FirstBank Holdings Plc Declares Profit rise by 17.3%, Proposes 10k Dividend, 1 for 10 Bonus.
FBN Holdings Plc, the parent company of FirstBank Nigeria Ltd on Tuesday released its results for the full year ended December 2014 with profit after tax of N82.8 billion, up 17.3 per cent year-on-year as against N70.6 billion in 2013
Highlights of the results showed that its gross earnings of N480.6 billion, up 21.3 percent year-on-year as it recorded N396.2 billion in 2013; Net interest income of N243.9 billion, up 6.0% year-on-year, having recorded N230.1 billion in 2013; Non-interest income of N111.8 billion, up 66.1% as against N67.3 billion in 2013. The group recorded operating income of N355.1 billion, an increase of 19.8% of the N296.4 billion it made in 2013.
Also, its impairment charge for credit losses of N25.9 billion, up 27.7% year-on-year (Dec 2013: N20.3 billion); Operating expenses of N236.8 billion, up 27.5% year-on-year (Dec 2013: N185.8 billion);Profit before tax of N92.9 billion, up 1.7% year-on-year (Dec 2013: N91.3 billion); Profit after tax of N82.8 billion, up 17.3% year-on-year (Dec 2013: N70.6 billion).
The group also proposed a cash dividend of N0.10k per 50 kobo Ordinary Share and a scrip (bonus) issue of one (1) Share for every ten (10) shares held amounting to a total distribution of N1.05k per share.
The contribution of non-interest income to net revenue improved to 31.4% (Dec 2013: 22.6%). This is a result of some of the initiatives developed, implemented and executed towards driving increased business generation and enhancement of non-interest income.
In his comment on the results, Bello Maccido, the Group CEO said: “The Group recorded a strong financial performance in 2014, in spite of the highly challenging operating environment particularly for our flagship business, First Bank of Nigeria. As such, the performance by the Banking Group is a testament to the underlying strength of our commercial banking business which is built on an extensive retail network and a robust information technology platform. Notwithstanding the tough operating environment, the Group showed commendable growth across all the key performance indicators buoyed by the complementary performance of our non-bank subsidiaries with gross earnings growing by 21.3% to N480.6 billion and Profit before tax at N92.9 billion.
We remain focused on diversifying our revenue streams through the extraction of value from our recent bank acquisitions, consolidating our position in the investment banking space, especially with the acquisition of Kakawa, and expanding our insurance business scope. Our investment in technology, human capital and portfolio expansion are beginning to shape the long-term fundamentals of the Group and will deliver a positive return on investment over the longer term.
However, in the short to medium term we continue to ensure our business remains as resilient as can be to the shifts in the regulatory and macro-economic environment; shore up our risk management processes; and, drive efficiencies across the Group.”
Commenting on the results for the Commercial Banking Group, GMD/CEO of First Bank of Nigeria Limited, Bisi Onasanya said, The financial year 2014 witnessed many activities in monetary and fiscal policies due to the monetary tightening stance of the Central Bank of Nigeria (CBN). Notwithstanding the impact of these policies on our business, First Bank of Nigeria delivered strong results with Gross earnings growing by 22.1% to N455.4 billion and profit before tax increasing by 9.1% to N94.5 billion.
In response to the regulatory changes and business environment, we revised the Bank’s operating model to ensure strategic realignment and optimal use of available resources to take advantage of the increasing growth opportunities in retail banking. Although FirstBank remains the biggest bank by balance sheet size in sub-Saharan Africa, our focus in coming periods will be to optimize our resources towards improved efficiency and profitability rather than size. We are confident that FirstBank is well positioned to drive targeted improvement and reinforce our appeal as the Bank of first choice.
Source – Newswatch Times