FBN Holdings Grows Earnings by 20% in 5years

FBN Holdings Plc has said it recorded 20 percent growth in gross earnings for the five year period with the figure growing to N396biilion in 2013 from N194 billion in 2009.

The bank’s profit before tax also grew by 66 percent to N91 billion in 2013 from N12 billion recorded in 2009.

Also, the deposit base rose to N2.9 trillion from N1.3 trillion in the five year period, while the total assets at N3.9 trillion in 2013 was 15 percent growth over N2.2 trillion reported in 2009.

Addressing stockbrokers at the bank’s facts behind figure on the Nigerian Stock Exchange (NSE), Bello Maccido, managing director/CEO, FBN Holding, said the bank recorded an estimated N32.5 billion revenue loss in 2013 as a result of regulatory headwinds.

He, however, stated that the bank has put measures in place to drive down cost and enhance its revenue in the coming years.

Consequently, he said the bank has slowed down opening of new branches, while some unprofitable branches have been closed down in a bid to drive down cost.

He noted the bank has redefined its public sector engagement model such that it no longer focuses on government and its agencies, adding that it now pays more attention to value chain banking to hedge expected loss emanating from industry policy changes.

According to him, the bank is sweating its existing assets and leveraging alternative distribution channels to provide superior services to customers, while unlocking additional revenue streams.

He explained that FBN Holdings is also introducing transaction banking to aggressively drive fee-based income.

In his opening remark at the fact behind the figures presentation by FBN Holdings, Mr. Oscar Onyema, chief executive officer of the NSE, said, the bank has consistently delivered superior returns to its shareholders since its adoption of the holding structure and listing in 2012.

“In the twelve-month period ended December 31, 2013, FBN Holdings’ Gross Earnings increased by 7.0 percent to N395.9 billion. Its financial results till date reflect the effective execution of several key initiatives and the restructuring of its businesses,” he said.