FBN Holdings jumps growth in Q2, nets profits 96%

The highly successful outing for the bank in the second quarter addressed the game-changing factors we identified on FBN Holdings at the end of the first quarter. These are revenue growth, cost-saving from interest expenses and cutting loan impairment charges.

The outcome is that the bank’s earnings story has changed from a 39 per cent profit drop in the first quarter to a 7 per cent improvement year-on-year at the end of half-year operations.

The bank also steered a turnaround from a 14.4 per cent drop in revenue in the first quarter to record an increase of 13 per cent in gross earnings quarter-on-quarter in the second quarter. It closed the half-year operations with a marginal decline of 1.4 per cent in gross income to N292 billion.

The gain in revenue was further supported with an improvement in profit margin in the second quarter, improving the year-on-year ratio from 11 per cent in the first quarter to 13 per cent at the end of June 2021. A good combination of revenue improvement and a gain in profit margin explains the big profit leap the bank recorded in the second quarter.

The upbeat in revenue in the second quarter came from non-interest income, which was led by net gains from financial instruments of over N19 billion for the quarter against a net loss of N1 billion in the same quarter last year.

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