FCMB Group’s gross earnings surge to N148bn over retail banking strategy

A combination of an articulate and innovative retail banking strategy by First City Monument Bank (FCMB) Limited has surged its Group’s gross earnings by 13 percent to N148.6 billion for the financial year ending December 2014.

The Group, which recorded similar progress in all its operating subsidiaries, also saw its total asset soar by 16 percent to N1.2 trillion, while profit before tax rose 32 percent from N18.2 billion to N23.9 billion, and after tax by a similar amount from N16 billion to N22.1 billion.

The Group’s shareholders also unanimously approved the payment of a cash dividend of 25 kobo per ordinary share for the financial year.

The Group further disclosed that despite grappling with security challenges, political and economic uncertainty that characterised the economy in the last quarter of 2014, it will be paying its shareholders 25 kobo per ordinary share for the financial year.

In his note at the Group’s annual general meeting, held in Lagos, Ladi Balogun, CEO, FCMB Limited, said strong emphasis had been given to the bank’s retail strategy to make it the major source of profitability and funding for the business.

Balogun further explained that as the bank’s franchise grew in acceptability in the retail market, it won over new 500,000 customers to increase its total customer base to 2.7 million in the year.

Another major contributor to the Group’s positive outing in 2014 was the FCMB Capital Market Limited mandate to be the lead arranger for the acquisition of debt finance of one of the most important upstream oil and gas transaction in 2014 – the purchase by Oando Energy Resources Limited of the country’s upstream oil and gas business of ConocoPhillips.

Also, CSL Stockbrokers Limited, another subsidiary of the holding Group, was a member of the syndicate for the $500 million initial offering of Seplat Petroleum plc on the Nigerian and London stock markets.

Peter Obaseki, managing director, FCMB Group, in his address, said the Group’s results clearly reflected the solid momentum in the execution of retail strategy by the bank and effective harnessing of the synergies within the group, especially the collaboration between corporate and investment banking.

Obaseki maintained that the Group’s over-riding objective was to ensure adequate capital buffers, drive the positive trend in key investment ratios, ensure efficient allocation of capital and enhance the corporate governance framework.

Considering the current challenging macro-economic environment, Obaseki said these objectives will be pursued with increased vigour in the year ahead.

On its outlook for 2015, the Group is also optimistic of significant opportunities to offer proactive financial advisory services to both private and public sector entities, leveraging on its knowledge of the capital markets.

 

ODINAKA MBONU