FBN Holdings Unveil Growth Strategy, Targets Single-digit NPL

LAGOS(Sundiata Finance) – FBN Holdings Plc has unveiled key growth strategies aimed at boosting the company’s revenue and shareholders’ value from 2017 financial year, going forward. The group managing director of FBN Holdings, Urum Kalu Eke, disclosed this at the company’s “Facts behind the Figures’’ at the Nigerian Stock Exchange (NSE) in Lagos, on Thursday.

Eke said that the company is targeting a single digit Non-Performing Loan (NPL), cost of risk less than two per cent, cost to income to be less than 50 per cent, enhanced revenue, return on equity to be greater than 20 per cent and improved dividend distribution.

According to him, NPL to revert to single digit region within the next 24 months on the back of active remediation of top exposures. He added that about five per cent of the loan book has been restructured with oil and gas loans constituting 70 per cent of the structured portfolio in 2016.

He also said the company is addressing the needs of its customers and stakeholder in delivering structural changes in the risk-taking culture, processes and oversight; maintain sustained improvement of cost and capital efficiency; enhanced revenue growth across the group and create digital competency to enhance revenue and service delivery.

Eke added that the subsidiaries under the Holdings company will execute innovation project to identify new revenue streams, saying there is a plan across the group to grow  20 to 25 million customer accounts within the current strategic cycle. He said that the company will focus on improving revenue generation across the group, saying the Merchant Bank and insurance businesses recorded 11.5 per cent and 18.7 per cent year-on-year growth in revenue respectively.

He also said that the company will leveraged the commercial banking retail network to deepen market penetration across the group. Speaking on the impact of digital banking strategy, Eke explained that there have been increased contribution from e-banking solution.

According to him, on the firstmobile/online, over N1 trillion transaction value, having 900,000 users enrolled since inception in September 2015, 19.7 million transaction in 2016 and one million digital customers.

He stated that one of their priorities is to achieve 25 per cent of the bank active customer base to digital channels by 2019 and to reach the unbanked and under banked through the roll-out of agent banking.

The Holdings company for the first ended March 31, 2017 posted gross earnings of N141 billion against N107.5 billion recorded in the preceding period of 2016, an increase of 31.2 per cent.

Profit before tax stood at N19.9 billion compared with N22.1 billion achieved in 2016, representing a decrease of 9.5 per cent. Total asset went up by 5.2 per cent to N4.98 trillion,  while NPL stood at 26 per cent as against 21.5 per cent in 2016.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Sundiata Post Media Ltd.

Address: 3rd Floor Office Suite, Bayelsa State Guest House, Plot 1038, Shehu Shagari Way, Maitama, Abuja, Nigeria.
Tel: +234(0)92900705, +234(0)8173460599
Whatsapp: +234(0)8053069436
BBM PIN: 5619150D
Email: info@sundiatapost.com
Website: www.sundiatapost.com

Enugu Regional Office: SW 1 New Haven Shopping Mall, Enugu, Enugu State, Nigeria.
Tel: +234(0)7062582838

London Office: 18 Belgrave Avenue, Wd18 7UE, Watford, United Kingdom.
Tel: +447417554143

Washington Office: 1245 Delafield PI NE, Washington DC 20017, USA.
Tel: 0092404216156

https://twitter.com/sundiatapost/
About Us

SundiataPost is published by Sundiata Post Media Limited, Sundiata Post is Nigeria’s most authoritative online newspaper and ranks among the top five online news platforms in Nigeria.

Guild of Corporate online publishers
ACCREDITED MEMBER
A Glance at Our Advert Rate.

Inside Pages

Size In Pixels - Amount

120×180 - N27,967.50

300×100 - N24,695

Text Link - N11,275

More Details info

About Us | Contact Us | Privacy Policy | Terms of Use | Advert Rate