By Tosin Olatokunbo
The Group Managing Director, First Bank Holding Plc, Nnamdi Okonkwo has assured stakeholders of the financial behemoth that artificial intelligence and modern technology will be key for the company’s drive towards operational efficiency.
Okonkwo made the comment on the back of the group’s release of its 2021 audited report to the Nigerian Exchange, NGX, which showed that the group recorded a whopping N166.7 billion profit before tax, PBT, almost 100 per cent increase compared to N83.7 billion in 2020.
The GMD, in his response to the sterling performance said the group will continue to ensure that it remained customers-focused despite the challenging business environment.
The Holdco, he stated has been able to overcome the corona virus pandemic which posed serious challenges to the economy, and the banking sector particularly in the last two years.
According to him, “I am very proud to have assumed the role of Group Managing Director of this great organisation in January 2022 and I am excited about building on the momentum of recent positive developments.
‘Our performance over the course of 2021 is reflective of the resilience of the Group and underpins our growth strategy to generate sustainable value for all our stakeholders.
“As a Group, we are acutely aware of the macroeconomic challenges facing businesses and remain focussed on carefully navigating the environment through innovation and by putting our customers at the centre of our attention.
“As a financial service holding company, driving synergies remains a critical part of our strategy and has been integrated into every aspect of our delivery model. We pride ourselves in the uniqueness of our diversified portfolio and the collaborative ecosystem that we have built around our lines of business, our customers, and the unique value proposition that we deliver.
“We are also increasingly leveraging technology – artificial intelligence, robotics, and other next-generation technological advancements, to deepen collaboration and further drive operational efficiency across the Group,” he said.
The group also revealed in its un-audited results to the Nigerian NGX, that gross earnings rose to N757.3 billion, up from N590.7 billion in the previous year of 2020.
The figures also indicate that net interest income declined by 9.3 per cent to N228.2 billion as against N251.6 billion in 2020; its non-interest revenue grew by 96.1 per cent to ₦364.6 billion, up from N185.9 billion it recorded in 2020.
The deposit from customers grew by 19.5 per cent year on year to N5.9 trillion, up from N4.9 trillion it made in 2020.
In the period under review, total assets also grew by over 16 per cent to N8.9trillion, up from N7.7trillion in the previous year, while Its Non-Performing Loan, NPL ratio declined to 6.1 per cent compared to 7.7 per cent in 2020.
On his part, the Managing Director of FBN Limited Dr. Adesola Adeduntan, said the performance was based on strategic planning, restructuring and operational efficiency.
Adeduntan said: “This performance was driven by a relentless focus on the needs of customers and improving the competitiveness of our offerings. We have sharpened our ‘Go To Market’ approach to better leverage the opportunities which our large scale provides in addition to becoming more relevant to our clients by improving our value propositions.
“This performance is also in line with the Bank’s Quantum Profitability Leap agenda which seeks to ensure that we fully maximise the revenue generating capacity of our business to boost the bottom line and fulfil the expectations of all stakeholders in the business.
“The demonstrated resilience of our franchise to headwinds and excellent risk management capabilities place us in a good position to weather any macro-economic shocks which may arise due to the volatile nature of current operating environment.
“Our Non-performing loans ratio at the end of the year was 6.1% which represents significant progress towards those of other Tier 1 banks and the regulatory threshold of 5.0%. We will continue to leverage our investments in digital platforms, IT infrastructure, people, and pan-African operations to ensure this growth trend is sustained”.
