Business
FBNHoldings Wows the Market with 2023 H1 Earnings Blowout
FBNHoldings (FBNH), the parent company of Nigeria’s pioneer Bank, First Bank of Nigeria Limited published stellar results, confounding analysts, and exciting investors. Equally as amazing as the spectacular results, which saw earnings per share surge by 234% to N5.19 was the fact that the banking behemoth was able to eke out this profit in a financially hostile policy environment where bank earnings have been squeezed. The Bank’s holding company has also been a subject of shareholder squabbles, which ordinarily should be a distraction to the management and a drag on profitability. But in spite of these challenges, the outstanding results are a testimony to the depth of its management and its capacity to execute a robust strategy.
What is Unique About FirstBank? (Late Entrant to African Markets) As a late entrant into the scramble for market share in the Sub-Saharan African continent, it was able to play catch up with its peers in this respect. In the last few years, FirstBank has been able to expand its international footprints not only across Africa but also in Europe and Asia with branches in the major markets of the United Kingdom, China, and Ghana. The core element of the bank’s strategy has been to leverage its huge investment in its Internet banking platforms with a fast transition into the digital space. Whilst its reputation as an old staid and orthodox bank is being replaced as a nimble modernised institution with a readiness to compete aggressively with its younger peers, FirstBank has not lost its legacy as a strong and sound institution. Most of the performance ratios especially its cost-to-income ratio of 46.8% coming down from a high of 70% four years ago reveals that its cost reduction and resource optimization strategy is paying off. Leveraging Economies of Scale is a Core Strategy FirstBank with 595 branches has 13% of all branches of banks and 13% of all Automated Teller Machines (ATMs) in Nigeria. The bank has consistently leveraged economies of scale, years of existence, and reputation, resulting in aggressive customer acquisition.
With a customer base of over 42 million, FirstBank processes 12% of the Nigerian banking industry’s payment volume. The bank’s current deposit portfolio of N9 trillion is one of the best in the Nigerian banking industry. The group is also reaping the benefits of crossentities collaboration as well as increased earnings contribution from international subsidiaries (30.0% in FY’22 compared to 25.5% in FY’21). Every Dog Has its Day in the SunTranslation Gains Have Helped but Transaction Losses Could Hinder Growth Banks with long dollar positions will have initial translation gains, however, if subsequently, they begin to have non-performing dollar assets, the translation gains may end up as transaction losses down the road. Nigeria’s oldest bank, FirstBank recorded a revaluation loss of N98bn due to huge naira devaluation stoked by the Foreign Exchange policy changes. However, the impact on the bank’s profitability was cushioned by over a 1,000% surge in fair value gains. FBNH’s exposure to foreign currency risk was mitigated by a decline in foreign currency (FCY) loans from 51.2% in FY’22 to 50.4% in Q1’23.
Strategy Consistency is Impacting Share Price Appreciation The share price of FBNHoldings has increased by an average of 131% per annum in two years to N18.65, returning enormous value to shareholders. The valuation remains attractive with a price-earnings multiple of 2.55x and an estimated fair value of N19.25. Earnings per share (EPS) at N5.19 Vs N1.55 in H1’22. Are There Inherent Weaknesses? FirstBank is poised to keep creating value for shareholders with a reorganised balance sheet position and a refocused management team. Though the impact of FX unification remains a major concern to Nigerian banks’ profitability and liquidity, FBNHolding’s long position in dollardenominated assets gives it an edge. We also anticipate an increase in trading activities by the bank in the event of a drop in the backlog of FX requests and an influx of new foreign transactions. This could potentially drive-up trading volumes, increase commissions earned on trades, as well as gains from FX sales. We expect the bank to deliver an impressive full-year 2023 result. A rising interest rate environment will boost net interest margin, and solid e-banking operations will support strong non-interest income growth. We also believe that the bank will be able to maintain a sound asset quality position within the regulatory threshold thanks to its effective operational and risk management system. FBN Holdings Plc (FBNH) remains a top player in the industry with a Strong franchise, reliable funding structure and brand recognition, robust customer base, unique ebusiness and agency capabilities, contributions from overseas subsidiaries, and a newly reorganised management team.
What Does the Future Hold Out for FBNHoldings? In an industry where competitive pressures and the intensity of rivalry increases, a consolidation is almost imminent. We expect that the field will narrow after a possible increase in the minimum capital requirements in the industry as impairment of profitability resulting from non-performing loans begins to hurt industry players. We also expect big and solid institutions like FBNHoldings to be in a position to gobble the smaller and less viable rivals. The name of the game in the next few years will be ‘’the survival of the fittest’’.
Culled from Financial Derivatives Company
Sterling Bank, on Wednesday, announced the removal of account maintenance fees on all personal accounts, describing the decision as a “gift” to Nigerians in celebration of the country’s 65th Independence Day.
The decision, which follows the abolition of transfer fees on local online transactions in April 2025, was outlined in a statement shared by the bank. The bank said the policy would allow customers to keep more of their earnings, framing it as a step toward financial freedom.
“Every fee we remove is one less barrier between our customers and true financial freedom. This was the rationale behind eliminating transfer fees in April, and it is the same principle we uphold as we eliminate account maintenance fees,” Sterling Bank’s Managing Director, Abubakar Suleiman, said.
The statement highlighted that in 2024 alone, tier-1 banks in Nigeria earned over ₦650 billion from account maintenance and e-banking charges. “This decision cuts at the heart of a revenue model that has long cost Nigerian customers dearly,” the bank noted.
