FBN Holdings Plc stated its earnings increased by 22 per cent to N89.7 bn as of the end of the 2020 financial period.
It revealed this in a statement on its audited outcomes for the financial year ended December 31, 2020 entitled ‘FBN Holdings Plc reports 22 percent growth in profit for the full year ended 31 December 2020 to N89.7 bn’.
In addition, it stated that its overall assets increased by 23.9 percent y-o-y to N7.7 tn from N6.2 tn in 2019, driven by a 59.1 percent y-o-y rise in cash and balances with Central Bank, along with, a 19.7 percent y-o-y rise in consumer loans.
Speaking on the record, the Group Managing Director, UK Eke, stated FBNHoldings was pleased to close the year in a healthy financial position regardless of the difficult operating environment that was ushered in by unprecedented events as a result of the COVID-19 pandemic and challenging economic environment.
He said, “During the year 2020, profit before tax grew 11.2 per cent year-on-year to N83.7bn and our non-interest income recorded a growth of 26.7 per cent y-o-y to N174.7bn.
“These results were despite the challenging rate environment evidenced by the decline in fixed income rates and higher cash reserving requirements leading to a 10.9 per cent y-o-y decline in interest income to N384.8bn.
“However, we mitigated the impact on net interest income by containing interest expense through reducing the cost of deposit and driving low-cost deposits.
“We remain focused on driving operating expenses down and improving cost to income ratio. In 2020, operating expense was up marginally by 0.5 per cent y-o-y growing significantly slower than inflation.”
He said, “This decision is consistent with our portfolio optimisation strategy, underscored by the renewed focus on deepening our foothold in the banking sector through increased investment in digitalisation, innovation, and expansion in financial services for the benefit of our existing and new customers.”
He added that the proceeds from the sale had been injected into First Bank of Nigeria to strengthen the core business of the group and drive further market growth.
