FBNH’s five major none performing accounts to drop off soon…Eke

The group Managing Director FBN Holdings Plc, Mr. U.K Eke has assured that the bank’s five major none performing accounts would be dropped off the none performing loan book of the company soon.

He disclosed this on Thursday in Lagos, during the bank’s presentation of its facts behind the figures on the events center of the Nigerian Stock Exchange, shortly after sounding the market’s closing going for the day.

The innovations, risk management, cost management, governance, harnessing earnings, lifting deposit base, among others would has started yielding great value as ROE (Returns on equity) rose to 12.4 % in Q1 2017 from 2.1 per cent in 2016 financial year. Returns on Assets also grew by 4.7 per cent, from 0.3 per cent in 2016, while liquidity ratio and coverage stood at 53.5 per cent from 52.9 per cent and 53,9 per cent, from 58.5 % respectively.

The Group Managing Director, FBN Holdings in his remark said that FBN Holdings has demonstrated over the years that it is a financial institution to be trusted, which reflected in greater confidence and trust of depositors and investors.

He revealed that there are about five major accounts that beefed up the company’s loan book and by the end of the second quarter 2017, one of the accounts will drop off.

He assured that the second major account which is Atlantic energy is also on the path of being worked out , as full disclosure is currently being delayed by expected assent by the authorities.’ This will also be resolved in the course of the year when all or $500 million will drop off.

“We are positive on others that, we also hope will be resolved soon, having taken the heavy lifting in 2016. There is no fresh NPL in our books and we have no issues with power exposure”

He recalled that the company in 2015 provisioned N119 billion on NPL, and another N216 billion in 2016, impairment on loans, which impacted on its bottom line and dividend payment to shareholders.

Going forward, Eke said, FBNH’s NPL will be single digit by 2018. The bank he said is driving innovation on key strategies, including revamping risk management, harnessing revenue, optimizing benefits of value and retail franchise amongst others.