.9 billion in H1’19, up by 2.6 percent from N38.9 billion in H1’18. Profit after tax however dropped by 5.4 percent to N31.7 billion in H1’19 from N33.5 billion in H1’18.

 

Commenting on the results, Group Managing Director, FBNHoldings, UK Eke said: “Despite the difficult operating environment, we remain resolute in delivering on our guidance across key metrics, including our commitment towards a single digit Non-Performing Loans (NPL) ratio by the end of year, as evidenced by the reduction in NPLs from the last quarter.

 

“Essentially, Atlantic Energy, our largest NPL, was written off, translating into a decline in the NPL ratio from 25.9 percent in December 2018 to 14.5 percent as at June 2019, a step that brings us closer to our full year 2019 target and create more headroom for quality asset growth.

ARNINGS FOR H1’19, REPORTS IMPROVED NPL AT 14.5% DOWN FROM 25.9%

By Babajide Komolafe (VANGUARD)

 

FBN Holdings Plc, the parent company of First Bank of Nigeria Limited, yesterday, said it recorded gross earnings of N294.2 billion for the six months ending June 30, 2019 (H1’19).

 

This represents 0.3 percent growth when compared with the N293.3 billion recorded as gross earnings in the corresponding period of 2018 (H1’18). The company disclosed this in a statement announcing its financial results for the six months period ending June 2019. The results also showed that the company recorded profit before tax of N39.9 billion in H1’19, up by 2.6 percent from N38.9 billion in H1’18. Profit after tax however dropped by 5.4 percent to N31.7 billion in H1’19 from N33.5 billion in H1’18.

 

Commenting on the results, Group Managing Director, FBNHoldings, UK Eke said: “Despite the difficult operating environment, we remain resolute in delivering on our guidance across key metrics, including our commitment towards a single digit Non-Performing Loans (NPL) ratio by the end of year, as evidenced by the reduction in NPLs from the last quarter.

 

“Essentially, Atlantic Energy, our largest NPL, was written off, translating into a decline in the NPL ratio from 25.9 percent in December 2018 to 14.5 percent as at June 2019, a step that brings us closer to our full year 2019 target and create more headroom for quality asset growth.

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Banking

UBA Makes 20 more customers Millionaires, Doles Out N30m in 3rd Draw of UBA Wise Savers Promo

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Pan African financial institution, United Bank for Africa (UBA) Plc, has again rewarded another 20 customers who have emerged winners in the third quarterly draw of the UBA Wise Savers Promo winning N1.5 million each, bringing the total amount won so far by 60 customers to N90 million.

The electronic raffle draw, which was held at the UBA Head Office in Lagos on Wednesday, July 31st, was witnessed by the relevant regulatory bodies including the National Lottery Regulatory Commission, Lagos State Lottery Board and Consumer Protection Council.

Lucky customers who emerged winners in the latest draw cut across all regions of the country. They are Yusuf Muhammed; Adebakin Anuoluwapo Elizabeth; Babatunde Temidayo Ruth; Christian Emetole; Nwabuife Ikeagu; Omoye Amiengheme; Ogechukwukanma Okoh; Akinyemi Abidemi Betty; Okoro Chukwuma and Chukwu, Patricia Nnenna.

Others are Adejoke Olarinoye; Fatoki Hassan; Nwokocha Ikechukwu Emmanuel; Owolanke kole Emmanuel; Ferreira Adesola Afolatomi; Emmanuel Omoigui; Uzoigwe Anthonia; Elesin Titilayo Oluwabunmi; James Suleiman Umar and Lawan David Nahinokan.

The ongoing promo, which commenced in September last year, is expected to run till September 30, 2019 and will see a final 20 customers from across Nigeria become millionaires, winning N30 million in the last quarter of this year.

At the end of the fourth promo, a total of N120 million will have been won by 80 customers.

Speaking during the event, UBA’s Group Head, Consumer & Retail Banking, Mr. Jude Anele, said that since the promo began late last year, the bank has been impressed at the level of response by its customers and the general public across the country, adding that the purpose of the campaign is to reward loyal customers while encouraging the savings culture.

He noted that there has been a remarkable increase in the number of participants in this edition compared to the previous one, adding that the bank’s objective of helping customers’ save for the rainy day is being achieved.

He said: “It is very easy to spend money but to save is a habit all must imbibe. Our key objective is to encourage our customers to save regularly. We are here to support our customers and to encourage them to save as well.”

