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(Ecofin Agency) – FBN Holdings started the year 2022 with strong quarterly performance. However, its investors seem to be inclined to taking profits after 12 months of uptrend share performance.
FBN Holdings, Nigeria’s third-largest banking group by market capitalization, recently posted a net profit of US$77 million for Q1-2022. This result -up by more than 106% year-on-year- is the best it recorded since the first quarter of 2019.
All of the bank’s operating segments contributed to that result. Indeed, during the period under review, its interest and non-interest income increased while its provision to cover non-performing loans dropped slightly. It is worth noting that the performance concealed the significant drop in commission income, which was offset by the rise in incomes from noncredit activities.
The result confirms the resumption of FBN Holdings’ performing momentum after a period of low performance that began well before the coronavirus pandemic. The financial institution has been able to weather the Covid-19 storm and even resumed with acquisitions. On Wednesday, May 18, it reported that it had reached a definitive agreement with Access Bank to take over the latter’s pension fund management business.
Its reserves also increase by US$361 million due to a decrease in expenses and a reduction in the volume of debt service as well as the successful sale of several financial assets. These performances will be closely monitored by investors since FBN Holdings has over 95% of its shares floated on the Nigeria Stock Exchange. It is also worth noting that despite the strong performance posted, its share value fell by 5.85% in May, marking its worst monthly performance since October 2020. The situation could be due to the fact that some investors are taking profits after the 60.18% rise in the bank’s share value in the last 12 months (according to Capital IQ).
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