FCMB Group earnings hit N199.4b

FCMB Group Plc has announced its financial results for the year ended December 31, 2020.

The audited results showed that despite the challenges posed by the COVID-19 (coronavirus) pandemic and the business environment, the financial institution remained resilient and improved significantly on market fundamentals.

FCMB Group earnings hit N199.4bIn 2020, FCMB Group’s gross revenue increased to N199.4 billion, a 10 per cent increase from N181.3 billion achieved in 2019. The positive performance of the financial institution also manifested in profit before tax, which rose to N22billion as against N20.1 billion for the same period prior year.

Following this, the leading financial services Group has declared a dividend of 15k kobo per share to shareholders compared to14 kobo per share in 2019.

FCMB Group, which is a holding company, divided along three business groups; Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Corporate & Investment Banking (The Corporate Banking Division of the Bank, FCMB Capital Markets Limited and CSL Stockbrokers Limited) and Investment Management (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited), also reported appreciable growth in other key operating areas.

The financial results showed enhanced customers’ confidence in FCMB, as deposits grew by 33 per cent to N1.3 trillion from N943.1billion in the previous year.

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Loans and advances surged by 15 per cent to N822.8 billion as at last December 2020.

Also, the total assets of the Group increased by 23 per cent to N2.06 trillion last year.

Moreover, FCMB Group’s net interest income rose by 20 per cent to N90.8 billion for the full year 2020 from N76.0 billion in 2019. Non-interest income equally increased to N37.8 billion, representing a nine per cent growth, as against N34.8 billion prior year.

The Group’s Assets Under Management (AUM) also sustained its growth trajectory by rising to N495.2 billion for the year ended December 2020, up by 23 per cent.

Similarly, capital adequacy ratio remained stable at 17.7 per cent for the retail and commercial banking subsidiary of the Group (that is, First City Monument Bank, which has a customer base of almost 8 million). The capital adequacy ratio of 17.7 per cent is above the benchmark set by the Central Bank of Nigeria for deposit money Banks in the country. Liquidity ratio of the Bank stood at 34.2 per cent as at the end of the financial year 2020, indicating that the financial institution is in a very healthy position. Non-performing loans to total loans ratio stood at a modest 3.3 per cent.

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