FCMB Group Achieves 67% Profit Growth, Reports ₦91.8bn PBT For Q3 2024

FCMB Group Plc has delivered an impressive financial performance for the nine months ended September 30, 2024, posting a 67 percent increase in profit before tax (PBT) to ₦91.8 billion.

This strong growth highlights the group’s robust operational efficiency and its sustained trajectory of double-digit expansion across its divisions.

The group’s gross revenue surged by 67.2 percent year-on-year, reaching ₦587.8 billion, up from ₦351.5 billion in the same period in 2023. This was fuelled by an 86.5 percent rise in interest income and a 26.2 percent increase in non-interest income. Net interest income climbed by 44.3 percent to ₦173.8 billion, driven by a rise in yield on earning assets from 14.9 percent to 17.4 percent.

Mr. Ladi Balogun, Group Chief Executive of FCMB Group, highlighted the consistent growth across all four business divisions and reiterated the group’s commitment to its transformative capital-raising program.

“With improved interest margins, significant balance sheet growth, and rising liquidity and capital adequacy, we are well-positioned to enhance our support for the Nigerian and African economies through our purpose-led strategy,” Mr. Balogun said.

Operating expenses rose by 51.7 percent to ₦169.1 billion, reflecting inflationary pressures and increased regulatory costs. Despite this, the group maintained a cost-to-income ratio of 55.4 percent, showcasing operational efficiency. Net impairment losses on financial assets dropped by 22 percent to ₦44.4 billion, leading to an improved cost of risk of 2.7 percent compared to 3.9 percent in the previous year.

Profit contributions were balanced across the group’s operating divisions, with the Nigerian banking operations accounting for 68 percent of total PBT and the remaining 32 percent coming from other subsidiaries. Year-on-year growth was recorded in all divisions: consumer finance (108.5 percent), investment banking (63.3 percent), banking group (49.8 percent), and investment management (31.4 percent).

The group’s financial position also showed remarkable growth, with total assets increasing by 75.9% to ₦6.82 trillion and loans and advances rising by 58.9 percent to ₦2.53 trillion. Customer deposits surged by 71.1 percent to ₦4.33 trillion, while assets under management grew by 36% to ₦1.30 trillion. FCMB’s customer base expanded by 15.2% to 13.9 million, supported by a network of over 362,000 agents.

In the investment banking division, FCMB mobilised ₦876 billion in capital for clients, outperforming the ₦691 billion recorded in 2023, despite challenges in the debt capital markets due to high-interest rates.

The group also launched the first phase of its capital-raising program, with the next phase set to support compliance with the Central Bank of Nigeria’s recapitalisation directives. This initiative aligns with FCMB’s aspirations to retain its international banking license and enhance its financial stability.

FCMB group’s performance for the third quarter highlights its resilience and strategic focus, positioning the institution as a leading force in Nigeria’s banking and financial services sector.