FBN Holdings reduces bad loans to 12.6% in 9 months

FBN Holdings Plc on Monday said the non-performing loans (NPLs) ratio for its commercial bank reduced to 12. 6 per cent for the nine months ended Sept. 30, 2019.

This is contained in the company’s unaudited result for nine months as of Sept. 30, released by the Nigerian Stock Exchange (NSE).

The result showed an improved NPL of 12.6 per cent, compared with 25.9 per cent recorded in the whole of 2018.

Its gross earnings during the review period stood at N439.9 billion against N441.5 billion achieved in the comparative period of 2018.

Profit before tax rose by 16.9 per cent to N60 billion against N51.3 billion posted in September 2018.

Similarly, profit after tax closed higher at N51.8 billion in contrast with N44.9 billion in the corresponding period, indicating an increase of 15.3 per cent.

The company’s non-interest income stood at N98.8 billion, up by six per cent from N93.2 billion in the previous period.

Commenting on the results, Urum Kalu Eke, Group Managing Director, FBN Holdings, attributed the performance to diversified revenue streams across the board.

“Our performance in the third quarter reflects the growth trajectory over the first nine months of the year, with significant strides made in transforming the Group’s asset quality and diversifying our revenue streams across the board.

“During the third quarter, our NPL declined further to 12.6 per cent as we approach the end of the curve in the resolution of our legacy portfolio.

“We are confident of further reducing this to under 10% by the end of the current financial year,” Eke stated.

He added that the management continued to focus on enhancing the risk framework processes of the bank, enabling an improvement in the quality of its loan book.

“Concurrently, we have also continued our drive towards ensuing long-term operational efficiency, resulting in a one-off cost increase pushing our Cost Income Ratio for the first nine months.

“In terms of our revenue generation, we have delivered further increases in our non-interest income, on the back of growth in electronic banking fees as well as improvements in transaction-led income.

“Overall, we are pleased with the progress we are making on numerous fronts and remain committed to not only enhancing shareholder value but also adhering to the long-standing principles of this great financial institution,” Eke said.