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EUR 4.00 For Business Accounts Only

FBNH 9M:2022 Financial Results- Interest Income Boost Topline Performance

FBN Holding Plc (FBNH) recently released its 9M 2022 financial results. Gross Earnings advanced 26.50% YoY to NGN547.24bn, echoing the spike in interest income. For context, Interest Income rose by 42.38% YoY to NGN370.36bn. On the Expense leg, Interest Expense rose by 24.37% YoY to NGN120.83bn, Fee and commission expense grew by 11.06% YoY to NGN19.84bn while Operating expenses advanced 15.20% YoY to NGN264.32bn in the period.  Overall, we saw a 99.29% YoY and 123.47% YoY growth in Profit Before Tax (PBT) and Profit After Tax (PAT).  Ultimately, Net Profit Margin improved to 16.68% YoY (9M:2021, 9.44% YoY)

Overall, we remain confident of FBNH’s performance, and we maintain our target price of NGN10.10, a 3% upside from its current price of NGN9.85. We therefore rate FBNH a HOLD

Underlying
FBN Holdings PLC

Provider
ARM Securities Limited
ARM Securities Limited

ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape. ​

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