Despite headwinds, FBN Holdings records 113% growth in 2024 gross earnings
Amid the economic headwinds in the country and the challenging macroeconomic environment, FBN Holdings Plc pulled a significant string with its 2024 full year results. According to the unaudited result for the year ended December 31, 2024, FBN Holdings, the parent company of First Bank, Nigeria’s oldest financial institution and other subsidiaries, recorded a 142% […]
Amid the economic headwinds in the country and the challenging macroeconomic environment, FBN Holdings Plc pulled a significant string with its 2024 full year results.
According to the unaudited result for the year ended December 31, 2024, FBN Holdings, the parent company of First Bank, Nigeria’s oldest financial institution and other subsidiaries, recorded a 142% year-on-year (y-o-y) increase in Profit Before Tax (PBT) to N862 billion as against N362.24 billion recorded last year while Gross Earnings surged by 113% y-o-y to N3.33 trillion.
The 2024 performance, analysts believe, represents a major confirmation of the FBNH’s standing as the foremost financial institution in Nigeria.
The group recorded huge growth in all fronts as indicated in the highlights of the unaudited results submitted to the Nigerian Exchange (NGX).
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The net interest income grew by 155% y-o-y to N1.39 trillion while the non-interest income rose by 43.3% to N846.9 billion compared to N255.8bn in 2023. This is further bolstered by the net interest margin (NIM), which grew by 326 bps to 8.8 per cent from 5.6 per cent.
The results also showed the bank’s commitment to businesses and individuals, indicating that loans to customers increased significantly by N2.79 trillion to N9.4 trillion owing to naira depreciation on foreign currency-denominated loans and advances.
Similarly, customer deposits rose by 62%, to N17.29 trillion while total assets increased to N26.5 trillion, up from N16.9 trillion.
According to analysts, the financial results showcase significant growth across multiple key metrics which represent the resilience and focus of the financial institutions to achieve their mandate.
FBN Holdings in a statement assured shareholders of sustained improved performance to deliver value for stakeholders.
“The group is committed to further enhancing revenue and profitability by strengthening the value proposition, refining our governance model, and maximising operational efficiencies.
“In the face of the increasingly competitive environment, the group maintains a forward-looking approach, with a clear aim of building a sustainable institution and surpassing stakeholders’ expectations,” the bank said.
The 2024 performance came amid the ongoing efforts of the bank to improve its financial standing through capital raising ahead of the banking recapitalisation programme of the Central Bank of Nigeria (CBN).
FBNH in December 2024 issued a rights issue of 5.983 billion ordinary shares priced at N25.00 each, amounting to N149.56 billion to boost liquidity and improve its financial stability.
Shareholders commend the bank for staying focused and resilient in the face of the daunting economic challenges and the challenging macroeconomic environment.
Mr Boniface Okezie said it is commendable that recent issues with the bank have not affected its bottom line.
The shareholder group leader said, “The management has remained focused. They have their eyes on the ball and the bank has remained focused not to allow any issue within the board to affect the day-to-day operation.”
He added that the surge in the performance of the bank is exciting news for shareholders as this would translate into more dividends for them.