FBN Holdings Plc has released its Condensed Separate and Consolidated Interim Financial Statements for the period ended 30 September 2021 to the Nigerian Exchange which indicates a N40.7billion as profit after tax (PAT) for Q3, 2021, a decline of N28bn when compared to the N68bn in the corresponding period in 2020
A breakdown of the result also revealed that the bank’s interest income dropped from N192bn in Q3, 2020 to N162bn in Q3, 2021, a difference of N30bn.
However, impairment charges for losses dropped from N46bn in Q3, 2020 to N29.6bn. a net positive difference of N16bn.
The lender also recorded a net positive in its fees and commission from N72.9bn in Q3, 2020 to N85.9bn in Q3, 2021.
A breakdown of the fees shows that the lender raked in N8.7bn from letters of credit commission as against N5.7 in same period in 2020.
Electronic banking fees brought in N12.5bn in Q3, 2021 as against N8.4bn in Q3, 2020.
The bank made N42bn from money transfer commission as against N34bn in the same period in 2020. Account maintenance fees accounted for N11.7bn compared to N8.8bn in 2020.
The result also revealed that the bank grew its loan book from N2.2 trillion in Q3, 2020 to N2.7trillion in Q3, 2021.
The bank also recorded a foreign exchange gain of N5.9bn compared to a foreign exchange loss of N624million in the corresponding period of 2020.
The lender paid a total of N153 million as penalties to respective regulators. The bulk of the penalty was paid in March 2021 for contravention of Extent Foreign (FX) Regulations on 14 transactions processed between 2013 and 2020 totaling N140 million.
Recall that during the period ended September 30, 2021, the Central Bank of Nigeria (CBN) dissolved the erstwhile Board of FBN Holdings Plc and constituted a new Board effective from April 30, 2021.
The non-performing loan ratio decreased to 7.33% in September 2021 (Dec 2020: 7.72%) due to write-offs, positive recovery, loan restructure, and creation of quality risk assets.
The management of the bank noted that the Group continues to create a strong risk asset portfolio towards a robust balance sheet despite the COVID-19 pandemic.
The management further argues that considering the improving macroeconomic environment, improved crude oil price and foreign currency outlook for the economy, “we do not expect major migration of accounts into non-performing loans (NPL) bracket given the proactive restructuring in line with customers’ cashflow capacity, and the palliatives from the government available to support businesses.
“We still expect NPL ratio to ultimately drop below 5% by 2022 in line with the Group’s Strategic Plan for 2020-2022FY.”