In the first nine months of 2024, FBNHoldings Plc, the parent company of First Bank of Nigeria Limited, witnessed a remarkable 125% growth in its earnings per share (EPS) and overall profits. This surge highlights the bank’s sustained financial resilience and growing strength in core banking activities, backed by strategic investments in financial intermediation.
A key indicator of this growth is the bank’s interest income, which soared by 165% to reach N1.63 trillion. This remarkable increase demonstrates that the bank is not solely relying on transaction charges, but is deeply focused on long-term, sustainable profits.
FBNHoldings’ recent performance reflects a consistent track record of growth. Over the past five years, the bank’s EPS expanded over fourfold, from 195 kobo in 2019 to 859 kobo in 2023, making it one of the fastest-growing companies in Nigeria’s capital market. Over the same period, operating profit surged by 320%, from N73.8 billion to N310.5 billion.
On the revenue front, FBNHoldings saw its earnings nearly triple, climbing from N623 billion in 2019 to N1.6 trillion in 2023. During this time, the bank’s total assets also increased by a significant N10.7 trillion, closing 2023 at N16.94 trillion. Total shareholder equity grew by 163%, reaching N1.75 trillion by the end of 2023.
A standout driver of this growth is the bank’s loan portfolio, which saw a massive 243% increase over the five years, hitting N6.36 trillion in December 2023. These loans span critical sectors such as oil and gas, manufacturing, agriculture, and real estate, positioning FirstBank as a crucial player in Nigeria’s economy.
The most recent figures also indicate that FirstBank is poised to surpass last year’s performance. For the first nine months of 2024, the bank’s earnings stood at N2.25 trillion, surpassing the full-year total of 2023 by 134%. The non-interest income also showed significant growth, rising by 82% from N320.5 billion in 2023.
A major factor driving this success is FirstBank’s transformation into a transaction-led bank, with a focus on digital banking. By September 2024, First Mobile users had reached 6.9 million, and over 23 million people had subscribed to various online platforms. This digital shift is central to the bank’s vision for the next decade.
Looking ahead, FirstBank’s 10-year vision, articulated in 2023, aims to position the bank among the top three universal banks in Africa by 2033, focusing on retail, wholesale, and wealth management segments. CEO Olusegun Alebiosu, who has been integral in driving this vision, emphasized that the goal is to ensure disciplined execution of the bank’s strategy for sustainable growth.
The bank’s shareholders recently approved a capital raise of N350 billion, which, when combined with previous rights issues, will position FirstBank ahead of the 2026 deadline for meeting international capital requirements. These actions further solidify the bank’s ability to compete globally.
While traditional banks like FirstBank face challenges from digital-first rivals such as Opay and MoniePoint, the bank is embracing technological advancements to remain competitive. The majority of FirstBank’s customer transactions now occur on digital platforms, including FirstMobile, FirstOnline, Lit App, and ATMs. With its ongoing cloud strategy, the bank is poised to build a more agile and resilient financial services model to meet evolving customer needs.
As FirstBank embarks on its new 2025-2029 strategic cycle, it aims to consolidate its leadership across markets and enhance customer experience through strategic investments in technology, including artificial intelligence, to further scale up its digital operations. The bank’s transformation reflects a blend of innovation and a strong legacy, setting the stage for the next phase of its growth journey.
However, amid all these positive strides, ongoing boardroom disputes and external challenges remain distractions that could potentially slow down progress. Stakeholders are eager for quick, effective resolutions to these conflicts so that the bank can focus on continuing its impressive trajectory.
As FBNHoldings moves forward, the “Decade of Miracle” could well serve as a springboard for an even more prosperous future.
