FCMB Group records N170 billion revenue in 2017
FCMB Group Plc has released its financial results for the year ended December 31, 2017, reporting gross revenue of N169.9 billion.
The Group recorded a Profit Before Tax of N11.5 billion, while Profit After Tax stood at N9.4 billion and deposits grew to N689.9 billion as at the end of December 2017, an increase of five per cent, from N657.6 billion in the corresponding year.
According to a statement from the bank, the Group’s capital adequacy ratio also improved to 16.9 per cent from 16.7 per cent in 2016, just as asset base increased to N1.19 trillion, compared to N1.17 trillion at the end of 2016, while non-interest income as at the end of 2017 was N32billion, with loans and advances stood at N649.8billion.
“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,” the bank said in a statement.
Furthermore, it explained that the bank had in November 2017 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. These two sectors account for over 40 per cent of the country’s gross domestic product (GDP).
“Following these developments, FCMB Group Plc’s operating companies are now divided along three business groups – Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Investment Banking (FCMB Capital Markets Limited and CSL Stockbrokers Limited); and Asset & Wealth Management (Legacy Pension Managers Limited, First City Asset Management Limited and CSL Trustees Limited).
“The financial institution assured that, ‘’barring any unforeseen circumstances, we see improved operating performance in 2018 based on the improving macro-economic and capital markets environment, declining cost of funds for the bank, and the growing contributions of asset and wealth management following last year’s acquisitions.’’
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