Business

Our liquidity ratio has never been lower than 50% – FBN Holdings GMD

Published

9 years ago

June 5, 2017

By Chioma Obinagwam

FBN Holdings has said that it has consistently maintained a strong liquidity ratio upto its financial year ended December 31, 2016 despite challenging macroeconomic indicators.

The Group Managing Director (GMD) of the bank, Urum Eke disclosed in Lagos recently.

According to him: “we have a very high liquidity ratio. Our liquidity ratio has never been lower than 50 per cent.”

Although the group recorded a slight decline in its Profit After Tax(PAT) from N15.15 billion to N12.24 billion, other key financial indicators, he said, closed positively.

He further said that the company is utilising the recession to clean-up its books in preparation for the gains in the future.

He noted that its Gross Earnings increased by 15.7 per cent to N581.8 billion in review period from the N502.8 billion recorded in the prior year of 2015.

The group’s Non-Interest Income also increased by 68.9 per cent to N165.5 billion from N97.9 billion.

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He added that Net Interest Income grew by 14.8 per cent from N265.2 billion to N304.4 billion.

Return On Average Equity(ROAE) increased to 3 per cent in 2016 from 2.8 per cent in the preceding year with Return On Average Assets(ROAA) remaining flat at 0.4 per cent.

Eke said: “During the year, we had to battle escalating operating cost in an inflationary environment and we sought to grow our operating income in a recessionary environment. In all of these, we have shown resilience and our dedication to the grand agenda ensured we surmounted these challenges, rebuilding the institution, one brick at a time.”