FCMB Group Sustains Growth

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Ladi Balogun, MD, FCMB

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THE FCMB Group, comprising First City Monument Bank, FCMB, Limited, FCMB Capital Markets Limited, CSL Stockbrokers Limited and CSL Trustees Limited, has made improved performance in its nine months results of 2016 released recently. FCMB Group Plc recorded gross earnings of N140.7 billion up by 28 percent from N109 billion in the corresponding period of 2015.

Interest income fell marginally by 1.2 percent to N93.2 billion from N94.4 billion in 2015, while Interest expenses also fell by  9.8 percent to N40 billion, from N44 billion. FCMB ended the period with net interest income of N53.2 billion in 2016, showing an increase of 6.3 percent from N50 billion in 2015.

Net fee and commission income rose by 2.6 percent from N10.4 billion to N10.6 billion, while total net non-Net interest income rose by 9.2 percent from N48.7 billion to N53.2 billion. Total net non-interest income rose by 128 percent from N19.6 billion to N44.8 billion resulting from a 12 percent increase in foreign exchange, FX, income, from N5.0 billion in 2015, to N35.3 billion in 2016. Net impairment loss on financial assets soared by 125 percent to N34.4 billion, from N15.2 billion in 2015.

The group reported a profit before tax, PBT, of N14.2billion, showing a jump of 453 percent from N2.563 billion recorded in the comparative period of 2015, while profit after tax, PAT, recorded higher growth of 595 percent to N12.9 billion from N1.866 billion. FCMB Group grew its total assets to N1.241 trillion, from N1.159 trillion in 2015.

Commenting on the results, Peter Obaseki, managing director, FCMB Group Plc, said, “The audited nine months results for the period ended September 2016, reflects our focus on key soundness ratios and the need to maintain buffers against a sustained adverse operating environment. Accordingly, capital adequacy and liquidity ratios have held up at 17.6 percent and 36.8 percent, respectively.

“Overall, PBT came in at N14.2 billion, a 453 percent growth, translating to earnings per share, EPS, of 87 kobo, up 30.6 underlying revenue momentum remains strong while cost optimisation programme led to a two per cent drop in operating expenses, despite inflationary spiral, respectively. The macro economic conditions in the final quarter remain challenging; we will keep up a conservative stance.”

—  Dec 12, 2016 @ 01:00 GMT

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