FCMB has recorded its highest profit in seven years in the first nine months of 2021 as the company recorded higher net fee and commission income.
The financial services provider’s profit after tax (PAT) grew by a whopping 217 per cent to N13.8 billion in the first nine months of 2021 compared to N4.4 billion in the same period last year.
The bank’s net fee and commission income grew 35.8 per cent to N20.2billion in the period compared to a loss of N14.9 billion a year ago.
FCMB’s shares closed flat at N3 per unit on Monday.
The company grew its Interest and discount income by 3.3 per cent to N115.75 billion in the nine months period from N112.09 billion in the same period last year as the loans and advances to Customers rebound compared to 2020. Interest expense also rose 14.3 percent to N50.4 million.
The bank’s Fees and commission income grew 15.3percent to N25.62 million compared to N22.22 billion in the first 9 months of last year. Also, Fees and commission expenses jumped 26.5 percent to N5.4 billion as against N7.3 billion in 9M’20.
Fee and commission income is the revenue taken in from account-related charges. Charges that generate fee income include non-sufficient funds fees, overdraft charges, late fees, over-the-limit fees, wire transfer fees, monthly service charges, and account research fees, among others.
Other increased by 1 percent to N1.39 billion from N1.38 billion helped by the growth in rental income.
Net trading income grew 15.12 percent to N6.6 billion in the periods under review.
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FCMB’s operating income slightly declined by 2.17 million from N80.387 billion to N80.389 billion in the first nine months of 2021.
Depreciation and amortization grew 9.4 percent to N6 billion in 9M’2021 from N5.5 billion in the nine months period of 2020.
A closer look at the financials revealed that loans and advances to customers grew by 17.6 percent to N967.6 billion within the first 9 months of 2021 compared to N822.8 billion in 2020.
Deposits from customers jumped 12 percent to N1.41 trillion from N1.26 trillion in the periods under review, while deposits from Banks surged 111.2 percent to N252.12 billion from N119.37 billion in 2020.
The bank’s total asset grew by 17.5 percent to N2.42 trillion from N2.06 trillion last year
Earnings per share remained 7 kobo in the first nine months of 2020 and 2021.
In the third-month period (July to September), the company recorded a 43 percent increase in profit to N6.24 billion compared to N4.36 billion in the third quarter of 2020.
Interest expense jumped by 55.8 percent to N20.69 billion up from N13.28 billion in 2020 whereas interest income rose by 19.8 percent to N43.1 billion from N35.9 billion, in the three-month period.
Net interest income fell 1 percent to N22.39 billion between the months of July to September 2021, from N22.67 billion in the same period of 2020.
Operating expenses plunged by 30 percent to N6.9 billion in Q3’21, from N5.3 billion in the third quarter of 2020.
Earnings per share rose 32 percent to 45.5 percent to N32 kobo per share in Q3’21 from N22 kobo per share in the third quarter of 2020.
