Despite the harsh operating environment for most businesses in Nigeria in the past couple of years, the FCMB Group Plc comprising First City Monument Bank Limited, FCMB Capital Markets Limited and CSL Stockbrokers Limited, had an impressive financial year that ended December 31, 2013.
The group’s audited accounts for the year shows a significant growth in its profit before tax (PBT) to N18.2billion, representing 12 percent increase from the previous year’s record. The Group also reported improved growth in earnings as its net revenue rose 16 percent to N84.2 billion.
Significant developments in their key operating areas also impacted on deposits as this grew by 11 percent to N715 billion, aided by 21.1 percent growth in current and savings accounts, while fixed deposits declined during the year.
As a result of this, the group’s funding mix has improved, with current and savings accounts now accounting for 73.9 percent of total deposits, which saw a reduction in the bank’s cost of funds during the year notwithstanding that interest rates remained high throughout 2013. Loans and advances also grew 26 percent to N451billion with total assets (excluding contingencies) standing at over N1trillion.
The merger of the bank subsidiary with FinBank which was completed in 2012, enhanced the efficiency of its balance sheet and bringing the total number of the bank’s branches to 275 greatly enhanced the its ability to deliver retail banking services.
As a result, the bank made new retail customer loans at a rate of 20,000 per month in the year under review and has significantly increased its presence in the retail banking market.
Jonathan Long, the chairman of the group who disclosed this at their Annual General Meeting in Lagos recently, attributed the successes to the implementation of initiatives that have improved efficiency and the successful integration of FinBank which has boosted FCMB in retail banking.
He added that the decision to pay dividend signifies the desire of the board to reward the group’s shareholders for their continued commitment and support, noting that “the group has recovered strongly over the past two years and in 2013 made sufficiently strong progress’’.
The 30k dividend pay-out totaling N5.94 billion proposed by the board was unanimously approved by the shareholders who also lauded the board for their impressive outing despite obvious challenges.
Sunny Nwosu, the Coordinator of Independent Shareholders Association of Nigeria (ISAN), commended the board and management of the group for improving on the company’s profitability despite the challenging operating environment for banks in 2013.
He added that ‘’the resumption of good dividend payment is proof that FCMB’s management team is successfully executing its strategy and leveraging the recent transformation into a financial holding entity to drive significant value creation for shareholders’’.
In the same vein, Mukhtar Mukhtar, the National Chairman of Shareholders’ Trustees Association of Nigeria, expressed delight on the payment of dividend, urging the management and board to continue to improve customer experience at every customer interface and invest in key sectors of the economy, as these would improve profitability and ability to pay even more dividends next year.
Chuka Uroko
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