InvestingPort.com - FCMB Reports Outstanding 67.6% Profit Growth

FCMB Reports Outstanding 67.6% Profit Growth

By Samiat Dec, 05, 2024 Business

FCMB Reports Outstanding 67.6% Profit Growth

Performance Highlights for Q3 2024

1. Profit Surge
• FCMB recorded a 67.6% growth in after-tax profit, rising to ₦82.3 billion in the first nine months of 2024, up from ₦49.1 billion in 2023.

2. Interest Income Boom
• Interest income grew by 86.4%, reaching ₦445.7 billion, driven by:
• Increased loans and advances to customers (+73.2%).

• Investment securities at amortized cost climbing to ₦74 billion from ₦35 billion.
• However, interest expenses surged 129.4% to ₦271.9 billion due to the high-interest rate environment.

3. Earnings Breakdown
• Gross earnings rose to ₦587.7 billion from ₦351.5 billion.
• Net interest income grew by 43.6% to ₦173.7 billion.
• Fee and commission income increased to ₦41.4 billion, with contributions from:
• Service fees (₦21 billion).
• Electronic fees (₦9.8 billion).
• Account maintenance fees (₦9.8 billion).

4. Challenges in Other Gains
• Other gains dropped to ₦39 billion from ₦61 billion, impacted by reduced foreign exchange gains (₦37 billion compared to ₦54 billion in 2023).
• Operating expenses rose to ₦40.2 billion, driven by the Asset Management Corporation levy of ₦21.9 billion.

5. Growth in Assets and Liabilities
• Total assets increased to ₦6.8 trillion, supported by:
• Loans and advances to customers at ₦2.5 trillion.

• Total liabilities grew significantly to ₦6.23 trillion, with:
• Customer deposits rising to ₦4.3 trillion.

6. Shareholders’ Returns
• Shareholders’ funds increased to ₦588 billion, up from ₦373 billion in 2023.
• Earnings per share (EPS) rose to ₦5.55 kobo, compared to ₦3.31 kobo last year.

7. Cash Flow Insights
• Net cash flows from operating activities increased to ₦479 billion.
• Cash and cash equivalents surged to ₦941 billion from ₦351 billion.

Outlook

This remarkable growth highlights FCMB’s resilience and strategic positioning in Nigeria’s high-interest-rate environment, though challenges in foreign exchange gains and rising expenses could temper future performance.

Tags:

Share On Linkedin Whatsapp

Categories

Latest Post

© 2025 InvestingPort.com | All Rights Reserved.