FCMB Group Plc has reported a pre-tax profit of N117.2 billion for the fiscal year ending December 31, 2024, marking a 12.32% increase from the N104.4 billion recorded in 2023. This performance underscores the group’s resilience and strategic effectiveness in navigating economic uncertainties.
•Key Financial Highlights:
•Gross Earnings: The group’s gross earnings surged by 53.93% to N794.8 billion in 2024, up from N516.3 billion in 2023.
•Interest and Discount Income: There was a significant 75.08% rise in interest and discount income, reaching N621.5 billion compared to N354.9 billion the previous year.
•Interest Expense: Interest expenses escalated by 122.02% to N396 billion, reflecting increased funding costs.
•Net Interest Income: Despite higher interest expenses, net interest income grew by 27.66% to N225.4 billion from N176.5 billion in 2023.
•Net Fee and Commission Income: This metric saw a 30.17% increase, amounting to N59.1 billion, up from N45.4 billion in the prior year.
•Net Trading Income: A remarkable growth of 568.48% was observed in net trading income, which rose to N60.8 billion from N9.1 billion in 2023.
•Other Income: Other income experienced a substantial increase of 387.29%, totaling N3.4 billion, compared to N699.6 million in the previous year.
•Personnel Expenses: Personnel costs increased by 60.05% to N79.3 billion, with wages and salaries accounting for N58.5 billion.
•General and Administrative Expenses: These expenses grew by 36.08%, reaching N86.7 billion, up from N63.7 billion in 2023.
•Post-Tax Profit: The group’s post-tax profit rose by 16.05% to N107.9 billion, compared to N92.9 billion in the previous year.
Balance Sheet Overview:
•Total Assets: FCMB’s total assets expanded significantly by 59.09% to N7 trillion as of December 31, 2024, from N4.4 trillion at the end of 2023.
•Loans and Advances: Loans and advances to customers increased to N2.3 trillion, indicating the group’s commitment to supporting customer financing needs.
•Customer Deposits: Customer deposits grew to N4.2 trillion, representing 66.8% of total liabilities, up from N2.5 trillion in 2023.
Key Financial Ratios:
•Return on Equity (ROE):The ROE improved to 15.5% in 2024, up from 14.2% in 2023, reflecting enhanced profitability relative to shareholder equity.
•Return on Assets (ROA): The ROA remained stable at 1.54%, indicating consistent asset utilization efficiency.
•Net Interest Margin (NIM): The NIM decreased to 5.2% from 6.1% in 2023, due to the higher increase in interest expenses relative to interest income.
•Cost-to-Income Ratio: This ratio improved to 55.3% from 58.7% in the previous year, demonstrating better operational efficiency.
•Non-Performing Loan (NPL) Ratio: The NPL ratio was maintained at 3.2%, indicating prudent credit risk management.
These robust financial metrics highlight FCMB Group’s strategic focus on revenue diversification, cost management, and prudent risk management. The significant growth in both interest and non-interest income streams underscores the group’s adaptability and resilience in a dynamic economic environment.
