By Nkiruka Nnorom
Lagos—FCMB Group Plc has reported a gross revenue of N169.9 billion for its financial year ended December 31, 2017.
The result released on the floor of the Nigerian Stock Exchange, NSE, showed that the bank recorded a profit before tax, PBT, of N11.5 billion,while profit after tax, PAT, for the period stood at N9.4 billion.
Further breakdown of the result showed that deposits grew to N689.9 billion at the end of December 2017, an increase of five percent from N657.6 billion in the corresponding year, indicating enhanced confidence by customers in the bank.
The Group’s capital adequacy ratio also improved to 16.9 percent from 16.7 percent, just as asset base increased to N1.19 trillion compared to N1.17 trillion at the end of 2016. Non-interest income as at the end of 2017 was N32 billion, while loans and advances stood at N649.8 billion.
In a statement, the FCMB Group said: ‘’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”.
In November 2017, FCMB completed the acquisition of an additional 60 percent stake in Legacy Pension Managers Limited, which increased FCMB’s stake from 28.2 percent to 88.2 percent, thereby making Legacy a subsidiary of FCMB.
The acquisition helped to achieve further diversification of service offerings and, consequently, earnings within the FCMB Group, which will be felt from the 2018 financial year.