By NKIRUKA NNOROM & CHINEDU IBEABUCHI
FBN Holdings Plc said its profit after tax increased by 306 percent to N75.7 billion in its financial year ended 31st December 2012 from N18.6 billion recorded in 2011.
Its 2012 financial results released within the week to the Nigerian Stock Exchange, NSE, showed that the profit before tax increased by 158.5 percent year-on-year to N92.7 billion from N35.8 billion in 2011, benefiting from revenue growth, lower impairment charges and income from discontinued operations.
FBN Holdings proposed payment of N1.00 per share dividend to its shareholders.
The Group’s tax expense came in at N17.0 billion, marginally lower by1.1 percent from the prior year. This translated into an effective tax rate of 18.4 percent, which is significantly lower than the 48 percent recorded in 2011.
Its total assets increased by 11.4 percent to N3.2 trillion from N2.9 trillion in 2011, largely on the back of growth in deposits and, to lesser extent, retained earnings.
Its gross earnings grew year-on-year by 31.4 percent to N359.8 billion and was primarily driven by interest income from loans and advances of 32 percent, as well as investment securities growth of 92 percent.
FBN Group’s net interest income grew by 27.8 percent to N225.2 billion as against N176.2 billion in 2011, benefiting from healthy growth in interest income given the higher interest rate environment. However, this growth was tempered by a significant rise of 69 percent in interest expense over the period.
Its operating expenses rose by 31.6 percent to close at N192.2 billion year-on-year from N146.1 billion in 2011. This was on the back of growth in personnel costs by 19.6 percent, regulatory costs in relation to AMCON and NDIC growth by 33.7 percent as well as business maintenance and expansion costs rising by 25 per cent, which represented 35.8 per cent, 8.6 per cent and 24.3 per cent respectively of total operating expenses.
Commenting on the results, Bello Maccido, Chief Executive officer of FBN Holdings said: “I am pleased to present the maiden results of FBN Holdings following its restructuring as non-operational holding company with oversight of four major business groups, namely: Commercial Banking, Investment Banking and Asset Management, Insurance and Other Financial Services.