Reeling from the crash in global crude oil market, FBN Holdings [FBNH:NL], FBNH, Nigeria’s biggest financial services group garnered impairments that slashed its 2015 full year profit by 80%.
First Bank its flagship subsidiary was exposed to a 25% of the total loans handed to oil companies. Making a provision of 119 billion for total loss on impairment charges, FBNH’s net revenue slide to NGN 15 billion from 84 billion the bank declared in full year 2014.
FBNH has warned its shareholders that it will be declaring a lower profit as its books were ridden by by non-performing loans, NPLs.
The bank has surpassed the 5% statutory NPL recommendation by the Central Bank of Nigeria. Its NPLs have reached 18% of its total loan profile.
FBNH has FBN Quest as its investment banking and specialised services arm, but First Bank its major money spinner has taken the fall for its bets on the oil industry that is currently in doldrums.
FBNH also released its Q1 2016 result that shows that the bank’s profit slumped by 9%. However, the company has stopped given loans, it has started concentrating in raising revenue on fees and income from charges, online transactions and non-loan incomes.
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