FCMB Group Plc, a leading financial institution, has unveiled its Unaudited Group Results for the nine months ended 30 September 2023, showcasing a robust financial performance with a 108% Year-on-Year growth in Profit Before Tax (PBT), totaling N55.1 billion.
Financial Performance Highlights:
Earnings Analysis:
– Gross revenue surged to ₦351.5 billion, marking a significant 75.7% growth from ₦200.1 billion in the same period the previous year.
– Net interest income witnessed a 29.5% growth, reaching ₦120.5 billion, driven by a rise in the yield on earning assets.
– Operating expenses grew by 29.0%, totaling ₦111.5 billion, attributed to increased personnel costs, regulatory expenses, technology-related costs, and general inflationary pressures.
– Net impairment loss on financial assets increased Year-on-Year to ₦57.0 billion, resulting in a growth in the cost of risk to 3.9%.
Financial Position:
– Loans and advances recorded a 34.3% Year-on-Year growth, reaching ₦1.59 trillion.
– Total assets increased by 32.2%, totaling ₦3.88 trillion.
– Customer deposits showed a remarkable 39.1% Year-on-Year growth, reaching ₦2.53 trillion.
– Assets Under Management witnessed a 26.1% Year-on-Year growth, totaling ₦953.7 billion.
Key Achievements:
Profit Before Tax (PBT): The PBT saw an exceptional 108.0% Year-on-Year growth, amounting to ₦55.1 billion. Divisions of the Group also recorded substantial earnings growth, with the Banking Group leading at 130.1%, followed by Consumer Finance (32.6%), Investment Management (38.7%), and Investment Banking (27.6%).
Customer Base Growth: FCMB Group experienced a notable 15.4% Year-on-Year growth in its customer base, reaching 12 million customers by September 2023. The agency banking business expanded its network to over 120,000 agents, acquiring more than 130,000 customers during the same period.
Investment Banking Transactions: Transaction value in Investment Banking, including advisory and primary debt and equity capital markets, rose to ₦690.9 billion, reflecting a 15.2% Year-on-Year growth.
Capital Raise: FCMB Group successfully completed the issuance of a Series 2 Additional Tier 1 Capital Bond under its N300 billion Debt Issuance Programme for its Banking Subsidiary, raising a total Additional Tier I Capital of ₦46.7 billion. The Consumer Finance business, Credit Direct Limited, also completed its maiden Commercial Paper Issuance to diversify the company’s funding base.
The financial results underscore FCMB Group’s commitment to sustained growth, sound financial management, and value creation for its stakeholders.
