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Key Points
- FCMB's profit after tax rose by 68 percent, reaching N82.4 billion ($51.4 million).
- Gross earnings surged by 67 percent to N587.8 billion ($367.4 million).
- FCMB raised N150 billion ($93.7 million) to support its recapitalization efforts.
FCMB Group’s impressive financial performance for Q3 2024
FCMB Group Plc, led by its visionary chairman, Dr. Ladi Balogun, a prominent billionaire investor, has posted a strong financial performance for the period ending September 30, 2024. The group recorded a profit after tax (PAT) of N82.4 billion ($51.4 million), marking a 68 percent increase from N49.2 billion ($30.8 million) in the same period last year. This growth reflects FCMB’s resilient strategy and operational strength in a highly competitive financial environment.
Founded by Dr. Ladi Balogun, who holds a significant stake in the bank, FCMB Group has grown into one of Nigeria’s leading financial institutions, known for its focus on innovation, customer satisfaction, and strong governance. Dr. Balogun's leadership and commitment have been instrumental in shaping the direction of the company, which has expanded its reach and diversified its services over the years. Under his stewardship, FCMB has continued to innovate and evolve, maintaining a firm grip on market share while driving value for stakeholders.
The company's strong performance for the year is a direct result of increased earnings across multiple revenue streams, such as interest income, fee-based income, and reduced impairment losses, setting a solid foundation for future growth. This stellar growth in PAT was driven by a significant increase in the group’s gross earnings, which surged by 67 percent, reaching N587.8 billion ($367.4 million) from N351.5 billion ($219.7 million) in the previous year.
Key revenue drivers: interest income and fee growth
A key contributor to FCMB's strong performance was a remarkable 86 percent increase in interest and discount income, which climbed to N445.8 billion ($278.6 million) from N239.1 billion ($149.4 million). The growth was largely driven by a stellar rise in net interest income, which jumped by 44 percent, reaching N173.8 billion ($108.6 million) from N120.5 billion ($75.3 million).
Additionally, FCMB Group's fee and commission income grew by 24 percent, amounting to N51.8 billion ($32.4 million), up from N41.5 billion ($26 million) in 2023. Other income also contributed positively, rising by 30 percent to N39.3 billion ($24.5 million), compared to N61.2 billion ($38.3 million) the previous year.
The growth trajectory was further complemented by a 22 percent reduction in impairment losses on financial instruments, which decreased to N44.4 billion ($27.8 million) from N57.0 billion ($35.6 million). This reduction is indicative of the group’s strong focus on risk management and maintaining a healthy balance sheet.
In addition to its core business success, the bank has facilitated over $900 million in export flows and $140 million in remittances, contributing to the strengthening of the non-oil sector and capitalizing on opportunities from initiatives like the African Continental Free Trade Area (AfCFTA).
Investments and future outlook
Despite a challenging macroeconomic environment, FCMB Group managed to maintain effective cost control. Personnel expenses rose by 66 percent to N56.5 billion ($35.3 million) in line with an expanded workforce to support business growth. Additionally, general and administrative expenses climbed by 51 percent to N62.2 billion ($38.9 million), driven by investments in technology and infrastructure.
FCMB’s equity holders saw substantial returns, with profit attributable to them reaching N76.9 billion ($48.1 million), up from N47.3 billion ($29.6 million) in the same period last year. The group’s total assets grew by 54 percent, reaching N6.8 trillion ($4.3 billion) from N4.4 trillion ($2.8 billion) in 2023. The increase in assets was driven by growth in loans, advances to customers, and investment securities.
In support of its recapitalization efforts, FCMB raised N150 billion ($93.7 million) between April and September 2024, ensuring it remains well-positioned for future growth.
