FCMB Group Reports 108% YoY Growth in Profit Before Tax

FCMB Group reports 108% annual growth in pre-tax profit

FCMB Group reports 108% annual growth in pre-tax profit

FCMB Group Plc (NGX: FCMB) today announced 108% year-on-year (YoY) growth in profit before tax (PBT) to N55.1 billion for the nine months ended September 30, 2023, compared to N26.5 billion in the corresponding period of 2022.

The Group’s strong financial performance can be attributed to the collective strength of its various business segments. The Banking Group recorded a growth in results of 130.1%, while Consumer Finance recorded a growth of 32.6%. Investment Management and Investment Banking also performed well, with growth rates of 38.7% and 27.6%, respectively.

Commenting on the results, Group CEO of FCMB Group Plc, Mr. Ladi Balogun, said:

“We continue to leverage our unique group structure to build a technology-driven ecosystem that promotes inclusive and sustainable growth in the communities we serve. This strategy allows us to deliver robust performance despite the challenging domestic and global environment. Barring unforeseen circumstances , we believe this trend will be sustained and accompanied by improved efficiency resulting from greater scale and continued digitalization.”

Gross revenue increased by 75.7% to N351.5 billion in September 2023 compared to N200.1 billion the previous year. This was driven by a 55.1% growth in interest income and a 144.6% growth in non-interest income. Net interest income grew by 29.5% to N120.5 billion from N93.1 billion in the previous year. This was driven by an increase in the yield on earning assets for the period ending September 2023.

The FCMB increased its credit activities, granting loans and advances totaling N1.59 trillion, an increase of 34.3% from the previous year. Simultaneously, the institution recorded a 39.1% annual growth in customer deposits to N2.53 billion, demonstrating the unwavering confidence of its customers. The Group’s total assets grew by an impressive 32.2% year-on-year to N3.88 billion from N2.93 billion, strengthening its position as a leading financial institution in Nigeria.

Assets under management (AUM) recorded an annual growth of 26.1%, from N756.1 billion to N953.7 billion in September 2023.

The Group’s customer base expanded 15.4% YoY, reaching 12 million in September 2023, reflecting current year growth of more than 1.1 million customers. Furthermore, the bank branch business expanded its network to more than 120 thousand agents, gaining more than 130 thousand customers. The value of investment banking transactions consummated by the Group increased to N690.9 billion, marking an annual growth of 15.2%.

Furthermore, the Group completed the issuance of an additional Tier 1 Series 2 capital bond under its N300 billion debt issuance program for its banking subsidiary, bringing the total additional Tier I capital raised during the year to ₦46.7 billion. Its consumer finance business, Credit Direct Limited, has also completed its first commercial paper issuance to further diversify the company’s funding base.

Source: www.lindaikejisblog.com

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