Nigeria foremost financial institution, First bank, recently released its 2018 full year result to the Nigerian Stock Exchange. The earnings are beginning to look up for the 125-year-old financial power house after close to half a decade of heavy bad loan provisioning which affected its bottom lines since 2014 financial year. Here is how the bank performed in the 2018 financial year.
- Total Asset grew by 6.3 percent to N5.57 trillion from N5.24 trillion in 2017-year end.
- Customer Deposit also grew by 10.9 percent from N3.14 trillion to N3.49 trillion in 2018-year end.
- Customer Loan and Advances dropped in line with industry performance by 15.9 percent from 2.0 trillion in 2017 to N1.68 trillion in 2018.
- First Bank Profit before tax rise by 19.8 percent from N55.4 billion in 2017 to N65.3 billion in 2018 financial year end.
- Gross Earning dropped by 2 percent to close at N583.5 billion from N595.4 billion in 2017.
- Net Interest Income also dropped by 14.3 percent to close 2018 at N284.2 billion from N331.5 billion.
Here are what the bank’s financials looked like from 2014-year end December to December 2018 financial year.
- Total assets of First bank grew by 28.4 percent from N4.3 trillion in 2014 to 2018-year end.
- The bank also grew its Customer’s deposit by 14.3 percent from N3.0 trillion to N3.5 trillion in the last 5 years.
- Loan and advances however dropped by 22.7 percent from N2.18 trillion in the last 5 years.
- The bank’s Shareholders funds grew marginally by 1.3% from N524 billion in 2014 to N531 billion in 2018 after depreciating by 21.2 percent from 2017 figure of N674 billion.
First bank seems to be getting out of the burden of heavy bad loan provisioning that has significantly affected its bottom lines since 2014. The bank’s PBT has been on a spur since 2016 and the growth of 20 percent in 2018 and recommendation of 26k dividend is a welcome development.