FCMB group announces N170bn gross revenue

FCMB Group Plc released its financial results for the year ended December 31, 2017, has reported a gross revenue of N169.9 billion.

Going by the audited results submitted to the Nigerian Stock Exchange (NS), the Group recorded a profit before tax (PBT) of N11.5 billion, while profit after tax (PAT) was N9.4 billion.

In the demonstration of the enhanced confidence of customers, FCMB deposits grew to N689.9 billion as at the end of December 2017, an increase of five percent, from N657.6 billion in the corresponding year.

The Group’s capital adequacy ratio also improved to 16.9 percent from 16.7 percent, just as asset base increased to N1.19 trillion, compared to N1.17 trillion at the end of 2016, while non-interest income stood at was N32 billion and loans and advances at N649.8 billion.

In a statement, the FCMB Group said in spite of the reduction in the headline numbers, the Group’s performance for the year 2017 witnessed an improvement in core operating performance over the previous year after adjusting for the significant foreign exchange revaluation income enjoyed in 2016.

“In line with the repositioning strategy of the Group for better performance, the key drivers of the performance include an increase in income from our non-banking activities, lower impairment charges from the Bank and its subsidiaries, and improved operating efficiencies through the more pervasive use of technology.’’

It will be recalled that in November 2017, FCMB completed the acquisition of an additional 60 percent stake in Legacy Pension Managers Limited, which increased FCMB’s stake from 28.2 percent to 88.2 percent, thereby making Legacy a subsidiary of FCMB.

The acquisition helped achieve further diversification of service offerings, consequently, earnings within the FCMB Group would probably be felt from the 2018 financial year.

FCMB Microfinance Bank Limited, the Group’s dedicated group lending and financial inclusion vehicle, commenced operations as a state microfinance bank in January 2017. The business will be the key driver of FCMB’s informal and agricultural sectors (particularly small-holder farmers) drive across the country. These two sectors account for over 40 percent of the country’s gross domestic product (GDP).

Following these developments, FCMB Group Plc’s operating companies are now divided along three business groups – Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Investment Banking (FCMB Capital Markets Limited and CSL Stockbrokers Limited); and Asset & Wealth Management (Legacy Pension Managers Limited, First City Asset Management Limited and CSL Trustees Limited).

The financial institution, however, assured that barring any unforeseen circumstances, there would be improved operating performance in 2018 based on the improving macroeconomic and capital markets environment, declining cost of funds for the bank, and the growing contributions of asset and wealth management following last year’s acquisitions.