By Ayomide Otitoju
FBN Holdings Plc has recorded a remarkable financial performance in the 2024 financial year, growing its gross earnings by 113% to N3.33 trillion. This was disclosed in the group’s unaudited financial statement published on Thursday via the Nigerian Exchange Limited.
The financial services group, which owns First Bank of Nigeria and other subsidiaries, also reported a 142% increase in profit before tax (PBT), reaching N862.38 billion, up from N356.15 billion in 2023.
Net interest income surged by 155% year-on-year to N1.39 trillion, while non-interest income climbed to N846.9 billion, a significant increase from N255.8 billion in the previous year. Loans to customers also saw substantial growth, rising by N2.79 trillion to close at N9.4 trillion. Similarly, customer deposits grew by 62% to N17.29 trillion, while total assets expanded to N26.54 trillion from N16.94 trillion.
Resilience Amid Economic Shifts
Commenting on the performance, FBN Holdings stated:
“The strong growth recorded in net interest income is a testament to FBN Holdings Plc’s resilience and ability to deliver value in a competitive and evolving market landscape. It is noteworthy that but for the impairment charge of N411 billion, the PBT would have been N1.3 trillion.”
The report highlighted that the group recorded a higher average earnings yield of 16.71% in 2024, compared to 10.69% in 2023, despite an increase in the cost of funds from 3.36% to 5.79%. Net interest margin also improved to 9.61% from 6.11%, reflecting adjustments to the Central Bank of Nigeria’s Monetary Policy Rate, which rose from 18.75% in December 2023 to 27.25% by the end of 2024.
Drivers of Growth
The group attributed the surge in non-interest income to increased fee and commission income, particularly from fund transfers, financial intermediation, and digital banking transactions, which saw impressive volumes during the year.
Loans and advances to customers grew by 42%, driven by new loans from the commercial banking segment and the impact of naira depreciation on foreign currency-denominated loans. The company also emphasized its commitment to robust risk management strategies to navigate the volatile economic environment.
Deposit liabilities rose by 62%, fueled by strong deposit mobilization efforts, digital banking expansion, brand recognition, and the effect of naira depreciation on foreign currency deposits.
Future Outlook
FBN Holdings reaffirmed its commitment to sustaining its strong financial performance and enhancing shareholder value.
“The group is committed to further enhancing revenue and profitability by strengthening our value proposition, refining our governance model, and maximizing operational efficiencies,” the statement added.
Despite increasing market competition, the company said it remains focused on building a sustainable institution and exceeding stakeholder expectations.
