First City Monument Bank (FCMB) Group Plc has released its financial results for the year ended December 31, 2018, reporting a gross revenue of N177.4 billion, an increase of 4.3 per cent compared to the N169.9 billion for the same period in 2017.
Its Profit Before Tax (PBT) rose by 73 per cent to N18.4 billion as against N11.5 billion in the preceding year. Following these, the bank has recommended a dividend of 14 kobo per share to shareholders.
The Group, a holding company 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); as well as Asset & Wealth Management (FCMB Pensions Limited, First City Asset Management Limited and CSL Trustees Limited) also reported appreciable growth in key operating areas going by the audited results.
Net interest income as at the end of 2018 rose by three per cent Year-on-Year (YoY) to N72.6 billion. In demonstration of the enhanced customers’ confidence in FCMB, deposits also increased by 19 per cent to N821.7 billion, while loans and advances stood at N633 billion. Total assets went up by 21 per cent year-on-year to N1.43 trillion, just as capital adequacy ratio was 15.9 per cent.
In a statement, the FCMB Group said: ‘’The Commercial and Retail Banking Group (which include First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited) grew its profits by 76 per cent, driven by improved performance in retail lending and increase in fees and commissions. Our banking franchise continued to grow as reflected by a 19 per cent rise in deposits and our customer base also grew by 20 per cent to 4.8 million customers.’’
The Group further reported: ‘’The pre-tax profits of our Investment Banking businesses (FCMB Capital Markets Limited and CSL Stockbrokers Limited) grew by 18 per cent in 2018. This performance was driven by higher conversion of our investment banking deal pipeline as well as cost efficiency. Our stockbroking business also maintained its position as a top-tier player in its sector.
“Our Asset & Wealth Management businesses (FCMB Pensions Limited, First City Asset Management Limited and CSL Trustees Limited) increased combined assets under management by 24 per cent to over N310 billion.
“However, in spite of the reduction in fees charged by pension fund administrators by the primary regulator, our asset management businesses increased pre-tax profits by 271 per cent. We acquired additional shares in FCMB Pensions Limited (formerly Legacy Pensions Limited) to increase our stake from 88.2 per cent to 91.6 per cent in 2018.’’
FCMB Group assured that ‘’2019 should see continued growth along all key indices for the Group, driven by anticipated growth in our balance sheet, customer numbers and assets under management as well as rising commissions and improving unit economics from digital financial services’’.
