Balogun while speaking at the bank’s 30th Annual General Meeting held in Lagos, said the bank’s major priorities in the next three years would include cost reduction of risk to operate the most valuable retail franchise in the country.
He said these would make the bank compete more in the industry and enhance its profitability, which would ultimately create value for shareholders, adding that the improved performance recorded during the year under review has shown that the bank has recovered strongly. “
The board is committed to ensuring that the performance improves further in 2013. We anticipate that by 2015, retail banking should account for 40 per cent of our revenues and 50 per cent of our profits. This implies robust margins and a high efficiency model for the retail bank, driven by alternative channels such as internet, mobile and agent banking.
“Our goal is to ensure that our cost to income ratio is below 50 per cent by 2015 so that we can achieve a group return on equity of about 30 per cent. We are on course for the attainment of a 75 per cent low cost deposit mix by 2015, and with the growth in retail loans, we foresee our net interest margins remaining consistently above eight per cent over the next two years. We look ahead to 2013 with great optimism and resolve that our performance can only get better and we will move from strength to strength,” he assured.
The audited accounts of FCMB for the period under review showed that it recorded a profit after tax of N15.3 billion, an increase by 256 per cent over the loss of about N9.24 billion in 2011. Total deposits rose from N411 billion in 2011 to N646 billion in 2012, an increase by 57 per cent. This is an indication of an increasing market share for the bank. In the same vein, FCMB’s loans and advances grew by 11 per cent to N357 billion in 2012 compared to N323 billion in 2011.
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