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FCMB records N16.8bn profit in nine months

By BusinessNews Staff on November 1, 2014

The First City Monument Bank Group (FCMB) Plc has said it recorded a profit before of N16.8 billion in its unaudited nine months results for the period ended 30 September 2014.

This represented an increase by 14 per cent, over the N14.7 billion realised in the same period prior year.

Also, the group’s gross revenue grew by 10 per cent to N106.7 billion as against the amount recorded in the comparable period of 2013.

However, FCMB Limited, the commercial banking subsidiary, was pivotal to the performance as strategic initiatives to improve service and customer experience, helped optimise its 274 branches and cash-centres serving 2.5 million customers, notably in the retail segment.

A statement from the financial institution explained that strong performance in fees also helped to buoy its revenue, as CSL Stockbrokers Limited grew its market share.

The statement also noted that FCMB Limited leveraged the services of the investment banking business, FCMB Capital Markets, to generate record investment banking revenues.

“Consistent with efforts to be supportive to its customers, FCMB Limited extended credit to customers, growing its loans and advances by 29 per cent to N565 billion, compared to the same period prior year.

“Consumers were key beneficiaries, with the consumer loan book growing fastest at 48 per cent year-on-year to N116.1 billion over same period prior year.

“Loans accounted for 54 per cent of the Group’s total assets as against 45 per cent for the same period in the prior year thereby improving the Group’s earning capacity. The quality of the loan book was sustained, with non-performing loans to total loans at 2.7 per cent for both the current and prior periods,” it explained.

Managing Director of FCMB Group Plc, Mr. Peter Obaseki said, across all of the institution’s businesses, during the period, the strategy it pursued were designed to create a business, which can accommodate external pressures whilst still being able to deliver sustainable performance.

This according to him, seems to have started paying off.

On his part, the Group Managing Director/ CEO of FCMB Limited, Mr. Ladi Balogun said the commercial and retail banking arm of FCMB Group Plc made a profit before tax of N15.7 billion, up by 20 per cent from the N13 billion recorded in the comparable period of 2013.

“For the rest of 2014, we will continue to focus on improving operating efficiency and net interest margins whilst also continuing with our steady customer acquisition drive and migration to alternate service and distribution channels,” he said.

[This Day]

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