FCMB Group Plc doubled its pre-tax profit by 108 per cent to N55.1 billion in the third quarter of 2023 amid increasing market penetration.
Interim report and accounts of FCMB Group for the nine-month period ended September 30, 2023 showed that profit before tax rose from N26.5 billion in third quarter 2022 to N55.1 billion in third quarter 2023.
The company attributed its strong financial performance to the collective strength of its diverse business segments.
The report showed that banking group recorded a growth in earnings of 130.1 per cent; consumer finance, 32.6 per cent; investment management, 38.7 per cent and investment banking, which also rose by 27.6 per cent.
Group Chief Executive, FCMB Group Plc, Mr Ladi Balogun, said the group continued to leverage its unique group structure to build a technology-driven ecosystem that fosters inclusive and sustainable growth in the communities it serves.
According to him, this strategy enables the group 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,” Balogun said.
Gross revenue rose 75.7 per cent to N351.5 billion as at September 2023, compared to N200.1 billion for the prior year. This was driven by a 55.1 per cent growth in interest income and a 144.6 per cent growth in non-interest income. Net interest income grew 29.5 per cent 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 34.3 per cent increase from the previous year. Simultaneously, the institution experienced a 39.1 per cent growth in customer deposits to N2.53 trillion, showcasing the unwavering trust of its customers. The group’s total assets grew by 32.2 per cent to N3.88 trillion from N2.93 trillion, strengthening its position as a leading financial institution in Nigeria.
Assets Under Management (AUM) recorded a 26.1 per cent growth from N756.1 billion to N953.7 billion as at September 2023.
Group’s customer base expanded 15.4 per cent, 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 per cent 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 N46.7 billion. Its consumer finance business, Credit Direct Limited, also completed its maiden commercial paper issuance to further diversify the company’s funding base.
