FCMB posts N59.5bn profit

FCMB Group improved profit for the first half of the year by 68.1 per cent to N59.5bn from N35.4bn recorded in the same period last year.

This was disclosed in the group’s quarterly report and financial statements for the period ended June 30, and filed with the Nigerian Exchange Limited on Wednesday.

FCMB’s gross earnings soared to N374.5bn, a 57.2 per cent rise from N238.2bn in the same period last year, driven by increased customer deposits, higher loan disbursements, and diversification of revenue streams.

The group’s interest and discount income jumped by 80.6 per cent to N269.2bn, from N149.0bn in the prior year.

Interest expenses soared by 112.4 per cent to N162.9bn, compared to N76.7bn in H1 2023, due to higher interest rates and increased customer deposits.

Net interest income saw a rise of 46.8 per cent to N106.2bn from N72.3bn.

In the period under review, fee and commission income increased by 27.1 per cent to N36.2bn compared to N28.5bn in the same period last year, on the back of improved digital banking services, transaction volumes, and new product offerings.

Other income streams, including trading income and gains from financial instruments, contributed to the overall revenue, with a combined total of N68.5bn, representing a 13.4 per cent increase from N60.4bn.

Total comprehensive income for the period stood at N84.3bn, a 57.9 per cent increase from N53.4bn, driven by increased profitability and favourable foreign currency translation differences.

The group was able to cut net impairment losses on financial instruments by 33.4 per cent to N31.3bn from N47.1bn.

The group reported an increase in operating expenses, including personnel costs and administrative expenses, which totalled N104.8bn, up 48.4 per cent from N70.6bn. The rise was linked to investments in technology, branch network expansion, and staff training.

Profit before tax rose by 68.0 per cent to N64.2bn from N38.2bn.

The group’s taxation charge for the period was N4.3bn, 80.4 per cent higher than the previous year’s N2.4bn.

The group’s equity attributable to shareholders rose by 16.1 per cent to N535.2bn from N460.9bn, due to retained earnings and improved financial performance.

FCMB’s total assets expanded by 34.4 per cent to N5.95tn from N4.42tn, the expansion was fuelled by increased customer deposits, loan growth, and investments in securities.

The firm reported N31.4bn net trading income for the period, representing a 281.6 per cent surge from the N8.2bn recorded in the corresponding period in 2023.

The growth is primarily driven by significant gains in foreign exchange trading, which rose to N15.5bn from N921.8m, alongside FGN bonds and treasury bills trading.

Foreign exchange gains was down to N35.2bn from N51.0bn in the same period last year, as dividends on unquoted equity securities brought in N1.9bn, up from N1.2bn in 2023.

FCMB Group in May disclosed plans to raise N150bn in additional capital, following the Central Bank of Nigeria’s order that banks should raise fresh capital.

The apex bank in a statement signed by its Acting Director, Corporate Communications,  Sidi Ali, in March.

She said the apex bank had directed commercial banks with international authorisation to increase their capital base to N500bn and national banks to N200bn.