Digital Banking and Financial Performance Review slide image

Digital Banking and Financial Performance Review

Revenue Generation Revenue continued to improve as Gross earnings which comprise Funded Income (FI) and Non-Funded Income (NFI) increased by 20.4% from #447.8bn in FY-2021 to #539.2bn in FY-2022. Growth of 18.2% in Earning Assets volumes coupled with improvement in yields on Fixed Income Securities (FY-2022: 5.0% vs FY-2021: 4.5%) and Loans and Advances (FY-2022: 11.8% vs FY-2021: 10.5%) led to a 21.9% growth in Interest Income to #347.20bn in FY-2022 from #266.9bn in FY-2021. Consequently, Funded Income contribution to Gross earnings grew to 60.3% in FY-2022 from 59.6% in FY-2021. Non-Funded Income (NFI) grew by 18.2% to #213.8bn in FY-2022 from #180.9bn in FY-2022 based on an increase in Fees and Commission Income, Net Trading Income and Other Income by 22.2%, 35.9% and 7.5% respectively. Fees and Commission performance were helped by significant increases in fee-based transaction volumes and E-Banking volumes, translating to growth in earnings posted on Account Maintenance Charges of #2.66bn to #19.4bn in FY-2022, Account Services of #3.96bn to #13.4bn, E-Business Income of N1.88bn to #25.45bn and Credit-Related Fees of N1.59bn to #7.64bn in FY-2022 respectively. Other Income growth resulted from FX revaluation & derivative gains in the sums of #34.5bn and #14.7bn largely. FX revaluation gains as a result of depreciation in Naira against USD in the I&E Window- #461.5/$1 vs #435/$1) between the two relevant periods and the Forward Rates applied while revaluing the Bank's US$1.3bn net long position (inclusive of Other 3rd currencies) and, derivative gains from its US$563mm swap position. Interest Income (#'Bn) 224.7 190.8 195.0 181.6 185.5 110.4 104.5 103.7 11.6 10.9 4.8 4.2 85.8 67.7 14.9 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Placement Investment Securities Loans and Advances Revenue Mix (N'Bn) 307.0 296.2 300.7 266.9 325.4 Non-Interest Income (\'Bn) 62.4 213.8 55.8 180.9 50.8 52.4 154.5 139.1 127.7 Dec-18 Dec-19 84.4 76.8 53.2 90.6 82.9 74.1 24.6 24.5 22.4 20.9 40.3 Dec-18 Dec 19 Dec-20 Dec-21 Dec-22 Dec-21 Dec-22 Other Income Net Gains Fee and Commission Dec-20 Interest Income Non interest income 20 20
View entire presentation