FCMB Group posts N16.3b half-year profit

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FCMB Group Plc has reported a profit before tax (PBT) of N16.3 billion for the six-months ended 30 June 2016. This represents an increase of 70 per cent from N9.6 billion recorded in the comparative period of 2015.

FCMB Group Plc, which consists of First City Monument Bank (FCMB) Limited, FCMB Capital Markets Limited, CSL Stockbrokers Limited and CSL Trustees Limited, partly attributed the development to foreign exchange revaluation gains, following the recent implementation of the flexible exchange rate policy by the Central Bank of Nigeria (CBN).

From the details of its unaudited results announced on the floor of the Nigerian Stock Exchange (NSE), its gross revenue for the six months increased by 14 per cent to N88.3 billion, compared to N77.4 billion for the same period in the previous year.

In addition, Non-Interest Income surged by 110 per cent to N26 billion versus N12.4 billion recorded at the end of June 2015. Customers’ confidence in FCMB remained strong, as deposits were up by five per cent quarter-on-quarter to N689.4 billion in June 2016, compared to N657.2 billion at the end of the first quarter of this year.

In addition, total assets increased by 13 per cent quarter-on-quarter to N1.3 trillion in June 2016 versus N1.1 trillion in March 2016. The Group’s Loans and Advances, also grew by 17per cent quarter-on-quarter to N657 billion in June 2016, compared to N561.6 billion at the end of first quarter of this year.

FCMB Group Plc’s half year 2016 results also showed a decline in operating expenses by three per cent year-on-year to N32.7 billion, in spite of a rise in inflation, while Non-Performing Loans (NPLs) to Total Loans Ratio was marginally down to 4.7 per cent from 4.8 per cent for Q1 2016. Earnings per share witnessed a significant increase from 33 kobo at the end of the first quarter of 2016 to 283 kobo as at 30 June this year.

Managing Director of FCMB Group Plc, Peter Obaseki, said: ”Our group’s half year 2016 profit before tax came in at N16.3 billion, up by 70 per cent on same period in 2015 and driven largely by treasury upsides, cost optimisation and sustained momentum in the commercial and retail banking group.”

Group Managing Director of FCMB Limited, Ladi Balogun, said: “The bank witnessed improved operating performance in spite of the multiple challenges faced by the economy and the banking sector. The most significant driver of earnings’ growth was the N9.1 billion exchange gains from our dollar balance sheet”.

The bank chief said the lender’s personal and  SME banking segments have exhibited resilient profit growth (in excess of 442 per cent or N7.4 billion, year on year) driven by electronic banking revenue and strong customer acquisition, now at 60, 000 a month. Greater cost discipline has also resulted in improved operating efficiency.

About Haruna Magaji 2481 Articles
Haruna Magaji is a journalist, foreign policy expert and closet musician. He is a graduate of ABU Zaria and a member of the Nigerian union of journalists. JSA, as he is fondly called, resides in Suleja, Abuja. email him at - [email protected]

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