Economy
FBN Holdings to Improve Operating Model for More Efficiencies
By Dipo Olowookere
The management of FBN Holdings Plc says its strategic focus in 2022 is revenue generation through digital channels and retail product offerings.
Reacting to the performance of the company in the 2021 financial year, the team stated that efforts would be made to further drive “our synergy potential as well as continue to improve our operating model to deliver more efficiencies.”
Last year, the organisation grew its gross revenue by 28.2 per cent to N757.3 billion, with profit before tax up by 99.1 per cent to N166.7 billion and the loans and advances growing by 30.0 per cent to N2.9 trillion.
In addition, the total assets appreciated by 16.2 per cent to N8.9 trillion, reaffirming its commitment to driving revenue and profitability as it completes the balance sheet clean-up.
A thorough analysis showed that the interest income remained challenged given the moderated interest rate environment negatively impacting yields; as a result, interest income declined 4.1 per cent to N369.0 billion from N384.8 billion in 2022.
To mitigate the effect of the low-interest rate on investment securities and revenue generation, the firm remained deliberate with its intensified deposit mobilization and funding strategy to support enhanced loan growth at optimised rates leading to a 5.7 per cent increase in interest expense to N140.8 billion from N133.2 billion a year earlier.
Conversely, non-interest revenue grew by 96.1 per cent to N364.6 billion from N185.9 billion on the back of increased fees and commission income, treasury activities and other operating income.
Additionally, and in line with its focus on further enhancing revenue generation capacity, First Pension Custodian Limited, a subsidiary of FBN Holdings’ flagship subsidiary, First Bank of Nigeria Limited, entered into a definitive agreement with Access Bank Plc for the planned acquisition of the entire share capital of Access Pension Fund Custodian Limited held by Access Bank Plc.
The idea behind this move is to boost its market share in the industry, aid revenue diversification and support annuity income as FBN Holdings plan to create quality loans with a focus on retail lending driven by technology as we continue to grow non-interest income to further diversify revenue.
In 2021, the company operated in a challenging operating environment that was pressured by high inflation and currency devaluation, the effect of which increased operating expenses by 14.2 per cent to N334.2 billion from N292.5 billion).
However, this 14.2 per cent is below the inflation level of 15.6 per cent in the previous year whilst regulatory costs also rose during the period, up 23.2 per cent y-o-y.
Despite the inflationary push factors, operating income grew 35.5 per cent to N592.8 billion from N437.6 billion, resulting in an improvement in cost to income ratio to 56.4 per cent from 66.8 per cent.
It was observed that in the year, deposits from customers increased by 19.5 per cent y-o-y to N5.9 trillion from N4.9 trillion, reaffirming its strong market access and robust funding base.
In the year, total assets grew by 16.2 per cent y-o-y to N8.9 trillion from N7.7 trillion driven by a 30.0 per cent y-o-y increase in customer loans and 26.3 per cent increase y-o-y in investment securities. Cash and balances with central banks, loans to banks & customers and investment securities constituted 87.2 per cent of total assets compared with 83.4 per cent of the preceding year.
The firm, while reacting to the figures, stated that, “As a financial service holding company, driving synergies remains a critical part of our strategy and has been integrated into every aspect of our delivery model.
“We pride ourselves in the uniqueness of our diversified portfolio and the collaborative ecosystem that we have built around our lines of business, our customers, and the unique value proposition that we deliver.
“We are also increasingly leveraging technology – artificial intelligence, robotics, and other next-generation technological advancements, to deepen collaboration and further drive operational efficiency across the group.”
“Following years of strategic restructuring of the Bank’s balance sheet and operations, the commercial banking business is beginning to transition into a sustained growth phase delivering performance commensurate to the size of our business and capabilities of our people. Profit before tax is up 77.9 per cent, gross earnings 30.3 per cent, total assets 15.9 per cent and customer deposits up 19.5 per cent.
“We continue to record progress in Asset Quality and Risk Management stemming from our retooled and strengthened risk management architecture.
