Shares of FCMB rose for the first time in nine trading sessions on Wednesday, after the financial services Group announced about 19 percent growth in profit to N17.72bn for 2019 business year.
The financial institution’s shares rose 2.21 percent to N1.85 a unit, lifting year’s return of FCMB to zero percent from previous negative territory.
FCMB shares last gained on January 23rd, when it moved 2.56 percent higher to N2 per share.
Meanwhile, the Nigerian Stock Exchange (NSE) extended its bear-run to the eighth-straight trading session with year’s biggest loss of 1.19 percent paring 2020 return to 4.66 percent.
Oil and Gas stocks were the biggest losers by sector while Conoil, Nascon and Mobil led the losers’ chart.
For FCMB in 2019, gross earnings growth picked up to 5.32 percent (at N186.68bn) from 4.34 percent in 2018, unaudited company financials show.
The group grew its net interest and discount income by 6.49 percent to N77.29bn.
This followed a 7.3 percent growth in interest and discount income to N141.28bn which was outpaced by a 8.3 percent increase in interest expense to N63.99bn.
Net fees and commission income declined by 3.94 percent to N20.76bn last year owing to a 42.32 percent increase in fees and commission expenses while income from that segment rose 6.6 percent.
Net trading income for FCMB rose 11 percent to N6.9bn and net impairment loss on financial assets plunged 34 percent to support the performance of the group.
Personnel expenses rose 14 percent in the year, general and administrative expenses inched higher by 7.48 percent and other operating expense rose 10.82 percent year-on-year in 2019.
FCMB noted an 8.48 increase in profit before tax, but lower tax expense pushed profit after tax higher by 18.36 percent to N17.72bn.
Consequently, Earnings Per Share (EPS) rose by 19 percent to N0.89 per share.
Total comprehensive income however rose 29.03 percent to N21.75bn in the year.
Net loans and advances to customers rose 13 percent to N717bn in 2019 while total deposits from customers rose 16 percent to N953.7bn.
Earlier in the week, First City Monument Bank (FCMB) Limited, launched interest-free credit facilities in Ogun state where 40 businesswomen will be empowered with interest-free loans on a quarterly basis as part of efforts to boost economic activities, especially among the operators of micro, small and medium-sized enterprises in the state and Southwest.
BusinessDay reports that FCMB stretches its credit coverage and credit bouquets to Ogun state by partnering the Office of the First Lady with a view to empowering and improving business women’s knowledge, capacity, skills and prerequisites that could help businesses grow, having reached out to over 2,000 women businesses in the last one year, across the states of the country.
Speaking at a bilateral mentorship program tagged, “She Ventures”, organised by Ogun state government and FCMB in Abeokuta, the capital of Ogun state on Wednesday, Bukola Smith, executive director, Business Development, FCMB, said that the training program which has the theme: “Supporting Women Businesses to Scale Up in 2020”, is one of the several empowerment programs devised by FCMB to boost MSME activities and stimulate the economy.
Smith, who highlighted some benefits of “She Ventures” which include zero percent -interest business loans for the 40 business women at every three months in addition to regular crediting; training and mentorship programs; networking opportunities; three months free banking, among others, noted that the soft loans are a game-changer initiative established to empower women folks.
