FCMB Group Plc has  reported a profit before tax, PBT, of N14.2 billion for the nine-months ended September 30, 2016. This represents an impressive increase of 453 per cent from N2.563 billion recorded in the comparative period of 2015. FCMB Group Plc, the holding firm with subsidiaries including First City Monument Bank (FCMB) Limited, FCMB Capital Markets Limited, CSL Stockbrokers Limited and CSL Trustees Limited, attributed the result achieved partially to its soundness of ratios, steady buffers against the subsisting adverse operating environment, in addition to the bank’s sustained revenue momentum combined with its cost optimization parogramme.

Details of its unaudited financial results released on the floor of the Nigerian Stock Exchange, NSE, showed that  the bank grew its retail banking business by significant 315 percent, while its gross revenue rose to N140.7 billion, a 29 per cent increase over N109.3 billion recorded in the same period in 2015.

The Group also recorded non-interest income of N44.8 billion which is an increase of 128 per cent Year-on-Year (YoY), from N19.6 billion for the same period prior year. This increase has been predicated on a 612 per cent YoY increase in foreign exchange income from N5.0 billion for the nine-months ended September 2015 to N35.3 billion for the nine-months ended September 2016.

The Managing Director, FCMB Group Plc, Mr. Peter Obaseki, commenting said: “The audited nine months results for the period ended September 2016, reflects our focus on key soundness ratios and the need to maintain buffers against a sustained adverse operating environment.

Accordingly, capital adequacy and liquidity ratios have held up at 17.6 per cent and 36.8 per cent, respectively. Overall, profit before tax came in at N14.2 billion, a 453 per cent per cent growth, translating to an earning per Share, EPS, of 87 kobo, up 30.6 per cent, YoY, Underlying revenue momentum remains strong while cost optimization programme led to a two per cent YoY drop in operating expenses, despite inflationary spiral respectively.

The macro economic conditions in the final quarter remains challenging; we will keep up a conservative stance.”

Mr. Ladi Balogun, Group Managing Director, FCMB Ltd, while also commenting on the Group’s results said: “The audited results of the bank reveal that the extraordinary performance of Q2 2016 offset the loss recorded in Q3 of N2.4 billion, thereby resulting in strong year-on-year profit growth of 913 percent. In order to avoid an unsustainable, non-cash, spike in earnings from further revaluation gains in Q3, the bank also significantly stepped up its loan loss provisions. The macroeconomic climate is taking a significant toll on the bank’s borrowing from customers across all segments. Accordingly, the bank will maintain high provision coverage ratios (currently 131%), continue to strengthen our capital adequacy ratio currently at 16.9 per cent and our liquidity ratio, which is currently at 36.8 per cent.”