Profit

FBN Holdings’ annual revenue tops N757 billion, profit hits N151 billion after large loan repayment

FBN Holdings Plc saw its gross profit for the last year soar to 757.3 billion naira, 28.2% more than the figure recorded a year earlier, while its net profit rose by more than three-fifths according to its financial statements verified obtained on Thursday.

Belatedly, the release of the earnings report came nearly two months after the March 31 deadline, management citing Difficulty in completing the audit of one of the group’s largest subsidiaries is behind the delay, making it the latest of 13 lenders listed on the Nigerian Stock Exchange to publish its audited financial statements.

The parent company of Nigeria’s oldest commercial bank, FirstBank Limited, managed the feat even though interest income, its main source of income, fell by 4.1%.

Fee and commission income rose 24.2% to N140.6 billion, helping to cushion the blow of lower interest income on revenue.

But the main increase in turnover and profit came from a staggering increase in the amount of loans recovered, which increased almost twelvefold to N141 billion.

FBN Holdings highlighted the recovery of a written-off credit extended to Jide Omokore-supported Atlantic Energy Limited as prime mover.

To cover the loan facilities whose repayment has been made uncertain by repeated defaults, the lender has made a provision of 91.7 billion naira from its income for the year. It was nearly half of the money he had set aside for this purpose a year earlier.

Pre-tax profit was N166.7 billion, compared to N83.7 billion for the 2020 financial year.

Profit for the year was N151.1 billion, 28.4% higher than a year earlier.

Last Wednesday, FBN Holdings said so made a pact with Access Bank Plc to acquire the latter’s pension unit, Access Pension Fund Custodian for an undisclosed sum as part of an agreement to consolidate the operations of its own pension subsidiary First Pension Custodian Limited.

The financial services group said in the earnings report that its board is proposing a dividend of N0.35 per share for the year, translating into a payout of N12.6 billion. This compares with the N0.45 paid a year earlier, totaling N16.2 billion.


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