By CHINEDU IBEABUCHI

FBN Holdings Plc has reported a growth of 22 per cent profit after tax in its unaudited IFRS compliant results for the first quarter ended March 2013.

In its Q1 financial report released this week, the Group’s profit after tax grew to N24.4 billion from N20.2 billion in corresponding period of 2012.

The Group’s profit before tax rose by 28.9 per cent, recording N31.4 billion year-on-year as against N24.4 billion that it recorded in same period of 2012, benefitting from moderate growth in revenue, lower impairment charges and very mild cost growth.

Its earnings grew year-on-year by 13.5 per cent to N99.5 billion and was primarily driven by the increase in interest income from loans and advances by 11.5  per cent and growth in non-interest revenue 16.7 per cent.

Net interest income remained flat at N56.3 billion, from N56.0 billion in the corresponding period of 2012, due to rising interest expense reflecting the high interest rate environment and intense competition for deposits within the industry.

The bank’s balance sheet showed that its total assets increased 8.6 per cent quarter-on-quarter to N3.5 trillion in March 2013 from N3.2 trillion as at December 2012, largely on the back of growth in customers’ deposits and long term borrowings. This drove a 32 per cent increase in investment securities over the period to N934.3 billion from N706.7 billion in December, 2012.

Its operating expenses rose marginally by 1.5 per cent to N45.8 billion year on year from N45.2 billion in 2012 and well below average inflation rate of 9.0 per cent over the period.

On the results, Bello Maccido, Chief Executive Officer of FBN Holdings said: “The operating environment remained challenging during the first quarter of 2013, the performance of the Group remained resilient. The Group delivered increase in gross earnings of 14 per cent to N.5 billion. Our flagship Commercial Banking business sustained its dominance, accounting for over 94 per cent of the total Group profit before tax of N31.4 billion.