People & Money

FCMB Group 2022 Profit Surges 61% to N36.6bn, Records N283bn Revenue

FCMB Group Plc, owners of First City Monument Bank have released their audited financial results for FY 2022 ending December 31, 2022. The group recorded a Profit Before Tax (PBT) of N36.6 billion, a 61% YoY increase from FY 2021. The company proposed a dividend of 25k per share to its investors.

The company recorded a gross revenue of N283 billion in 2022, up by 35.5% from N212 billion recorded in 2021. A 35.5% growth in interest income and a 26.9% growth in non-interest income were the driving forces behind it. In 2022, customer confidence remained firm, with deposits increasing by 25.1% to N1.94 trillion in December 2022 from N1.55 trillion in 2021. Additionally, loans and advances experienced a 12.4% increase to N1.20 trillion, compared to N1.06 trillion in 2021.

Also Read: FCMB Partners Jamborrow To  Drive Financial Inclusion in Farming Communities 

In 2022, the Group’s total assets rose by 19.6%, increasing from 2021’s figure of N2.50 trillion to N2.98 trillion.

All business segments experienced double-digit growth, with the banking group seeing a 71.7% increase, while the consumer finance, investment management, and investment banking segments grew by 25.6%, 45.7%, and 26.7%, respectively.

In 2022, the Group’s investment banking (which includes advisory and primary debt and equity capital markets) transaction value increased to N857.1 billion, in contrast to N582.9 billion in 2021. Over the period, there was a 47% increase in fees earned from capital raising and financial advisory services. The financial service group’s Assets Under Management (AUM) continued to grow, reaching N783.7 billion in 2022, which represents a 49.0% increase from the previous year’s N525.7 billion.

In the FY ending December 31, 2022, net interest income increased by 34.2% to N122.0 billion, up from N90.9 billion in FY 2021. The increase in net interest income was fueled by a rise in the yield on earning assets from 11.0% to 12.7%, resulting in a boost in the Net Interest Margin (NIM) from 6.2% to 7.0%.

During the period under review, FCMB Group’s customer base increased by 18.4% to 10.9 million, with the acquisition of an extra 1.7 million customers, including 250,000 customers from a Pension Fund Administrator (PFA acquisition), compared to 900,000 customers in 2021.

FCMB Group’s digital transformation initiative saw improved performance across all its business segments. Digital payments, wealth, and lending services continued to empower more customers, resulting in a 42.0% surge in digital revenues from N26.1 billion in 2021 to N37.1 billion in 2022. Digital revenues contributed 13% to the gross earnings, compared to 12% in 2021.

As of December 31, 2022, the subsidiaries of FCMB Group, First City Monument Bank, and Credit Direct Limited, underwrote and disbursed over 962,000 loans amounting to N42.1 billion in digital retail lending, reflecting a 17.1% and 24.9% growth, respectively, from the previous year. The Bank’s digital SME lending channels facilitated the underwriting and disbursement of over 21,000 loans amounting to N165.2 billion, which represents a growth of 1.9% and 43.7%, respectively.

Also Read: FCMB’s Webinar: Accessing Finance During The Pandemic

FCMB achieved remarkable results in environmental, social, and governance initiatives, including climate action, financial inclusion, food security, community programs, customer acquisition, and digital transformation. In 2022, it transitioned 12 more branches to solar power, resulting in the removal of 75% of its branch network from grid/diesel generators. It also granted micro-loans worth N13 billion to 120,000 MSMEs.

The agency banking unit expanded its partnership to 100,000 and acquired over 211,000 customers. In collaboration with its partners, FCMB supported 280,000 smallholder farmers, created more than 600,000 jobs, and contributed to the establishment of Africa’s first cassava-based Sorbitol Factory.

David Olujinmi

David Olujinmi studies Engineering but his true passion is research and analysis. He writes about finance, particularly the capital market, investment banking, and asset management. More »

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