FBN Holdings experienced a significant 154.5% rise in its net interest income for the year 2024, largely due to the continuous increase in the Central Bank of Nigeria’s (CBN) monetary policy rate (MPR). The company’s unaudited financial statements revealed a sharp increase in interest income, which surged to N1.39 trillion in 2024, compared to N546 billion in 2023. This growth was fueled by higher interest rates in Nigeria, which rose 850 basis points to 27.50% in November 2024, allowing banks to charge higher fees for loans.
The group’s interest expense also saw a dramatic rise of 164%, reaching N1.03 trillion, up from N390 billion in the previous year. Analysts noted that the surge in interest income from loans and advances was driven by the effective repricing of risk assets and higher yields from fixed-income securities, particularly Nigerian Treasury bills. This strategy helped boost the group’s interest income from investment securities by 3.1 times, further enhancing its revenue.
FBN Holdings reported a notable increase in operating income, which grew from N19.1 billion to N58.8 billion. This boost was primarily attributed to sundry income and recoveries during the period. After-tax profit also saw a remarkable 138% increase, rising to N738 billion from N318 billion in 2023. The company’s revenue from external customers reached N3.3 trillion, with the commercial banking segment contributing the bulk of this figure at N3.2 trillion.
Despite these gains, FBN Holdings faced a decline in foreign exchange income, which dropped to N62.5 billion from N334 billion. However, the group saw an uptick in dividend income, which grew by 71.9% to N9.8 billion. Cash flow from operating activities also increased by 36%, totaling N1.57 trillion. Cash and cash equivalents rose substantially, reaching N5.2 trillion in 2024, compared to N2.6 trillion in early 2023.
Source: Business day