Earnings ReportFeatured


Coy: First Bank Holdings Plc (FBNH)
Rating: Hold
Current Market Price: N10.55

Non-Performing Loan Ratio: 6.10%

Loan to Deposit Ratio: 56.09%
Year High: N12.40
Year Low: N10.40
Fair Value: N10.52
By: Jeariogbe Tunde Segun (Equity Analyst)


Key Investment Ratios

  • This report carefully observed the full year financial performance indices of First Bank Holdings Plc as recently released by the management for the year ended 31st December, 2021, we compared same with similar numbers released at the end of 2020 financial year to establish growth, projections and make recommendations accordingly
  • Unlike other years when the result are released between late March and early April, this year the financial performance of FBNH was released far too late around May. In our opinion, this scored the earnings quality low, as it may have affected investment targets negatively.
  • In summary, the result is a higher performance when compared to the immediate comparable year (2020).
  • Nevertheless, dividend payment was quite conservative, as it stood below what was paid at the end of 2020 financial year
  • Kindly see below for other ratio comparison, valuation and recommendations


Bourse Nigerian Stock Exchange
Code Name FBNH
Market Classification PREMIUM BOARD
Nature of Business Provision of Banking and Other Financial Services to corporate and Individual customers
Date of Incorporation Aug-13-2012
Date Listed Nov-26-2012
End of Accounting Year 31st December
Website www.fbnholdings.com
Registrar First Registrars Nigeria Limited
Auditor KPMG Professional Services
Share Price@Relsd (N)                                                        10.55
Earnings per Share                                                          4.21
Intrinsic Value(N)                                                        10.52
Share Outstanding 35,895,292,792
Market Capitalisation                                      378,695,338,956


Dividend Information

  • At the end of the 2021 business, session, the management of FBNH proposed 35k cash dividend for the year, this is 22.22% lower than the 45k paid at the end of 2020 financial year
  • The 38k dividend is same as 8.31% pay-out ratio, this is far below the 18.00% pay out achieved at the end of the comparable year
  • Also, the said dividend is same as 3.32% yield over the current market price of FBNH as at the day the result was made available to the investing public. Please note that the yield last financial year was 6.21%
  • In our opinion, both the dividend and the ratio are poor and may meet negative reaction from the investing public


Tickers 2021 2020 %Chg
Latest Final Dividend                                        0.35                                    0.45 -22.22
Final Dividend Pay-Out Ratio 8.31% 18.00% -53.83
Final Dividend Yield 3.32% 6.21% -46.55


Company figures

  • Gross Earnings through the year is valued at N757.29 billion, same as 28.21% above the N590.66 billion posted in its 2020 full year earnings
  • Interest Income dipped by marginal 4.09% to stand at N369.04 billion against N384.79 billion in the corresponding year
  • Interest Expenses is currently valued at N140.80 billion slightly above the N133.18 billion posted at the end of 2020 financial year
  • Operating Expenses is estimated at N305.90 billion, higher than N266.62 billion used through 2020 financial year
  • Profit before Tax is estimated at N166.66 billion versus N83.70 billion in the comparable year (2020)
  • Having taken care of the Tax Expense, the management of FBNH posted N151.14 billion as profit for the year, this is 68.45% higher than the N89.73 billion earned in 2020


Statement of Comprehensive Income
  2021 2020 %CHG
GROSS EARNINGS                757,296,000,000            590,663,000,000 28.21
INTEREST INCOME                369,047,000,000            384,798,000,000 4.09
INTEREST EXPENSES                140,805,000,000            133,183,000,000 5.72
NET INTEREST INCOME                228,242,000,000            251,615,000,000 9.29
OPEX                305,902,000,000            266,629,000,000 14.73
DEPRECIATION                  20,022,000,000               18,634,000,000 7.45
AMORTISATION                     8,258,000,000                 7,238,000,000 14.09
PBT                166,662,000,000               83,703,000,000 99.11
TAX                  15,515,000,000                 8,111,000,000 91.28
PAT                151,147,000,000               89,730,000,000 68.45
TOTAL COMP INCOME                130,839,000,000            126,111,000,000 3.75

Statement of Financial Position

Total Assets            8,932,373,000,000         7,689,028,000,000 16.17
Total Liabilities            8,052,517,000,000         6,923,857,000,000 16.30
Net Assets                879,856,000,000            765,171,000,000 14.99
Property Plan & Equipment                115,987,000,000            114,034,000,000 1.71
Retained Earnings                311,877,000,000            132,421,000,000 135.52
Total Deposits            6,947,594,000,000         5,933,935,000,000 17.08
Total Loans and Advances            3,897,038,000,000         3,234,091,000,000 20.50


