FBN Holdings, Nigeria’s largest financial services group said its net interest income for the second quarter of 2016 fell from NGN193 billion last year to NGN176 billion this year.
The result was much better than expected given the impairments First Bank Limited, its largest subsidiary, incurred in its credit exposure to the oil and gas industry, the company’s net income fall to NGN176 billion compared to NGN193 billion is an impressive result.
FBN has taken out impairment those impairments in its Q2 result, as result, its net interest income was not affected. The group has not also provided result for FBN Insurance, its insurance.
FBN has not really shed weights of its staff strength. When compared with its last year expenses, personal spending only rose by NGN1 billion to NGN95 billion compared to NGN94 expended last quarter.
FBN Holding’s net asset for the year stand at NGN4.8 trillion compared to its total liabilities of NGN4,1 trillion. With this current ratio, FBN Holdings might be looking at raising more capital to increase it liquid assets and run a healthy cashflow.
It is expected that its efforts to recover loans given out to its debtors will also yield results in freeing up its books.
As a result of the sign of recovery, on the Nigerian Stock Exchange, NSE, FBN Holdings [FBNH:NL] stock rose from NGN3.55 to NGN3.58 as soon as the result hit the market.
FBN Holdings PLC provides commercial banking activities. The Company offers merchant, investment banking, trusteeship, fund management, registrars, and advisory services through its subsidiaries. FBN also sells insurance policies and mortgages via subsidiary companies.
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