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FCMB Group records N283bn revenue in 2022



The First City Monument Bank Group Plc, in its audited results for December 31, 2022, showed a 35.5 per cent growth in gross revenue to N283 billion from N212 billion the previous year.

In which the group said, was driven by a 35.5 per cent growth in interest income and a 26.9 per cent growth in non-interest income.

Similarly, it reported a profit before tax (PBT) of N36.6 billion, representing a 61 per cent Year-on-Year growth.

Double-digit growth was recorded across all business segments, with the banking group growing by 71.7 per cent, while the consumer finance, investment management, and investment banking segments grew by 25.6 per cent, 45.7 per cent, and 26.7 per cent respectively.

The company, which proposed a dividend of 25 kobo per share, also delivered impressive environmental, social and governance results in climate action, financial inclusion, food security, community initiatives, customer acquisition, and digital transformation.

However, it switched 12 additional branches to solar power in 2022, removing 75 per cent of its branch network from grid/diesel generators, and provided micro-loans totaling at N13 billion to 120,000 MSMEs.

The agency banking arm extended its partnership to 100,000, acquiring over 211,000 customers. Working alongside partners, FCMB supported 280,000 smallholder farmers, created over 600,000 jobs, and helped deliver Africa’s first cassava-based Sorbitol Factory.

Customer confidence remained strong as deposits rose 25.1 per cent to N1.94 trillion in December 2022 from N1.55 trillion the previous year, while loans and advances witnessed a 12.4 per cent surge to N1.20 trillion as against N1.06 trillion in 2021, as sets increased by 19.6 per cent from N2.50 trillion to N2.98 trillion in December 2022.

Investment banking (advisory and primary debt and equity capital markets) transaction value consummated by the Group rise to N857.1 billion in 2022, compared to N582.9 billion in 2021.

This delivered a 47 per cent growth in fees from capital raise and financial advisory services over the period.

The financial service Group’s Assets under Management (AUM) also sustained its growth trajectory rising to N783.7 billion in 2022, up by 49.0 per cent from N525.7 the prior year.

Net interest income grew 34.2 per cent to N122.0 billion for the first twelve months of 2022, compared to N90.9 billion in 2021. This was driven by a growth in the yield on earning assets from 11.0 per cent to 12.7 per cent, which increased Net Interest Margin (NIM) from 6.2 per cent to 7.0 per cent.

The overall customer base of FCMB Group grew by 18.4 per cent to 10.9 million, as it acquired an additional 1.7 million customers in the period, including 250,000 customers from Pension Fund Administrator (PFA acquisition), compared to 900,000 in 2021.

This Group’s digital transformation drive witnessed enhanced performance across all business segments. Digital Payments, Wealth, and Lending continued to empower more customers, resulting in a 42.0 per cent growth in digital revenues from N26.1 billion in 2021 to N37.1 billion in 2022. Thus, digital revenues accounted for 13 per cent of gross earnings from the 12 per cent contribution in 2021.

In digital retail lending, First City Monument Bank and Credit Direct Limited, subsidiaries of the Group, underwrote and disbursed over 962,000 loans, totaling N42.1 billion, as at December 31, 2022, a growth of 17.1 per cent and 24.9 per cent, respectively, from the prior year. Through the Bank’s digital SME lending channels, over 21,000 loans, totaling N165.2 billion, were accessed, underwritten, and disbursed, a growth of 1.9 per cent and 43.7 per cent, respectively.

Money market

Nigeria’s pension fund administrators channel N130.18bn into infrastructure



In a recent report released by the National Pension Commission, Pension Fund Administrators (PFAs) have demonstrated a strong commitment to national development by investing a substantial N130.18 billion of the funds from the Contributory Pension Scheme (CPS) into infrastructure projects by the end of September 2023.

The unaudited report, which details the pension funds industry portfolio for the period ending on September 30, 2023, indicates a strategic allocation of pension assets to bolster the country’s infrastructure.

This move is part of a broader investment strategy that has seen the total assets under the CPS surge to an impressive N17.35 trillion. The PFAs are not only focusing on infrastructure but are also diversifying their investments across various asset classes.

These include domestic and foreign ordinary shares, an array of government securities from both federal and state levels, and a selection of money market instruments, among others.

