FCMB Group Plc has grossed N169.9 billion as earnings in the 2017 financial year and recommended 10 kobo dividend for its shareholders
In its audited results for 2017 made available to the Nigerian Stock Exchange (NSE), FCMB Group declared a profit before tax of N11.5 billion, and profit after tax of N9.4billion while its deposits grew to N689.9 billion, an increase of 5 per cent from N657.6 billion recorded in the previous year.
The capital adequacy ratio also improved to 16.9 per cent from 16.7 per cen, just as asset base increased to N1.19trillion, compared to N1.17trillion at the end of 2016. Non-interest income as at the end of 2017 was N32billion, while loans and advances stood at N649.8billion.
The bank said in a statement that‘’in spite of the reduction in the headline numbers, the Group’s performance for the year 2017 witnessed an improvement in core operating performance over the previous year after adjusting for the significant foreign exchange revaluation income enjoyed in 2016.
“In line with the repositioning strategy of the Group for better performance, the key drivers of the performance include increase in income from our non-banking activities, lower impairment charges from the bank and its subsidiaries, and improved operating efficiencies through more pervasive use of technology’’.
In November 2017, FCMB completed the acquisition of an additional 60 per cent stake in Legacy Pension Managers Limited, which increased FCMB’s stake from 28.2 per cent to 88.2 per cent, thereby making Legacy a subsidiary of FCMB. The acquisition helps achieve further diversification of service offerings and, consequently, earnings within the FCMB Group, which will be felt from the 2018 financial year.
FCMB Microfinance Bank Limited, the Group’s dedicated group lending and financial inclusion vehicle, commenced operations as a state microfinance bank in January 2017. The business will be the key driver of FCMB’s informal and agricultural sectors (particularly small-holder farmers) drive across the country.