FCMB Group Plc has announced a 67% increase in profit before tax (PBT) to 91.8 billion naira for the nine months ended September 30, 2024, reflecting strong financial and operational performance across its business divisions.
The group recorded a 67.2% increase in gross income to N587.8 billion, compared to N351.5 billion in the same period of 2023.
This increase came as a result of an 86.5% increase in interest income and a 26.2% increase in non-interest income. Net interest income increased by 44.3% year-on-year from N120.5 billion to N173.8 billion, supported by an improvement in returns on earning assets from 14.9% to 17.4%.
Commenting on the results, Ladi Balogun, Group Managing Director of FCMB, said: “The Group has maintained its double-digit growth trajectory across all four business divisions and plans to maintain this momentum for the remainder of the year.
As we continue our transformational capital growth program, we expect performance to be enhanced by improved interest margins, significant balance sheet growth and, consequently, improved efficiency ratios.
We will also see significant increases in liquidity and capital adequacy. Most importantly, we look forward to accelerating our support for the Nigerian and African economies in a broader sense through our goal-oriented strategy. »
Operating expenses increased by 51.7% year-on-year to N169.1 billion, driven by increased personnel costs, regulatory costs and inflationary pressures.
Despite this, the cost/income ratio remains effective at 55.4%. In addition, net impairment losses on financial assets decreased by 22% to N44.4 billion, translating to a lower cost of risk of 2.7% compared to 3.9% a year ago.
The PBT growth was well spread across the group’s operating divisions.
Nigerian banking operations accounted for 68% of total PBT, while 32% came from other operating companies. Each of the Group’s divisions recorded impressive year-on-year profit growth: Consumer Finance (108.5%), Investment Banking (63.3%), Banking Group (49.8%) and Investment Management (31.4%).
The group’s financial position also strengthened significantly. Total assets increased by 75.9% to N6.82 trillion from N3.88 trillion, while loans and advances increased by 58.9% to N2.53 trillion. French customer deposits increased by 71.1% to N4.33 trillion, and assets under management increased by 36% to N1.3 trillion.
FCMB Group also reported a 15.2% increase in its customer base to 13.9 million, gaining more than 1.3 million new customers. The network of the Group’s banking branches has expanded to more than 362,000 agents, adding more than 700,000 customers.
Despite a significant slowdown in the debt capital markets due to the high interest rate environment, the Investment Banking division mobilized N876 billion of capital to clients, compared to N691 billion last year.
The Group also successfully launched and closed the first phase of its capital raising program.
