FCMB Group records N199.4bn revenue

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FCMB Group Plc said it earned N199.4bn revenue in its financial results for the year ended December 31, 2020.

It disclosed this on Monday in a statement titled ‘FCMB Group earns revenue of N199.4bn in 2020, as profit rises to N22bn despite COVID-19’.

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

The statement stated, “In 2020, FCMB Group’s gross revenue increased to N199.4bn, a 10 per cent increase from N181.3bn achieved in 2019.

“The positive performance of the financial institution also manifested in profit before tax, which rose to N22bn as against N20.1bn for the same period prior year.”

Following this, the group declared a dividend of 15 kobo per share to shareholders compared to 14 kobo per share in 2019.

It said, “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) make up another group.

Investment Management (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited), also reported appreciable growth in other key operating areas make up the third group.

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

Loans and advances surged by 15 per cent to N822.8bn as of December 2020.

Also, the total assets of the group increased by 23 per cent to N2.06tn in 2020.

It added that FCMB Group’s net interest income rose by 20 per cent to N90.8bn for the full year 2020 from N76bn in 2019.

Non-interest income increased to N37.8bn, representing a nine per cent growth, as against N34.8bn prior year.

The group’s assets under management also sustained its growth trajectory by rising by 23 per cent to N495.2bn for the year ended December 2020.

It disclosed that 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 eight 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,” it stated.

Liquidity ratio of the bank stood at 34.2 per cent as of the end of the financial year 2020, indicating that the financial institution was in a very healthy position.

Non-performing loans to total loans ratio stood at a modest 3.3 per cent.

SOURCE: PUNCH

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