Statement of financial position

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Sunday, September 26, 2021 5:40 AM / by Proshare Research / Header Image Credit: EcoGraphics

Asset growth

FBNH’s assets increased by + 4.35% in H1 2021 compared to fiscal 2020. In 2016, the bank’s assets increased by + 13.70%, while growth slowed to + 10.55% and + 6.35%
in the next two years, respectively. Asset growth picked up in 2019, with an increase of + 11.40% before spiraling + 23.95% in 2020. In the first half of 2021, FBNH’s Assets increased by + 4.35% from N7.69tr in fiscal year 2020 to N8.024tr in H1 2021 (see the table
11 below).

Graphic 11: Growth of FBNH’s total assets 2016 – H1 2021 (%)

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Source: FBNH, Proshare Research

Growth in deposits

Customer deposits increased by + 3.74% between fiscal 2020 and the first half of 2021, however, on a year-over-year basis, deposits increased by + 16%
at N5.08trn in H1 2021 from N4.37trn in H1 2020. This implies that compared to the previous period, the bank’s most crucial liability added nearly a sixth of its value to S12020.
Ee deposit growth during fiscal year 2020 exceeds annual growth rates of deposits between 2016 and 2019 (see table 12 below).

Graphic 12: Growth in deposits from FBNH customers 2016 – H1 2021 (%)

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Source: FBNH, Proshare Research

FBNH’s FY2020 result confirms that deposits grew at a much faster pace during the year; in particular, this is not offset by the required increase in loans.

Growth in loans and advances

Over the past five years, FBNH has experienced both positive and negative growth in loans and advances. This was particularly evident in 2017 and 2018 when loans and advances contracted by -3.97% and -16.53%, respectively. In 2019, loans and advances returned to their growth streak, consolidating the same in fiscal 2020 results (see table 13 below).

Graphic 13: Growth in FBNH Credits and Advances 2016 – H1 2021 (%)

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Source: FBNH, Proshare Research

Despite the appreciation of loans and advances during fiscal year 2020 by + 19.70%, he needed to increase loans and advances by 71% to reach the minimum LDR.

Growth of the shareholder fund

After recording negative growth in its equity in 2018, the FBNH recorded a +24.99% growth in equity in 2019. Since then, the evolution of equity has slowed down, moderating to +15.74% in 2020. In the first half of 2021, shareholders’ equity increased by + 0.99% compared to the figures for fiscal year 2020. On a year-over-year basis, the shareholders’ fund increased by +9.66% to N772.09 billion from H1 2020 (See table 14 below).

Graphic 14: Growth in total equity of FBNH 2016 – H1 2021 (%)

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Source: FBNH, Proshare Research

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100-Day Downloadable Versions After CBN Board Withdrawal: First Bank’s Shaky House of Cards Report (PDF)

1. Abstract: 100 days after the withdrawal of the board of directors of CBN: the trembling house of cards of the first bank – September 19, 2021

2. Full report: 100 days after the withdrawal of the board of directors of CBN: the unstable house of cards of the first bank – September 19, 2021

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Related Articles / References

1. From the first bank and bad debtors; The throbbing headache of a systemApril 30, 2021 – Editorial by Proshare

2. CBN Removes Boards of First Bank of Nigeria, FBN Holdings; Appoint new presidents April 29, 2021 – News from Proshare

3. FBNHoldings Plc H1 2017 Performance Analysis – A Full Report/ Company reviewOctober 23, 2017, Proshare Research

4. FBNHoldings Plc Q1’2017 Updated Performance Review ReportSep 25, 2017, Proshare Research

5. NPL banking (23) – The arguments in favor of a new approachJune 07, 2020 – Debtors Africa

6. W. Chan Kim and Renée Mauborgne (2004) “Blue Ocean Strategy

7. Board governance: a thin line between oversight and operationsSep 28, 2020 – IoD Center for Corporate Governance

8. Leadership, Change and Business Transformation – The Nigerian Experience November 07, 2017, Olufemi AWOYEMI – Proshare

9. 2021 CEO compensation report: from COVID to collaborationAugust 01, 2021, Proshare Research

ten. Memo to the Market – The NSE, the Oscar Onyema Foundation and corporate governanceAugust 20, 2018, Olufemi Awoyemi, Proshare

11. FBN Holdings Plc – Proshare Markets IR PageProshare Search

12. Annual accounts – IR page in ProshareProshare Search

13. Bernard Longe wins case against First Bank Plc, Supreme Court rules todayMarch 05, 2010, Proshare

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Related news from the report

1.
FBNH numbers and tables: the trend in costs and profitabilitySep 25, 2021

2.
FBNH Numbers and Arrays: Understanding Performance ModelsSep 24, 2021

3.
Addeduntan’s Need for New Eyewear: Addressing the Legacy Issue23 Sep 2021

4. Withdrawal of the first bank board: when the boards blur the viewSep 22, 2021

5. First Bank and Institutional Learning – A Sense of HistorySep 21, 2021

6. 100 days after the withdrawal of the board of directors of CBN: the unstable house of cards of the first bank – Sep 19, 2021

Proshare Nigeria Pvt.  Ltd.

Proshare Nigeria Pvt.  Ltd.

Proshare Nigeria Pvt.  Ltd.


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