The profit after tax of FBN Holdings and five other financial institutions rose by about 95.83 per cent to N1.20tn at the end of 2024, The PUNCH can report.

This is based on the unaudited financial statements for 2024, which were filed with the Nigerian Exchange Limited.

The lenders include FBN Holdings, Wema Bank, Stanbic IBTC Holdings, Sterling Financial Holding Company, FCMB Group, and the non-interest bank, Jaiz Bank.

An analysis of the unaudited results indicated that FBN Holdings grew its profit after tax to N738.86bn, about 138.06 per cent higher than in 2023 when it stood at N310.37bn. Its gross earnings rose by 113 per cent to N3.33tn in 2024.

The group similarly saw its interest income rise by 158.40 per cent to N2.42tn from N936.68bn.

In a statement following the release of its results, FBN Holdings stated, “The strong growth recorded on net interest income is a testament to FBN Holdings Plc’s resilience and ability to deliver value in a competitive and evolving market landscape. It is noteworthy that but for the impairment charge of N411bn, the PBT would have been N1.3tn.

“The group also recorded a higher average earnings yield of 16.71 per cent on the back of growth in loan volume and other earning assets for the year compared to 10.69 per cent in 2023 despite the higher cost of funds (5.79 per cent in 2024: 3.36 per cent in 2023).”

The percentage increase in profit after tax was higher for Wema Bank as its PAT rose by 146.84 per cent to N88.83bn from N35.98bn. The bank’s gross earnings appreciated by 89.61 per cent to N430.26bn, primarily driven by interest income, which accounted for 82 per cent of gross earnings, showing that the bank is heavily dependent on conventional lending and investment activities.

Wema Bank is set to raise N200bn through a rights issue and a special placement, scheduled to launch on April 1, 2025.

The PAT of Stanbic IBTC Holdings rose by 43.72 per cent to N202.10bn from N140.62bn. According to its unaudited financial statement, the group’s net interest income surged by 134 per cent to N410.5bn from N175.2bn in the previous year, fuelled by an increase in interest income, which rose by 109 per cent to N566.5bn from N270.6bn, driven by higher interest rates and loan portfolio expansion.

Sterling Financial Holding Company grew its profit after tax to N37.52bn from N21.58bn, indicating a 73.84 per cent increase. Its gross earnings rose to N328.35bn from N212.92bn.

Of the six lenders, FCMB Group recorded the lowest percentage increase in its PAT at 16.05 per cent. The group, which is seeking to raise additional funds to meet the new capital threshold of the Central Bank of Nigeria, saw its PAT at N107.95bn at the end of 2024 from N93.02bn in the previous year.

Non-interest banking entity Jaiz Bank grew its profit after tax to N24.85bn from N11.24bn.

Meanwhile, the Nigerian banking sector recorded a strong start to this year, with the NGX Banking Index surging by 9.76 per cent in January, significantly outperforming the broader market.

The rally was fuelled by increased investor confidence amid the ongoing recapitalisation exercise. NGX noted that the banking sector’s stellar performance in January was driven by strong demand for financial stocks.

The NGX Banking Index posted a 9.76 per cent year-to-date gain, significantly outpacing the NGX All-Share Index, which rose just 1.53 per cent within the same period.

In specific terms, Wema Bank Plc led the gainers with a 25.8 per cent increase, pushing its share price from N9.10 to N11.45. FCMB Group Plc followed with a 17.55 per cent rise, closing at N11.05 from N9.40, while Stanbic IBTC Holdings gained 11.71 per cent, moving from N57.60 to N64.35 per share.

The gains were underpinned by strong financial results, with Wema Bank, FCMB Group, and Stanbic IBTC Holdings reporting significant profit growth in their full-year 2024 earnings.

Afrinvest, in their monthly macroeconomic update, hinged the performance of the banking index on price uptick in Zenith Bank (+11.2 per cent) and Fidelity Bank (+11.1 per cent).

At the close of the past week, the NGX, in its weekly market report, revealed that the top three equities were all banking stocks, reflecting sustained investor interest in banking stocks.

The trio of Access Holdings Plc, FBN Holdings, and Zenith Bank, measured by volume, accounted for 1,176 billion shares worth N38.47bn in 9,506 deals.


https://punchng.com/fbn-holdings-others-profits-rise-to-n222bn/