First Bank profit before tax drops by 77 %

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OrijoRepoter.com, First Bank profit

The profit of FBN Holdings. owners of First Bank Plc before tax dropped by 77.1 per cent to N21.5 billion during its financial year ended Dec.31, 2015, OrijoReporter exclusively reported.

The figure was N94.1 billion in 2014.

It’s profit after tax also dropped by 82 per cent from N84 billion in 2014 to N15..1billion in 2015.

The report is contained in the company’s audited result released on Tuesday in Lagos.

First Bank’s net interest income stood at N265 billion against N243.9 billion achieved in 2014, an increase of 8.7 per cent.

The Bank’s non-interest income dropped to N99.4 billion in contrast to N112.99 billion in 2014, a decrease of 12 per cent.

Also, its operating income grew by 2.3 per cent to N364.4 billion against N356.2 billion in the previous year.

First Bank also reported impairment charge for credit losses of N119.3 billion against N25.9 billion in 2014.

Its operating expenses decreased by 5.6 per cent to N223.6 billion in contrast with N236.8 billion in 2014.

Total assets dropped marginally to N4.2 trillion against N4.3 trillion, a decrease of 4.1 per cent, while customer deposits stood at N2.97 trillion compared with N3.1 trillion in the comparative period of 2014.

Commenting on the results, Mr. UK Eke, the company’s Group Managing Director, said that it had been a very difficult time in the history of the institution.

“Despite the tough macroeconomic and regulatory backdrop during the year, our underlying business remains strong as reflected in the gross earnings growth of 4.9 per cent to N505.2 billion.”

He explained that holding company platform had provided support in mitigating the impact of credit losses and the vulnerabilities experienced by its commercial banking business.

“In coming periods, our primary focus is to drive efficiency and operational excellence across all operating companies,” Eke stated.

He said that the company would focus on moderating risk appetite, risk management practices and culture, disciplined cost containment, asset optimisation and synergy realisation to eliminate the value eroding factors.

“We will be sustaining the drive to improve cross sell initiatives, improve performance and returns from our subsidiaries to provide diversified and sustainable revenue for the Group.

Whilst acknowledging the challenges facing the group, we are committed to achieving our set tasks,” he added.

Eke said that the major priority of First Bank was to restore shareholder value whilst building long-term sustainability into our businesses.

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