FCMB Group posts N82.4bn profit
FCMB Group Plc reported a profit after tax of N82.4bn for the nine months ending September 30, 2024, reflecting a 68 per cent growth compared to N49.2bn in the same period last year.
This was disclosed in the bank’s financial statement for the third quarter of 2024 filed with the Nigeria Exchange recently.
The growth in PAT was driven by an increase in the group’s gross earnings, which surged by 67 per cent to N587.8bn, up from N351.5bn in the previous year.
Interest and discount income, a key revenue driver, grew by 86 per cent to N445.8bn from N239.1bn, bolstered by a performance in net interest income, which rose by 44 per cent to N173.8bn from N120.5b.
The group’s fee and commission income also saw an increase, rising by 24 per cent to N51.8bn from N41.5bn.
Other income grew by 30 per cent, reaching N39.3bn compared to N61.2bn in the previous year, as the company effectively leveraged its investments and trading operations.
The improved financial performance was complemented by a reduction in impairment losses on financial instruments, which decreased by 22 per cent to N44.4bn from N57.0bn.
This reduction reflects the group’s focus on effective risk management and maintaining a healthy balance sheet.
Despite a challenging operating environment, FCMB Group’s personnel expenses rose by 66 per cent to N56.5bn, in line with growth in the workforce to support business expansion.
General and administrative expenses also increased by 51 per cent to N62.2bn, primarily driven by investments in technology and infrastructure.
The group’s total comprehensive income for the period stood at N142.6bn, reflecting an increase of 68 per cent from N84.8bn in the same period in 2023.
FCMB’s equity holders benefitted from a strong return, with N76.9bn in profit attributable to them, up from N47.3bn a year earlier.
Total assets grew by 54 per cent to N6.8tn, up from N4.4tn in 2023, supported by increases in loans and advances to customers and investment securities.
The bank’s equity also rose by 27 per cent to N588.1bn, underpinned by retained earnings and the issuance of Additional Tier 1 capital.
Basic and diluted earnings per share for the period stood at N5.55, compared to N3.31 in 2023, reflecting strong earnings growth.
The group raised N150bn between April and September 2024 as part of its recapitalisation efforts.
