FBN Holdings Presents Impressive Performance as Otedola Regains Spot as Biggest Shareholder

FBN Holdings Presents Impressive Performance as Otedola Regains Spot as Biggest Shareholder

  • About 95.7% greater than in 2022, FBN Holdings reported gross earnings of N1.6 trillion in 2023
  • The profit before taxes of the holdings rose by 126.86% to N350.59 billion over the same time period
  • A detailed analysis of the group's results revealed that things were improving as financial ratios also grew

Legit.ng journalist Zainab Iwayemi has over 3 years of experience covering the Economy, Technology, and Capital Market.

FBN Holdings reported gross earnings of N1.6 trillion in 2023, approximately 95.7% more than in 2022. During the same period, profit before taxes increased by 126.86% to N350.59 billion.

FBN Holdings shows presents good performance
A thorough examination of the group's outcomes shows that, overall, things are looking great. Photo Credit: FBN Holdings, Femi Otedola
Source: UGC

Even more robust development is demonstrated by the Q1 '24 results, with profit before taxes and gross earnings expanding by 325.15 per cent and 181.43 per cent, respectively, despite challenges brought on by higher operational costs and foreign exchange losses.

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A thorough examination of the group's outcomes shows that, overall, things are looking up as financial ratios keep getting better.

Interest income was for 60% of total income, compared to 40% from non-interest income, indicating that the growth in income was driven by the core operations.

Net gains from financial instruments at FVTPL (N246.08bn), net gain on sale of investment securities (N34.85bn), and fee and commission revenue (N226.45bn) drove the 153.67% surge in non-interest income to N601.70bn.

With a 94% contribution, the commercial banking segment continued to be the primary source of gross earnings, followed by asset management and merchant banks with 6% each.

Interest and non-interest growth in Q1 2024 were impacted by macroeconomic variables, particularly the continuation of the naira depreciation and aggressive rate hikes.

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Furthermore, in 2023 the group made N66.34 billion from digital banking, which is 20.41% more than N55.10 billion in 2022.

Core operational revenues for the group increased by 49.68% to N10.66 trillion in 2023, while deposits from banks increased by 70.88% to N1.89 trillion.

Additionally, shareholders' funds increased by 75.45% to N1.75 trillion, primarily due to increases in retained earnings of 48.09%, foreign currency translation reserve growth of 531.43%, and statutory reserve of 35.38%.

The group's overall financial situation improved in 2023 as total assets increased from N10.58 trillion in 2022 to N16.94 trillion, a rise of 60.13%.

Key value indicators such as return on average equity (ROAE) and return on average assets (ROAA) increased to 22.60 percent and 2.30 percent, respectively, in 2023 from 14.50 percent and 1.40 percent, respectively, in 2022 as a result of improved gross earnings and profitability.

Similarly, the cost-to-income ratio (CIR) decreased to 43.10% from 60.40% in Q1 2023, indicating improved cost optimisation. Return on equity (ROE) and assets (ROA) increased to 45.40% and 4.30%, respectively.

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Legit.ng reported that Nigerian billionaire and businessman Femi Otedola had added 2.22% more shares in FBN Holdings.

The billionaire's ownership of the company is further cemented by this new acquisition, as his stake now stands at the highest level at 11.63%.

The NGX filing states that Otedola paid N17.2 billion for 797,946,415 shares for 21.58k.

First Bank appoints new MD, others

Legit.ng reported that First Bank of Nigeria Limited had officially appointed Olusegun Alebiosu as its Chief Executive Officer (CEO) and Managing Director (MD).

In a note sent on Wednesday, the company's secretary, Adewale Arogundade, updated the Nigerian Exchange Group on recent developments within the bank.

According to the statement, Alebiosu's appointment is subject to clearance from the Central Bank of Nigeria (CBN).

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng

Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng