First City Monument Bank (FCMB) Plc has released its financial performance for the first half of the year ended June 30, 2011 with the bank group recording significant improvements across major lines of the income statement and stronger growth in the overall financial position.

The unaudited result for the six months released on the floor of the Nigerian Stock Exchange (NSE) on July 22, shows a N5.3 billion group profit-after-tax representing a 92 per cent growth from the N2.8 billion reported for the same period previous year.

A press statement issued by the bank said the growth was fuelled by a 58 per cent growth in Net Interest Income and 30 per cent growth in Operating Income between half year 2010 and half year 2011.

According to the statement, profit-before-tax growth also compared favourably with half-year 2010 where profit-before-tax was N3.5 billion, representing a growth of 92 per cent.

Net Loan Loss Expense was N1.7 billion as against Net Recovery of N2 billion in the same period of the preceding year, while Gross Earnings grew 18 per cent in half- year 2011 to N35 billion from N30 billion in half-year 2010.

The bank which also announced that Cost Income Ratio improved from 91 per cent in first half of 2010 to 66 per cent in first half of 2011 said further improvement is expected on this in the third and last quarters of 2011.

However, the group Operating Expenses grew marginally by 5 per cent to N16.1 billion in the first half of 2011 from N15.4 billion for the same period in 2010. Expenses however, remained flat quarter-on-quarter.

The bank also announced that Loan Quality remained largely unchanged with Non-Performing Loans Ratio standing at 5.3 per cent compared to 5.2 per cent as at March 2011.