FBN Holdings Plc released its unaudited consolidated financial statements for the period ended 31st March 2020, to the Nigeria Stock Exchange and the Investing public after the closing hours of the last trading session. They posted a 14.52% growth in Revenue from external customers, growing it from N139.43bn to N159.68bn, a significant increment in revenue Year on Year given the times we are in. They went further to translate the revenue to a profit (PROFIT FOR THE PERIOD) of N25.70bn, a 62.74% growth from the N15.79bn recorded in the first quarter of 2019, representing 16.09% Profit Margin (Q1 2019: 11.33%).
| Q1 2020
(N’ million) |
Q1 2020
(N’ million) |
% Change | |
| Total Revenue from external customers | 159,682 | 139,438 | 14.5% |
| Profit before tax | 28,680 | 17,764 | 61.4% |
| Profit for the period | 25,700 | 15,792 | 62.74% |
| Earnings per share attributable to owners of the parent from profit for the period | N0.69 | N0.42 | 64.2% |
| Profit Margin (Profit for the period) | 16.09% | 11.33% | |
Table 1: Highlights of the financial statements
FBN Holdings Plc was incorporated as a private limited liability company in Nigeria in 2010 and was converted to a public company in September 2012, when it commenced operations. The Company’s shares were listed on the floor of the Nigerian Stock Exchange on November 26, 2012 after the shares of the erstwhile First Bank of Nigeria Plc were delisted on November 23, 2012.
The principal activity of the Company is the raising and allocation of capital and resources. The Company is also responsible for coordinating group-wide financial reporting to shareholders and managing shareholder, investor and external relations to the Group and the task of developing and coordinating implementation of Group strategies. The Company consists of three groups namely:
- Commercial Banking Group comprising First Bank of Nigeria Limited, FBNBank (UK) Limited, First Pension Custodian Nigeria Limited, FBNBank DR Congo, FBNBank Ghana, FBNBank Sierra Leone, FBNBank Guinea, FBNBank Gambia and FBNBank Senegal.
- Merchant Banking and Assets Management Group comprising FBNQuest Merchant Bank Limited, FBNQuest Capital Limited, FBNQuest Securities Limited, FBNQuest Funds Limited and FBNQuest Trustees Limited.
- Insurance Group comprising FBN Insurance Limited, FBN General Insurance Limited and FBN Insurance Brokers Limited.
FBN Holdings Plc (FBNH) has 35,895,292,792 outstanding shares, and a market capitalization of N168.7bn. They sit on the NSE Premium Board.
Views of Analysts @investogist
Shares of FBNH closed at N4.70 at the last trading session on the NSE, down 23.58% YTD, down 35.17% in the past year, up 37.83% over the past 3 years, and down 53.00% over the past 5 years. The company which is regarded as being amongst the top 5 banks in Nigeria, they are the “F” in the renowned FUGAZ banking grouping in Nigeria (U: UBA, G: GUARANTY, A: ACCESS, Z: ZENITHBANK). They have in the past couple of years been performing well below these peers, in both profitability and dividend pay outs to shareholders. The result marks a continued improved over 2019, just as 2019 was an improvement over 2018, hence there is a reason to believe that they have the potential to return to the profit and dividend levels of 2014 (DIVIDEND in 2014: N1.10, NET INCOME in 2014: N77.02bn). For long term Investors, it will be worthwhile to keep this stock on your watchlist, with the intention of acquiring the stock. Based on their financial performance for the full year ended 31st December 2019, we calculated the fair value of the shares to be between N2.20 to N8.00.