FBN HOLDINGS PLC: THANK GOD FOR NON-CORE BANKING.

It is pretty difficult these establishing FBN holdings PLC's gross earnings but once estimated it becomes obvious that other operations apart from core banking  are now holding things more together.
Sure, the main income still comes from interest earned ( N300382m out of estimated N390896m up to September) but the profit base is shifting.
For example, as interest income for the first nine months grew by 17.5%, interest expense rose by twice as much (35.6%) to N107463m compared to 368.8% increase in net income from securities; 127.1% rise in net gain from investments; and 82 per cent to N3016m for other operational income.
Net gain from forex also rose by 30.9% but other income flow like from insurance and as fees and commission were rather disappointing. Fees and commission actually dropped by 0.43% to N51001m as expense incurred therefrom road by 39.4% while premium from insurance growth of 58.9% was whittled by 107.2% increase in claims and dividend income dropped by 33.8%.
In the end, FBN holdings managed to hit 16% growth in estimated gross earnings but under pressure from the growth in interest expense and others its profit before tax decreased by 18.6%.
This was in spite of only 6.13% increase in operating expenses and slight drop in personnel expenses to N62509m from N62598m. It must be noted again that provision for loan loan loss more than doubled to N46638m.
SO:
* To end year 2015 with higher profit FBN holdings may have hold interest expense growth down and provide less for loan loss than it did up to September.
* It will be helpful too if insurance risk retention capacity can improve and less claim prone insurance is engaged ( almost impossible, may be.).