FCMB Group Plc (FCMB) announced a significant growth in profit before tax (PBT) of 108% YoY to N55.1 billion for the nine months ended September 30, 2023, compared to N26.5 billion in the same period of 2022. The banking group’s earnings increased by 130.1%, while Consumer Finance saw a growth of 32.6%. Investment Management and Investment Banking performed well with growth rates of 38.7% and 27.6% respectively. The Group’s financial performance was attributed to the collective strength of its diverse business segments.
The Group Chief Executive of FCMB Group Plc, Mr Ladi Balogun, attributed the positive results to the company’s unique group structure, which allows for building a technology-driven ecosystem that fosters inclusive and sustainable growth in the communities they serve. He emphasized that this strategy enables the company to deliver robust performance despite the challenging domestic and global environment. Mr Balogun added that the company believes this trend will be sustained and accompanied by improving efficiencies arising from greater scale and ongoing digitization, barring unforeseen circumstances.
Gross revenue rose 75.7% to N351.5 billion as at September 2023, compared to N200.1 billion for the prior year. This was driven by a 55.1% growth in interest income and a 144.6% growth in non-interest income. Net interest income grew 29.5% to N120.5 billion from N93.1 billion in the prior year, driven by an increase in the yield on earning assets for the period ended September 2023.
FCMB increased its lending activities, providing loans and advances totalling N1.59 trillion, a 34.3% increase from the previous year. Simultaneously, the institution experienced a 39.1% YoY growth in customer deposits to N2.53 trillion, showcasing the unwavering trust of its customers. The Group’s total assets grew by an impressive 32.2% YoY to N3.88 trillion from N2.93 trillion, strengthening its position as a leading financial institution in Nigeria.
Assets Under Management (AUM) recorded a 26.1% YoY growth from N756.1 billion to N953.7 billion as at September 2023. The Group’s customer base expanded 15.4% YoY, reaching 12 million as of September 2023, reflecting a current-year growth of over 1.1 million customers. Additionally, the agency banking business expanded its network to over 120,000 agents, acquiring over 130,000 customers. Investment Banking transaction value consummated by the Group rose to N690.9 billion, marking a 15.2% YoY growth.
In addition, the Group completed the issuance of a Series 2 Additional Tier 1 Capital Bond under its N300 billion Debt Issuance Programme for its Banking Subsidiary, bringing the total Additional Tier I Capital raised during the year to ₦46.7 billion. Its consumer finance business, Credit Direct Limited, also completed its maiden Commercial Paper Issuance to further diversify the company’s funding base.