By Philemon Adedeji
INTRODUCTION
FBN Holdings’ unaudited financial results for the period ended 31st March 2022, indicated that huge profit was able to be generated during the period and this huge profit generated made it to stay in a balance position. The bank improved significantly in the first quarter of 2022 than it did in the first quarter of 2021.
For the year, all parameters like Profit Margin, return on assets, gross earnings, profit after tax, profit before tax, total assets, operating income were strongly emerged than those of prior year of 2021.
GROWTH INDICES
For period of three months in 2022 financial year, the bank recorded a 32 per cent appreciation rate in its gross earnings. (This showed that the rate of sales figure increased higher in first quarter of 2022 than the sales figures in first quarter of 2021.Such gross earnings increased to N180.48billion in the first quarter Q1 of 2022 from N136.575 billion in the prior year of 2021.This growth of 32 per cent increase in gross earnings will enable the bank’s ability to do better in the next three months.
First bank in the period under review reported a profit after tax that increased to N32.401 billion in first quarter of 2022 as against N15.599 billion made in first quarter of 2021, this reflecting a growth of 108 per cent rate followed in different pattern because of the higher per cent increase in profit after tax, the bank recorded a higher profit in first quarter of 2022 than it did in first quarter of 2021.
This 108 per cent growth rate is compared to another growth rate in the preceding year
Profit before tax also rose significantly year-on-year (y-o-y) to N36.518 billion in first quarter Q1 2022, this growth that occurred is representing 93 per cent from N18.904 billion in first quarter Q1 of 2021.
The growth in profits was driven by growth in gross earnings and net interest income.
Other top-line performance of the unaudited financial statement recorded was growth in net interest income which stood at N72.796 billion in first quarter of 2022 as against N52.793 billion in first quarter of 2021, representing an of 38 per cent. This is even operating income recorded a significant jump of 54 per cent to N37.325 billion in Q1 from N24.191 billion in Q1 2021.
However, the lender continued its impressive performance in unaudited first quarter Q1 results ended March 31, 2022, to underline the relentless spirit and hard work of management and staff.
From the balance sheet position, the bank customers deposit moved higher base on year-on-year by five per cent to N6.139 trillion from N5.849 trillion reported in first quarter Q1 2021 unaudited results and accounts for the period ended March 31, 2021.
First bank reported N64.045 billion net interest income after impaired charge for losses in Q1 2022 from N38.618 billion in Q1 2021, representing an increase of 62 per cent
First bank total assets reported in the first three months of 2022 rose significantly by 3 per cent to N9.205 trillion as of March 31, 2022 from N8.932 trillion reported in the three months of 2021 unaudited results and accounts for the period ended March 31, 2021, total equity stood at N896.813 billion in first quarter of 2022, representing an increase of 3 per cent higher than N869.451 billion which recorded in first quarter of 2021.
And also, Total liabilities has equal growth rate of total assets and total equity in terms of percentage, the growth rate was three per cent to N8.298 trillion in first quarter of 2022 from N8.052 trillion in first quarter of 2021.
PROFITABILITY RATIO
Profitability for the 2022 financial year was very good for the first bank holding of Nigeria, as all the parameters were higher than those of preceding year except net fee and commission income that dropped to four per cent.
Firstly, to achieve a growth rate, the profit margin of the bank standing at 20 per cent in first quarter of 2022 as against 14 per cent in 2021. This simply means for every N100 earned by the bank in the cause of the year, N20 of it can be translated in to