FCMB Group, a financial services holding company in Nigeria, has recorded a 75.7 percent increase in its gross revenue for the first nine months of 2023.
According to the company’s latest financial statements, the company’s gross revenue rose to N351.5 billion in the first nine months of 2023 from N200.1 billion in the same period of last year.
FCMB’s report showed the growth was driven by a 55.1 percent growth in interest income and a 144.6 percent growth in non-interest income.
“Net interest income grew by 29.5 percent from N93.1 billion, in the prior year, to N120.5 billion at the end of the period. This was driven by a growth in the yield on earning assets for the period ended September 2023,” the statement said.
It said operating expenses grew 29.0 percent year-on-year to N111.5 billion for the period ended September 2023, due to increased personnel costs, regulatory costs, technology-related costs and general inflationary pressures.
“Net impairment loss on financial assets increased year-on-year to N57.0 billion, for the period ended September 2023, from N18.7 billion in the prior year resulting in a growth in cost of risk to 3.9 percent.
“Profit before Tax grew by 108.0 percent year-on-year to N55.1 billion with divisions of the Group recording robust earnings growth; Banking Group (130.1 percent), consumer finance (32.6 percent), investment management (38.7 percent), and investment banking (27.6 percent),” it added.
The holding company increased its lending activities, providing loans and advances totalling N1.59 trillion, a 34.3 percent increase from the previous year.
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Simultaneously, the bank experienced a 39.1 percent year-on-year growth in customer deposits to N2.53 trillion, showcasing the unwavering trust of its customers.
The Group’s total assets grew by 32.2 percent to N3.88 trillion from N2.93 trillion.
Net fee and commission income amounted to N32.17 billion in the period under review from N27.17 billion recorded in the same period of 2022.
Operating expenses also saw an increase of 27.4 percent to N69.34 billion in the period under review from N54.43 billion recorded in the same period of 2023.
Net cash generated from operating activities for the period amounted to N341.73 billion in the period under review from N164.54 billion recorded in the same period of 2022.
Net cash generated / (used in) from investing activities amounted to N239 billion from N248.4 billion recorded in 2022.
Net cash (used in)/generated from financing activities was recorded negative in the period under review amounting to N3.34 billion from a positive N29.22 billion recorded in the same period of 2022.
Cash and cash equivalents at the end of the period amounted to N351.09 billion from N303.84 billion recorded in the same period of 2022.
“We continue to leverage our unique Group structure to build a technology-driven ecosystem that is fostering inclusive and sustainable growth in the communities we serve,” the company said.
It said the strategy is enabling the company to deliver robust performance in spite of the challenging domestic and global environment.
“Barring unforeseen circumstances, we believe this trend will be sustained and accompanied with improving efficiencies arising from greater scale and ongoing digitisation.”
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.