FCMB Group Plc (FCMB) has reported increased revenue of N109.3 billion for the nine-months ended September 2015, an increase of two per cent from N106.7 billion for the same period in 2014. The bank also recorded a profit before tax (PBT) of N2.6 billion for the period, as against N16.8 billion for the nine-months of 2014. FCMB Group Plc, the financial holding company, comprises of First City Monument Bank Limited, FCMB Capital Markets Limited, CSL Stockbrokers Limited and CSL Trustees Limited.
Going by the unaudited International Financial Reporting Standards (IFRS) – compliant Group results, which include the Bank’s audited results for the same period, FCMB’s net interest income for the period ended September 2014 stood at N48.7 billion, as against N49.1 billion for the same period prior year. Operating expenses was up three per cent Year-on-Year (YoY) to N50.5 billion, for the nine-months ended September 2015, compared to N48.9 billion for the same period the previous year- a slower growth rate than inflation rate, underscoring FCMB’s successful cost saving initiatives.
Total assets was up 12 per cent YoY to N1.17 trillion as at September 2015 compared to N1.04 trillion as at September 2014, but flat Year-to-Date.
First City Monument Bank Limited, the commercial and retail banking subsidiary of FCMB Group Plc, continued to validate its leading position as a helpful and inclusive lender by increasing loans and advances to customers to N568.0 billion as at September 2015, as against N565.0 billion the previous year.
Mr Peter Obaseki, managing director of FCMB Group Plc, had this to say about the results:
“The group’s nine months’ profit before tax, dropped YoY to N2.6 billion, with the significant earnings drop largely coming from our commercial banking activities. This was caused by a specific impairment of N5.4 billion on a contracted receivable with a reputable and creditworthy going concern, that we are hopeful of recovering and additional impairments of N6 billion on our loan book. Revenue also came under significant pressure due to various regulatory and macroeconomic headwinds, with the lull in the capital markets also adversely affecting equity capital transactions and other businesses under our investment banking arm. However, top-line revenue continues to hold up on the back of a strong and resilient retail business, transaction services and alternate channel offerings; improving liquidity and stable capital adequacy.
Against the backdrop of a weak macroeconomic environment, the priority in the coming months will be on cost efficiency – especially cost of risk – capital preservation, loan and receivable recoveries and sustaining the momentum in our retail banking activities.”