Economy
FBN Holdings Earnings Hit N627bn, to Pay 38 Kobo Dividend
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.
By Adedapo Adesanya
The duo of MRS Oil and FrieslandCampina Wamco Nigeria Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.68 per cent on Friday, June 5.
MRS Plc lost N19.00 during the session to sell at N171.00 per share compared with Thursday’s value of N190.00 per share, and FrieslandCampina Wamco Nigeria Plc depreciated by N8.70 to finish at N181.68 per unit compared with the preceding session’s N190.38 per unit.
As a result, the market capitalisation further lost N22.59 billion to close at N2.607 trillion versus the N2.630 trillion it ended a day earlier, and the NASD Unlisted Security Index (NSI) dropped 37.76 points to settle at 4,358.32 points, in contrast to the previous day’s 4,396.08 points.
The alternative stock market closed the last trading day of this week with a price gainer, Central Securities Clearing System (CSCS) Plc, which gained 6 Kobo to quote at N78.40 per share compared with the preceding session’s N78.34 per share. However, it could not prevent the market from going down at the close of business.
Yesterday, the volume of securities bought and sold by investors went down by 50.0 per cent to 140,345 units from the preceding day’s 280,714 units, the value of stocks decreased by 16.5 per cent to N17.9 million from the previous session’s N21.5 million, and the number of deals carried out by market participants fell by 35.7 per cent to 27 deals from the 42 deals recorded on Thursday.
When trading activities closed for the day, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 64.7 million units traded for N4.4 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
By Dipo Olowookere
Renewed interest in financial stocks and others lifted the Nigerian Exchange (NGX) Limited by 0.15 per cent on Friday.
Customs Street closed higher yesterday despite the 1.37 per cent loss recorded by the consumer goods sector as a result of profit-taking.
This was offset by gains in the other key sectors of the local bourse, as the insurance counter chalked up 1,14 per cent. The banking space appreciated by 0.90 per cent, the industrial goods segment grew by 0.46 per cent, and the energy sector expanded by 0.01 per cent.
Consequently, the All-Share Index (ASI) went up by 366.00 points to 242,593.31 points from 242,227.31 points, and the market capitalisation gained N235 billion to close at N155.594 trillion compared with the previous day’s N155.359 trillion.
The trio of International Energy Insurance, Abbey Mortgage Bank, and DAAR Communications improved by 10.00 per cent each yesterday to N7.26, N9.35, and N1.98, respectively, while Zichis advanced by 9.39 per cent to N32.38, with Sovereign Trust Insurance up by 8.70 per cent to N2.50.
On the flip side, Academy Press lost 9.84 per cent to quote at N8.25, University Press depreciated by 9.73 per cent to N5.10, Africa Prudential dipped by 2.63 per cent to N12.95, Chams crumbled by 2.44 per cent to N4.00, and International Breweries slipped by 1.59 per cent to N12.35.
Business Post reports that the market breadth index was positive during the session after recording 37 appreciating equities and 14 depreciating equities, implying strong investor sentiment.
Abbey Mortgage Bank led the activity chart with a turnover of 164.1 million units worth N1.5 billion, Ellah Lakes sold 76.7 million units for N767.2 million, Access Holdings transacted 44.8 million units valued at N1.1 billion, Linkage Assurance exchanged 23.0 million units worth N41.2 million, and The Initiates traded 20.2 million units for N562.1 million.
At the close of trades, market participants transacted 608.5 million units worth N32.0 billion in 53,826 deals versus the 588.5 million units valued at N27.9 billion executed in 57,352 deals in the previous session. This showed that the number of deals eased by 6.15 per cent, the volume of transactions rose by 3.40 per cent, and the value of transactions soared by 14.70 per cent.
By Adedapo Adesanya
The Naira further depreciated against the United States Dollar by N3.46 or 0.25 per cent to N1,362.21/$1 from N1,358.75/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 5.
However, it appreciated against the Pound Sterling in the same market window during the session by N4.47 to trade at N1,823.59/£1 compared with the previous day’s N1,828.06/£1, and gained N7.00 against the Euro to sell at N1,574.58/€1, in contrast to Thursday’s closing price of N1,581.58/€1.
For another trading session, the Nigerian Naira maintained stability against the Dollar in the parallel market and the GTBank forex counter on Friday at N1,375/$1 and N1,372/$1, respectively.
The Naira is expected to remain strong in the near term, backed by a rise in external reserves, which are nearing $50 billion, enhancing analysts’ confidence about its outlook in the second half of 2026.
Heightened global uncertainty has reduced the incentive for importers and corporates to demand FX, as cautious trade weighs on import needs. Analysts estimate a $40 billion net FX position for the year, a projection anchored in oil windfall gains.
As for the cryptocurrency market, prices remained depressed following a strong US jobs report that spurred markets to price in higher-for-longer interest rates, sending Treasury yields and the dollar up while hammering stocks, especially AI-related names. Crypto markets saw heavy leverage washouts with about $1.6 billion in positions liquidated over 24 hours.
Ethereum (ETH) gave up 4.9 per cent to trade at $1,584.68, Solana (SOL) fell by 3.3 per cent to $63.22, Bitcoin (BTC) crashed by 1.9 per cent to $61,333.23, Dogecoin (DOGE) slipped by 1.8 per cent to $0.0821, and Ripple (XRP) moderated by 1.8 per cent to $1.09.
Further, TRON (TRX) dropped 1.6 per cent to sell at $0.3197, Binance Coin (BNB) slumped by 1.0 per cent to $581.18, and Cardano (ADA) declined by 0.4 per cent to $0.1589, while the US Dollar Tether (USDT) gained 0.07 to sell at $0.9997, and US Dollar Coin (USDC) closed flat at $0.9998.
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