FCMB Reports N111.9bn Profit Before Tax In 2024

First City Monument Bank (FCMB) has reported a profit before tax of N111.9 billion for the financial year ended December 31, 2024, reflecting a 71 percent increase compared to the previous year.

The bank’s performance was revealed in a corporate disclosure filed with the Nigerian Exchange Limited recently.

The Group’s gross revenue rose to N794.4 billion from N516.4 billion in 2023, representing a 53.9 percent year-on-year increase. This growth was largely fuelled by a 75.2 percent rise in interest income, alongside an 8.7 percent uptick in non-interest income. However, the overall contribution from non-interest income was weighed down by a significant 55.7 percent drop in other gains, which fell from N89.3 billion to N39.6 billion.

Net interest income climbed by 27.6 percent to N225.3 billion, but rising funding costs—up by 122 percent—led to a 1.9 percent decline in Net Interest Margin. Despite this, the yield on earning assets improved to 16.2 percent. Operating expenses increased by 45.7 percent to N229.1 billion, driven by a mix of inflation, higher regulatory and personnel costs, and foreign currency-related expenses. As a result, the cost-to-income ratio closed at 59.9 percent.

The bank also saw improved asset quality, as net impairment losses on financial assets dropped by 30.7 percent to N41.2 billion. This lowered the Group’s cost of risk to 1.8 percent, down from 3 percent in the previous year.

Across its business divisions, FCMB’s performance was mixed. Consumer finance saw robust growth of 83.5 percent, and the investment management arm posted a 27.9 percent increase. However, the core banking segment experienced a 7.7 percent decline. Notably, the bank’s diversification strategy showed progress, with non-bank subsidiaries accounting for over 30 percent of total Group profits.

The balance sheet remained strong, with loans and advances rising 28 percent year-on-year to N2.36 trillion, while total assets surged 59.5 percent to N7.05 trillion. Customer deposits also rose significantly, reaching N4.3 trillion—up from N3.08 trillion recorded in 2023.

In response to the Central Bank of Nigeria’s recapitalisation directive, FCMB successfully completed the first phase of its capital-raising programme, securing N144.6 billion through a public offer. This doubled the Group’s issued shares from 19.8 billion in 2023 to 39.6 billion in 2024. The capital injection has strengthened the Group’s balance sheet and pushed its capital adequacy ratio to 18 percent, enabling it to secure a National Banking License.

According to the bank, further phases of the capital programme are underway to ensure FCMB meets the minimum capital requirements necessary to retain its International Banking License.

“The capital injection has created essential buffers to support asset creation in select segments,” the Group noted, underlining its commitment to building a resilient institution capable of scaling responsibly and sustainably.