FCMB Group Plc has reported a significant upsurge in earnings, registering a remarkable 130.1 percent growth.
Additionally, the Year-on-Year (YoY) profit before tax (PBT) surged by 108 percent to N55.1 billion for the nine-month period ending on September 30, 2023, compared to N26.5 billion in the same period of 2022.
The Group attributed this robust financial performance to the collective strength across its diverse business segments. Notably, it achieved a substantial growth in earnings of 130.1 percent, while Consumer Finance experienced a notable 32.6 percent upsurge.
Furthermore, both Investment Management and Investment Banking segments delivered commendable performances, recording growth rates of 38.7 percent and 27.6 percent, respectively.
Commenting on the results, the Group Chief Executive of FCMB Group Plc, Mr Ladi Balogun, said: “We continue to leverage our unique group structure to build a technology-driven ecosystem that fosters inclusive and sustainable growth in the communities we serve. This strategy enables us to deliver robust performance despite the challenging domestic and global environment. Barring unforeseen circumstances, we believe this trend will be sustained and accompanied by improving efficiencies arising from greater scale and ongoing digitisation”.
Gross revenue rose 75.7% to N351.5 billion as at September 2023, compared to N200.1 billion for the prior year. This was driven by a 55.1percent growth in interest income and a 144.6percent growth in non-interest income. Net interest income grew 29.5percent to N120.5 billion from N93.1 billion in the prior year. This was driven by an increase in the yield on earning assets for the period ended September 2023.
FCMB increased its lending activities, providing loans and advances totalling N1.59 trillion, a 34.3percent increase from the previous year. Simultaneously, the institution experienced a 39.1percent YoY growth in customer deposits to N2.53 trillion, showcasing the unwavering trust of its customers.
The Group’s total assets grew by an impressive 32.2percent YoY to N3.88 trillion from N2.93 trillion, strengthening its position as a leading financial institution in Nigeria.
Assets Under Management (AUM) recorded a 26.1percent YoY growth from N756.1 billion to N953.7 billion as at September 2023.
The Group’s customer base expanded 15.4percent YoY, reaching 12 million as of September 2023, reflecting a current-year growth of over 1.1 million customers. Additionally, the agency banking business expanded its network to over 120,000 agents, acquiring over 130,000 customers. Investment Banking transaction value consummated by the Group rose to N690.9 billion, marking a 15.2% YoY growth.
In addition, the Group completed the issuance of a Series 2 Additional Tier 1 Capital Bond under its N300 billion Debt Issuance Programme for its Banking Subsidiary, bringing the total Additional Tier I Capital raised during the year to ₦46.7 billion. Its consumer finance business, Credit Direct Limited, also completed its maiden Commercial Paper Issuance to further diversify the Company’s funding base.
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