FBN Holdings reduces bad loans to 12.6% in nine months

FBN Holdings Plc on Monday said the non-performing loans ratio for its commercial bank reduced to 12. 6 per cent for the nine months ended September 30, 2019.
This is contained in the company’s unaudited result for nine months as at September 30, released by the Nigerian Stock Exchange.
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.