The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin improved from 11.2% in 2019 to 13.0% in 2023.
The average EBIT Margin for the period under analysis was 26.92% with 2020 and 2023 performing the worst and best, respectively.
In the current year, First Bank ICR was 3.4 times in the current year- compared to 2019 when it was 2.8 times
The Asset Turnover stood at 0.09 times in 2023 from 0.10 in 2019, implying a poor performance or Assets of the business in relation to revenue.
Profitability
The revenue of First Bank has increased year on year. The revenue increased by 13.8% between 2019 and 2020 and a further 8.5% increase was recorded between 2021 and 2022. There also occurred an increase of 8.3% between 2022 and 2023 (the current period).
First Bank performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks good, as loan to deposit moved from 59.7 to 60.2 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
First Bank is both equity and debt financed.
The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be low as it stood at 0.06 in the current year.
