First Bank of Nigeria Holdings (FBNH) closely linked to Nigerian billionaire, Femi Otedola recorded a significant financial performance at the end of the first half of the 2023 fiscal year.
The Lagos-based financial service holding group surpassed investors’ expectations with a profit of over $240 million. This development was contained in a recently published half-year financial results.
According to the results, FBNH recorded a 230.8 per cent increase in profit, rising from $72.91 million in the first half of 2022 to $241.3 million in the first six months of the current reporting period.
What led to the $240 million profit
FBNH profit can be linked to a substantial increase in interest income, soaring from $290.8 million in H1 2022 to $492.4 million in H1 2023.
According to reports, the $240 million profit was birthed from the revaluation of investment securities in Naira terms, following the unification of the Naira in Q2 2023. This resulted in a total of $142.57 million in interest income.
Also, the group’s fee and commission income recorded a 25.7 per cent increase from $90.9 million to $113.83 million, contributing to the impressive earnings
What does this mean
FBNH’s remarkable financial performance during the first six months of 2023 has propelled its assets to expand from $13.6 billion on December 31, 2022, to $18.25 billion as of June 30, 2023.
Moreso, the retained earnings of the group surged from $512.2 million to $747.11 million.
Otedola, CEO of Geregu Power Plc holds a 5.57 per cent stake in the financial service group. His stake which is the largest in FBNH puts him in a good position to earn from the group’s profits as a substantial shareholder.
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