FBN Holdings Plc, a leading financial institution, has announced the release of its audited financial statements for the year ending on December 31, 2022. The statements reflect the company’s performance in a challenging economic environment and highlight its ability to navigate through various headwinds.
Gross earnings for the group recorded a positive growth of 6.32%, reaching N805.128 billion compared to N757.296 billion in the previous year. This increase can be attributed to the strong growth in interest income, showcasing the bank’s ability to leverage its core operations effectively.
However, the profit before tax experienced a slight decline of 5.26% to N157.902 billion compared to N166.662 billion in the previous year. The decrease in pre-tax profit was influenced by several factors, including the impact of increasing inflation that the economy has been grappling with. Nigeria’s annual inflation rate rose for the fourth consecutive month to 22.22% in April 2023, indicating the challenging macroeconomic environment in which FBN Holdings operates.
On a positive note, the net interest income of FBN Holdings saw a significant increase of 59.15%, reaching N363.249 billion compared to N228.242 billion in the previous year. This growth highlights the bank’s ability to effectively manage its interest-earning assets and liabilities, optimizing its net interest margin.
Operating expenses for the bank experienced a growth of 23.35%, reaching N218.481 billion compared to N177.130 billion in the previous year. The increase in operating expenses can be attributed to various factors, including inflationary pressures and investments made in technology and infrastructure to enhance operational efficiency and customer experience.
The Board of Directors, in accordance with the provisions of Section 426 of the Companies and Allied Matters Act (CAMA) 2020, recommended a dividend of 50 kobo per ordinary share, amounting to N17,947,646,398. It is important to note that withholding tax will be deducted at the time of payment.
Despite the slight decline in pre-tax profits, FBN Holdings demonstrated resilience and the ability to manage its operations effectively. The company remains focused on delivering value to its shareholders, leveraging its strong brand presence, and capitalizing on emerging opportunities.
The audited financial statements of FBN Holdings for 2022 reflect the bank’s commitment to sound financial management, risk mitigation, and sustainable growth. As the economic landscape evolves, FBN Holdings remains well-positioned to navigate challenges and contribute to the development of the financial sector in Nigeria.
