FBN Holdings Pays 25 Kobo Dividend, Declares N40b Profit for 2017

By Dipo Olowookere

The board of FBN Holdings Plc has proposed the payment of 25 kobo per share cash dividend to shareholders of the company.

The amount is for the year ended December 31, 2017 and is 5 kobo higher than what was paid in 2016 financial year end, 20 kobo per share.

Business Post reports that the dividend payment is coming after the financial institution released its audited financial statements for 2017 financial year a moment ago.

In the results, FBN Holdings recorded a 2.3 percent growth in its gross earnings, closing at N595.4 billion in 2017 against N581.8 billion in 2016.

Furthermore, the interest income was N469.6 billion last year compared with N405.3 billion two years ago, representing 15.9 percent growth, while the net interest income increased by 8.9 percent to N331.5 billion from N304.4 billion.

For the impairment charge for credit losses, it was N150.4 billion in 2017 in contrast to N226 billion in 2016, while the net interest income after impairment charge for credit losses finished at N181.1 billion as at December 31, 2017 versus N78.4 billion as at December 31, 2016, showing a significant rise by 131 percent.

For the net insurance premium revenue, it was N10.2 billion in 2017 compared with N8.4 billion in 2016, while the fees and commission income was N74.5 billion against N71.4 a year earlier.

Business Post reports further that in 2017, the net gains on foreign exchange made by FBN Holdings depreciated by 76.4 percent to N21.1 billion from N89.1 billion in 2016.

Furthermore, the operating expenses stood at negative N132.5 billion last year in contrast to negative N120 billion two years ago, while the operating profit improved by 145.8 percent in 2017 to N56.4 billion from N22.9 billion.

The profit before tax for the period under review was N56.8 billion versus N22.9 billion in corresponding period of 2016, while the profit after tax stood at N40 billion last year compared with N12.2 billion two years ago, representing 226.8 percent growth during the period.

In 2017, FBN Holdings grew its total assets by 10.6 percent to N5.2 trillion from N4.7 trillion in 2016.

However, its total liabilities went up last year by 9.7 percent to N4.6 trillion from N4.2 trillion two years ago, while the shareholders’ fund closed at N678.2 billion as at December 31, 2017, against N582.6 billion as at December 31, 2016, indicating an improvement by 16.4 percent.

As at the time of filing this report, the share price of FBN Holdings has lost 5.22 percent, trading at N12.70k per share after closing at N12.75k per share on Tuesday.