FCMB Group declares N3.88trn total assets in nine months

FCMB group Plc on Monday declared a total assets of N3.88trillion as of September 30, 2023, representing a growth of 32.2 per cent Year-on-Year (YoY) from N2.93trillion declared in financial year for the period ended December 31, 2022.

The group declared profit before tax growth of 108.0per cent YoY to N55.1 billion from N26.5 billion reported in corresponding period of 2022.

The growth in profit before tax was driven by the Group recording robust earnings growth in, Banking Group 130.1per cent; Consumer Finance, 32.6 per cent; Investment Management, 38.7 per cent, and Investment Banking, 27.6 per cent.

The group declared gross revenue of N351.5 billion for the nine months 2023, 75.7per cent YoY growth from N200.1 billion for the same period prior year.

This was driven by a 55.1per cent YoY growth in interest income and a 144.6 per cent YoY growth in non-interest income.

However, operating expenses grew 29.0per cent YoY to N111.5 billion for the period ended September 2023, due to increased personnel costs, regulatory costs, technology related costs and general inflationary pressures.

FCMB Group announced net impairment loss on financial assets increased to N57 billion, for the period ended September 2023, from N18.7 billion in the prior year resulting in a growth in cost of risk to 3.9per cent YoY.

Financial Position revealed that the Group’s loans and advance

s grew by 34.3 per cent YoY from N1.19 trillion to N1.59 trillion at the end of September 2023.

The management of FCMB group in statement explained that,
“Our customer base grew by 15.4per cent YoY from 10.4 million to 12 million customers for the period ended September 2023, a current year growth of over 1.1 million customers.

“Similarly, our agency banking business grew its network to over 120,000 agents, acquiring over 130,000 customers during the period.

“Investment Banking (advisory and primary debt and equity capital markets) transaction value consummated by the Group rose to N690.9 billion in the period under review, a 15.2per cent YoY growth.

“The Group successfully 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.

“Our Consumer Finance business, Credit Direct Limited, also successfully completed its maiden Commercial Paper Issuance to further diversify the Company’s funding base.

“We continue to leverage our unique Group structure to build a technology driven ecosystem that is fostering inclusive and sustainable growth in the communities we serve. This strategy is enabling us to deliver robust performance in spite of the challenging domestic and global environment.

“Barring unforeseen circumstances, we believe this trend will be sustained and accompanied with improving efficiencies arising from greater scale and ongoing digitization.”