FCMB Group posts N152.5b revenue, N7.8b gross profit

FCMB Group Plc (FCMB) has posted revenue of N152.5 billion in its 2015 operations against N148.6 billion achieved in the corresponding period in 2014.

Specifically, the bank’s audited result for the year ended December 31, 2015, showed a 3 percent rise in revenue to N152.5 billion, as against N148.6 billion in 2014 amid challenging macroeconomic and regulatory environment

According to a statement by the bank, it’s profit before tax (PBT) stood at N7.8billion, with profit after tax N4.8billion during the year under review.

Based on the performance, the directors of the company are recommending a dividend of 10 kobo per share due to every shareholder of the bank for the 2015 financial year.

The bank explained that net interest income decreased by 12 percent Year-on-Year (YoY) to N63.9 billion, compared to N72.6 billion in the previous year. Fees and commissions rose by 10 per cent to N15.8 billion, driven by a strong surge in electronic banking income, offsetting the drop in Commission on Turnover and Trade Finance fees.

Other income dropped by 31 per cent to N8.8 billion due to N4.8 billion reductions in foreign exchange gains. Total assets dropped marginally by 1 per cent to N1.16 trillion.

The Managing Director of FCMB Group, Peter Obaseki noted that key soundness ratios, including liquidity and capital buffers, were maintained during the year under review, adding that the future challenge of the bank was to unlock more value to shareholders by tackling operational efficiencies and accelerating the pace of momentum, not just in the bank but also microfinance and wealth management

“Full year 2015 result, came in with profit after tax of N4.8 billion; although underlying top-line and sustainable revenue momentum remains strong and in line with our strategic thrust.

The Group Managing Director of First City Monument Bank Limited Ladi Balogun explained that the commercial and retail banking arm of the group saw a significant drop in profitability for the full year to N6.5 billion PBT, following the impairments from two significant defaulting obligors reported in its Q3 audited results.

He pointed out that the full year’s performance was adversely affected by a 44 per cent drop in foreign exchange income and a 12 per cent drop in net interest income, due to foreign exchange policy and impact of cash reserve requirement ratios till Q4.