First Bank Breaks 10-Year-Old Record, Earns N50 Billion in 3 Months

• First Bank of Nigeria has increased its earnings to over N50 billion, a 10-year record
• According to reports, the bank earned the amount mostly from loans and advances to customers
• The bank stated that the result is a reflection of its business model over a while

First Bank of Nigeria’s earnings increased by 54.4% to N50.09 billion, a decade-high record.

BusinessDay reports that the bank reached the revenue landmark at the back of higher interest rates in Nigeria, which have increased by 650 basis points to 18.5% since May 2022, allowing banks to charge more for loans.

FBN hits decade-high records

Interest income, which accounts for a significant share of banks in Nigeria, has surged by 64% to N179.61 billion, driven mainly through loans and advances to customers at N119.41 billion, investment securities at N48.93 billion and loans and advances to banks at N11.27 billion.

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FBN Holdings, the parent company of First Bank, hit a 10-year net income of N111.85 billion in Q1 of 2023, a 53.6% increase from N72.8 billion recorded in the first quarter of last year.

First Bank saw its net interest expenses grow by 84.9% to N67.76 billion on the heels of N46.6 billion expenses on deposits from customers and banks, which are at N14.50 billion in March 2023.

Earnings came mainly from loans and advances

The bank’s revenue from external customers is pegged at N259.51 billion, comprising a commercial banking business group of N245.51 billion, a merchant banking and asset management business group of N13.08 billion, and others at N108 million for the period ended March 2023.

The Chief Executive Officer of First Bank, Adesola Adeduntan, said that on the 129th anniversary of the bank, the results show the resilience of the bank’s business model and proven ability to transform to meet the demands of changing times and seasons.

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Adeduntan said:

“We are optimistic about the rest of 2023, and these results are a sign of better things to come.”

129-Year-Old First Bank announces corporate name change of subsidiaries across Africa, United Kingdom

Legit.ng reported that Nigeria’s oldest bank, First Bank Nigeria Limited, has announced a phased corporate name change for its subsidiaries in the United Kingdom and Sub-Saharan Africa.

The bank’s Group Head of Marketing and Corporate Communications, Folake Ani-Mumuney, announced the name change in a statement.

According to the statement, the name change aligns with the subsidiaries with the parent brand and enjoys the strong heritage and brand equity built by FirstBank Nigeria in its 129 years of existence and industry leadership.

Source: Legit.ng