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FBN Holdings’ quarterly earnings rise to N208bn



The earnings of FBN Holdings, the parent company of Nigeria’s oldest bank, First Bank rose to the highest in at least 13 years in the first quarter of 2024, according to its latest financial statement.

The group’s after-tax profit rose by 315.3 percent to N208.1 billion from N50.1 billion in Q1 last year. Its interest income, which often accounts for the lion’s share of lenders’ revenues, surged by 153 percent growth to N454.9 billion, driven mainly by loans and advances to customers at N261.1 billion, investment securities at N146.6 billion, and loans and advances to banks at N47.3 billion.

FBN Holdings’ net interest income rose to N228.5 billion in the first quarter of 2024, a 104.3 percent increase from N111.8 billion recorded in the first quarter of 2023.

The holding company saw its interest expense grow 234.4 percent to N226.4 billion on the back of N131.8 billion expense on deposits from customers, deposit from banks expense which stood at N66.2 billion, borrowings and others at N28.3 billion in March 2024.

FBN Holdings’ revenue from external customers arrived at N730.3 billion which comprised commercial banking business group (N682.4 billion), merchant banking and asset management business group (N45.4 billion), and others (N2.3 billion) for the period ended March 2024.

Net fee and commission income during the period stood at N63.6 billion in the first quarter of 2024, up 48.6 percent from N42.8 billion in the first quarter of 2023.

However, foreign exchange income increased to 3,035 percent to N94.7 billion from N3.03 billion in the period reviewed.

Net gains on sale of investment securities dropped to N12 billion in the first quarter of 2024 from N33.28 billion in the similar period of 2023.

Dividend income grew 180 percent to N364 million in the first quarter of 2024 from N130 million in the first quarter of 2023

Other operating income increased by 94.7 percent to N5.14 billion in the first quarter of 2024 from N2.64 billion in the first quarter of 2023.

Furthermore, the analysis of the cash flows of the holding company reveals net cash flow generated from operating activities amounted to N2.18 trillion in March 2024, up 34 percent from N365.69 billion in March 2023.

Net cash flow used in investing activities stood at a negative N1.17 trillion from N1.04 trillion in the period reviewed.

Net cash flow used in financing activities stood at a negative N184.8 billion in the first quarter of 2024 from N45.54 billion in the first quarter of 2023.

Cash and cash equivalents rose to N3.46 trillion in the first quarter of 2024, 181 3 percent decline from N1.23 trillion in the first quarter of 2023.

FBN Holding’s basic and diluted earnings per share rose to N5.76 in the first three months of the year from N1.38 in the same period of last year.

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Money market

Naira slumps marginally at official, parallel windows



The naira slumped marginally against the United States dollar on Friday. Data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) showed that the domestic currency traded at N1, 485.53/$1 on Friday.

At the end of trading today, the naira lost less than N1 against the dollar as against the N1,485.36/$1 it recorded on Thursday.

The intra-day high and low recorded during the day were N1, 505/$1 and N1, 401/$1 respectively, representing a very lean spread of N104\$1.

Similarly, the naira slumped against the dollar at the parallel section of the market to trade at N1,495/$1, as against the N1,490/$1 it traded the previous trading day.

However, the Nigerian currency appreciated slightly against the British Pound to trade at N1,890\£1 s against the previous trading day’s N1,900\£1. For several weeks consecutively, the Canadian dollar closed flat against the naira to trade at N1,200| CA$1.

The naira also lost N10 against the Euro to trade at N1,590/€1 as against the previous trading day’s N1,580/€1.

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Money market

CBN, OPS collaborate to boost Nigeria’s financial sector



By Opeyemi Abdulsalam

The Central Bank of Nigeria (CBN) recently hosted a meeting with the Organised Private Sector (OPS) to discuss strategies for enhancing Nigeria’s financial sector.

The meeting aimed to improve monetary policy communication and guidance to boost Nigeria’s image in the global investment community.

CBN Governor, Mr. Olayemi Cardoso, emphasised the importance of private sector contributions to economic policy and pledged to establish a framework for collaboration and regular interactions with OPS leadership.

“The private sector is a critical engine of our economy. This meeting underscores our commitment to working collaboratively with stakeholders to create a more robust and investor-friendly financial environment,” Cardoso said.

The CBN presented an overview of the economy’s trajectory, highlighting the deceleration of inflation and expectations of moderation.

The Bank assured the private sector of its commitment to building trust, ensuring price stability, and implementing monetary policies to support economic growth and stability in foreign exchange rates.

The meeting also addressed concerns about macroeconomic risks, exchange rate volatility, and the need for development finance support.

The CBN and OPS agreed to work together to create a more robust and investor-friendly financial environment.

“We appreciate the CBN’s open dialogue and interest in ensuring the manufacturing industry and other organised private sectors are abreast of the bank’s policies,” said Otunba Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN).

The meeting demonstrated the CBN’s commitment to collaboration and its willingness to listen to the concerns of the private sector.

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Money market

Sterling Bank, SMEDAN partner on data platform, Databanc



Sterling Bank and the Small and Medium Enterprises Development Agency of Nigeria have launched a platform called Databanc that provides data on businesses in Nigeria and N5bn worth of single-digit loan programmes.

A statement from the bank said that Databank provides insights which will be utilised by SMEDAN to deliver its mandate on policy formulation and a unique identification for small businesses and their promoters.

Speaking at the launch of the platform, the Executive Director of Commercial and Institutional Banking at Sterling Bank, Tunde Adeola, described the platform and fund as evidence of Sterling Bank’s commitment towards growing the real sector of the nation’s economy.

Adeola said, “We are delighted to bolster the backbone of our economy with SMEDAN. This initial fund of N5bn marks just the beginning of what has been and will continue to be a mainstay of our approach to funding businesses to grow at scale, and become the preferred financial partner for businesses, no matter their scale.”

He added that over 20,000 SMEs had enrolled on the Databanc platform, with over 80 beneficiaries of the single-digit loan programme and further disbursements ongoing.

He encouraged all MSMEs in the country to enrol on the platform.

SMEDAN’s Director-General, Mr Charles Odii, represented by the Director of Agribusiness Development and Access to Finance, Levi Anyikwa, highlighted the programme’s alignment with SMEDAN’s mission to democratise credit access for nano and micro-enterprises.

Anyikwa affirmed that access to finance remained a significant hurdle for SMEs, and restated SMEDAN’s commitment to removing that barrier.

The Head of SME Digital Products at Sterling Bank, Bolanle Tyson, emphasised Sterling Bank’s strategic focus on critical sectors encapsulated in the HEART of Sterling forward strategy: Health, Education, Agriculture, Renewable Energy, and Transportation.

She said, “We are leveraging data to empower SMEs like never before. Our commitment to SMEs is steadfast. We recognise their pivotal role in driving Nigeria’s GDP and employment. This partnership with SMEDAN underscores our shared dedication to their success.”

The latest study from Visa, the SME Megatrends report showed that SMEs in Nigeria remained heavily underserved and underbanked with a considerable amount of SMEs relying on personal loans and informal credit, as they face obstacles and requirements that make it difficult to secure loans from banks and other formal lending institutions.

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