FBN announces 2023 audited accounts, reports N359bn profit before tax
By Oluwaseyi Lawal
FBN Holdings Plc has announced its audited financial results for the year ending December 31, 2023, reporting a profit before tax of approximately N359 billion, a 127.3% increase from N157.7 billion in 2022.
According to the results posted on the Nigerian Exchange Limited (NGX), the group declared a profit after tax of N310.5 billion, marking a 127.8% rise from the N136.3 billion reported in 2022.
Despite the growth in profit after tax, the board of directors recommended a dividend of 40 kobo per ordinary share of 50 kobo each, totaling N14.36 billion for the 2023 financial year, compared to N17.95 billion paid to shareholders in 2022. Gross earnings reached N1.6 trillion in 2023, a 95.7% increase from N815.2 billion in 2022.
This rise in gross earnings was driven by a 74% growth in interest income, which amounted to N960.3 billion in 2023, up from N551.9 billion in 2022, representing 60.2% of gross earnings. The growth in interest income was supported by a strong rate environment, which led to an increase in earning yields to 10.7% from 8.8% the previous year. Additionally, the net interest margin improved to 6.1% from 5.8% in 2022.
In a related development, and in line with the emphasis on transaction-based services, non-interest income surged by 153.6% to N601.7 billion. This includes trading and mark-to-market income of N382.7 billion. Without this, non-interest revenue rose by 52.4% to N219.0 billion from N143.7 billion.
This increase was primarily driven by a 63.8% growth in net fee and commission income, highlighting the strength of the company’s core banking and related services. FBN Holdings’ Group Managing Director, Nnamdi Okonkwo, stated that the Group’s robust performance reflects its resilience and sustainable growth, even amid a challenging macroeconomic environment.
He said, “Notably, gross earnings grew 95.7per cent to N1.6 trillion, while profit before tax increased by 127.3per cent to N358.9 billion.“We are committed to further enhancing revenue and profitability by leveraging technology, strengthening our value proposition, refining our governance model, and maximising operational efficiencies.”
“In the face of the increasingly competitive environment, we maintain a forward-looking approach, with a clear aim to build a sustainable institution.‘Our disciplined execution of strategic initiatives positions the Group for improved profitability, excellence in performance, and surpassing stakeholders’ expectations.”
Additionally, the group’s customer deposits rose to N10.7 trillion, marking a 49.7% increase from the N7.1 trillion reported in 2022.
“Customer acquisition drive has also been enhanced through a growing adoption across digital platforms and greater penetration of the unbanked segments through the agency banking network, further boosting financial inclusion drive.”
Total assets reached N16.9 trillion in 2023, reflecting a 60.1% growth from the N10.6 trillion reported in 2022. This increase was driven by a 67.8% rise in customer loans and a 20.5% growth in investment securities, thereby enhancing the group’s earning potential and overall asset position. Additionally, the Group’s gross loans rose to N6.6 trillion in 2023, a 68.8% increase from N3.9 trillion in 2022, attributed to growth in lending and the increase in foreign currency loans following currency devaluation.
“Despite the volatile business environment, NPL ratio remained well within the regulatory threshold at 4.7per cent, while coverage ratio further improved from 80.5per cent in 2022 to a solid at 91.7per cent, thereby sustaining the overall strong asset quality profile of the portfolio – this remains a top priority.”
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