FCMB recorded 67% profit before tax growth to N91.8 billion

FCMB Group Plc has announced a 67% growth in Profit Before Tax (PBT) to N91.8 billion for the nine months ended September 30, 2024, reflecting robust financial and operational performance across its business divisions.

The group recorded a 67.2% increase in gross revenue to N587.8 billion, compared to N351.5 billion in the same period in 2023.

This was driven by an 86.5% growth in interest income and a 26.2% increase in non-interest income. Net interest income rose by 44.3% year-on-year, from N120.5 billion to N173.8 billion, bolstered by an improvement in the yield on earning assets from 14.9% to 17.4%.

Operating expenses increased by 51.7% year-on-year to N169.1 billion, impacted by rising personnel, regulatory costs, and inflationary pressures.

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Despite this, the cost-to-income ratio remained efficient at 55.4%. Additionally, net impairment losses on financial assets declined by 22% to N44.4 billion, resulting in a lower cost of risk of 2.7%, compared to 3.9% in the prior year.

PBT growth was well-distributed across the group’s operating divisions. The Nigerian banking operations accounted for 68% of the total PBT, while 32% came from other operating companies.

Each of the group’s divisions posted impressive year-on-year earnings growth: Consumer Finance (108.5%), Investment Banking (63.3%), Banking Group (49.8%), and Investment Management (31.4%).

The group’s financial position also strengthened significantly. Total assets grew by 75.9% to N6.82 trillion, up from N3.88 trillion, while loans and advances increased by 58.9% to N2.53 trillion. Customer deposits rose by 71.1% to N4.33 trillion, and assets under management grew by 36% to N1.30 trillion.

FCMB Group also reported a 15.2% increase in its customer base to 13.9 million, gaining over 1.3 million new customers. The group’s agency banking network expanded to over 362,000 agents, adding more than 700,000 customers.

Commenting on the results, Ladi Balogun, Group Chief Executive, FCMB Group, said, “The Group has maintained its double-digit growth trajectory across all four business divisions and expects to sustain this momentum for the rest of the year. As we continue our transformative capital raising programme, we expect the performance to be bolstered through improved interest margins, material balance sheet growth, and consequently improved efficiency ratios.