reports
FBN Holdings Plc: 1 director
A director at FBN Holdings Plc bought 534,094,407 shares at 30.000NGN and the significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two year...
FBNH Q1:2024 Earnings Update | Performance Marked by Impressive Intere...
FBNH’s Gross Earnings for Q1:2024 grew remarkably by 181.41% YoY to NGN730.27bn primarily due to the impressive growth in interest income. Interest income soared 153.32% YoY to NGN454.98bn while non-interest income surged by 244.56% YoY to NGN275.29bn. Elsewhere, Operating Expenses grew by 91.40% YoY to NGN212.78bn following the spike in personnel expenses (+107.47% YoY to NGN64.94bn) and operational and other losses (+1513.87% YoY to NGN18.50bn). Mirroring its 2023FY earnings result, the Group ...
FBNH Audited 2023FY Earnings Update | Interest Income & Non-Interest R...
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, inc...
H1:2023 FBNH Earnings Note | Impressive Performance Rode on Fair Value...
In its recently released unaudited H1:2023 financial result, FBNH’s Gross Earnings grew massively by 82.68% YoY to NGN656.38bn. The impressive topline performance rode on significant increases in both interest income (+69.33% YoY to NGN383.29bn) and non-interest income (+105.41% YoY to NGN273.09bn). Elsewhere, Operating Expenses remained elevated, growing by 24.53% YoY to NGN231.56bn in H1:2023, and this was a result of surging personnel cost (+17.93% YoY to NGN65.22bn), regulatory cost (+18.40%...
FBNH Q1:2023 Earnings Result | Performance Marked by Impressive Bottom...
FBNH’s Gross Earnings for Q1:2023 grew remarkably by 43.73% YoY to NGN259.51bn primarily due to the impressive growth in interest income. Interest income soared 64.11% YoY to NGN179.61bn while non-interest income increased by 12.36% YoY to NGN79.90bn. Elsewhere, Operating Expenses grew by 20.61% YoY to NGN111.17bn following the spike in personnel expenses (+22.18% YoY to NGN31.30bn) and advertising expenses (+211.32% YoY to NGN5.81bn). Contrary to its 2022FY earnings result, the Group posted an ...
FBNH 2022FY | Performance Bolstered by Robust Interest Income
The recently released 2022FY results for the Group reflected Gross Earnings grew by 6.32% YoY to NGN805.13bn due to growth in interest income. Interest income grew by 49.56% YoY to NGN551.94bn. On the other hand, non-interest income deteriorated by 34.87% YoY to NGN253.02bn following a plunge in other operating income (-85.01% YoY to NGN22.40bn). Elsewhere, Operating Expenses grew by 8.89% YoY to NGN363.91bn following a spike in insurance premium (+826.20% YoY to NGN29.44bn). Profit Before Tax ...
FBNH 9M:2022 Financial Results- Interest Income Boost Topline Performa...
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 Befor...
- Joshua Odebisi
- Vetiva Research
FBN HOLDINGS PLC H1'22 Earnings Release - H1 Profits surge 49% y/y
H1 profits surge 49% y/y FBNH recently released its unaudited H1’22 results, reporting a 23% y/y jump in Gross earnings to ₦359.3 billion, 2% above our ₦352.7 billion estimate. The earnings beat came thanks to a 41% y/y rise in Interest Income to ₦226.4 billion, driven by a 36% y/y rise in income from loans and advances, which came in at ₦166.3 billion. Furthermore, the bank saw a 54% y/y rise in interest earned on investment securities, ...
- Busola Jeje
Nigeria Banks in 2022: Neither the best nor worst of times
In this report, we highlight four key trends that will shape Nigeria’s banking sector in 2022. We also roll our models forward to 2026 and make changes to our valuation inputs, by raising our cost of equity to better reflect higher interest rates compared to 2020 and the appropriate risk premium for Nigerian equities. Overall, we expect our coverage to deliver an average ROE of 14.5% in 2022, vs 14.8% previously. The marginal drop in our forecast is based on slower expected growth in margins,...
- Busola Jeje
Nigerian banks are pushing into fintech and digitalisation to survive
Nigeria's banks face three main headwinds in 2022: 1) continued regulatory hurdles; 2) declining profitability; and 3) the growing threat of fintechs and telcos. The banks that succeed will be those that can amend their strategy and adapt to the new environment. In this report, we highlight two banks – Stanbic IBTC and Standard Chartered – that have done just that, moving to embrace financial technology and digitalisation. STANBIC IBTC BUILDING ITS OWN FINTECH The diversified financial holdin...
- Busola Jeje
FBN Holdings: Weaker Q3 21 earnings on lower revenue and higher taxes,...
FBNH’s Q3 21 results were worse than expected, as the holding company reported an 87% yoy decline in net attributable profit (excluding discontinued operations) compared to the 58% yoy decline we expected. One of the significant drivers of the group’s underperformance was net interest income, which fell 4% yoy compared to our expectation for 10% growth. The group racked up higher funding costs, mostly from interbank borrowings which command higher rates due to the tight banking system liqui...
