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FCMB Group records 68.4% profit growth in 9 months

FCMB Group proposes 50kobo dividend as full year profit soars by186%

First City Monument Bank (FCMB)

FCMB Group Plc has sustained its impressive financial performance across all indicators, achieving a 68.4percent year-on-year (YoY) growth in profit before tax (PBT) of N26.5 billion for the nine months ended September 30, 2022, compared to N15.7 billion in the corresponding period of 2021.

Highlights of the Group’s unaudited nine-month results released on the floor of the Nigerian Exchange Limited (NGX) showed double-digit growth across all business segments: Banking Group 74.8percent, Consumer Finance 30.8percent, Investment Management 47.1percent, and Investment Banking 220.9percent.

The diversified Group’s gross revenue grew by 33.9 percent to N200.1 billion for the nine months that ended September 2022, compared to N149.5 billion in 2021. The key drivers were a 33.1 percent growth in interest income and 36.1 percent in non-interest income.

Net interest income also grew by 42.3 percent from N65.4 billion in the first nine months of 2021 to N93.1 billion in the corresponding period of 2022.

Digital banking initiatives continue to gain traction across the Group’s various businesses. They now account for 13.8percent (N27.6billion) of gross earnings, 9.4percent (N14.4billion) of interest income, 6.5percent (N77billion) of the loan book and 7.3percent (N8.6billion) of the assets under management (AUM) of its Asset Management business.

Read also: Flour Mills: profit margin shrinks on high input cost, FX loss

Commenting on the results, Ladi Balogun, Group Chief Executive of FCMB Group Plc, 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 performance trend will continue.”

Customer confidence in the FCMB Group was strong and more robust in the period under review than in the corresponding period of 2021. As such, deposits grew by 25.3percent to N1.8 trillion from N1.5 trillion; loans and advances increased by 22.5percent from N967.5 billion to N1.2 trillion, and assets under management surged 48.2percent from N510 billion to N756 billion. Total assets stood at N2.9 trillion against N2.4 trillion in September 2021.

Iheanyi Nwachukwu, is a creative content writer with over 18 years journalism experience writing on banking, finance and capital markets. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA).

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