FBN Holdings 2017 Q1 profit falls by 14%, NGN12 billion FY profit

FBN Holdings

For the first quarter of the year, Nigeria’s largest financial services group, FBN Holdings, said its net profit fell to NGN19 billion.

The result shows that the group’s net profit saw a decline of 14% decline year on year because it reported a total of NGN22 billion in Q1 2016.

A major item that dented the result is the NGN28 billion impairment charges which were NGN12 billion in te previous year. The group is overtly exposed to the oil sector which has not fully recovered from the crash in crude oil prices since 2016.

However, the group has intensified its efforts to recover loans back to its books. Gross interest income rose to NGN114 billion compared to NGN83 billion reported in 2016 when the oil industry saw a sharp decline in crude prices.

To further cut costs, the group has further shaved off many items. but its operating expenses rose to NGN30 billion from NGN25 billion in the previous year.

Total assets for the period rose to NGN4.9 trillion compared to NGN4.7 trillion in 2016. However, total liabilities rose to NGN4.3 trillion compared to NGN4.1 trillion in the previous year.

When you begin to move to its full year result, you then have a rounded perspective as to how the group has been able to weather the storm. Net profit for the period rose to NGN12 billion compared to a mere NGN7 billion in 2016.

For more information on this result, click links below:

*Q1 2017 Result

*The full year 2016 Result