FBN Holdings profit drops N6.4bn in H1 2017
…As First Bank records 3.5% decline in customers deposit

FBN Holdings Plc, the parent company of First Bank of Nigeria Limited has reported N6.40 billion dropped in profit after tax in its unaudited results for the six months ended 30 June 2017.
The bank results released to the Nigerian Stock Exchange in Lagos shows that N29.5 billion were recorded in half year 2017, down by 17.8 percent year on year as against N35.9 billion recorded in June 2016.
The lender’s recorded gross earnings of N288.8 billion, up by 7.8 percent year on year from N267.9 billion in June 2016.
Net-interest income of FBN Holdings Plc up by 30.2 percent to stand at N164.1 billion at the end of half year 2017 form N126.1 billion recorded in June 2016.
Its operating income also dropped by 2.6 percent from N220.01 it made in June 2016 to close half year 20-7 at N214.4 billion.
The holding company’s recorded impairment charge for credit losses of N62.4 billion, down by 10.7 percent year on year from N69.9 billion.
However, First Bank of Nigeria Limited which is part of the structure received lower deposit from customers as customer deposits dropped 3.5 percent to end half year 2017 at N3.0 trillion, from N3.1 trillion received in December 2016.
Also, customer loans and advances (net) dropped 4.1 percent year on year from N2.1 trillion in December 2016 to end half year 2017 at N2.0 trillion.


Commenting on the results, UK Eke, the Group Managing Director said: “FBNHoldings has again demonstrated its strong revenue generating capacity in the current economic environment reporting gross earnings of N288.8 billion – up 7.8 percent year on year. In line with our strategic focus on improving asset quality; cost optimisation; and, enhancing revenue generation, we are beginning to see improvement across a number of metrics associated with these initiatives.
Our focus on enhancing the quality of our loan book is reflected in a decline in non-performing loans, a reduction in our impairment charge following improvement in the asset quality outlook, and we will continue to prioritise this area through the rest of this year. Similarly, consistent improvement in the efficiency ratio is testament to the efficacy of our cost optimisation initiatives, though these results have been partly offset by the currency devaluation and high inflationary environment.
Overall, we have seen strong growth trajectory in our Merchant Banking & Asset Management and the Insurance Group. These businesses complement our Commercial Banking franchise and represent new frontiers for our Group, firmly supporting our aspiration of becoming a leading financial services institution in Middle Africa. We remain committed to maximising returns to our shareholders as well as creating sustainable value.”