First City Monument Bank (FCMB), a financial institution in Nigeria, has reported a 67.6 percent increase in its after-tax profit for the nine month of 2024, BusinessDay analysis shows.
According to the group’s latest financial statement, its after-tax rose to N82.3 billion in 9M from N49.1 billion in the same period of 2023.
Interest income calculated using the effective interest rate rose to N445.7 billion from N239 billion while the bank’s interest expense surged 129.4 percent to N271.9 billion from N118.5 billion driven by the high-interest rate environment.
But for the nine months of the year, the lender’s gross earnings rose to N587.7 billion from N351.5 billion.
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Further breakdown of the 9M financial results shows that FCMB’s interest income grew by 86.4 percent, as all major contributory lines recorded an increase in loans and advances to customers (73.2 percent), and investment securities at amortised cost rose to N74 billion from N35 billion.
The bank recorded a 43.6 percent growth in net interest income to N173.7 billion in the nine months of the year from N120.4 billion in the same period of the previous year.
Net fee and commission income increased to N41.4 billion from N32.1 billion during the period.
Items in fees and commission income include; service fees (N21 billion), electronics fees and commissions (N9.8 billion), account maintenance fees (N9.8 billion), commission on off-balance sheet transactions (N2.2 billion), letters of credit commission (N7.8 billion) and credit-related fees (N651 million).
The bank’s other gains fell to N39 billion from N61 billion driven by a significant decline in foreign exchange gains to N37 billion from N54 billion.
Other operating expenses increased to N40.2 billion from N28.1 billion, on the back of an increase in the Asset Management Corporation of Nigeria levy amounting to N21.9 billion.
Earnings per share increased to N5.55 kobo from N3.31 kobo.
Total assets grew to N6.8 trillion, aided by loans and advances to customers which rose to N2.5 trillion.
Total liabilities also rose to N6.23 trillion from N3.05 trillion, this was significantly driven by deposits from customers totalled N4.3 trillion while deposits from banks increased to N619 billion.
The group’s shareholders’ funds rose to N588 billion in 9M from N373 billion in the same period of 2023.
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Net cash flows from operating activities increased to N479 billion from N341 billion.
Net cash flows from/(used in) investing activities recorded a negative of N409 billion from a negative of N239 billion. Net cash flows from/(used in) financing activities recorded a negative of N26 billion from a negative N3 billion.
Cash and cash equivalents at the end of the period totalled N941 billion in 9M from N351 billion in the same period of 2023.
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