FCMB records N7.1 billion profit before tax for the first six months of 2018
FCMB Group Plc has recorded a profit before tax (PBT) of N7.1 billion for the half-year ended June 30, 2018. This is an increase of 86 per cent from N3.8 billion achieved for the same period of last year, 2017.
According to the bank, the development reflected the improving performance of the financial institution, as well as the effects of diversification through its investments in asset and wealth management.
FCMB Group is a holding company, made up of the Commercial and Retail Banking division- First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited.The Investment Banking division has FCMB Capital Markets Limited and CSL Stockbrokers Limited; while the Asset and Wealth Management division encompasses the Legacy Pension Managers Limited, First City Asset Management Limited and CSL Trustees Limited.
From the details of its unaudited results announced on the floor of the Nigerian Stock Exchange (NSE), the Group’s gross revenue rose to N83.9 billion as at the end of June 2018, compared to N77.5billion in the corresponding period of 2017. Similarly, net interest income rose by nine per cent Year-on-Year from N32.5 billion to N35.3 billion, while non-interest income grew to N16.5 billion, an increase of 29 per cent, from N12.8 billion for the same period of last year.
The Commercial & Retail Banking group (which comprises First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited) generated a 32.2 per cent increase in PBT to N2.9 billion for half year 2018 from N2.2 billion at the end of first quarter 2018. Revenue increased by 3.7 per cent year-on-year, driven by an 8.1 per cent increase in non-interest income and an 8.7 per cent increase in net-interest income.
The 8.7% increase in net-interest income was largely due to reduction in cost of funds from growth in Personal Banking and deposits of Small and Medium Enterprises. This led to increase in net interest margin to 7.7 per cent for half-year 2018 from 7.5 per cent in 2017. Moreover, non-interest income increased by 6.3 per cent quarter-on-quarter to N6.7 billion, due to mobile banking income earned.
The unaudited results also showed increase in net interest margin to 7.7 per cent for the first half of 2018 from 7.5 per cent in the corresponding period of 2017. In the same vein non-interest income increased by 6.3 per cent quarter-on-quarter to N6.7 billion due to income earned from mobile banking.