In an impressive display of financial prowess, FBN Holdings Plc has announced a staggering 231.1 percent surge in its profit after tax for the first half of 2023 compared to the same period the previous year.
The parent company of First Bank of Nigeria Limited achieved an after-tax profit of N187.2 billion in H1 2023, soaring from N56.5 billion recorded in the corresponding period of the previous year, according to its unaudited financial statements.
The growth in profit was complemented by an 82.8 percent increase in gross earnings, which rose to N656.6 billion in H1 2023 from N359.2 billion in H1 2022.
Nnamdi Okonkwo, the group managing director of FBN Holdings, attributed the company’s strong financial performance to several factors, including reinforced foundations, deep market understanding, robust risk management, and effective execution capabilities.
Despite the challenges posed by the complex operating environment, Okonkwo expressed confidence in FBN Holdings’ ability to navigate the terrain successfully. He emphasized the group’s commitment to leveraging technology and digital platforms to enhance operational efficiency, thereby ensuring sustainable value delivery to stakeholders.
In H1 2023, FBN Holdings’ non-interest income more than doubled to N257.9 billion from N120.6 billion in the same period of the previous year. Additionally, net interest income experienced significant growth, rising by 55.2 percent to N237.3 billion from N152.9 billion in H1 2022.
Operating income also witnessed a substantial increase, reaching N495.3 billion in H1 2023, compared to N273.5 billion in the same period the previous year. However, impairment charges for losses stood at N57.6 billion, reflecting a 165.4 percent increase from N21.7 billion in H1 2022.
Operating expenses for FBN Holdings rose to N231.6 billion from N186 billion, indicating the company’s investment in its growth and expansion strategies.
Basic earnings per share demonstrated impressive growth, standing at 519 kobo in H1 2023, a significant 234 percent increase from 155 kobo recorded in H1 2022.
First Bank of Nigeria Limited, the commercial banking segment of FBN Holdings, also performed remarkably well. The bank’s profit after tax recorded a growth of 228.3 percent, surging to N174.9 billion in H1 2023 from N53.3 billion in the corresponding period of the previous year. Profit before tax more than tripled, reaching N188.8 billion from N60 billion.
Adesola Adeduntan, the chief executive officer of FirstBank, lauded the bank’s extraordinary financial performance, hailing it as the strongest in the institution’s almost 130 years of history. Adeduntan attributed the success to the positive impact of the bank’s strategic initiatives and the significant progress made in growing and transforming the group. He also credited the bank’s resilience, customer relationships, and institutional capabilities for contributing to the outstanding results.
With FBN Holdings and its subsidiary, First Bank of Nigeria Limited, showcasing exceptional financial performance, investors and stakeholders can remain confident in the group’s ability to continue delivering value and driving growth in the future.