The investment in infrastructure, however, is a notable highlight, reflecting the PFAs’ role in fostering sustainable economic growth and development.

The commitment of the PFAs to channel pension funds into productive sectors of the economy is a strategic approach that promises to yield long-term benefits for the nation, including the potential for improved public services and job creation.

This investment also aligns with the government’s objectives to enhance the country’s infrastructure and stimulate economic progress.

The National Pension Commission’s report, which also encompasses Approved Existing Schemes, Closed Pension Fund Administrators, and RSA Funds, including unremitted contributions at the Central Bank of Nigeria (CBN) & legacy funds, provides a transparent view of the pension industry’s performance and its pivotal role in the national economy.

The commission had in its amended investment regulation highlighted the requirements for investing the funds in line with the provisions of the Pension Reform Act, 2014.

It said the purpose of the regulation was to provide uniform rules and standards for the investment of pension fund assets.

According to the regulation, pension fund custodians must only take written instructions from licensed PFAs concerning the PFAs’ investment and management of pension fund assets held in the custody of the PFCs on behalf of the contributors.

It said the PFCs, in discharging their contractual functions to PFAs, must not contract out the custody of pension fund assets to third parties except for allowable investments made outside Nigeria.

“The PFC shall obtain prior approval from the commission before engaging a global custodian for such allowable foreign investments,” it said.

According to the regulation, the PFAs, in discharging their contractual functions to contributors, must not contract out the investment/management of pension fund assets to third parties except for open/close-end/hybrid funds and specialist investment funds allowed by the regulation.

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Money market

CITM supports bill to enhance accountability, reduce errors in financial transactions



The Chartered Institute of Treasury Management (CITM) has praised a proposed bill on Public Finance Management (PFM) reforms, stating that it would enhance accountability and reduce manual errors in financial transactions.

The Office of the Accountant General of the Federation (OAGF) has put forward the bill to provide legal support for PFM and the operations of the Federation’s Treasury.

In a statement released on Monday, the Registrar of CITM, Mr. Olumide Adedoyin commended the integration of cutting-edge financial technologies in the proposed reform. He highlighted that CITM has always been a strong advocate for such reforms and believes that the timing of the OAGF’s move is appropriate.

The CITM’s endorsement of the bill underscores the importance of modernising financial systems and embracing technology to improve efficiency and transparency. If passed, the bill could significantly enhance financial management practices in Nigeria and contribute to the country’s overall economic development.

The registrar said the vision outlined key elements crucial for an effective PFM.

Adedoyin said that CITM can set the benchmark for competence in treasury management roles, ensuring a cadre of highly skilled professionals.

He said that the bill, when enacted into law, would help in the identification, assessment and mitigation of financial risks.

According to him, by adopting international best practices, Nigeria can position itself as a beacon of financial resilience.

“At the heart of the reform lies a commitment to transparent financial reporting and stringent accountability measures.

“By implementing regular audits and disclosures, the government aims to build public trust and safeguard against fraud and mismanagement,” he said.

He said the institute was poised to contribute significantly through a collaborative approach, emphasising technology, risk management and professional development.

The registrar said this would come through collaboration with regulatory bodies and transparency measures, adding that CITM would help shape the legal framework for Treasury reform.

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Money market

Naira depreciates to N1,164/$ on black market



By Sodiq Adelakun

The Nigerian naira faced further pressure on the foreign exchange (FX) market on Monday, as it depreciated to N1,164 per dollar on the black market. This marks a 1.21 percent decrease compared to the N1,150 per dollar rate on Friday.

The depreciation is a result of the high demand for dollars by individuals and importers who were unable to meet their FX requirements through the official market due to a scarcity of greenback.

Despite a decrease in dollar liquidity on Friday, the naira actually strengthened against the dollar at the Autonomous Foreign Exchange Market (NAFEM).

The local currency lost 16.88 as the dollar was quoted at N794.89 on Friday as against N956.33, which closed on Thursday at NAFEM, data from the FMDQ indicated.

Willing buyers and willing sellers quoted the dollar at a spot rate of N1,136, the highest and lowest rate of N700 per dollar.

The daily foreign exchange market turnover declined by 28.13 percent to $ 75.82 million on Friday from $105.50 recorded on Thursday.

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