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Stock Analysis: FBN Holdings Gets ‘Hold’ Rating After Weak Performances

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By Modupe Gbadeyanka

Not too long ago, FBN Holdings Plc released its earnings for the first quarter of 2018, however, the firm recorded weaker than expected performances across most line items.

Particularly, the gross earnings moderated 2 percent y/y to N139 billion – weaker than prior quarter’s N154 billion and the N153 billion estimate of Vetiva Research.

The unconvincing top line performance was driven by weaker than expected performances from both Interest and Non-Interest Income lines.

Whilst Non-Interest Income rose by a marginal one percent to N23.6 billion, the income line was 27 percent and 40 percent lower than the N32.4 billion estimate and prior quarter’s N39.5 billion.

According to analysts at Vetiva Research, Interest Income moderated 3 percent y/y and 2 percent q/q to N111 billion – missing the N120 billion estimate.

With Interest Expense coming largely in line with our estimate at N35.2 billion, Net Interest Income was down 6 percent y/y to ₦75.7 billion (below our N85.5 billion estimate).

In line with the trend observed across most banks in Q1’18, we had expected the implementation of IFRS 9 to result in a significant one-time write off from earnings at the beginning of Q1’18 and a more tempered loan loss provision for the period.

However, the initial application of IFRS 9 resulted in a more contained charge of N36.1 billion versus the average N95.5 billion recorded by other tier-one banks.

Consequently, FBNH reported a loan loss provision of N25.3 billion versus our N11.1 billion estimate. With this, Operating Income came in flat y/y at N74 billion – albeit significantly weaker than our N107 billion estimate.

Furthermore, with Operating Expense coming in at N55.2 billion – better than our N64.9 billion estimate, PBT was down 6 percent y/y to N18.8 billion – significantly missing our N41.9 billion estimate.

Overall, PAT was down 9 percent y/y to N14.8 billion – behind our N35.2 billion estimate. TP revised to N12.82 (Previous: N15.88).

We have revised our estimates across most line items to reflect the earnings miss. Most notably, we raise our loan loss provision to N121 billion (Previous: N44.3 billion) following Q1’18 trend and in line with management guided cost of risk of 6.0 percent.

Also, with the one-time write-off coming in lower than we had expected, we raise our loan growth forecast marginally higher to 3 percent (Previous: 0 percent).

Despite this, we cut our Interest Income estimate to N449 billion (Previous: N481 billion) following weaker than expected Q1’18 run rate.

Similarly, we revise our Non-Interest Income estimate lower to N110 billion (Previous: N130 billion). Hence, we revise our Gross Earnings estimate to N550 billion (Previous: N610 billion). With Operating Expense coming in 15 percent better than we had estimated for Q1’17, we lower our Operating Expense estimate to N218 billion (Previous: N250 billion) – translating to a cost to income ratio of 53 percent.

Overall, we revise our PAT estimate lower to N58.3 billion for FY’18 – translating to an EPS of N1.62.

Consequently, our Target Price (TP) is revised lower to N12.82 (Previous: N15.88) – FBNH trades at FY’18 P/B and P/E ratios of 0.6x and 7.7x vs. Tier I averages of 1.0x and 4.7x respectively.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Banking

Applications Open for GTCO ‘Take on Squad’ Hackathon 3.0

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Squad logo

By Dipo Olowookere

Tech enthusiasts interested in participating in the Take on Squad Hackathon, organised by Guaranty Trust Holding Company (GTCO) Plc, can now enter the contest via the official portal at https://squadco.com/hackathon.

The programme enters its third edition in 2026, and the theme for this year is Smart Systems: The Intelligent Economy, according to a statement issued by the organisers.

The hackathon brings together developers, designers and entrepreneurs across Nigeria in a collaborative environment to build practical solutions across key sectors, including financial services, healthcare, commerce and digital inclusion.

Participants are challenged to design and build intelligent, data-driven solutions that transform how communities engage with money.

It is part of the organisation’s commitment to fostering innovation, empowering talent, and supporting the development of technology-driven solutions that address real-world challenges across Africa.

 “Today’s dynamic, digitally driven world demands continuous innovation, which is shaping how economies grow, how businesses scale, and how societies evolve.

