FCMB posts N64.2bn pre-tax profit in 2024 H1
FCMB Group recorded a profit before tax of N64.2 billion in the first half of 2024, marking a 68 percent year-on-year growth from the N38.2 billion posted in the corresponding period of 2023.
The parent group of First City Monument Bank recorded a gross earning of N374.5 billion in H1 2024, representing a 57 percent YoY improvement from the N238.2 billion gross earning posted in H1 2023. The bulk of the group’s earnings came from interest income, as the bank recorded an interest income of N269.2 billion, an 81 percent YoY from the N149 billion interest income in H1 2023.
During the period, the group’s net profit hit N59.5 billion, which was a 68 percent YoY improvement from the N35.4 billion posted in H1 2023.
FCMB posted a net interest income of N106.2 billion during the period, marking a 47 percent improvement from the N72.3 billion as of H1 2023. There was also a 33 percent YoY decline in net impairment losses during the period to N31.3 billion, from N47.1 billion as of H1 2023.
During the period, the group received interest payments amounting to N382 billion, representing a 101 percent appreciation from the N189.7 billion received in H1 2023.
The increment in interest payments is linked to the continued hike in benchmark interest rates, as banks continue to thrive in Nigeria’s high interest rate environment.
In the first half of 2024, customers’ deposit in FCMB increased by 26 percent to N3.9 trillion, from N3.1 trillion as at FYE 2023.
FCMB Group’s net loans and advances to customers increased by 32 percent in H1 2024 to N2.43 trillion, from N1.84 trillion as at FYE 2023.
The group’s borrowings have increased by 162 percent this year to N357.4 billion, from N136.5 billion as of FYE 2023.
The bulk of the group’s borrowings were from Afrexim bank, which lent the group N112.6 billion during the period.
FCMB’s wages and salaries bill increased by 74 percent YoY to N26.6 billion, from N15.2 billion as of H1 2023.
The group’s micro-lending arm, Credit Direct Limited, posted a profit after tax of N3.9 billion and a revenue of N16.5 billion.
Credit Direct has grown to become the second largest subsidiary of the group, with an asset size of N92.7 billion.
As part of its cash balances, the bank has a balance of N660 billion with foreign banks, marking a 75 percent jump in 2024, from the N376.4 billion balance held as at FYE 2023.
However, this sum includes N96.8 billion which is held on behalf of customers in respect of letters of credit.
During the period under review, FCMB posted an FX trading income of N15.5 billion, marking a stark contrast from the N922 million FX trading income recorded in H1 2023.
Through FCMB UK, deposits from other banks increased to N397 billion, from N270 billion as of FYE 2023.
