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FBNH Audited 2023FY Earnings Update | Interest Income & Non-Interest Revenue to the Rescue

FBNH released the audited Full-year results for 2023, revealing a respective 98.14% YoY and 127.28% increase in Gross earnings and Profit Before Tax (PBT). Major drivers for earnings growth include higher interest income (+73.99% YoY to NGN960.33bn) and non-interest income (+150.62% YoY to NGN634.11bn). PBT at NGN358.88bn exceeded our estimate due to outperformance in Gross earnings (2023FY actual; NGN1.60trn vs. 2023FY estimate; NGN1.27trn).  Elsewhere, Operating Expenses remained elevated, increasing by 55.06% YoY to NGN564.29bn, and this was a result of surging personnel cost (+52.58% YoY to NGN179.09bn), maintenance cost (+64.88% YoY to NGN70.83bn) and advertising and corporate promotions (+166.49% YoY to NGN32.33bn). Overall, Net Profit Margin jumped to 19.46% in the period from 16.93% in 2022FY.

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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