FY 2024: FBN Holdings Increases Profit to N862 Billion as Earnings Spike

• FBN Holdings Plc.'s gross earnings climbed 113% to N3.33 trillion, while its profit before tax (PBT) surged 142% to N862 billion.
• FBN Holdings Plc's resilience and ability to deliver value are demonstrated by the strong growth in net interest income
• The growth in fee and commission income was mostly dependent on revenue from money transfers, intermediation, and fees on digital channels

Legit.ng journalist Zainab Iwayemi has 5 years of experience covering the Economy, Technology, and Capital Market.

FBN Holdings Plc. saw a 142% growth in profit before tax (PBT) to N862 billion while gross earnings increased by 113% to N3.33 trillion.

This was disclosed in its year-end December 31, 2024, unaudited group financial statement. Consequently, the group's standing as one of Nigeria's top financial institutions was cemented.

Highlights of the findings included a 155% year-on-year (y-o-y) increase in net interest income to N1.39 trillion, a 43.3% increase in non-interest income to N846.9 billion from N255.8 billion in 2023, a significant increase in customer loans by N2.797 trillion to N9.4 trillion, a 62% increase in customer deposits to N17.29 trillion, and an increase in total assets to N26.54 trillion from N16.94 trillion.

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The exceptional financial outcomes demonstrate notable expansion in several important criteria. The robust increase in net interest income is evidence of FBN Holdings Plc's tenacity and capacity to provide value in a market that is both competitive and changing. The PBT, however, would have been N1.3 trillion for the N411 billion impairment charge.

Despite the higher cost of capital (5.79% in 2024 compared to 3.36% in 2023), the Group's average earnings yield for the year was higher at 16.71% due to growth in loan volume and other earning assets, as opposed to 10.69% in 2023.

From 2023 to 2024, the net interest margin (NIM) increased from 6.11% to 9.61%. The increase in the CBN Monetary Policy Rate (MPR) from 18.75% in December 2023 to 27.25% in December 2024 is indicative of the high-rate environment.

Income from money transfers, intermediation, and fees on digital channels—all of which saw excellent transaction volumes during the year—were crucial to the growth in fee and commission income, which propelled the non-interest income growth.

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New loans to clients from the Commercial Banking Group and the effect of naira devaluation on loans and advances denominated in FCY contributed to a 42% increase in loans and advances to customers.

To ensure the durability of its operations, particularly in the unstable business environment, the Group has persisted in upholding its robust risk management posture.

Due to the Commercial Banking Group's ongoing deposit mobilization, brand awareness, investments in digital banking capabilities, and the effect of naira depreciation on the translation of deposits denominated in FCY, deposit liabilities increased by 62%.

FBN Holding Plc is optimistic that this performance will continue to increase the value of its shareholders in the future. By improving its offer proposition, streamlining our governance structure, and optimizing operational efficiency, the group is dedicated to significantly increasing revenue and profitability.

With a clear goal of creating a sustainable institution and exceeding stakeholders' expectations, the Group continues to take a forward-looking strategy despite the highly competitive climate.

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First Bank Addresses Alleged N7 Billion Fraud

Legit.ng reported that First Bank of Nigeria Limited has denied recent claims of fraud against the organization, calling them unfounded and devoid of proof.

This followed a report of an alleged N7 billion fraud incident citing an unnamed individual with purported knowledge of the matter.

The bank asked the public to completely ignore the assertions in a statement signed by Olayinka Ijabiyi, Acting Group Head, marketing and corporate communications.

Source: Legit.ng