FBN Holdings Plc said it recorded a N14.8 billion Profit Before Tax (PBT) for the fourth quarter of 2020 (Q4, 2020), compared to N20.82 billion made in the corresponding period of 2019, indicating a decline in PBT by 29per cent Year-on-Year.
This is according to the bank’s recent financial statement made available on the Nigerian Stock Exchange (NSE).
FBN Holdings Plc had earlier posted an increase in its Profit Before Tax in the third quarters of 2020 (Q3, 2020) by 20.2per cent Y-o-Y, to N21.9 billion. This is in contrast to the recent Q4 2020 figures which dipped by 29year Y-o-Y.
Other key highlights of the Q4 2020 financials are; Interest Income declined to N88.86 billion, -20.9per cent Y-o-Y, Fee and commission income increased to N35.4 billion, +29.4per cent Y-o-Y, Profit for the year declined to N11.6 billion, -47.3per cent Y-o-Y, Dividend income declined to N343 million, -83.2per cent Y-o-Y.
Other operating income increased to N922 million, +468.8per cent Y-o-Y, Interest expense declined to N24.91 billion, -31.4per cent Y-o-Y, Fee and commission expense declined to N5.11 billion, -25.6per cent Y-o-Y, Personnel expenses increased to N27.1 billion, +1.5per cent Y-o-Y, Operating expenses increased to N51.7 billion, +0.8per cent Y-o-Y.
Earnings per Share increased to N2.18, +11.8per cent Y-o-Y, Loans and advances to customers increased to N2.2 trillion in FY 2020, +19.9per cent Y-o-Y, Deposits from customers increased to N4.96 trillion in FY 2020, +23.4per cent Y-o-Y, Total assets increased to N7.6 trillion in FY 2020, +22.9per cent Y-o-Y, Total liabilities increased to N6.9 trillion in FY 2020, +23.9per cent Y-o-Y.
A decline in net interest income and operating profit, coupled with increase in expenditure resulted in a decline in the Profit Before Tax for the period under review.
In line with CBN expansionary monetary policy, a cursory look at the financials revealed that FBN Holdings increased its Loans and Advances to customers by almost 20 per centY-o-Y. In a bid to meet up with CBN Loan to Deposit Ratio, it had to cut down its investment in properties.
It received a total of N4.96 trillion as deposits from customers for the fiscal year ended 2020, up by 23.4per cent Year-on-Year.
On the other hand, the bank closed trading on Friday, January 29th, 2021 with a share price of N7.6, down by 1.32per cent. It exchanged 58.3 million shares worth N442.72 million across 261 deals.