“On the back of this, non-performing loan ratio further declined to 6.1 per cent from 7.7 per cent while coverage ratio improved to 62.2 per cent from 48.0 per cent.
“With a cleaner balance sheet and resilient earnings-generating capacity, First Bank (Nigeria) was able to accrete capital buffers from organic earnings. Hence, despite the increase in loans and advances, Capital Adequacy Ratio (CAR) remained steady, marginally increasing to 17.4 per cent versus 17.0 per cent in 2020,” it added.
By Aduragbemi Omiyale
Nigerians have been urged to invest more locally because the country has now become a compelling investment destination, where value is being created and discovered.
This is the view of President Bola Tinubu, who expressed confidence that 2026 would deliver even stronger returns as the impact of his administration’s economic reforms continues to materialise.
He was reacting to the historic N100 trillion market capitalisation mark of the Nigerian Exchange (NGX) Limited achieved on Monday, describing the feat as a powerful signal of renewed investor confidence and economic rejuvenation.
In a statement, the President said, “With Nigerian Exchange crossing the historic N100 trillion market capitalisation mark, the country is witnessing the birth of a new economic reality and rejuvenation,” noting that the All-Share Index (ASI) closed 2025 with a 51.19 epr cent return, up from 37.65 per cent in 2024, ranking among the strongest performances globally and outperforming major indices including the S&P 500, FTSE 100, and several emerging-market peers.
“Nigeria is no longer a frontier market to be overlooked, it is now a compelling investment destination where value is being created and discovered,” he declared.
Mr Tinubu emphasised that robust stock market performance reflects broader economic health and rising investor confidence, highlighting several factors behind the market’s strong performance: impressive results across listed companies, a growing pipeline of new listings spanning energy, technology, telecommunications, and infrastructure, as well as broader macroeconomic improvements including easing inflation, a stabilising naira, rising foreign reserves, and expanding exports.
He reiterated his administration’s commitment to building an inclusive, transparent, and high-growth economy, stressing that the N100 trillion milestone sends a powerful message to the global investment community.
“Nation-building is a process, not a destination. The N100 trillion market capitalisation is a signal to the world that the Nigerian economy is robust, productive, and open for business,” Mr Tinubn affirmed.
In his remarks, the Director-General of the Securities and Exchange Commission (SEC), Mr Emomotimi Agama, credited President Tinubu’s leadership for driving the market to historic heights.
“The N100 trillion milestone is a direct result of the administration’s decisive reforms and unwavering commitment to transparency and fiscal discipline.
“These policies have renewed investor trust and solidified the credibility of Nigeria’s capital market,” Mr Agama stated, reaffirming the agency’s alignment with the President’s economic vision, pledging to strengthen oversight, protect investors, and uphold governance standards to ensure sustained growth and resilience.
On his part, the chief executive of NGX Group Plc, Mr Temi Popoola, commended President Tinubu for providing the policy clarity and reform momentum that have bolstered investor confidence.
“This milestone underscores the success of ongoing reforms and the exchange’s commitment to market depth, transparency, and inclusive growth. The capital market has responded positively to improved macroeconomic coordination and clear reform direction, creating an enabling environment for sustainable investment. It validates our focus on market development, innovation, and creating an environment where both local and global investors can deploy capital with confidence,” Mr Popoola noted.
He added that NGX Group would continue collaborating with regulators and stakeholders to attract quality listings, deepen liquidity, and expand retail participation, reinforcing our position as a catalyst for sustainable economic growth.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange appreciated for the fourth straight session on Thursday, January 8, chalking up 0.21 per cent.
This improved the market capitalisation of the bourse by N4.69 billion to N2.190 trillion from the N2.185 trillion it ended in the preceding session, and the NASD Unlisted Security Index (NSI) added 7.83 points to close at 3,660.87 points compared with Wednesday’s 3,653.04 points.
Business Post observed that there were movements around five securities during the trading day, with three pointing north and two point south.
