FBN Holdings defies COVID-19 economic challenges to post US$130m profit in H1 2020

NIGERIA – FBN Holdings Plc, one of Nigeria’s national commercial banks, has defied the tough economic challenges occasioned by the COVID-19 pandemic to post an impressive US$130 million profit in the first half of 2020.

According to FBN holdings, its profit after tax rose translated to by 56.3 per cent year-on-year increase from US$82.48 million recorded in the corresponding period of 2019.

The bank’s profit before tax rose by 14.3 per cent to US$109.09 million from US$95.39 million, while its gross earnings rose by 5.8 per cent to US$781.03 million from US$738.60 million in 2019.

FBN’s interest income however dropped by 7.4 per cent to US$345.98 million y-o-y from US$373.39 million, while non-interest income rose by 46.8 per cent to US$211.07 million from US$143.87 million.

Operating income rose by 7.7 per cent to US$549 million from US$509.64, while impairment charge for credit losses rose by 38.6 per cent to US$79.70 million y-o-y from US$57.38 million.

According to the statement, the group’s operating expenses rose by 0.9 per cent to US$361.39 million y-o-y from US$358.02 million.

 “The H1 2020 financial results are impressive and reconfirm our consistent focus on enhanced shareholder value,” The Group Managing Director, FBN Holdings, UK Eke said.

He said despite the difficult operating environment, the H1 results demonstrated FBN’s resilience and capacity to deliver on long-term ambitions.

He said, “The 56.3 per cent y-o-y growth in profit after tax for the period is a testament to the strength of our organisation to continually deliver exceptional services to our customers in these unprecedented times.

 “We have been able to achieve this feat by leveraging our agent banking network, innovative e-banking capabilities, and operational efficiency utilising technology.

 “During the quarter, we successfully divested from the underwriting (insurance) businesses to focus on our banking operations.”

He said the group was confident this would enhance greater value to its stakeholders.

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