H1 2023: First Bank Holdings delivers stellar performance, gross earnings up 82.8% to N656.6bn
By Philemon Adedeji
First Bank Holdings of Nigeria, has released its unaudited financial results for the period ended June 30th 2023, the results delivered reveal continuous positive impact of strategy and the tremendous progress that has made the group to grow and well transformed.
In the unaudited results the group gross earnings increased impressively to a remarkable 82.8 per cent to N656.6 billion at the end of June 30th 2023 from N359.2 billion as of end of June 30th 2022.
From the released statement under the floor of Nigerian Exchange Limited (NGX), the group Profit Before Tax ( PBT) showed an impressive increase of 213.8 per cent, amounting to N206.3 billion in H1 2023 from N65.7 billion in H1 2022
Profit After Tax (PAT) experienced a substantial growth of 231 per cent, reaching N187.2 billion in six months of 2023 from N56.2 billion accounted in the comparable period. The significant increase in PAT reflects the bank’s ability to generate higher earnings while efficiently managing tax liabilities.
Interest Income (II) for H1 2023 recorded a significant increase of 69.3 per cent over H1 2022, reaching N383.3 billion. Conversely, interest expenses rose by 99 per cent to N145.9 billion. The substantial increase in interest income and expenses can be attributed to changes in the company’s lending and borrowing activities.
Net Interest Income (NII), the difference between interest income and interest expenses, witnessed a healthy growth of 55.2 per cent, amounting to N237.3 billion. This suggests improved efficiency in managing interest-earning assets and interest-bearing liabilities.
First Bank Nigeria Holdings experienced a 26 per cent increase in net fee and commission income, reaching N73.7billion. This growth indicates an enhanced performance in the bank’s fee-based businesses and services.
Operating profit for H1 2023 surged remarkably by 213 per cent to N206 billion, demonstrating the bank’s successful cost management strategies and revenue growth.
Earnings Per Share (EPS) witnessed a remarkable surge of 235 per cent to N5.19, indicating higher returns for shareholders.
First Bank Holdings of Nigeria’s balance sheet remains well resilient and structured as total assets increased nearly 34 per cent to N14.177 trillion in six months of 2023 from N10.578 trillion achieved at the end of June 30th 2022, while Total Liabilities rose by 48 per cent to N12.7 trillion. The growth in both assets and liabilities signifies the bank’s expansion and increased financial activities.
The Chief Executive Officer (CEO) of First Bank (Commercial Banking Group), Dr. Adesola Adeduntan said, “In the first half of 2023, FirstBank Group delivered the strongest financial performance in the almost 130 years of the Bank’s history; with solid business momentum, increased revenue, and excellent returns. The result reflects the continued positive impact of our strategy and the tremendous progress that we have made in growing and transforming the Group.
“The result also highlights the resilience of our business model, customer relationships and institutional capabilities.
“While the uncertainties in the macroeconomic and operating environment persist, I am confident that our purpose-driven strategy remains the right one and that our strong financial performance, alongside our business model and resilient portfolios, position the Group well to continue to provide the required support to our customers as well as create robust and sustainable value to our shareholders.
“Given our extensive and diversified customer base of over 42 million customer accounts, our digital technology-enabled processing capabilities that ensure we process over 12 per cent of industry’s payment volume, our future-proof and cutting-edge digital banking platforms with over 22 million users that enable us to process more than 95 per cent customer-induced transactions on digital channels, the robustness of our balance sheet, and our institutionalised risk management culture and capabilities, we see a resilient franchise today and into the future.”
