July 30, 2018/FBNH

FBN Holdings Plc. (“FBNH” or “FBNHoldings” or the “Group”) today announces its unaudited results for the six months ended30 June 2018.

Income Statement                                                        

• Gross earnings of N3billion, up1.6% year-on-year (y-o-y) (Jun 2017: N288.8 billion)
• Net-interest income of N6billion, down 8.8% y-o-y (Jun 2017: N164.1 billion)
• Non-interest income of N3billion, up 21.4% y-o-y (Jun 2017: N50.5billion)
• Operating income of N9billion, down1.6% y-o-y (Jun2017: N214.4billion)
• Impairment charge for credit losses of N8 billion, down 15.4% y-o-y(Jun2017: N62.4 billion)
• Operating expenses of N3billion, up2.3% y-o-y (Jun2017: N116.6billion)
• Profit before tax of N9billion, up9.1% y-o-y (Jun 2017: N35.6billion)
• Profit after tax N5 billion, up13.7% y-o-y (Jun2017: N29.5 billion)

Statement of Financial Position

• Total assets of N3 trillion, up 1.3% year-to-date (y-t-d)(Dec 2017: N5.2 trillion)
• Customer deposits of N3trillion, up4.1% y-t-d (Dec 2017: N3.1 trillion)
• Customer loans and advances (net) of N9trillion, down 7.1% y-t-d(Dec 2017: N2.0 trillion)

Key Ratios

• Post-tax return on average equity of 10.0% (Jun 2017: 9.9%)[1]^,[2]
• Post-tax return on average assets of 1.3% (Jun 2017: 1.2%)
• Net-interest margin of 7.1% (Jun 2017: 8.5%)
• Cost to income ratio of 56.5% (Jun2017: 54.4%)
• NPL ratio of 20.8%(Jun2017: 22.0%)

[1]Profit after tax from continuing operations

[2]Post tax return on average equity and assets as well as the net interest margin are annualised ratios

• 0% liquidity ratio (FirstBank (Nigeria)) (Jun 2017: 50.4%; Dec 2017: 51.1%)
• 1% Basel 2 capitaladequacy ratio (FirstBank (Nigeria)) (Jun 2017: 17.6%, Dec 2017: 17.7%)
• 6% Basel 2 CAR (FBNQuest Merchant Bank) (Jun 2017: 26.7%, Dec 2017: 15.7%)

Notable Developments

• FirstBank indicated its intention to call the 8.25% US$300million FBN Finance Company B.V. Subordinated callable note due in 2020
• FirstBank openeda digital laboratory as part of its strategy to drive innovation in the digital banking space
• FirstBank commissions a strong initiative to implement enterprise-wide Customer Relationship Management solution to drive service excellence and improve customer experience
  

Selected Financial Summary

^[1] Post-tax return on average equity computed as annualised profit after tax attributable to shareholders divided by the average opening and closing balances attributable to equity holders

^[2] Post-tax return on average assets computed as annualised profit after tax divided by the average opening and closing balances of its total assets

^[3]Earnings yield computed as annualised Interest income divided by the average opening and closing balances of interest earning assets

[4]Non-interest income is net of fee and commission expenses

^[5] Net-interest margin computed as annualised net interest income divided by the average opening and closing balances of interest earning assets

^[6] Operating income defined as Net interest income plus non-interest income

^[7] Cost of funds computed as annualised interest expense divided by average interest-bearing liabilities

^[8] Cost to income ratio computed as operating expenses divided by operating income

[9]Excluding H1 2018 profits

^[10] Basic EPS computed as annualised profit (from continuing operations attributable to owners of the parent) after tax divided by weighted average number of shares in issue.

^[11] NPL coverage computed as loan loss provisions plus statutory credit reserve divided by gross NPLs