By Dipo Olowookere
FBN Holdings Plc, the parent company of First Bank Nigeria Limited, on Monday announced its results for the year ended December 31, 2019.
The financial powerhouse improved its gross earnings to N627.0 billion from N587.4 billion, while the interest income rose to N442.6 billion from N435.6 billion, with the interest expense increasing to N152.3 billion from N150.2 billion, leaving the firm with a net interest income of N290.2 billion in FY19 compared with N285.3 billion in FY18.
FBN Holdings said it had an impairment charge for losses of N51.1 billion in contrast to N87.5 billion the prior year, while the net interest income after impairment charge for losses stood at N239.1 billion as against N197.9 billion a year earlier.
However, there was a drop in the net insurance premium revenue to N12.3 billion from N15.5 billion, while the fee and commission income increased to N104.3 billion from N92.7 billion, with the fee and commission expense jumping to N20.5 billion from N17.3 billion and the foreign exchange income declining to N9.5 billion from N32.9 billion.
In the results, the company said it had N17.2 billion as net gains on sale of investment securities, higher than N5.7 billion in the 2018 fiscal year, while dividend income increased to N4.4 billion from N2.3 billion, with other operating income declining to N2.9 billion from N3.2 billion.
In the year, there was a rise in the personnel expenses (N99.4 billion in FY 2019 versus N93.4 billion in FY 2018), other operating expenses increased to N182.2 billion from N150.3 billion.
According to FBN Holdings, it printed an operating profit of N83.5 billion in the period under review as against N63.9 billion in the previous year.
It was further disclosed that the profit before tax stood at N83.6 billion in FY19 compared with N63.9 billion, while the profit after tax rose to N73.7 billion from N58.2 billion.
In 2019, FBN Holdings grew its total assets to N6.2 trillion from N5.6 trillion, while the total liabilities rose to N5.5 trillion from N5.0 trillion.
A further analysis of the assets side of the balance sheet showed that loans and advances to customers increased to N1.9 trillion from N1.7 trillion, while investment in securities declined to N1.4 trillion from N1.7 trillion.
On the liabilities side, deposits from customers sharply jumped to N4.0 trillion from N3.5 triilion, while borrowings reduced to N250.6 billion from N338.2 billion.
FBN Holdings closed last year with retained earnings of N73.2 billion versus N3.1 billion two years ago.
Meanwhile, the board of FBN Holdings has recommended a dividend of 38 kobo to be paid on Tuesday, April 28, 2020 to shareholders whose names appear in the register of members as at the close of business on Monday, April 20, 2020.
The company said the register would be closed from Tuesday, April 21 to Wednesday, April 22, 2020, while the Annual General Meeting (AGM) of the firm has been scheduled to take place on Monday, April 27, 2020 at Oriental Hotel, Lagos by 10am.
