FCMB Group Records 68.4% Profit Growth in Nine Months
FCMB Group Plc yesterday announced its unaudited result and accounts for the nine months ended September 30, 2022 with 68 per cent Year-on-Year (YoY) increase in profit before tax to N26.5billion from N15.74billion reported in nine months of 2021.
The group’s financial performance also revealed N22.92billion profit for the period, an increase of 66.04per cent YoY from N13.80billion reported in the corresponding period.
FCMB Group announced N200.1billion gross revenue in nine months ended September 2022, an increase of 33.9per cent YoY from N149.5 billion reported in the same period prior year.
The growth in gross revenue was driven by a 33.1per cent growth in interest income and a 36.1per cent growth in non-interest income.
According to the bank, its digital banking initiatives continues to gain traction across various businesses and now accounts for13.8 per cent or N27.6billion of gross earnings, 9.4per cent or N14.4billlion of interest income, 6.5 per cent or N77.0billion of the loan book and 7.3 per cent or N8.6billion of the AUM of our Asset Management business.
Operating expenses grew by 18per cent YoY to N86.4 billion in nine months of 2022, largely due to increased regulatory costs, technology-related costs and general inflationary pressures.
Overall, the group maintained a diversified earnings base as banking subsidiaries contributed 72.5per cent of Group profits, whilst other non-banking subsidiaries contributed 27.5per cent (Consumer Finance 12per cent, Investment Management 10per cent, and Investment Banking five per cent).
Financial position showed 22.5 per cent YoY increase in loans and advances from N967.5 billion to N1.2 trillion in September 2022, while customer deposits grew by 25.3per cent YoY from N1.5 trillion to N1.8 trillion in September 2022.
This brings total assets to N2.9trillion as of September 2022 from N2.4trillion reported in 2021.
The group said it has acquired over 1.2 million customers in the nine months to September 2022, taking its customer base to 10.4 million customers.
According the financial institution, its FCMB capital markets raised and advised on investments totaling N599.8 billion in the first nine of months of 2022, compared to N463.9 billion in nine months of 2021.
“This delivered an 88per cent growth in fees from capital raising and financial advisory services over the period,” the group said in a statement.
It added that, “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, and barring unforeseen circumstances, we believe this performance trend will continue.”