Nigeria Update: FCMB Group posts N7b half-year profit
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FCMB Group Plc recorded a profit before tax (PBT) of N7.1 billion for the six-months ended 30 June 2018, representing 86 per cent increase from N3.8 billion achieved for the same period in 2017.
The positive development reflects the improving performance of the financial institution, as well as the positive effects of diversification through investments in asset and wealth management.
FCMB Group is a holding company, made up of the Commercial and Retail Banking division- First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited. The Investment Banking division has FCMB Capital Markets Limited and CSL Stockbrokers Limited; while the Asset and Wealth Management division encompasses the Legacy Pension Managers Limited, First City Asset Management Limited and CSL Trustees Limited.
From the details of the unaudited results submitted on the floor of the Nigerian Stock Exchange (NSE), the Group’s gross revenue rose to N83.9 billion as at the end of June 2018, against N77.5 billion in the corresponding period of 2017.
Similarly, the net interest income rose by nine per cent year-on-year (YoY), from N32.5 billion to N35.3billion, while non-interest income grew to N16.5billion, representing 29 per cent, from N12.8 billion for the same period of last year. The Commercial and Retail Banking group, generated a 32.2 per cent increase in PBT to N2.9 billion for the half-year of 2018, from N2.2 billion at the end of first quarter 2018.
Revenue increased 3.7 per cent YoY, driven by an 8.1 per cent YoY increase in non-interest income and 8.7 per cent YoY increase in net-interest income. The increase in net-interest income was largely due to reduction in cost of funds from growth in Personal Banking and deposits of Small and Medium Enterprises. However, there was increase in net interest margin to 7.7 per cent for the first half of 2018, from 7.5 per cent in corresponding period of 2017, while non-interest income increased by 6.3 per cent quarter-on-quarter to N6.7 billion, due to mobile banking income earned.
