FBN Holdings Plc, a prominent financial institution, demonstrated remarkable financial performance in the 2024 fiscal year, showcasing substantial growth across key metrics. The group’s profit surged by an impressive 138%, reaching N738.9bn, a significant leap from the N310.4bn reported in 2023. This surge in profitability underscores the effectiveness of the company’s strategic initiatives and its ability to capitalize on emerging market opportunities. This remarkable performance is further substantiated by a 142% increase in profit before tax, amounting to N862.4bn compared to N356.1bn in the preceding year. This growth underscores the company’s robust operational efficiency and its ability to manage costs effectively while driving revenue growth.
A key driver of this financial success was the substantial 158% increase in interest income, reaching N2.42tn from N936.7bn in 2023. This significant increase highlights the company’s success in expanding its loan portfolio and optimizing returns from investment securities. This growth in interest income is further reflected in the 155% rise in net interest income, reaching N1.39tn compared to N546.3bn in the previous year. This metric clearly demonstrates the company’s ability to effectively manage its interest rate spread and maintain a healthy margin between interest earned and interest paid.
Despite this positive trajectory, the financial statement also reveals a significant increase in impairment charges for credit losses. These charges rose by 83% to N410.8bn, up from N224.9bn in 2023, indicating a rise in provisions for potential loan losses. This increase, while reflecting a prudent approach to risk management, also underscores the challenging economic environment and the potential for increased loan defaults. Simultaneously, fee and commission income experienced a healthy growth of 37%, reaching N302.9bn, compared to N220.3bn in the previous year. This increase can be attributed to higher transaction volumes and increased banking activities, signifying a positive trend in customer engagement and overall business activity.
Furthermore, FBN Holdings experienced a significant improvement in its foreign exchange transactions, reducing its loss to N62.6bn from the N334.2bn loss recorded in 2023. This improvement reflects more favorable exchange rate movements and potentially improved hedging strategies. Additionally, dividend income saw a positive uptick, reaching N27.1bn, while net gains from financial instruments at fair value through profit or loss stood at N641.9bn, marking a slight decrease from N678.4bn in the previous year. These figures indicate a diverse income stream and the company’s active participation in various financial markets.
The strong financial performance translated into a significant increase in earnings per share, reaching N20.40 compared to N8.59 in 2023. This increase reflects the enhanced profitability and improved returns generated for shareholders. However, the positive earnings picture is partially offset by a surge in operating costs. Personnel expenses rose to N320.2bn, while other operating expenses reached N584.8bn. These increases likely reflect inflationary pressures, investments in human capital, and increased business activities supporting the overall growth of the company. The gross earnings for FBN Holdings Plc further solidify the positive trajectory, showing a remarkable 134% increase to N2.25tn at the end of September 2024, compared to N962.40bn recorded in the same period of the prior year.
In summary, FBN Holdings Plc delivered a strong financial performance in 2024, driven by significant growth in interest income, improved fee and commission income, and a reduced loss in foreign exchange transactions. While the increase in impairment charges and operating expenses warrants attention, the overall profitability, increased earnings per share, and substantial growth in gross earnings paint a picture of a financially robust and well-performing institution. The company’s ability to navigate a challenging economic landscape and capitalize on opportunities for growth positions it well for continued success in the future. The focus on strengthening its core business, managing risks effectively, and optimizing its operational efficiency will be key factors in sustaining this positive momentum.
