FBN Holdings Reports Record-Breaking N862 Billion Profit in 2024

FBN Holdings has announced an impressive surge in its profit before tax (PBT), reaching N862 billion at the end of 2024. This marks a staggering 142 per cent increase from the previous year, according to the company’s unaudited financial statement for the year ended December 31, 2024.

The financial powerhouse reported a significant expansion in its total assets, which soared to N26.54 trillion from N16.94 trillion. The increase was fueled by a remarkable 155 per cent rise in interest income, climbing to N1.39 trillion year-on-year.

In a statement, the company highlighted its robust financial performance, emphasizing that these results underscore its resilience and ability to thrive in a competitive and evolving market.

“It is noteworthy that but for the impairment charge of N411 billion, the PBT would have been N1.3 trillion,” the statement read.

FBN Holdings also recorded a notable improvement in its net interest margin (NIM), rising from 6.11 per cent in 2023 to 9.61 per cent in 2024. This growth came despite a high-rate environment driven by the Central Bank of Nigeria’s (CBN) monetary policy rate (MPR) hike, which increased from 18.75 per cent in December 2023 to 27.25 per cent by the end of 2024.

Non-interest income also saw a substantial boost, growing by 43.3 per cent to N846.9 billion from N255.8 billion in 2023. The bank attributed this growth to increased fee and commission income, particularly from fund transfers, intermediation, and digital transactions, which experienced impressive volumes throughout the year.

Loans and advances to customers grew by 42 per cent, driven by new loan disbursements from the commercial banking segment and the impact of naira depreciation on foreign currency-denominated loans. Despite operating in a volatile business environment, FBN Holdings maintained a strong risk management framework to safeguard its financial stability.

Deposit liabilities also grew substantially, growing by 62 per cent, supported by continuous deposit mobilization efforts, strategic investments in digital banking, and the impact of naira depreciation on foreign currency-denominated deposits.

FBN Holdings remains committed to sustaining its strong financial performance and enhancing shareholder value. The company aims to further boost revenue and profitability through strategic initiatives such as refining its governance model, strengthening its value proposition, and optimizing operational efficiencies.