first bank of nigeria plc (FIRSTBAN) Snapshot

First Bank Holdings Plc Presents at Merrill Lynch & Co., Inc.'s 2013 CalGEMs One-on-One Conference, Jun-11-2013 . Venue: The Ritz-Carlton Laguna Nigel, One Ritz-Carlton Drive, Laguna Niguel, California, United States.

Former President of the Nigeria Bar Association (NBA), Mr. Olisa Agbakoba (SAN), and other aggrieved customers of First Bank of Nigeria Plc, have filed a class action against the bank at the Federal High Court in Lagos, claiming gross mismanagement of his margin loan running into millions of naira. The plaintiffs are claiming that the bank failed to use its professional expertise and skills to manage, operate and control the loans. They averred that it was the responsibility of the bank to manage the risks of the loans and that its failure made him to lose huge sums of money. The plaintiffs stated that although other aggrieved customers of banks and investment houses in the country have found it difficult to successfully prosecute their claims in relation to injuries occasioned by margin loan agreements because of the nature and structure of the contracts entered into, this case appears to be different on the evidence seen thus far. They specifically alleged that in their case, the bank took the contractual responsibility to manage the risks associated with the margin loans that it was its failure to manage the loans in accordance to the contract that led to their losses.

First Bank Holdings Plc announced audited financial results for the year ended December 31, 2012 and unaudited financial results for the first quarter ended March 31, 2013. For the year, the company reported gross earnings of NGN 360.3 billion against NGN 273.8 billion a year ago. Net interest income was NGN 225.2 billion against NGN 176.2 billion a year ago. Net revenue was NGN 298.3 billion against NGN 237 billion a year ago. Profit before tax was NGN 92.7 billion against NGN 35.9 billion a year ago. Profit after tax was NGN 75.7 billion against NGN 18.6 billion a year ago. RoAE was 18.8% against 5.1% a year ago. RoAA was 2.5% against 0.7% a year ago. EPS was NGN 2.33 compared to NGN 0.60 a year ago. For the quarter, the company reported gross earnings of NGN 99.5 billion against NGN 87.6 billion a year ago. Net interest income was NGN 56.3 billion against NGN 56 billion a year ago. Net revenue was NGN 78.7 billion against NGN 75.1 billion a year ago. Profit before tax was NGN 31.4 billion against NGN 24.4 billion a year ago. Profit after tax was NGN 24.4 billion against NGN 20 billion a year ago. RoAE was 24.7% against 20.8% a year ago. RoAA was 3.1% against 2.9% a year ago. Gross earning was driven by an 11.5% increase in interest income and 16.7% growth in non-interest income. Net revenue growth was impacted by higher interest expense over the reporting periods due to high interest environment. EPS was NGN 3.00 compared to NGN 2.46 a year ago. The company reported credit impairments of NGN 1.7 billion against NGN 5.4 billion for the first quarter of 2013. The company expects a revenue growth in a range of 10-15%, return on average equity growth of 20% for the year of 2013.