“Through Take on Squad Hackathon, we are deliberately investing in the ideas and talent that will define the future.

“Our objective is not simply to encourage innovation, but to enable its translation into scalable solutions that deliver real and measurable impact.

“This reflects GTCO’s role as a financial services platform that connects capital, capability, and creativity to drive sustainable progress,” the Managing Director of HabariPay, Ms Eduofon Japhet, stated.

The social coding event remains a cornerstone of HabariPay’s mission to foster creativity and problem-solving among emerging tech talents. Competing teams will leverage Squad’s advanced APIs to create scalable digital tools that address everyday challenges faced by businesses and individuals.

Through initiatives such as this, GTCO continues to position itself at the intersection of finance, technology and enterprise, actively shaping the future of digital transformation in Africa.

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Banking

Easter: Ecobank Assures Customers Uninterrupted Banking Services

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Ecobank Remodel branches

By Dipo Olowookere

Banking services will not be interrupted throughout the Easter public holidays, from Friday, April 3, to Monday, April 6, 2026, for any reason, Ecobank Nigeria has assured its customers.

In a message over the weekend, the member of Africa’s leading pan-African banking group, Ecobank Transnational Incorporated, said customers would continue to enjoy quality service delivery during the period.

It noted that its secure and robust digital platforms would remain fully operational to support financial activities during the festive period.

All digital channels, including the Ecobank Mobile App, Ecobank Business App, USSD *326#, Ecobank Online, OmniPlus, Omnilite, EcobankPay, Ecobank Cards, ATMs, PoS terminals, and over 35,000 Ecobank Xpress Point agent locations nationwide, will remain accessible throughout the holiday, the financial institution further said, urging customers to conveniently conduct transactions at any time using this wide range of digital solutions.

Ecobank customers were encouraged to maximise the bank’s alternative channels for transfers, bill payments, airtime purchases, card services, and account management.

They were also advised to stay vigilant by shopping only on trusted websites; avoiding the sharing of PINs, passwords, and one-time passwords (OTPs); refraining from banking on public Wi-Fi networks; being cautious of urgent or emotionally charged messages; and regularly monitoring their account activity.

“Customers will continue to enjoy a full bouquet of services during the holiday, including local and international funds transfers, bill payments, airtime top-ups, merchant payments, balance enquiries, account statements, and cardless cash withdrawals via ATMs,” the Head of Products & Analytics, Consumer & Commercial Banking at Ecobank Nigeria, Mr Victor Yalokwu, stated.

“We understand that festive seasons come with increased financial activity, and our priority is to ensure our customers enjoy fast, reliable, and secure banking wherever they are.

“Our digital channels are designed to support uninterrupted transactions, and we have strengthened our systems to guarantee optimal performance throughout the Easter break,” he added.

Mr Yalokwu noted that, “Ecobank remains committed to providing innovative financial solutions and exceptional customer service. We wish all our customers and partners a peaceful and joyful Easter celebration.”

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Banking

Polaris Bank to Limit Access to VULTe for Four Days

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Polaris Bank Fashion Souk

By Dipo Olowookere

Customers may have difficulty accessing the digital platform of Polaris Bank, known as VULTe, during the Easter holidays from Friday, April 3, to Monday, April 6, 2026.

This is because the financial institution is carrying out system maintenance on the platform in its effort to ensure users enjoy a better banking experience.

In a notice over the weekend, the lender said “access to VULTe may be limited,” but it provided an alternative, which is the PolarisXperience.

Polaris Bank, which expressed regret over “any inconvenience” this action may cause its customers, said the “scheduled system maintenance” would happen from 10 pm to 8 am daily, promising that normal service would return after the maintenance.

“In continuation of our commitment to delivering a seamless and improved banking experience, we will be conducting a scheduled system maintenance during the Easter holidays.

“During this period, access to VULTe may be limited. We have provided an alternative channel, PolarisXperience:

“Please go to our website to onboard or use it as an existing user. You can also use this link: (https://elogin.polarisbanklimited.com).

“We regret any inconvenience and appreciate your understanding. Normal service will resume after the maintenance,” parts of the notice seen by Business Post read.

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