FCMB Group records N177 billion earnings, 4.8 million customers
It also reported a rise in profit before tax rose by 73 per cent to N18.4 billion, against N11.5 billion in the preceding year, while it has already recommended a dividend of 14 kobo per share to shareholders.
The Group, a holding company, is divided along three business groups- Commercial and Retail Banking, comprising First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited.
The second is Investment Banking- FCMB Capital Markets Limited and CSL Stockbrokers Limited, while the third is Asset and Wealth Management, comprising FCMB Pensions Limited, First City Asset Management Limited and CSL Trustees Limited. All reported appreciable growth in key operating areas going by the audited results.
Net interest income, as at the end of 2018, rose by three per cent year-on-year to N72.6 billion, as deposits also increased by 19 per cent year-on-year to N821.7 billion, demonstrating enhanced confidence of customers in the brand.
Total assets in the period under review, went up by 21 per cent to N1.43 trillion, just as capital adequacy ratio was 15.9 per cent, while loans and advances stood at N633 billion.
An analysis of the business groups’ contributions showed that Commercial and Retail Banking Group grew its profits by 76 per cent, driven by improved performance in retail lending and increase in fees and commissions.
“Our banking franchise continued to grow as reflected by a 19 per cent rise in deposits and our customer base also grew by 20 per cent to 4.8 million customers’,” the bank said in a statement.
Also, the pre-tax profits of its Investment Banking businesses grew by 18 per cent in 2018, driven by higher conversion of our investment banking deal pipeline, as well as cost efficiency, with the stockbroking business maintaining its position as a top-tier player in its sub-sector.
The Asset and Wealth Management businesses increased combined assets under management by 24 per cent to over N310 billion and grew pre-tax profits by 271 per cent despite reduction in fees charged by pension fund administrators by the primary regulator.
The Group also acquired additional shares in FCMB Pensions Limited (formerly Legacy Pensions Limited) to increase its stake from 88.2 per cent to 91.6 per cent in 2018.
‘’2019 should see continued growth along all key indices for the Group, driven by anticipated growth in our balance sheet, customer numbers and assets under management, as well as rising commissions and improving unit economics from digital financial services,” the bank added.
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