FBNH | FBNH Holdings Company Update : NII to propel earnings in FY’24

    We adjust our FY'24 estimates for FBNH to reflect the impact of the elevated interest rate environment and potential improvements in cost-of-risk (CoR). These adjustments should cascade to a c.88.1% YoY increase in PAT to N583.95 billion in FY’24E, aided by an expected surge in net interest income (NII) to N1.0 trillion (+84.6% YoY) and a modest uptick in non-interest revenue (NIR) to N625.8 billion (+4.0% YoY). Additionally, we forecast CoR at 1.8%, in line with management's guidance of below 2.0% and lower than the Q1'24 level of 2.2%. Our CoR expectation is also below the elevated 3.4%1 recorded in FY'23. The projected CoR level should be supported by lower impairment charges and an increase in gross loans, both of which bode well for after-tax earnings and ROE (+6.2ppts to 28.8%). 

     

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    CardinalStone is a full service investment banking firm with a vision to build a world class investment banking firm of African origin; operating out of Lagos, Nigeria. The firm was incorporated in April 2008 and began operations in June 2008. CardinalStone is duly registered with the Securities & Exchange Commission in Nigeria to carry on business as an Issuing House, Fund Manager and Broker/Dealer The Firm's activities are carried out across five business units: Asset Management, Investment Banking, Private Equity, Securities Trading and the Business Support Group.
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