FCMB Group, a prominent financial services holding company in Nigeria, has released its financial statements for the first nine months of 2023, revealing impressive growth in gross revenue. The report highlights significant increases in interest and non-interest income, driving overall revenue growth. Additionally, the company experienced growth in lending activities, customer deposits, and total assets during the period.
Key Highlights:
- Gross Revenue Surge:
- FCMB Group’s gross revenue increased by 75.7%, reaching N351.5 billion in the first nine months of 2023, compared to N200.1 billion in the same period last year.
- Revenue Components:
- The growth in gross revenue was fueled by a 55.1% increase in interest income and an impressive 144.6% growth in non-interest income.
- Net Interest Income and Operating Expenses:
- Net interest income saw a substantial growth of 29.5%, rising from N93.1 billion to N120.5 billion. However, operating expenses also increased by 29.0% year-on-year to N111.5 billion, attributed to factors like higher personnel costs, regulatory expenses, technology-related costs, and general inflationary pressures.
- Profitability Metrics:
- Profit before tax surged by 108.0%, reaching N55.1 billion. Various segments of the FCMB Group, including Banking Group (130.1%), consumer finance (32.6%), investment management (38.7%), and investment banking (27.6%), contributed to robust earnings growth.
- Lending Activities and Customer Deposits:
- FCMB increased its lending activities, providing loans and advances totaling N1.59 trillion, reflecting a notable 34.3% increase from the previous year. Simultaneously, the bank experienced a 39.1% year-on-year growth in customer deposits, amounting to N2.53 trillion.
- Total Assets Growth:
- The Group’s total assets grew by 32.2%, reaching N3.88 trillion from N2.93 trillion.
- Financial Activities and Cash Management:
- Net fee and commission income amounted to N32.17 billion, operating expenses increased to N69.34 billion, and net cash generated from operating activities reached N341.73 billion.
- 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, raising the total Additional Tier I Capital during the year to N46.7 billion.
- Strategic Approach and Future Outlook:
- FCMB Group continues to leverage its unique Group structure to build a technology-driven ecosystem fostering inclusive and sustainable growth. Despite challenges, the company expresses confidence in sustaining the positive trend and improving efficiencies through scale and ongoing digitization.
Conclusion: FCMB Group’s robust financial performance in the first nine months of 2023 reflects positive strides in revenue, lending activities, and customer deposits. The strategic approach, coupled with a focus on technology-driven solutions, positions the company for sustained growth in the dynamic economic environment.
