FBNH delivered a 0.36% decline in gross earnings, owing to a 2.99% dip in interest income despite the registered growth in non-interest income (+8.17%). We observed the continuous improvement in asset quality, in line with the bank’s commitment to achieving a single-digit NPL ratio. NPL ratio further improved to 12.60% from 14.50% in H1:2019. Impairment charges also registered a 62.64% decline leaving the cost of risk to settle lower to 1.90%. With the bank’s current gross Loan to Deposit Ratio (LDR) at 54.20%, we remain cautious on its ability to attain the revised LDR minimum of 65% with a deadline of December 2019. However, we expect the bank to increase its credit product offerings as it strives to achieve compliance without sacrificing the asset quality standard already achieved. Kindly find attached the full report.
Earnings Update- FBNH: 9M 2019.
FBNH delivered a 0.36% decline in gross earnings, owing to a 2.99% dip in interest income despite the registered growth in non-interest income (+8.17%). We observed the continuous improvement in asset quality, in line with the bank’s commitment to achieving a single-digit NPL ratio. NPL ratio further improved to 12.60% from 14.50% in H1:2019. Impairment charges also registered a 62.64% decline leaving the cost of risk to settle lower to 1.90%. With the bank’s current gross Loan to Deposit Ratio (LDR) at 54.20%, we remain cautious on its ability to attain the revised LDR minimum of 65% with a deadline of December 2019. However, we expect the bank to increase its credit product offerings as it strives to achieve compliance without sacrificing the asset quality standard already achieved. Kindly find attached the full report.