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).
• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...
In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...
• BOAD releases CFA10 billion ($17.8 million) to support Boungou and Wahgnion gold mines.• Burkina F...
Transport and food prices have been climbing steadily across Africa in recent years. In Côte d’Ivoir...
• Burkina Faso-based financial group, Vista Group Holding, has acquired a majority stake in Société ...
• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo • License award comes on stream as part of the...
• The International Monetary Fund (IMF) has authorized a $262.3 million disbursement for Ethiopia, taking total payments under Extended Credit...
• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boosting regional trade and investment• Part of broader...
• IFAD initiates a program worth $358.26 million to bolster dairy sector in Kenya, Rwanda, Tanzania, and Uganda • The program, called DaIMA, aims...
The Gerewol tradition is a fascinating ritual celebrated by the Bororo Fulani, a nomadic community primarily located in Chad and Niger. This annual...
In northern Ethiopia, in the Tigray region, lies Axum (also spelled Aksum), an ancient city that once stood at the heart of one of Africa’s most powerful...