FBN Holdings announces 82% drop in profit, declares N0.15 dividend

FBN Holdings Plc announced its audited results for the full year ended December 31, 2015 with profit after tax dropping by 82 per cent from N84.0 billion in 2014 to N15.1 billion in 20 15.
Despite the decline in profit, FBN Holdings proposed a dividend of N0.15 per share (150per cent of 2014 dividend payments), reflecting the increasing diversification of the Group’s revenue stream as a Holding company.
Profit before tax closed the year at N21.5 billion, 77.1 per cent below N94.1 billion recorded in prior year results.
The holding company thus gained 4.9 per cent growth in Gross earnings to N505.2 billion in 2015 as against N481.8 billion in 2014.
Commenting on the results, the Group Managing Director of FBN Holdings, UK Eke, said: “This has been a very difficult time in the history of our institution.
‘’Despite the tough macroeconomic and regulatory backdrop during the year, our underlying business remains strong as reflected in the gross earnings growth of 4.9 per cent to N505.2 billion – clearly a leading position in the industry.
‘’Furthermore, the Holding company platform has provided support in mitigating the impact of credit losses and the vulnerabilities experienced by our Commercial Banking business.
‘’In coming periods, our primary focus is to drive efficiency and operational excellence across all operating companies. Key initiatives in achieving this, as we eliminate the value eroding factors and seek to reposition the Group towards a new growth path, include: enhanced focus on moderating risk appetite, risk management practices and culture; disciplined cost containment; asset optimisation; and, synergy realisation. We will be sustaining the drive to improve cross sell initiatives, improve performance and returns from our subsidiaries to provide diversified and sustainable revenue for the Group.
He added: ‘’whilst acknowledging the challenges facing the Group, we are committed to achieving our set tasks. Amongst those, one priority stands out above all else – the need to restore shareholder value whilst building long-term sustainability into our businesses”.
Key indicators from balance sheet show that its total assets of dropped by 4.1 per cent to N4.2 trillion in 2015 as against N4.3 trillion in 2014.
The group reported customer deposits of N2.97 trillion, 2.6 down from: N3.1 trillion in 2014 while customer loans and advances (net) stood at N1.8 trillion in 2015, down 16per cent from N2.2 trillion in 2014.
By our Correspondent