Anele urged other customers to take advantage of the subsequent opportunities the last quarterly draw will offer.

The Group Head, Transaction and Electronic Banking, Sampson Aneke, who also spoke at the event said,  “There is no better time to give back and delight customers than this challenging economic period where people need all the support they can get to make life more meaningful. With this in mind we decided to prioritise our customers as we always do at UBA by giving them plenty to cheer about and that is the reason why another 20 customers have been made millionaires today.

Aneke noted that the promo is consistent with the bank’s novel initiatives in prioritizing customers, and said it was necessitated by the invaluable belief the Bank has in its customers.

“We will continue to listen and give them nothing short of the best that they deserve. UBA will not relent, because we are impressed with the impact this has made so far and will continue to touch the lives of our loyal customers positively,” he explained.

The criteria for qualifying for the draw is to save at least N30,000 in a UBA savings account or in instalments of N10,000 each for a period of three months. Those yet to be UBA customers can open a savings account on any of the numerous bank channels, including Magic Banking (*919*20#) and LEO, or in any of the UBA branches across the country, and start saving to stand a chance of winning.

United Bank for Africa Plc is a leading pan-African financial services group, operating in 20 African countries, as well as the United Kingdom, the United States of America and with presence in France.

UBA was incorporated in Nigeria as a limited liability company after taking over the assets of the British and French Bank Limited who had been operating in Nigeria since 1949. The United Bank for Africa merged with Standard Trust Bank in 2005 and from a single country operation founded in 1949 in Nigeria – Africa’s largest economy – UBA has become one of the leading providers of banking and other financial services on the African continent. The Bank which was awarded the Best Digital Bank in Africa by the Euromoney awards in 2018, provides services to over 17 million customers globally, through one of the most diverse service channels in sub-Saharan Africa, with over 1,000 branches and customer touch points and robust online and mobile banking platforms.

The shares of UBA are publicly traded on the Nigerian Stock Exchange and the Bank has a well-diversified shareholder base, which includes foreign and local institutional investors, as well as individual shareholders.

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FIRSTBANK: INSPIRING KINDNESS, EMPATHY WITH SPARK

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What wisdom can you find that is greater than kindness? Asked renowned philosopher, writer and composer, Jean-Jacques Rousseau in one of his writings while highlighting the importance of the simple yet impactful act.

According to a health fact sheet produced by the Random Acts of Kindness Organisation, being altruistic increases one’s oxytocin, also called the ‘love hormone’, makes one happy, increases lifespan and stimulates the production of serotonin, a feel-good chemical that heals one’s wounds, calms down, and makes one happy. The fact sheet further notes that being involved in acts of kindness decreases pain as it produces endorphins, the brain’s natural painkiller, reduces anxiety, stress, depression and blood pressure.

Jamil Zaki, Professor of Psychology at Stanford University and Director of the Stanford Social Neuroscience Lab, recently conducted a series of studies that observed how witnessing kindness inspires kindness, causing it to spread like a virus. He concluded that “by emphasising empathy-positive norms, we may be able to leverage the power of social influence to combat apathy and conflict in new ways.”

Another study conducted by Oxford University researchers and which found out that just seven days of small acts of kindness will make one happier, also attests to the scientific evidence that altruism is beneficial.

Nigeria’s oldest financial institution, First Bank of Nigeria Limited, which is this year celebrating its 125th anniversary, has an initiative aimed at restoring the fading age-long culture of being one’s brother’s keeper called SPARK. An acronym for Start Promoting Acts of Random Kindness, the initiative is also to reawaken the spirit of showing kindness which soci0-economic circumstances have forced many people to neglect.

The initiative, which is an integral part of its Corporate Responsibility & Sustainability (CR&S) Week, saw its employees and external stakeholders supporting humanitarian causes through crowdfunding. The staff members and others were encouraged to make small contributions/donations in aid of people who were in critical needs.

With the belief that a small act of kindness goes a long way in changing the world, staffers and other well-meaning Nigerians warmly embraced the initiative promoting compassion and being charitable. Through the Bank’s CR&S week people’s lives are positively impacted. Senior management executives led their subordinates to distribute essential commodities to orphanages across the country while old people and people living with disabilities also benefitted.

