FBN Holdings Plc. yesterday reported a dip of 82 per cent in profit after tax (PAT) for the year ended December 31, 2015, falling to N15.1 billion, from N84 billion in 2014. The bank was among those that had sent profit warnings to the stock market community, saying its earnings would be materially below 2015 levels as a result of the recognition of impairment charges on some specific accounts resulting from a reassessment of the loan portfolio within our commercial banking business.
According to its audited results released yesterday, FBN Holdings recorded impairment charges of M119.3 billion, up from N25. 9 billion in 2014.
Consequently, its PAT dipped to N15.1 billion, although it recorded gross earnings of N505.2 billion, up from N481.8 billion in 2014.
In its unaudited results for the first quarter ended March 31, 2016, FBN Holdings posted gross earnings of N107.5 billion, compared with N126.8 billion in 2015. PAT stood at N20.7 billion, as against N22.6 billion in the corresponding previous of 2015.
Commenting on the results, the Group Managing Director of FBN Holdings, UK Eke, said:
“This has been a very difficult time in the history of our 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 N505.2bn clearly a leading position in the industry. Furthermore, the Holding company platform has provided support in mitigating the impact of credit losses and the vulnerabilities experienced by our Commercial Banking business.
“In coming periods, our primary focus is to drive efficiency and operational excellence across all operating companies. Key initiatives in achieving this, as we eliminate the value eroding factors and seek to reposition the Group towards a new growth path, include: enhanced focus on moderating risk appetite, risk management practices and culture; disciplined cost containment; asset optimisation; and, synergy realisation. 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. Amongst those, one priority stands out above all else-the need to restore shareholder value whilst building long-term sustainability into our businesses”.
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