  • At the end of 2021 business session, the bank’s Total Assets is valued at N8.93 trillion, same as 16.17% above the N7.68 trillion stated in its 2020 financial year end document
  • Total Liabilities equally stood above comparable year by 16.30% to stand at N8.05 trillion versus N6.92 trillion in 2020
  • Net Assets is valued at N879.85 billion as against N765.17 billion posted at the end of the corresponding year
  • Total Deposit received through 2021 financial year is estimated at N6.94 trillion, this is 17.08% above N5.93 trillion in 2020
  • Total Loans and Advances stated in the 2021 financial documents is N3.89 trillion, this is 20.50% higher than the N3.23 trillion posted in 2020
  • See the above table for details

Financial Strength/Solvency Ratios

  • Total Debt to Equity for the year stood at 9.15x, same as 1.14% above the 9.05x estimated in 2020. This implies that, the company used 9.15 times debts compare to equity through the year (note that financial institutions used more debt, since collection of deposits is a major business)
  • Equity Ratio which compared Equity to Total Assets showed that, equity is up to 9.85% of the Total Assets value at the end of the 2021 financial session
  • Estimated Beta value for FBNH as at the time this report was compiled stood at 1.01 this stood above market beta but below the industrial average as at the time this report was compiled
  • According to the released numbers, the bank’s Non-Performing Loan Ration dropped by 28.89% as it now stands at 6.10% from 7.72% at the end of 2020 financial year

Financial Strength/Solvency Ratio

TICKERS 2021 2020 %CHG
Total Debt to Equity Ratio (MRQ)                                        9.15                                    9.05 1.14
Equity Ratio 9.85% 9.95% 1.02
Beta Value                                        1.01                                    1.11 9.01
Non-Performing Loan Ratio 6.10% 7.72% 28.89


Profitability Ratios

  • EBITDA Margin is estimated at 35.92%, this is lower than the estimated 48.35% in the corresponding year
  • Pre-Tax Margin improved by 55.30% to stand at 22.01% against the 14.17% estimated at the end of 2020 financial year
  • Interest Expenses to Gross Earnings dropped by 17.54% to 18.59% against the previously estimated 22.25%
  • Return on Average Equity through the year was 17.18% against 11.73% in 2020
  • See below table for detailed profitability ratios and comparison


TICKERS 2021 2020 %CHG
EBITDA MARGIN 35.92% 48.35% 25.71
PRE-TAX MARGIN 22.01% 14.17% 55.30
EFFECTIVE TAX RATE 9.31% 9.69% 3.93
IE TO GE 18.59% 22.55% 17.54
ROAE 17.18% 11.73% 46.49
ROAA 1.69% 1.17% 45.00


Efficiency Ratios

  • Operating Expenses to Gross Earnings Ratio through the year stood below the corresponding year by 10.52% having moved from 45.14% to 40.39%
  • Gross Earnings is same as 8.48% of the Total Assets valuation at the end of the year, this is 10.36% higher than the 7,68% estimated in 2020
  • It was equally established that 56.09% of the total deposits for the year was given out a loan, this is % only 2.92 above the 54.50% of deposit given out as loan and advances through 2020 financial year, and lower than the regulatory standard of 65%


TICKERS 2021 2020  
OPEX TO GE 40.39% 45.14% 10.52
GE TO TA 8.48% 7.68% 10.36
LDR 56.09% 54.50% 2.92


Investment/Valuation Ratios

  • At the end of the year, N4.21 was earned on each unit of FBNH shares. This higher than the N2.50 earned per share at the end of 2020 business session
  • The price of FBNH at the time this report was made available to the investing public can replicate the earnings per share 2.51 times (P/E-Ratio=2.51x) this is lower than the 2.90x estimated in 2020.
  • The said earnings per share is a 39.91% yield of the price of FBNH on the floor of the exchange when the result was released to the investing public, this is a better yield when compared to 34.48% yield of 2020.
  • Estimated Book Value per shares of FBNH is currently N24.51, same as 14.99% above the N21.32 of 2020
  • Thus Price to Book Value stood at 0.43x as against 0.34x. This simply implies that the stock is currently selling below its book value on the floor of the exchange


Investment/Valuation Ratios

Tickers 2021 2020 %Chg
EPS 4.21 2.50 68.45
TCIP/SHARE 3.65 3.51 3.75
P/E-Ratio 2.51 2.90 13.61
Earnings Yield 39.91% 34.48% 15.76
BV/Share 24.51 21.32 14.99
PBV 0.43 0.34 26.55



While trying to place a fair value on each unit of FBN-Holdings shares, we considered average of two valuation models. FCFE Stable Growth Model valued the stock at N14.62 while H-Model placed the price at N6.41. We therefore arrived at an average value of N10.52 for each unit of its listed shares, thus, considering the current market price of HBNH to our valued price we Rated FBNH shares a HOLD.


Comment here

This site uses Akismet to reduce spam. Learn how your comment data is processed.