FBN Holding reduces NPLs to 14.2 per cent, posts N294.2b gross earnings
FBN Holding Plc has announced that the non-performing loans (NPLs) ratio for the Commercial Banking Group as of June 2019, stood at 14.2 per cent down from 25.5 per cent recorded in FY 2018.
The bank’s unaudited result for the six months ended June 30, 2019 (H1), showed gross earnings of ₦294.2 billion, representing 0.3 per cent rise compared to ₦293.3 billion posted in the corresponding period in 2018, while Profit before tax stood at ₦39.9 billion, up from ₦38.9 billion year-on-year.
Furthermore, the bank’s operating income stood at ₦210.3 billion, down 0.3 per cent from ₦210.9 billion posted a year ago.
The bank also recorded a net-interest income of ₦146.7 billion, against ₦149.6 billion achieved last year.
The Chief Executive Officer, FirstBank, and Subsidiaries, Dr. Adesola Adeduntan, said the progress in its legacy NPL resolutions clearly reflects its resolve towards achieving a single-digit NPL ratio by year-end.
According to him, the performance creates significant headroom for increased business opportunities and enhanced earnings especially in the Oil & Gas sector of the economy.
He assured that the bank will build on the progress made so far to enhance revenue-generating capabilities as well as continue to improve the quality of its credit portfolio through the deployment of innovative technologies.
“In line with our commitment to address the legacy asset quality challenges, exposure to Atlantic Energy was written off in the quarter.
“As of June 2019, the NPL ratio for the Commercial Banking Group was 14.2 per cent, down from 25.5 per cent in FY 2018. The reduction in NPLs also translates to a 58.6 per cent year-on-year decline in impairment charges to ₦21.9 billion and provides a stronger platform for enhanced future profitability.
He continued: “We reiterate our commitment to address all key structural and balance sheet repair programs. In view of this, we have fast-tracked some key enterprise transformation programs towards enhancing revenue sustainably and improving overall efficiencies.
“Demonstrating the strength of the Bank’s excellent funding capability and foreign currency liquidity, FirstBank recently prepaid $450 million Subordinated note, bringing total early redemptions to $750 million in the last 12 months, while further enhancing the efficiency of the balance sheet and positioning for stronger growth.
“We have continued to strengthen our hold on the retail market with the Agent banking model which has grown by about 7,000 in the quarter to over 27,000 agents at the end of H1 2019, positioning the retail business for phenomenal future growth.”