FBN Holdings, led by billionaire businessman Femi Otedola, has achieved a historic milestone, reporting gross earnings exceeding $2 billion in its 2024 fiscal year.
First Bank of Nigeria Holdings (FBN Holdings), the financial giant chaired by Otedola, has strengthened its position as one of Nigeria’s top financial institutions, showcasing remarkable financial performance. According to its unaudited financial statements for the year ending December 31, 2024, the group’s gross earnings surged from N1.56 trillion ($1.02 billion) in 2023 to N3.33 trillion ($2.17 billion) in 2024. This substantial increase reflects strong revenue growth across multiple streams, including interest income, fees, commissions, and financial instruments.
Surging Profits Under Otedola’s Leadership
Since joining the board in August 2023 and assuming the chairman role in January 2024, Femi Otedola has been instrumental in driving FBN Holdings’ rapid expansion. The group’s net profit more than doubled, rising from N356.1 billion ($234.3 million) in 2023 to N862.4 billion ($567.6 million) in 2024.
Despite an impairment charge of N411 billion ($270.7 million), which affected pre-tax earnings, the group still delivered outstanding financial results. Without the impairment charge, profit before tax would have reached N1.3 trillion ($856.2 million).
Key Financial Highlights
•Gross Earnings: N3.33 trillion ($2.17 billion), up from N1.56 trillion ($1.02 billion) in 2023
•Net Profit: N862.4 billion ($567.6 million), more than doubling from N356.1 billion ($234.3 million)
•Total Assets: $17.46 billion, rising from $11.14 billion in December 2023
•Total Equity: N2.54 trillion ($1.67 billion), up from N1.72 trillion ($1.13 billion)
•Retained Earnings: N1.3 trillion ($855 million), compared to N588.9 billion ($387.4 million) in the previous year
•Net Interest Margin (NIM): Improved from 6.11% in 2023 to 9.61% in 2024
•Cost of Funds: Increased to 5.79% in 2024 from 3.36% in 2023, reflecting a high-rate environment
FBN Holdings credited its growth in non-interest income to increased transaction volumes on digital channels and higher fee-based revenues from fund transfers and intermediation services.
FBN Holdings’ Dominance in Nigeria’s Banking Industry
With a 130-year legacy, FBN Holdings remains one of Nigeria’s most valuable financial firms. The bank has successfully adapted to Nigeria’s evolving financial landscape, leveraging digital banking, risk management strategies, and strategic leadership under Otedola to expand its reach.
A key driver of the group’s success is Otedola’s strategic vision and deep-rooted expertise in business and finance. As a 13.16% shareholder, Otedola has played a pivotal role in stabilizing and strengthening FBN Holdings’ financial position.
Beyond banking, Otedola is also the chairman of Geregu Power Plc, one of Africa’s fastest-growing power companies, highlighting his influence across multiple industries. His leadership in both finance and energy underscores his impact on Nigeria’s economic development.
Future Growth and Expansion Across Africa
With this record-breaking performance, FBN Holdings is well-positioned for further expansion, not only in Nigeria but across Africa. The group’s continued investments in technology, lending, and asset growth signal its ambition to reinforce its dominance in the financial sector.
Under Otedola’s leadership, FBN Holdings is not just growing; it is redefining the future of banking in Nigeria and beyond.
