April 11, 2022

FCMB Group grows after-tax profit by 7% to N20.9bn

FCMB deepens financial inclusion, opens ultra-modern cash centre in Ikorodu

FCMB shareholders approve N1.98bn dividend

By Babajide Komolafe

FCMB Group Plc has recorded seven per cent growth in its after tax profit to N20.9 billion in the financial year ended December 2021. 

This follows growth in gross revenue to N212 billion, representing a 7% growth compared to N198.4 billion in 2020. Consequently, the profit before tax, PBT, rose to N22.7 billion from N21.9 billion in 2020.

As a result, it declared a higher dividend of 20 Kobo per share to shareholders compared to 15 Kobo per share in 2020.

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The company disclosed this in its financial statement for the year ended December 2021 which also enhanced customer confidence in FCMB, as deposits increased by 24% to N1.6 trillion from N1.3trillion in the previous year. Loans and advances grew by 29% to N1.1 trillion at the end of December 2021, as against N822.8 billion the previous year. In addition, the total assets of the Group rose by 21% toN2.5trillion.

 FCMB Group’s Assets Under Management (AUM) also sustained its growth trajectory rising to N525.8 billion in 2021, up by 6% from N495.2billion in 2020.

Net interest income grew marginally by 0.2% Year-on-Year to N90.9 billion for full-year 2021 from N90.7 billion for the full year 2020. Non-interest income increased to N43.1billion last year, representing 17% growth, as against N36.8 billion in the prior year. This was due to an increase in electronic fees and commissions from digital channels. Trading Income also surged by 32% Year-on-Year resulting from higher volumes of fixed income instrument trades.

The capital adequacy ratio remained stable at 16.2% for the retail and commercial banking subsidiary of the Group (that is, First City Monument Bank), while the liquidity ratio of the Bank stood at 34.8% as of the end of the financial year 2021, indicating that the financial institution is in a very healthy position.  FCMB also acquired an additional 1.1 million customers in 2021, increasing its total customer base to 9.4 million from 8.3 million in 2020.