FBN Holdings the parent company of First bank of Nigeria Plc has reported a 99% increase in after-tax profit to N151.14 billion in the Full Year 2021 period largely as a result of recoveries on bad loans.
Included in the N141 billion in recoveries booked during the year is a recovery by the Bank on the Atlantic Energy Ltd loan, which was previously written off. The amount recognized is net of expenses incurred in relation to the recovery.
Net interest income (after impairment charges) for the period was down by 28% to N136.53 billion, while Net fee and commission income rose by 24.3% to N116.63 billion for the period.
Most expense lines for the bank rose compared to a year earlier including personnel expenses which increased by 28% to N128.77 billion, operating expenses up 6.67% to N177.13 billion and Depreciation of property and equipment up by 7.44% to N20.02 billion.
Hence, the profit at the bottom-line was only boosted by the onetime gains in recoveries on bad loans.