FBN Holdings Plc: What The Fundamentals Say


August 11, 2017/Proshare Research

The fundamentals of FBNH in recent times after proper analysis have been very impressive and worthwhile. At the end of 2016 FY calendar, the bank emerged as the financial institution with the largest Gross Earnings with N582bn as it maintained its market leadership based on increasing revenue drive.

Also, it was the only bank to have carried out N100m transaction per month on the main switch network considering its rich heritage and its 123yrs in commercial banking services.

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Below are few fundamentals on the bank to help throw more light on the bank’s performance.

Book Value
As at Q1 2017, FBNH emerged the 3rd largest bank in terms of book value behind UBA and ZENITHBANK while WEMABANK and UNITYBNK recorded the least book value among the banks.

Loans and Advances to Customers
ETI and ZENITHBANK gave the highest loans and advances to customers to emerge 1st and 2nd respectively as FBNH emerged 3rd with the highest loans and advances to customers while WEMABANK and UNITYBNK emerged the least banks.

Customer Deposits
ETI emerged 1st as it received the highest customer deposit while FBNH came 2nd as ZENITHBANK and UBA followed closely to emerge 3rd and 4th respectively while UNITYBNK and WEMABANK received the least deposits. 

FBNH is the 3rd bank with the highest number of employees in the banking industry coming behind ETI and UBA that emerged 1st and 2nd respectively while WEMABANK has the least number of employees as at Q1 2017.

Preliminary analysis revealed that FBNH’s salary cost per employee is much lower than its competitor. As per 2016 data, total personnel cost was put at N84bn against 9,099 employees. Relatively, the cost per employee is much higher than GUARANTY, UBA, ETI (Tier 1 banks) and STERLNBANK, UNITYBNK, FCMB, FIDELITYBK, DIAMONDBNK (Tier 2 banks)