First City Monument Bank (FCMB), a financial institution in Nigeria, has reported an 18 percent increase in its earnings for the second quarter of 2024, the highest in 13 years, BusinessDay analysis shows.
According to the group’s latest financial statement, its after-tax rose to N30.7 billion in Q2 from N26.1 billion in the same period of 2023.
Interest income calculated using the effective interest rate rose to N143.7 billion from N82.9 billion while the bank’s interest expense surged 119 percent to N92.9 billion from N42.3 billion driven by the high-interest rate environment.
But for the first six months of the year, the lender posted earnings rose to N59.4 billion from N35.4 billion.
Its gross revenue surged by 58 percent to N374.4 billion in H1 from N256.1 billion in the same period of 2023. In Q2, gross earnings also rose to N195 billion from N150.7 billion in the same period last year.
Further breakdown of the H1 financial results shows that FCMB’s interest income grew by 80.5 percent, as all major contributory lines recorded an increase in loans and advances to customers (68 percent), and cash and cash equivalent (101.2 percent).
The bank recorded a 47 percent growth in net interest income to N106.1 billion in the first half of the year from N72 billion in the same period of the previous year.
Net fee and commission income increased to N25 billion from N22 billion during the period.
Items in fees and commission income include; service fees (N12.6 billion), electronics fees and commissions (N10.8 billion), account maintenance fees (N5.8 billion), asset management fees (N4.05 billion), commission on off-balance sheet transactions (N1 billion), letters of credit commission (N814 million) and administration fees (N141 million).
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The bank’s other gains fell to N37 billion from N52 billion driven by a significant decline in foreign exchange gains to N35 billion from N50 billion.
Other operating expenses increased to N26.4 billion from N19 billion, on the back of an increase in the Asset Management Corporation of Nigeria levy amounting to N14 billion.
Earnings per share increased to N6.01 kobo from N3.58 kobo.
Total assets grew to N5.9 trillion, aided by loans and advances to customers which rose to N2.4 trillion.
Total liabilities also rose to N5.4 trillion from N3.37 trillion, this was significantly driven by deposits from customers totalled N3.87 trillion while deposits from banks increased to N447 billion.
The group’s shareholders’ funds rose to N533 billion in H1 from N344 billion in the same period of 2023.
Net cash flows from operating activities increased to N262 billion from a negative N175 billion.
Net cash flows from/(used in) investing activities recorded a negative of N58 billion from a negative of N38 billion. Net cash flows from/(used in) financing activities recorded a negative of N67 billion from N3 billion.
Cash and cash equivalents at the end of the period totalled N717 billion from N384 billion in the same period of 2023.
