Friday, April 6, 2018 9:00AM / FCMB
FCMB Group Plc has
released its financial results for the year ended December 31, 2017, reporting
a gross revenue of N169.9 billion. Going by the audited results, the Group
recorded a profit before tax (PBT) of N11.5billion, while profit after tax
(PAT) was N9.4billion.
And in
demonstration of the enhanced confidence of customers in FCMB, deposits grew to
N689.9billion as at the end of December 2017, an increase of 5%, from
N657.6billion in the corresponding year. The Group’s capital adequacy
ratio also improved to 16.9% from 16.7%, just as asset base increased to
N1.19trillion, compared to N1.17trillion at the end of 2016. Non-interest
income as at the end of 2017 was N32billion, while loans and advances stood at
N649.8billion.
In
a statement, the FCMB Group said that, ‘’in spite of the reduction in the headline numbers, the
Group’s performance for the year 2017 witnessed an improvement in core operating
performance over the previous year after adjusting for the significant foreign
exchange revaluation income enjoyed in 2016. In line with the repositioning
strategy of the Group for better performance, the key drivers of the
performance include increase in income from our non-banking activities, lower
impairment charges from the Bank and its subsidiaries, and improved operating
efficiencies through more pervasive use of technology’’.
In
November 2017, FCMB completed the acquisition of an additional 60% stake in
Legacy Pension Managers Limited, which increased FCMB’s stake from 28.2% to
88.2%, thereby making Legacy a subsidiary of FCMB. The acquisition helps
achieve further diversification of service offerings and, consequently,
earnings within the FCMB Group, which will be felt from the 2018 financial
year.
FCMB
Microfinance Bank Limited, the Group’s dedicated group lending and financial
inclusion vehicle, commenced operations as a state microfinance bank in January
2017. The business will be the key driver of FCMB’s informal and agricultural
sectors (particularly small-holder farmers) drive across the country. These two
sectors account for over 40% of the country’s gross domestic product (GDP).
Following
these developments, FCMB Group Plc’s operating companies are now divided along
three business groups – Commercial and Retail Banking (First City Monument Bank
Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank
Limited); Investment Banking (FCMB Capital Markets Limited and CSL Stockbrokers
Limited); and Asset & Wealth Management (Legacy Pension Managers Limited,
First City Asset Management Limited and CSL Trustees Limited).
The
financial institution assured that, ‘’barring any unforeseen circumstances, we see improved
operating performance in 2018 based on the improving macro-economic and capital
markets environment, declining cost of funds for the bank, and the growing
contributions of asset and wealth management following last year’s
acquisitions’’.

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