First Bank of Nigeria Holdings (FBNH), a prominent Lagos-based financial services holding group, has exceeded analysts’ expectations, posting remarkable financial results at the end of the first nine months of its 2023 fiscal year.
The group, which counts Nigerian billionaire Femi Otedola as a partial owner, reported a substantial surge in profit, strengthening its position as one of Nigeria’s most profitable financial services providers.
According to figures in its financial statement, FBN Holdings achieved an astounding 159 percent increase in profit during the first nine months of the 2023 fiscal year, with earnings soaring above $290 million.
Specifically, the group’s profit surged to N236.5 billion ($296.96 million), up from the N91.29 billion ($114.63 million) recorded in the corresponding nine-month period of the previous year. This remarkable growth underscores the group’s exceptional financial performance and resilience in a challenging economic environment.
FBNH’s commanding presence in Nigeria’s financial services sector
The substantial profit surge can be attributed to the group’s robust performance across all its operating segments. Both interest income and non-interest income witnessed significant increases, further establishing FBN Holdings as a dominant force in Nigeria’s financial sector.
During the nine-month period under review, the group’s net interest income increased from N249.53 billion ($313.36 million) in 2022 to N377.7 billion ($474.56 million). In addition, the net fee and commission income exhibited substantial growth, reaching N118.98 billion ($149.45 million), up from N91 billion ($114.34 million) in the previous year.
Furthermore, the group’s earnings were significantly bolstered by the revaluation of investment securities in Naira terms, resulting in net gains from its financial instruments totaling N246.08 billion ($309.1 million). This achievement showcases the astute financial management and investment strategies employed by FBN Holdings.
Nigerian billionaire Femi Otedola’s FBNH stake is worth $41 million
FBN Holdings, one of Nigeria’s largest financial services conglomerates, serves as the holding company for First Bank of Nigeria Limited, the country’s oldest commercial bank, with operations spanning ten countries. The group’s performance solidifies its position as one of Nigeria’s premier financial institutions.
Notably, the most significant stake in the Lagos-based financial services holding group is held by Nigerian billionaire Femi Otedola, with a substantial ownership interest of 5.65 percent as of June 30, 2023. This stake is presently worth N32 billion ($41 million).
As a substantial shareholder, Femi Otedola stands to benefit substantially from the group’s remarkable profits, adding to his already influential presence in Nigeria’s corporate landscape, particularly in the power sector through Geregu Power Plc.
The exceptional financial performance of FBN Holdings has also translated into a substantial increase in total assets, which rose from N10.57 trillion ($13.3 billion) on December 31, 2022, to N14.46 trillion ($18.16 billion) as of June 30, 2023.
Additionally, retained earnings surged from N397.7 billion ($499.45 million) to N608.72 billion ($764.45 million), reflecting the group’s solid financial standing.
