FCMB Group’s Profit Before Tax Hits N55.1bn

FCMB Group Plc’s profit before tax (PBT) rose  by 108% Year-on-Year (YoY) to N55.1 billion for the nine months ended September 30, 2023, compared to N26.5 billion in the corresponding period of 2022.

The group’s strong financial performance can be attributed to the collective strength of its diverse business segments. The banking group recorded a growth in earnings of 130.1 per cent, while Consumer Finance saw a growth of 32.6 per cent. Investment Management and Investment Banking also performed well, with growth rates of 38.7 per cent and 27.6 per cent respectively.

Commenting on the results, the group chief executive of FCMB Group Plc, Ladi Balogun, said: “We continue to leverage our unique group structure to build a technology-driven ecosystem that fosters inclusive and sustainable growth in the communities we serve. This strategy enables us to deliver robust performance despite the challenging domestic and global environment. Barring unforeseen circumstances, we believe this trend will be sustained and accompanied by improving efficiencies arising from greater scale and ongoing digitisation.”

Similarly, the Gross revenue rose 75.7 per cent to N351.5 billion as at September 2023, compared to N200.1 billion for the prior year. This was driven by a 55.1 per cent growth in interest income and a 144.6 per cent growth in non-interest income. Net interest income grew 29.5 per cent to N120.5 billion from N93.1 billion in the prior year. This was driven by an increase in the yield on earning assets for the period ended September 2023.

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FCMB increased its lending activities, providing loans and advances totalling N1.59 trillion, a 34.3 per cent increase from the previous year. Simultaneously, the institution experienced a 39.1 per cent YoY growth in customer deposits to N2.53 trillion, showcasing the unwavering trust of its customers. The Group’s total assets grew by an impressive 32.2 per cent YoY to N3.88 trillion from N2.93 trillion, strengthening its position as a leading financial institution in Nigeria.

Assets Under Management (AUM) recorded a 26.1% YoY growth from N756.1 billion to N953.7 billion as at September 2023.

The group’s customer base expanded 15.4% YoY, reaching 12 million as of September 2023, reflecting a current-year growth of over 1.1 million customers. Additionally, the agency banking business expanded its network to over 120,000 agents, acquiring over 130,000 customers. Investment Banking transaction value consumed by the group rose to N690.9 billion, marking a 15.2 per cent YoY growth.

In addition, the group completed the issuance of a Series 2 Additional Tier 1 Capital Bond under its N300 billion Debt Issuance Programme for its Banking Subsidiary, bringing the total Additional Tier I Capital raised during the year to N46.7 billion.