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FCMB’s profit grows to N95.5bn, highest record in 10 years

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FCMB’s profit grows to N95.5bn, highest record in 10 years

The First City Monument Bank (FCMB), a tier 2 lender, recorded its highest profit in ten years. The company’s profit grew by 206 percent to N95.52 billion from N31.13 billion in 2022.

FCMB saw a growth in its profit before tax of N101.46 billion in the full year 2023, representing a 177.4 percent growth from 2022.

In its unaudited annual report and financial statements for 2023, the group recorded gross earnings of N516.8 billion during the year, representing an 82.6 percent growth from 2022.

The financial institution enjoyed increased interest income, as it recorded a net interest income of N177.42 billion in 2023, representing a 45.4 percent growth from 2022.

Regarding net income, FCMB Group reported a 206.9 percent growth as it posted a net income of N95.52 billion in 2023, from N31.13 billion recorded in 2022.

Its total comprehensive income also grew by 306 percent to N145.69 billion in 2023, based on a N26.52 billion gain accrued from foreign currency translation differences.

The Group recorded a trading income of N11.09 billion on FGN bonds in 2023, representing a 98.3 percent increase from 2022.

In the fiscal year 2023, FCMB Group significantly augmented its portfolio in securities assets, reaching a total of N478.23 billion.

This figure marks a surge of 86.9 percent compared to the N255.87 billion recorded in the previous year of 2022.

Notably, the lion’s share of this investment was directed towards Federal Government of Nigeria (FGN) bonds, amounting to N380.27 billion.

This represents a substantial increase of 94.6 percent when compared to the N195.37 billion allocated to FGN bonds by the group in the fiscal year 2022.

Over the years, the bank has developed a comprehensive range of financial solutions tailored to support Nigerians in their journey towards wealth creation and preservation.

These exclusive offerings encompass every stage of the wealth-building process, from accumulation to safeguarding. They include target and premium savings, wealth and investment management, pension schemes, and estate planning services such as wills and trusts.

The target and premium savings plans cater specifically to upwardly mobile professionals and entrepreneurs, laying a solid groundwork for financial growth.

Meanwhile, the wealth and investment management services cater to high-net-worth individuals, assisting them in building and safeguarding their assets for the future.

FCMB recently received recognition for its leading role in supporting small and medium-sized enterprises as well as green projects.

Yemisi Edun, Chief Executive Officer FCMB, said its partnership with the Development Bank of Nigeria empowers SMEs to scale up and contribute significantly to Nigeria’s economic development earning it the award of Deposit Money Bank with the highest impact in the DBN focus states.

“We are honoured to be recognised as the Deposit Money Bank with the Highest Impact in the DBN Focus States and the Participating Financial Institution with the Highest Disbursement to Green Projects. These awards affirm our commitment to meeting the expectations of our customers and the broader business community,” Edun said.

According to Edun, FCMB’s target is to train over 1 million SMEs through Technical Assistance worth €325,000 granted by Proparco (the private-sector arm of the French Development Agency) and another $275,000 from the African Development Bank (AfDB).

The bank’s leveraging of digital channels and artificial intelligence has streamlined its lending processes, resulting in substantial loan disbursements and enhanced customer experiences.

Ladi Balogun, the Group Chief Executive Officer of the holding company said: “We continue to leverage our unique Group structure to build a technology-driven ecosystem that fosters inclusive and sustainable growth in the communities we serve.

“This strategy enables us to deliver robust performance despite the challenging domestic and global environment. Barring unforeseen circumstances, we believe this trend will be sustained and accompanied by improving efficiencies arising from greater scale and ongoing digitization,” Balogun said.

The bank has invested significantly in various areas such as agriculture, renewable energy, and female entrepreneurship. Its intervention in food security has contributed to a 34 percent increase in lending to the agricultural sector amounting to N177 billion.

Over N16 billion in loans have been provided at a single-digit interest rate through the Babban Gona Franchise model, Psaltry, Tomato Jos, NOMA, Plantation Industries, and Mastercard Foundation covering over 10,000 hectares.

Last year alone, over N20 billion worth of loans were disbursed to women-owned SMEs through its SheVentures platform – a zero-interest loan facility option that provides short-term loans to women entrepreneurs. Another 4,200 women entrepreneurs were provided much-needed seed funds and 4-week interactive training sessions and mentorship sessions.

Its investment in education has seen scholarships for 5,000 children through its partnership with the Bethesda Child Support Agency (BCSA) by giving scholarships to less privileged children.

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