By Peter Egwuatu
FCMB Group Plc has announced its financial results for the year ended December 31, 2019 recording Group’s gross revenue of N188 billion from N177.2billion in the corresponding period of 2018.
The Bank also recorded profit before tax, which rose by 9 percent to N20.1 billion from N18.442 billion in 2018.
Following its improved performance, the Bank has declared a dividend of 14 kobo per share to shareholders.
The financial results of the Bank also showed that net interest income increased by 5 percent Year-on-Year (YoY) to N76 billion for the twelve months of 2019 from N72.6 billion within the same period in 2018.
In demonstration of enhanced customers’ confidence in FCMB, deposits grew to N943.1 billion in December 2019, as against N863.4 billion in September 2019. Loans and advances disbursed by the Group as at the end of December 2019 stood at N715.9 billion, representing a rise of 12 percent (Quarter-on-Quarter, QoQ), compared to N638.1 billion in September 2019.
Moreover, total assets of the Group went up by 10 percent QoQ to N1.67 trillion in December 2019 from N1.52 trillion in September 2019, just as capital adequacy ratio stood at 17.17 percent, which is above the benchmark set by the Central Bank of Nigeria, CBN.
Commenting on the overall performance, FCMB Group stated that, “post-tax profits increased by 16 percent to N17.3 billion, this translates to a return on average equity (RoAE) of 9 percent and earnings per share of 87.2 kobo, an improvement on 8.1 percent and 75.2 kobo, respectively, in 2018.”
It added that, “our businesses continue to improve with growth in other key indicators, such as loans and advances, deposits and assets under management (AUM), which grew by 13.1percent, 14.8 percent and 28.3 percent, respectively. Our customer base also grew by 27.7 percent across the Group from 5.3 million to 6.8 million. Overall, customer satisfaction has shown positive trends, with a net promoter score of 31 in banking and 23 in asset management. Asset quality has continued to improve, with the Group-wide Non Performing Loan, NPL ratio coming down to 3.7 percent from 5.9 percent.
Similarly, capital adequacy ratio has remained stable at 17.2 percent for our Commercial and Retail Banking Group”.