Ldings in massive s revenue rises 296bn in Q1’22 83bn; PBT up 9.2% to N65.6bn
financial instruments held at fair value from which, in Q1, 2021, the banking group reported a N27 billion gain.
The group, in its unaudited Q1 financial statement filed to the Nigerian Exchange, reported that its interest income on investment securities increased due to increased volume and improved yield on securities during the period. However, the bank’s net interest income edged lower by seven percent year on year, resulting from a 73.2 percent year on year rise in interest expense to N86.3 billion in Q1, 2022, primarily driven by a 156.1 percent year on year spurt in deposits from customers.
Also, the group’s net foreign exchange gain in the first quarter puffed to N85.8 billion against a net gain of N1.1 billion last year, while the profit after tax climbed 10 percent year on year to N57.8 billion in Q1, against N52.6 billion last year. Net loss on financial instruments held at fair value stood at N44.6 billion in Q1, compared to a gain of N27.1 billion in Q1 of 2021, resulting from a loss on non-hedging derivatives.
Meanwhile, its personnel expenses rose 45.8 percent year on year to N29.3 billion, and other operating expenses spurted 22.9 percent year on year to N76.8 billion in the review period.
Looking at the segmental loan book, retail banking, formerly personal banking, grew the most by 72.5 percent year on year to N220.5 billion, followed by a 44.5 percent jump in business banking to N189.6 billion in Q1. Also, corporate and investment banking vaulted 38.7 percent to N1.9 trillion, coupled with a 12.9 percent increase in commercial banking to N2.26 trillion.
A 9.2 percent jump in net impairment charges to N13.7 billion during the quarter dampened net interest income, after loan impairment charges, by 9.5 percent to N73.7 billion in Q1. Also, the fee and commission income spurted 44.5 percent year on year to N56.3 billion, as the creditrelated fees and commissions shot up by 91.8 percent to N21.1 billion in Q1.
Meanwhile, fee and commission expenses vaulted 63 percent to N13.4 billion, driven by a 58.4 percent increase in E-banking expenses to N13.4 billion.
In the company’s quarter on quarter performance, the gross earnings increased steadily by 6.1 percent to N295.7 billion in Q1 while net interest income vaulted 159 percent quarter on quarter, mainly from a 105.4 percent jump in interest income on financial assets at FVPL to N13.4 billion between Q4 last year and this Q1.
The fee and commission income spurted 24.1 percent quarter on quarter, while the fee and commission expense fell 14.9 percent to N13.4 billion in Q1 as net gain on fair value hedge shot up 7045.3 percent to N17.5 billion between quarters, complemented by a 500.4 percent quarter on quarter jump in net foreign exchange gain, partially balanced by a 77.1 percent quarter on quarter rise in other operating expenses to N76.8 billion in Q1 of 2022, resulting in a 50.9 percent quarter on quarter rise in profit to N57.8 billion in this quarter, as against N38.3 billion last quarter.