Connect with us


News

BREAKING: FBN Holding post 414% increase in profits (YoY Q2 2023)

Published

on

FBN Holdings Plc, one of Nigeria’s largest banks released its 2023 second-quarter results showing pre-tax profits rose 5 folds to N150.1 billion (N29.2 billion Q2 2022).

The increase in second-quarter profits helped its half-year profit before tax to rise by 213% to N206.2 billion compared to N65.7 billion same period last year.

Advertisement

This is also the Bank Holding Company’s best half-year performance since it was listed on the Exchange.

Key Results Highlights (second quarter ended)

Net Interest Income

Advertisement

2023 Q2 – N125.4 billion

2022 Q2 – N80.1 billion

Advertisement
READ ALSO:   Katsina Governor Lauds Tinubu For Giving Appointments To Buhari’s Kinsmen

%age Change +56.5%

Impairment Charges

Advertisement

2023 Q2 – N40.7 billion

2022 Q2 – N10.4 billion

Advertisement

%age Change +291%

Fees and Commission

Advertisement

2023 Q2 – N38.4 billion

2022 Q2 – N31.0 billion

Advertisement

%age Change – 23.8%

Operating Profit

Advertisement

2023 Q2 – N149.9 billion

2022 Q2 – N29.2 billion

Advertisement

%age change – 413%

Pre-tax profits

Advertisement

2023 Q2 – N150.1 billion

READ ALSO:   NIN: NIMC Unveils Mobile App For Applicants

2022 Q2 – N29.2 billion

Advertisement

%age change – 414%%

Earnings Per Share (YTD)

Advertisement

2023 Q2 – N5.19

2022 Q2 – N1.55

Advertisement

%age change – 234%

Key profit drivers: The key driver of profits for the latest results is the bank’s net gains from financial instruments.

Advertisement
  • This item went from a loss of N3.5 billion in the second quarter of 2022 to N231.7 billion in the second quarter only.

Nairametrics analysis indicates this must have been a result of the bank’s valuation of some of its foreign currency assets which have now been revalued in Naira terms following the unification of the naira.

  • The unification of the naira led to a depreciation of the naira from N460 to about N765/$1.
  • This means any dollar asset held by the bank will rise when classified in Naira terms.
  • For example, the value of its financial assets held at fair value rose from N278.4 billion to N681.3 billion
  • A further insight also reveals the bank’s derivative assets were the specific assets that recorded the growth.
Advertisement







Also Read...