- Busola Jeje
FBN Holdings: FBN Holdings: Q2 21 – Management announces 2024 strategi...
FBNH recently released its Q2 21 results, reporting a 75% growth in net attributable profit (from continued operations) to NGN22bn, close to our expectations of NGN21bn. However, the sources of profit growth were divergent from what we had expected. First, non-interest income grew 118% yoy (compared to our 12% expectation), majorly due to volatile and one-off items. The group recorded massive gains on instruments held at fair value through profit and loss (NGN19bn vs a loss of NGN1bn in Q2 20...
- Joshua Odebisi
- Vetiva Research
FBN HOLDINGS PLC H1'21 Earnings Release - Profits improve as Non-Inter...
Profits improve as Non-Interest Revenue surges FBNH recently released its unaudited H1’21 results, reporting Gross earnings of ₦279.7 billion (-3% y/y). The earnings dip was the result of a 22% y/y drop in Interest Income, which came in at ₦161.0 billion – caused by a 56% fall in Investment Securities Income. Also, despite Interest Expense coming in 25% lower y/y at ₦57.2 billion, Net Interest Income declined by 21% y/y to ₦103.8 billion. On th...
- Busola Jeje
Nigeria banks intensify search for new growth engines
We previously wrote on how Nigeria banks are pursuing holding company structures (holdcos), to access new markets where they have strong competitive advantages. There have also been push factors, such as the regulatory difficulties associated with traditional banking (especially the punitive cash reserve ratio (CRR) debits), compressed margins and the growing threat from fintechs. Additionally, the holdco structure has the advantage of keeping bank CEOs around for longer when their mandatory ...
- Busola Jeje
Nigeria banks' asset-quality risks recede
The Nigerian banking system was able to avoid widespread deterioration in asset quality – a key concern for investors apart from rising interest rates – due to the CBN’s forbearance measures. Although Covid-induced moratoriums have now expired, continued regulatory support, pick-up in economic activity and extended forbearance on intervention loans are likely to keep NPL ratios from rising substantially. Rising crude oil prices are also positive for oil and gas loans, which form a huge portio...
- Busola Jeje
How Nigeria banks will thrive in the face of rising rates
Nigeria’s macroeconomic picture remains bleak, with high inflation and unemployment, sub-par real GDP growth and a weakened local currency. These issues, alongside a difficult regulatory environment, have had negative implications on banks, as well as their heavily discounted valuation. In this report, we look at how the rising rate environment is a double-edged sword for Nigeria banks, as it provides the opportunity to expand NIMs, but minimises room to book large trading gains. This is part...
- Joshua Odebisi
FBN HOLDING PLC Q1'21 Earnings Release - Q1 performance checks Full-Ye...
In its Q1’21 results, FBNH posted a 14% y/y drop in Gross earnings to ₦136.6 billion. This came as a result of a 25% y/y decline in Interest Income to ₦78.4 billion. The steep decline in Interest Income was due to a 62% drop in investment securities income – which follows industry trend. On the other hand, the bank reported a 6% y/y improvement in Non-Interest Revenue, thanks to a 32% y/y jump in Fees and Commissions income to ₦34.0 billion. On the cost side, the bank’s provisions went u...
- Busola Jeje
FBN Holdings: Q1 21 results are out, but that is not what everyone is ...
The 29th of April 2021, will be remembered as a remarkable day in Nigeria’s banking sector. In one sweeping move, the Central Bank of Nigeria's Governor removed all the board members of Nigeria’s oldest bank and agency banking leader – First Bank of Nigeria – as well as the holding company, FBN Holdings. The key question is why did this happen? We highlight two major reasons. First, the group did not provide information or secure approval from the CBN, prior to making recent public changes to...
- Busola Jeje
FBN Holdings: Management call takeaways – Asset clean-up strategy cont...
Following the release of its FY 20 unaudited results, FBNH published its audited results, posting a 19% yoy growth in net attributable profit from continued operations to NGN74bn (unaudited results showed a 4% growth). This was majorly due to an upward revision in mark-to-market gains on investment securities and lower operating expenses and taxes. The group declared a final dividend of NGN0.45/share (up 18% yoy), translating to a dividend yield of 6.2% at its current price. We have a Buy ra...
- Busola Jeje
- Rahul Shah
FBN Holdings: FY 20 – Weak results on lower asset yields, cost ineffic...
FBNH’s FY 20 unaudited results showed flat growth in net profit (from continuing operations) to NGN66bn and 15% above our estimate. However, according to Bloomberg consensus forecasts, the group’s adjusted net profit was 17% below estimates, indicating an underperformance in relation to market expectations. A deep dive into the numbers showed that the performance was weighed down by lower net interest income (down 8% yoy). As we indicated in our FY 20 preview note, the lower yield environment...
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