Having earlier encouraged its employees who made donations to also participate in nominating those they thought were deserving of acts of random kindness nominations based on the criteria of community/individual’s emotive story and the significance of the individual/community need, 10 beneficiaries eventually emerged last year. Among these was Baby Ijeoma, who was in dire need of cardiac surgery to correct her congenital heart disease and forestall irreversible and life-threatening complication and who got over N1.5 million assistance.

Also, Mrs. Mary Pius, a widow with five children and fruits seller who was unable to send her children to school, received support while Lawal Seun, a boy and the third child of a blind woman in Ondo town whose husband abandoned with the four children some years ago, returned to secondary school courtesy the SPARK initiative.

As previously done, FirstBank is activating SPARK again this year with more activities added to bolster the impact of the CR&S week and to serve as a platform to implore Nigerians about the long-cherished value of showing empathy and compassion on the four main areas: Education and Scholarship Fund; Welfare Fund for Mothers; Welfare Fund for the Old and Disabled, and Orphanage Support Fund.

 

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SHAREHOLDERS COMMEND FBNHOLDINGS FOR A SUCCESFUL AGM AS MANAGEMENT ASSURRES OF A BRIGHTER FUTURE

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The shareholders of FBN Holdings Plc have been assured of brighter future and enhanced dividend at the 7th Annual General Meeting (AGM) in Lagos.

Speaking at the meeting in Lagos, Dr Oba Otudeko,  FBN Holdings Group Chairman, assured the shareholders that the company had mapped out strategies aimed at ensuring enhanced value creation for the future.

Otudeko said that the board and management would work together to create shareholder value and build strong foundation for the future.

“We are not resting on our laurels, and our renewed approach to synergy and innovation will be major drivers to unlocking earnings potential for our group.

“We believe that our efforts to integrate our offerings and provide end-to-end solutions for our customers will create a competitive advantage in our markets,” he said.

Also speaking, Mr Urum Kalu Eke,  Group Managing Director FBN Holdings, said that the company was committed to greater exploits in the future in its drive to deliver value to its shareholders.

” I would like to reiterate our promise to you and the entire market that 2019 represents for us the year of inflection.

“All leading indicators, derived from our numbers, point to the commencement of growth across businesses, markets and indices.

“As we transition to a new strategic planning cycle post-2019, we are confident that the focused execution  of our strategy, investment in future-enabling technologies, development of our talents and our re-engineered processes to repositioning the group for ultimate benefit of the shareholders,” Eke said.

He also commended the shareholders for their unwavering support to the group over the years.

The company for the period under review posted a profit after tax of N59.7 billion compared with N45. 5 billiin achieved in the comparative period of 2017, an increase of 31.4 per cent.

Profit before tax stood at N65. 3 billion against N54.5 billion recorded in 2017, representing a growth of 19.7 per cent.

Gross earnings stood at N583.5 billion compared with N595. 4 billion in 2017, a decrease of two per cent.

Its total assets rose by 6.3 per cent from N5.2 trillion in 2017 to N5.6 trillion during the review period.

Similarly, customers deposits expanded by 10.9 per cent from N3.1 trillion in 2017 to N3.5 trillion in 2018.

The year also recorded reduction in impairment charges which declined to N87. 3 billion from N150.4 billion, representing 42 per cent drop and a proof to the improving loan book of the commercial bank.

He assured the shareholders that the board and management had restructured the entire group for more sustainable growth.

“For liquidity perspective,  you have a strong institution that would pay dividend on a regular basis.

“We have built capital buffet at the commercial bank and the other entities are well capitalised also.

“2019 promises to be a much better year than 2018; all operating entities are in safe hands with good management teams.

“NPL ratio should be at single digit by end of 2019, we will pursue recovery and when it happens the commercial bank will contribute to dividend payment,” he stated.

Eke noted that significant growth in the bottom line was due to several factors including the improved risk management processes which endured that impairment changes dropped year-on-year.

He , also, attributed the growth to implementation of servers cost containment initiatives during the period.

Also speaking, Dr Adesola Adeduntan, First Bank of Nigeria Limited, Chief Executive Officer,  said that recovery efforts on all accounts provisioned were in progress.

Adeduntan said that the bank would ensure that no kobo would be left in the hands of third party, noting that, they bank would work harder to resolve all the legacy NPL.

He said that the number of banking agents had increased to 20,000, adding that the figure processed through  agency banking platform reached N1 trillion as at last week.

The shareholders at the meeting approved a total dividend of N9.3 billion, which translated to 26k per share.

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