FCMB releases financial results for 9 months up to September 2023

For the nine months ending September 30, 2023, FCMB) (“FCMB Group”) publishes its Unaudited Group Results, which include audited Nigerian bank results.

Highlights of the Financial Performance:
Analysis of Earnings
❖ The nine months ended in September 2023 saw gross revenue of ₦351.5 billion, up 75.7% from ₦200.1 billion in the same time the previous year. A 144.6% increase in non-interest income and a 55.1% increase in interest income were the main drivers of this.

❖ At the end of the term, net interest income increased by 29.5% from ₦93.1 billion to ₦120.5 billion. The increase in the yield on earning assets for the month of September 2023 was the driving force behind this.

❖ For the period ending in September 2023, operating expenses climbed 29.0% Year-over-Year to ₦111.5 billion. This rise was caused by pressure from general inflation as well as higher personnel, regulatory, and technology-related costs.

A rise in the cost of risk to 3.9% was caused by the net impairment loss on financial assets, which rose Year-over-Year to ₦57.0 billion for the period ending in September 2023 from ₦18.7 billion the year before.

With segments of the Group reporting strong earnings growth—Banking Group 130.1%, Consumer Finance 32.6%, Investment Management 38.7%, and Investment Banking 27.6%—PBT increased by 108.0% Year-over-Year to ₦55.1 billion.

Financial Situation: ❖ As of the end of September 2023, loans and advances had grown by 34.3% Year-over-Year to ₦1.59 trillion.
By the end of September 2023, total assets had grown from ₦2.93 trillion to ₦3.88 trillion, a year-over-year growth of 32.2%.
By the end of September 2023, customer deposits had increased from ₦1.82 trillion to ₦2.53 trillion, a year-over-year growth of 39.1%.

At the end of September 2023, Assets Under Management increased by 26.1% Year-over-Year, from ₦756.1 billion to ₦953.7 billion.

Other Notable Highlights: ❖ During the quarter that concluded in September 2023, our client base increased by 15.4% YoY, from 10.4 million to 12 million, a current year rise of over 1.1 million customers. In a similar vein, our agency banking division expanded to include over 120,000 agents and over 130,000 clients in that time.

❖ The Group’s consumption of investment banking transaction value (advisory and primary debt and equity capital markets) increased to ₦690.9 billion during the review period, representing a 15.2% YoY growth.

❖ Under its N300 billion Debt Issuance Program, the Group successfully issued a Series 2 Additional Tier 1 Capital Bond for its Banking Subsidiary, increasing the total amount of Additional Tier I Capital raised during the year to ₦46.7 billion. To further diversify the company’s funding basis, our Consumer Finance division, Credit Direct Limited, also successfully executed its first Commercial Paper Issuance.

We keep using our special Group structure to create a technology-driven ecosystem that helps the communities we serve flourish in a way that is both inclusive and sustainable. We are able to achieve strong performance despite the difficult local and international environments because to this strategy. We think this trend will continue, barring unanticipated events, and be accompanied by increased economies due to larger size and ongoing digitization.