PBT: FCMB Group Reports 67% Growth To N91.8bn

FCMB Group Plc has announced a 67 per cent growth in Profit Before Tax (PBT) to N91.8 billion for the nine months ended September 30, 2024, reflecting robust financial and operational performance across its business divisions.

The Group recorded a 67.2 per cent increase in gross revenue to N587.8 billion, compared to N351.5 billion in the same period in 2023. This was driven by an 86.5 per cent growth in interest income and a 26.2 per cent increase in noninterest income.

Net interest income rose by 44.3 per cent yearon-year, from N120.5 billion to N173.8 billion, bolstered by an improvement in the yield on earning assets from 14.9 per cent to 17.4 per cent.

Commenting on the results, Ladi Balogun, Group Chief Executive, FCMB Group, said: “The Group has maintained its double-digit growth trajectory across all four business divisions and expects to sustain this momentum for the rest of the year.

“As we continue our transformative capital raising programme, we expect the performance to be bolstered through improved interest margins, material balance sheet growth, and consequently improved efficiency ratios.

“We will also see liquidity and capital adequacy rising sharply. Most importantly, we look forward to accelerating our support for the Nigerian and broader African economies with our purpose-led strategy.”

Operating expenses increased by 51.7 per cent year-on-year to N169.1 billion, impacted by rising personnel, regulatory costs, and inflationary pressures. Despite this, the cost-toincome ratio remained efficient at 55.4 per cent.

Additionally, net impairment losses on finan – cial assets declined by 22 per cent to N44.4 billion, resulting in a lower cost of risk of 2.7 per cent, compared to 3.9 per cent in the prior year.

PBT growth was welldistributed across the Group’s operating divsions. The Nigerian Banking operations accounted for 68 per cent of the total PBT, while 32 per cent came from other operating companies.

Each of the Group’s divisions posted impressive year-on-year earnings growth: Con – sumer Finance (108.5%), Investment Banking (63.3%), Banking Group (49.8%), and Investment Management (31.4%).

The Group’s financial position also strengthened significantly. Total assets grew by 75.9 per cent to N6.82 trillion, up from N3.88 trillion, while loans and advances increased by 58.9 per cent to N2.53 trillion.

Customer deposits rose by 71.1 per cent to N4.33 trillion, and assets under management grew by 36 per cent to N1.30 trillion. FCMB Group also reported a 15.2 per cent increase in its customer base to 13.9 million, gaining over 1.3 million new customers.

The Group’s agency banking network expanded to over 362,000 agents, adding more than 700,000 customers.