By PETER EGWUATU

… Gross earnings hit N194.9bn  in 6 months
Shareholders of First Bank of Nigeria, FBN, Holdings Plc and stockbrokers have tasked its Board of Directors to ensure that the company’s overall performance for the financial year 2013 is enhanced in order to bring higher return for stakeholders.

The remark is coming after the FBN Holdings released its half year result for 2013. When the news of the result reached the Nigerian Stock Exchange, NSE, last week , some of the stockbrokers and shareholders who spoke with Vanguard, said “ We don’t expect less than what FBN has released. We hope that the full year performance will be greater as we have known them in the past.”

According to Afrinvest, “ FBN is still the elephant as total assets hits N3.4trillion. As expected, no corporate action was announced. However, the “Elephant” maintained its size, with the largest balance sheet in the industry (N3.4trilion, compared to N2.4trillion tier-1 average), while recording a 7.7 percent growth in gross earnings. The price of the stock has continued to trade below N17.00 for the past 17 trading days, reinforcing the upside potential on the bank’s stock, as expressed in our 2013 Banking Report, “Standing on the 4th Pillar”. Consequently, we maintain our BUY recommendation on First Bank.”

Specifically, FBN declared N194.9 billion gross earnings for the half year unaudited International Financial Reporting Standards, IFRS results ended June 30, 2013, representing an increase of 7.7 percent from N180.9 billion recorded in the corresponding period of 2012.

According to the result released on the NSE, the company recorded a net interest income of N112.7 billion, up 3.6 percent year-on-year from N108.9 billion recorded in June 2012.

It also recorded an operating income of N156.9 billion, up by 3.2 percent year-on-year from N152.0 billion in 2012. Profit Before Tax (PBT) went up by 3.2 percent year-on-year to close at N55.1 billion from N53.5 billion in 2012. Profit After Tax (PAT) improved marginally by N429 million to N46.1 billion from N45.4 billion.

A review of the balance sheet shows that total assets of the company stood at N3.4 trillion, down by 2.3 percent quarter-on-quarter from N3.5 trillion in march 2013 but went up by 6.1percent year-to-date close at N3.2 trillion in December 2012.

FBN recorded a total customer deposits of N2.6 trillion, an increase of 0.9 percent quarter-on-quarter from N2.5 trillion in Mar 2013 and 6.4 percent year to date to close at N2.4 trillion in Dec 2012. Total customer loans and advances (net) was N1.5 trillion, down 1.4 percent quarter-on-quarter and 1.2 percent year to date in December to close at N1.5 trillion.