FBN Holdings’ EPS Rises to 42 Kobo on 6.8% Growth in PAT

By Dipo Olowookere

A total of N15.8 billion was realized as profit in the first three months of this year compared with the N14.8 billion netted in the same period of last year, the financial statements of FBN Holdings have revealed.

This represents a 6.8 percent growth in the PAT posted by the financial institution in the period under consideration, Business Post reports.

Also, the company declared a profit before tax of N19.3 billion in Q1 2019, higher than N18.8 billion in Q1 2018.

The results indicated that the earnings per share of FBN Holdings, the parent company of the flagship First Bank Nigeria Limited, stood at 42 kobo as at March 31, 2019 in contrast to 40 kobo as at March 31, 2018.

The financial statements further revealed that the company netted N112.1 billion as interest income against N110.9 billion it generated exactly 12 months ago, while the fee and commission income increased to N23.4 billion from N19.2 billion.

However, the interest expense increased in the period to N37.9 billion from N35.2 billion, while the fee and commission expense jumped to N3.6 billion from N3.2 billion.

FBN Holdings recorded N13.9 billion as impairment charge for losses in Q1 2019 versus N25.3 billion in Q1 2018, while the net interest income after impairment charge for losses increased to N60.3 billion from N50.4 billion.

In addition, the net gains on foreign exchange dropped to NN2.9 billion from N4.6 billion, while the net gains on investment securities appreciated to N3.1 billion from N837 million.

Though the operating profit slightly improved to N19.3 billion from N18.8 billion, the amount spent on operating expenses had a significant effect on it. In Q1 2019, the company used N41.7 billion on OPEX against N29.9 billion in Q1 2018.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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