First Bank: Five Positive Indicators In September Returns

By Emmanuel Aziken with agency reports

First Bank continues its steady path towards a return to financial fecundity shedding the impression of the big and slow elephant that was in the recent past practically reflected in its logo.

In that path towards rediscovery, the bank’s holding company on Monday presented to the Nigerian Stock Exchange its nine months trading result showing improved indicators compared to the preceding period in the year 2018. There were at least five positive indicators pointing that way.

However, what the bank apparently wanted to impress with was the significant reduction in the proportion of bad debts which more than halved from the corresponding period in 2018.

The bank’s chief executive Urum Eke in a statement accompanying the results pledged to bring the proportion of NPLs to single digit in line with industry standard in the immediate future.

The non-performing loans (NPLs) ratio for its commercial bank reduced to 12. 6 per cent for the nine months ended Sept. 30, 2019.

The result showed an improved NPL of 12.6 per cent, compared with 25.9 per cent recorded in the whole of 2018.

Its gross earnings during the review period stood at N439.9 billion against N441.5 billion achieved in the comparative period of 2018.

Profit before tax rose by 16.9 per cent to N60 billion against N51.3 billion posted in September 2018.

Similarly, profit after tax closed higher at N51.8 billion in contrast with N44.9 billion in the corresponding period, indicating an increase of 15.3 per cent.

The company’s non-interest income stood at N98.8 billion, up by six per cent from N93.2 billion in the previous period.

Commenting on the results, Urum Kalu Eke, Group Managing Director, FBN Holdings, attributed the performance to diversified revenue streams across board.

“Our performance in the third quarter reflects the growth trajectory over the first nine months of the year, with significant strides made in transforming the Group’s asset quality and diversifying our revenue streams across board.

“During the third quarter, our NPL declined further to 12.6 per cent as we approach the end of the curve in the resolution of our legacy portfolio.

“We are confident of further reducing this to under 10% by the end of the current financial year,” Eke stated.

He added that the management continued to focus on enhancing the risk framework processes of the bank, enabling an improvement in the quality of its loan book.

“Concurrently, we have also continued our drive towards ensuing long-term operational efficiency, resulting in a one-off cost increase pushing our Cost Income Ratio for the first nine months.

“In terms of our revenue generation, we have delivered further increases in our non-interest income, on the back of growth in electronic banking fees as well as improvements in transaction-led income.

“Overall, we are pleased with the progress we are making on numerous fronts and remain committed to not only enhancing shareholder value but also adhering to the long-standing principles of this great financial institution,” Eke said.

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