Journalism in the service of society

FBNH’s profit spikes as fair value gain boosts bottomline

FBN Holdings profit for the first half of the financial year 2023 spiked more than 231% to N187.237 billion as the group recorded a large gain from debt securities fair value adjustment in the period. In the first half of 2022, the group’s net income was N56.536 billion, its unaudited financial scorecard shows.

A review of the unaudited financials showed that the HoldCo saw its gross earnings at N656.6 billion in the first half, supported by strong growth in net interest income following interest rate hikes that pushed lending rates higher.

The group’s unaudited financial statement shows that net interest income surged by more than 55% to N237.33 billion in the first half of 2023 from N152.912 billion in the first half of 2022.

FBNH also grew net fees and commissions by more than 26% year on year to N73.705 billion in the first half of 2023, from N58.70 billion in the comparable period.

The financial services company recorded a steep loss due to fluctuation in Naira. FBNH lost more than N98 billion to an exchange rate disadvantage, versus N16.51 billion gain reported 12 months earlier.

This was compensated by a strong net gain from sales of investment securities in the first half of 2023. According to its unaudited result, net gain from sales of securities surged more than 93% year on year to N43.253 billion.

FBNH’s net gains from debt securities instruments carrying at fair value through the profit or loss boosted its overall performance significantly. FBNH recorded about N230 billion revaluation gain in the first half of 2023, a steep increase from N11.271 billion reported in the comparable period.

The top down narrative boosted the group operating profit to N206 0.86 billion in the first half of 2023 after the earnings downturn in the financial year 2022.

The group pretax profit settled at N206.261 billion as a result of FBNH’s share of profit in associated, an improvement when compared with the group booked in the equivalent period last year.

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