Despite Forex Loss, FBN Holdings Declares N362 Billion Profit for 2023
- FBN Holdings has made a massive profit for the year 2023 compared to its performance in 2022 despite forex loss
- Its revenue spiked due to investment securities, loans and advances to banks as well as loans and advances
- This comes after the company recently appointed Femi Otedola as its new chairman to succeed Ahmad Abdullahi
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
FBN Holdings Plc has released its 2023 unaudited financial statement for 2023, showing an impressive performance.
Source: UGC
The company reported N362 billion profit against N136 billion in the previous year, representing a 129% rise year-on-year.
The company's results on the Nigerian Exchange show that interest income rose to N917 billion in 2023. This shows a 66% rise from the N552 billion the previous year.
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This is as investment securities, loans and advances to banks, and loans and advances to customers shoot up.
Deposits from customers, deposits from banks, borrowings, and others pushed the Interst expenses to a high of N388 billion from N189 billion.
The report showed that FBN holdings reported a forex loss of N350 billion in 2023. This is a notable decline - mainly from the foreign exchange revaluation loss - compared to the N22 billion gain in the previous year.
Other operating income stood at N16 billion, while other operating expenses gulped N326 billion.
Speaking on the performance of the company, Charles Abuede, a financial analyst, said FBN Holdings demonstrated robust financial performance with a staggering 88.5% year-on-year growth in total revenue from customers, reaching N1.52 trillion.
He said that this remarkable surge was fueled by substantial increases in interest income, net fees, commission income, and other fee-related transactions.
He said:
"FBN Holdings' impressive numbers underscore the bank's resilience and positive trajectory, reflecting well on its standing within the Nigerian banking landscape.
"FBN Holdings' stellar financial results not only reinforce its position as a tier-1 banking heavyweight but also paint a promising picture for the sector as a whole, showcasing the resilience and growth opportunities within Nigeria's dynamic financial landscape."
Otedola emerges chairman of First Bank
In a recent development, Legit.ng reported that First Bank of Nigeria Holdings Plc appointed Femi Otedola as its new chairman.
FBN Holdings, in a notice to the Nigerian Exchange Limited and the investing public, said the decision was made at the meeting of the company's Board of Directors held on Wednesday, January 31, 2024.
Otedola, also the chairman of Geregu Power, succeeded the outgoing chairman of the FBN Board, Ahmad Abdullahi.
The billionaire was appointed to the Board of FBN Holdings Plc on August 15, 2023, as a Non-Executive Director after acquiring a 5.07 per cent equity stake.
First Bank announces name changes
Legit.ng also reported that First Bank of Nigeria Limited announced a name change for its subsidiaries in various countries, aiming to establish a consistent brand identity.
In a statement seen by Legit.ng, the bank announced that all its subsidiaries will no longer carry the "FBN" prefix followed by the country's name.
Instead, they will adopt a "FirstBank" followed by the respective country's name.
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Source: Legit.ng
