FCMB Group Plc has announced a 67 per cent increase in Profit Before Tax (PBT) to N91.8 billion for the nine months ending September 30, 2024. This growth was attributed to strong performances across its operational divisions, with Nigerian banking operations contributing 68 per cent of the total PBT, while other operating companies accounted for 32 per cent.
The Group’s business divisions all recorded impressive year-on-year growth: Consumer Finance grew by 108.5 per cent Investment Banking by 63.3 per cent Banking Group by 49.8 per cent, and Investment Management by 31.4 per cent.
Commenting on the results, Ladi Balogun, Group Chief Executive of FCMB Group, noted, “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.
“We will also see liquidity and capital adequacy rising sharply. Most importantly, we look forward to accelerating our support for the Nigerian and broader African economies with our purpose-led strategy.”
Gross revenue for the period rose by 67.2 per cent to N587.8 billion, compared to N351.5 billion in the same period last year. This growth was driven by an 86.5 per cent increase in interest income and a 26.2 per cent rise in non-interest income. Net interest income improved by 44.3 per cent year-on-year (YoY), climbing from N120.5 billion to N173.8 billion, supported by a rise in the yield on earning assets from 14.9 per cent to 17.4 per cent.
Operating expenses grew by 51.7 per cent YoY to N169.1 billion, impacted by rising personnel costs, regulatory charges, and inflationary pressures. However, the cost-to-income ratio remained efficient at 55.4 per cent. Net impairment losses on financial assets dropped by 22 per cent to N44.4 billion, reducing the cost of risk to 2.7 per cent, compared to 3.9 per cent in the previous year.
The Group’s financial position strengthened significantly, with total assets increasing by 75.9 per cent to N6.82 trillion from N3.88 trillion. Loans and advances rose by 58.9 per cent to N2.53 trillion, while customer deposits surged by 71.1 per cent to N4.33 trillion. Assets under management also grew by 36 per cent to N1.30 trillion.
FCMB Group added 1.3 million new customers, increasing its customer base by 15.2 per cent to 13.9 million. The agency banking network expanded to over 362,000 agents, attracting more than 700,000 new customers. Despite a slowdown in debt capital markets caused by high interest rates, the Investment Banking Division mobilized N876 billion in capital for clients, up from N691 billion last year.
The Group successfully completed the first phase of its capital-raising programme and has scheduled an Extraordinary General Meeting (EGM) to discuss the next phase. This initiative is key to retaining its international banking license in compliance with the Central Bank of Nigeria’s recapitalisation directive.