- ticket title
- Lagos Police uncover child trafficking camp in Lagos
- Nnamdi Kanu’s mysterious disappearance poses troubling questions
- Boko Haram: Army chief, Buratai sends strong warning to insurgents
- We’ll soon completely decimate Boko Haram, militants in N-Delta — CAS
- End erratic power supply in 2018 – Group tells Buhari
FCMB Group Plc has posted a profit before tax (PBT) of N14.2 billion for the nine-months, ended September 30, 2016.This figure, according to the bank, represents 453 per cent rise from N2.563 billion recorded in the comparative period of 2015.
The bank’s gross revenue stood at N140.7 billion, a 29 per cent rise when compared to N109.3 billion achieved during the same period in 2015.
FCMB Group Plc, a holding firm with First City Monument Bank (FCMB) Limited, FCMB Capital Markets Limited, CSL Stockbrokers Limited and CSL Trustees Limited as subsidiaries attributed the improved performance partially to its soundness of ratios and steady buffers against the subsisting adverse operating environment.
“In addition to the bank’s sustained revenue momentum combined with its cost optimisation programme.”The Group also recorded non-interest income of N44.8 billion which is an increase of 128 per cent year-on-year, from N19.6 billion recorded in 2015. This increase has been predicated on a 612 per cent year on year increase in FX 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 of FCMB Group Plc, Peter Obaseki explained that the performance reflects its focus on key ratios and the need to maintain buffers against a sustained adverse operating environment.
According to him, capital adequacy and liquidity ratios stood at 17.6 per cent and 36.8 per cent, respectively while profit before tax rose to N14.2 billion, representing 453 per cent growth. This, the bank said, translated to an EPS of 87 kobo, up 30.6 per cent.
Meanwhile, FCMB Limited, the flagship of FCMB Group Plc, had successfully transformed to a retail and commercial banking-led group.
“First City Monument Bank (FCMB) Limited, the flagship of FCMB Group Plc with subsidiaries that are market leaders in their respective segments had successfully transformed to a retail and commercial banking-led group.
“A breakdown of the 2016 third quarter performance shows the firm has continued to make significant inroads with profound gains in the growth of the business in areas such as retail banking (with a 315 per cent year on year growth in profitability) with increasing its banking activities in the agricultural sector.”
The Group Managing Director of FCMB Ltd, Ladi Balogun, reviewing the Q3 performance 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 per cent. 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 customers across all segments. Accordingly, the bank will maintain high provision coverage ratios (currently 131 per cent), continue to strengthen our capital adequacy ratio (currently 16.9 per cent) and our liquidity ratio (currently 36.8 per cent).
“While our prudential ratios should continue to strengthen into Q4, modestly buoyed by a tier 2 capital injection of N7.5 billion in November, we do not anticipate improvement in the fourth quarter earnings. Nonetheless, we are pleased with the gains we continue to record in growing our business in areas such as retail banking (with a 315 per cent year on year growth in profitability) and increasing our share of banking activities in the agricultural sector.”