FBN Holdings’ non-performing loans rise by 62% to N584.2bn in 2016

First Bank of Nigeria Holdings Plc (FBN Holdings) on Thursday announced its audited results for the full year ended December 31, 2016 with Non-performing Loan gaining 65.2 per cent to close at N584.2 billion from N353.5 billion recorded in 2015.
The group total assets also rose by 13 per cent from N4.2 trillion in 2015 to N4.7 trillion in 2016, driven by: increase in loans to customers as well as growth in investment securities. Net loans to customers grew by 14.7 per cent to N2.1 trillion from N1.8 trillion in 2015, while total investment securities were up by 23.8 per cent year-on-year (y-o-y) to N1.3 trillion from N1.0 trillion in 2015.
The financial institution while explaining further on drivers to total assets, said total interest earning assets grew by 17.7 per cent y-o-y to N3.7 trillion from N3.2 trillion, representing 79 per cent of total assets.
Gross earnings closed 2016 at N581.8 billion, up 15.7 per cent year-on-year (y-o-y) from N502.7 billion in 2015 while Net-interest income gained by 14.8 per cent to N304.4 billion, from N265.2 billion recorded in 2015.
FBN Holdings’ gross earnings driven by 2.6 per cent y-o-y growth in interest income to N405.3 billion and 68.9 per cent y-o-y growth in non-interest income to N165.5 billion.
The financial institution said, “This highlights the revenue generating capacity of the Group despite the challenging business environment and it clearly demonstrates the resilience of our business and is consistent with our aspiration of becoming the foremost financial services company in Middle Africa.”
The group report a profit before tax of N22.9 billion, 6.3 per cent increase y-o-y from N21.6 billion in 2015 while Profit after tax stood at N17.1 billion in 2016, up 10.3 per cent y-o-y from N15.5 billion recorded in 2015.
This resulted in earnings per share of N0.53 in 2016 from N0.44 in 2015, with post-tax return on average equity of three per cent in 2016 from 2.8 per cent in 2015 and post-tax return on average total assets of 0.4 per cent.
Commenting on the results, the Group Managing Director, UK Eke said, “2016 has been a year characterised by significant uncertainty in the operating environment.
“Despite this, FBN Holdings has delivered a solid performance while focusing on addressing the pre-existing issues in the loan book which resulted in the current loan loss.
“This performance has been achieved through ongoing initiatives in driving efficiency across the various businesses, transforming the risk management and control environment, containing cost, as well as enhancing revenue generation from the banking and non-banking subsidiaries.
“We expect an improved economic environment through 2017 and are confident that the foundations we have put in place will drive improved financial performance and consequently enhance shareholder returns.” He explaind.