…137.4% y/y increase in earnings per share to N20.40 (2023FY: N8.59)
SAT FEB 01 2025-theGBJournal| FBN Holdings Plc reported a 158.4% y/y increase in interest income to N2.42 trillion in 2024FY, surpassing the N2.00 trillion mark for the first time.
The surge in interest income was primarily driven by higher yields in the fixed income market and a 69.4% YTD expansion in earning assets to N18.99 trillion.
In nominal terms, the group saw significant growth across key income lines, including loans and advances to customers (+123.7% y/y to N1.36 trillion), investment securities (+205.0% y/y to N849.66 billion), and advances to banks (+327.1% y/y to N206.42 billion).
Interest expenses also surged by 163.5% y/y to N1.03 trillion, driven by higher costs on deposits from customers (+135.2% y/y to N591.86 billion) and financial institutions (+427.4% y/y to N275.84 billion), despite an improved funding mix (CASA 2024FY: 81.6% | 2023FY: 81.2%).
Similarly, borrowing costs rose by 86.3% y/y to N160.98 billion. Consequently, net interest income (ex-LLE) grew by 205.3% y/y to N980.93 billion after accounting for credit impairment charges of N410.81 billion.
The group’s non-interest income grew by 43.2% y/y to N847.28 billion, driven primarily by higher net fees & commission income (+27.9% y/y to N239.18 billion) and FX revaluation gains (+109.9% y/y to N33.83 billion). These gains were sufficient to offset losses from foreign exchange trading (N96.43 billion) and investment securities (N40.29 billion).
Further down, operating expenses increased by 73.4% y/y to N965.82 billion, primarily driven by an increase in personnel expenses (+82.1% y/y to N320.23 billion), AMCON levy (+56.5% y/y to N80.03 billion), depreciation and amortisation (+41.8% y/y to N60.79 billion), and NDIC premium (+46.9% y/y to N41.27 billion).
Considering the group’s operating income (+100.2% y/y) grew faster than OPEX, the cost-to-income ratio (ex-LLE) settled lower at 52.8% (2023FY: 61.0%).
Profitability was stronger in 2024FY as PAT was 137.3% y/y higher at N736.73 billion, after accounting for the tax expenses of N125.66 billion (+163.3% y/y).
Meanwhile, FBN Holdings Plc (FBNH) recorded a 137.4% y/y increase in earnings per share to N20.40 (2023FY: N8.59), attributed to the broad-based growth across both core (+158.4% y/y) and non-core (+43.2% y/y) income lines.
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