FBN Holdings Plc Posts 10% Profit Increase In 2016
FBN Holdings Plc, the parent body of First Bank Nigeria Limited has posted its audited financial for the year ended December 31, 2016 recording a 10.3 per cent in profit after tax and 15.7 percent boost in its gross earnings.
The financial conglomerate said last year it recorded a gross earnings of N581.8 billion higher than N502.7 billion earnings which it made in the full year of 2015.
Net interest income had grown from N265.2 billion to N304.4 billion in 2016 while non interest income rise by 68.9 percent to N165.5 billion from N97.9 billion.
FBN Holdings said the growth in interest income was driven primarily by 14.2 per cent growth in interest in investment securities to N115.4 billion from N101.0 billion in 2015 as interest earning investment securities grew by 23.1 year on year tN1.199 trillion.
Interest on customer loans on the other hand grew marginally by 0.2 per cent as loans to customers grew by a 14.7 per cent year on year.
However, the growth in customer loans was essentially driven by the translation effect of the currency movement.
Profit after tax of the financial conglomerate stood at N17.1 billion u by 10.3 er cent in 2016 from N15.5 billion which it recorded in the comparable period if 2015.
Commenting on the results, the Group Managing Director of FBN Holdings, UK Eke, said, “2016 has been a year characterised by significant uncertainty in the operating environment. Despite this, FBNHoldings has delivered a solid performance while focusing on addressing the pre-existing issues in the loan book which resulted in the current loan loss.
“This performance has been achieved through ongoing initiatives in driving efficiency across the various businesses, transforming the risk management and control environment, containing cost, as well as enhancing revenue generation from the banking and non-banking subsidiaries.
“We expect an improved economic environment through 2017 and are confident that the foundations we have put in place will drive improved financial performance and consequently enhance shareholder returns.”