FrieslandCampina Wamco Nigeria Plc gained N2.55 to close at N62.47 per share versus Wednesday’s price of N59.92 per share, Central Securities Clearing System (CSCS) Plc appreciated by 48 Kobo to N42.62 per unit from N42.14 per unit, and IPWA Plc improved by 10 Kobo to N1.12 per share from the N1.02 per share it ended at midweek.
On the flip side, Afriland Properties Plc lost N1.81 to end at N16.30 per unit versus the previous day’s value of N18.11 per unit, and Geo-Fluids Plc crashed by 6 Kobo to quote at N6.82 per share versus N6.88 per share.
During the session, the volume of transactions was down by 74.0 per cent to 486,499 units from 1.9 million units, the value of trades slumped by 70.9 per cent to N10.5 million from N36.3 million, and the number of deals went down by 46.7 per cent to 24 deals from 45 deals.
At the close of business, CSCS Plc remained the most active stock by value on a year-to-date basis with 1.1 million units sold for N42.7 million, followed by Geo-Fluids Plc with 2.9 million units valued at N20.3 million, and FrieslandCampina Wamco Nigeria Plc with 217,757 units worth N13.1 million.
The most active stock by volume on a year-to-date basis was Geo-Fluids Plc with 2.9 million units valued at N20.3 million, trailed by Industrial and General Insurance (IGI) Plc followed with 2.9 million units traded for N1.9 million, and CSCS Plc with 1.1 million units worth N42.7 million.
By Adedapo Adesanya
After recent gains, the Naira recorded its first loss against the US Dollar in 2026 on Thursday, January 8, in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Yesterday, at the official market, the Nigerian currency tumbled against the greenback by N1.46 or 0.11 per cent to sell for N1,419.72/$1, in contrast to Wednesday’s closing price of N1,418.26/$1.
However, the local currency further appreciated against the Pound Sterling in the same market segment by N5.28 to close at N1,908.38/£1 versus the preceding session’s N1,913.66/£1, but lost 14 Kobo against the Euro to finish at N1,657.66/€1 compared with the midweek session’s closing price of N1,657.52/€1.
In the same vein, the Naira weakened against its American counterpart in the parallel market by N15 during the session to quote at N1,485/$1 compared with the previous day’s N1,470/$1 and declined by N3 at the GTBank forex desk to trade at N1,428/$1 versus the previous value of N1,425/$1.
The domestic currency has remained relatively stable in the spot market in tandem with projections by analysts, including PwC, which expects the Naira to remain broadly stable through 2026, underpinned by ongoing reforms by the Central Bank of Nigeria (CBN) and improved portfolio inflows
However, policymakers have been told to wary of weak oil prices or production disruptions reducing FX inflows, deepening FX liquidity crisis, and forced currency devaluation, which could return prices to weaker levels.
According to CardinalStone, pre-election worries, an unanticipated slump in exports, especially non-oil, and the ongoing global trend of tightening border controls may reduce Nigerian exports, and have a ripple effect on the Naira’s strength.
As for the cryptocurrency market, it was bullish as traders await the US Supreme Court ruling on President Donald Trump’s tariffs.
The market is pricing in to see if the US Supreme Court explicitly upholds Trump’s use of emergency powers under the International Emergency Economic Powers Act to impose tariffs. Depending on the outcome, this could potentially push long-term US yields higher and tighten global liquidity, a mix that has historically pressured crypto, which is sensitive to quick changes in both.
Solana (SOL) appreciated by 4.2 per cent to $140.49, Binance Coin (BNB) gained 1.8 per cent to sell for $895.46, Cardano (ADA) increased by 1.8 per cent to $0.3989, and Ripple (XRP) soared by 1.6 per cent to $2.14.
Further, Bitcoin (BTC) and Litecoin (LTC) appreciated by 1.3 per cent each to $91,017.24 and $81.73 apiece, Ethereum (ETH) grew by 0.4 per cent to $3,119.22, and Dogecoin (DOGE) expanded by 0.2 per cent to $0.1429, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) finished flat at $1.00 each.
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