COVID-19 Impact and Financial Review
Financial Highlights
☐ Gross earnings increased by 2.0% YoY to N105.8bn driven largely by a combination of 17.8% growth in non-
interest income to N18.3bn and 2.1% increase in interest and similar income to N87.6bn which accounted
for 82.9% of total earnings.
Net interest margin (NIM) improved to 6.4% from 6.2% in 2019FY (Q1 2020: 6.6%) on account of a 200bpts
drop in average funding cost to 4.3% from 6.3% in 2019FY. This translated to a 19.7% drop in total interest
expenses despite a 11.4% increase in interest bearing liabilities.
☐ Total operating income increased by 27.1% to #66.6bn while total operating expenses increased by 8.3% to
N46.8bn largely due to increased regulatory costs. However, growth in operating expenses remains below
headline inflation rate with cost-to-income ratio moderating to 70.3% from 73.4% in 2019FY.
☐ PBT increased by 21.9% to N12.0bn from №9.8bn in H1 2019, despite a N8.5bn increase in impairment charge
from a write-back of NO.6bn in H1 2019 to №7.8bn.
□ We restated our H1 2019 Numbers to reflect first-time adoption of IFRIC 21 – Levies which led to a reduction
in H1 2019 PBT from N15.1bn to №9.8bn and the recognition of Full-Year 2020 AMCON Cost in H1 2020. PBT
would have come in at N17.9bn in H1 2020 Vs. N15.1bn in H1 2019 without the adoption of IFRIC 21.
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