FBN Holdings Plc has reinforced its standing as a premier financial institution in Nigeria by delivering exceptional financial results for the year ended December 31, 2024. The group’s unaudited financial statements reveal a 142% year-on-year (YoY) surge in Profit Before Tax (PBT), reaching N862 billion, while Gross Earnings escalated by 113% YoY to N3.33 trillion.
•Key Financial Highlights:
•Net Interest Income: Increased by 155% YoY, amounting to N1.39 trillion.
•Non-Interest Income: Grew by 43.3% to N846.9 billion, up from N255.8 billion in 2023.
•Loans to Customers: Expanded significantly by N2.797 trillion, reaching N9.4 trillion.
•Customer Deposits: Rose by 62% to N17.29 trillion.
•Total Assets: Increased from N16.94 trillion to N26.54 trillion.
These impressive figures underscore FBN Holdings Plc’s resilience and strategic acumen in navigating a competitive and evolving market landscape. The remarkable increase in net interest income highlights the group’s effective interest-earning strategies and robust risk management practices.
It’s noteworthy that the Profit Before Tax could have reached N1.3 trillion if not for an impairment charge of N411 billion, indicating prudent provisioning and a cautious approach to potential credit risks.
•Key Financial Ratios:
•Post-Tax Return on Average Equity: Improved to 36.9% in H1 2024 from 31.5% in H1 2023.
•Post-Tax Return on Average Assets: Increased to 3.6% from 3.0% over the same period.
•Net Interest Margin: Strengthened to 7.7% in H1 2024 compared to 5.8% in H1 2023.
•Cost of Funds: Rose to 5.2% from 2.7%, reflecting changes in the funding environment.
•Non-Performing Loan (NPL) Ratio: Slightly improved to 4.2% from 4.3%, indicating effective credit risk management.
•Cost to Income Ratio: Remained stable at 46.9%, demonstrating efficient operational management.
These ratios reflect FBN Holdings’ strengthened profitability, efficient asset utilization, and effective cost management strategies. The improvement in return metrics signifies enhanced value creation for shareholders, while the stable cost-to-income ratio indicates disciplined expense control amidst revenue growth.
In summary, FBN Holdings Plc’s 2024 financial performance showcases its robust operational capabilities and strategic foresight, solidifying its position as a leader in Nigeria’s financial services sector.