Obinna Ukachukwu, Sterling’s Growth Executive for Consumer and Business Banking, said the initiative was intended to strengthen long-term relationships with customers. “This initiative is about building lasting relationships that fuel sustainable growth. We put transparency and customer value first, and in doing so, we are building a foundation that serves both our customers and Sterling’s future,” he said.
Sterling Bank also framed the removal of fees as part of a broader strategy to make banking more inclusive and customer-focused. The April 2025 transfer fee abolition had already eliminated charges on all local online transactions, easing costs for individuals and small businesses. At the time, Ukachukwu described the move as a values-driven decision aimed at ensuring fair access to money.
“Access to your own money shouldn’t come with a penalty. This is more than a financial decision—it’s about redefining banking to put customers first,” Ukachukwu said.
The latest move aligns with Sterling’s positioning as a bank committed to transparency, customer value, and digital innovation, and it signals a continued effort to reshape banking practices in Nigeria.
Guaranty Trust Holding Company Plc has reported a profit before tax of N600.9 billion for the half year ended June 30, 2025.
The figure is contained in the company’s audited consolidated and separate financial statements, which were released to the Nigerian Exchange Group and the London Stock Exchange.
The group stated that the performance was driven by growth in core earnings lines, including interest income and fee income, which rose year-on-year by 31.5% and 33.0%, respectively.
It explained that the growth helped to cushion the absence of N493.01 billion in fair value gains recorded in 2024, resulting in a 40 per cent decline.
GTCO stated that its total assets stood at N16.7 trillion, while shareholders’ funds totaled N3.0 trillion during the review period.
It added that its balance sheet remained strong, diversified, and de-risked across operating jurisdictions, as well as its payments, pension, and funds management businesses.
The group disclosed that its Capital Adequacy Ratio closed at 36.2 per cent, while asset quality improved with IFRS 9 Stage 3 loans declining to 3.2 per cent.
At the group level, Stage 3 loans stood at 4.5 per cent, compared with 5.2 per cent in December 2024.
Similarly, the cost of risk improved to 1.7 per cent from 4.9 per cent recorded in December 2024.
The company stated that its net loan book increased by 20.5 per cent, from N2.79 trillion in December 2024 to N3.36 trillion in June 2025.
Deposit liabilities also increased by 16.6 per cent from N10.40 trillion to N12.13 trillion during the same period.
The board of GTCO approved an interim dividend of N1.00 per share for the half year ended June 30, 2025.
Commenting on the results, Segun Agbaje, Group Chief Executive Officer, said the half-year performance reflected business strength and progress towards building a diversified financial services ecosystem.
He said beyond last year’s extraordinary one-off gains, the group was now driving sustainable growth with recurring earnings that demonstrated the resilience and scalability of its model.
Mr Agbaje noted that continued investment in technology, particularly in core banking upgrades, was delivering stronger uptime, efficiency, and greater capacity to scale with a growing customer base.
He added that across banking, funds management, pension, and payments, GTCO was leveraging a de-risked balance sheet to reinforce its market position while maintaining strategic flexibility. According to him, this foundation positions the group to seize emerging opportunities and deliver lasting value for all stakeholders.
Mr Agbaje stressed that GTCO had continued to post some of the best metrics in Nigeria’s financial services industry in terms of key financial ratios. He said the group recorded Pre-Tax Return on Equity of 60.4 per cent, Pre-Tax Return on Assets of 10.6 per cent, Capital Adequacy Ratio of 36.2 per cent, and Cost-to-Income ratio of 30.1 per cent.
NAN
In line with its commitments of promoting sports and developmental initiatives at all levels, First Bank of Nigeria Limited is partnering the organizers of the first of its kind E1 Lagos GP an all-electric powerboat racing championship, set to hold between the 3rd and 5th of October 2025.
Disclosing this at the E1 Lagos GP Stakeholder Immersion session in Lagos recently, Olayinka Ijabiyi, the Acting Group Head, Marketing and Corporate Communication of FirstBank, reaffirmed the Bank’s commitment to supporting initiatives that engender human development across the country while cementing legacies.
“Our involvement in the E1 Lagos GP is about driving legacy and enabling the passions and aspirations that unite Nigerians. We are a bank that has been in business for over 131 years and we recognize that sports drives us as a country, which is why through our First@Sports initiative, we continue to invest in platforms that inspire and elevate our people. We have been supporting legacy sport tournaments like the Georgian Polo Cup which we have hosted for 105 years, and the Lagos Amateur Open Golf Championship for 64 years now,” Ijabiyi said.
With the event slated for the start of the fourth quarter, FirstBank is aligning its partnership with the annual DecemberIssaVybe initiative, a campaign that celebrates the vibrant spirit of Nigerians during the festive season by curating unforgettable experiences that blend culture, entertainment and lifestyle. “FirstBank is deeply woven into the fabric of society and the lives of our customers. As presenting partner, we are creating meaningful touchpoints with customers and prospects, offering them a world-class experience of relaxation and celebration that captures the true essence of Lagos during the festive season,” he added.
Lagos State Commissioner for Information and Strategy, Gbenga Omotoso, who was also at the event, described the initiative as an event that will grow not just the sports but also showcase Lagos’s vibrant culture, dynamic people, and global relevance, while commending FirstBank for their support.
The teams owned by notable stars like Tom Brady, LeBron James, Didier Drogba, Will Smith, Marc Anthony, Steve Aoki, Rafael Nadal will compete in the Lagos leg before the 2025 season of the competition terminates in Miami in the United States.
