FCMB Boosts Profit by 56% to N32.6 Billion
It is a good start to the year as FCMB Group Plc bolstered its earnings performance in the financial year 2022 despite a tough economic environment battered by a rising inflation rate. Its financial statement shows that both the top and bottom lines increased significantly year on year.
According to a regulatory filing, the group’s distributable profit inched higher by about 56% year on year to N32.91 billion from N20.916 billion in the corresponding year in 2022 despite higher tax payment obligations in the period.
The Central Bank of Nigeria (CBN) inflation fighting triggered a 500 basis points surge in benchmark interest rate, which has been noted to help Nigerian banks to boost their toplines while net interest margins strengthened across the industry.
A well-diversified financial service group’s profit for the year printed above N32.59 billion, up 55.82% from N20.916 billion reported in the comparable period in 2021. Its strong profitability was supported by an increase in gross earnings across business segments in the financial year 2022.
According to its financial statement, gross earnings printed at N281.465 billion, up 32.89% from N212.012 billion in the comparable period. FCMB’s interest income increased significantly to N217.990 billion, amidst a switch into a hawkish pose by the Central Bank of Nigeria in May 2022, up 34.53% from N162.041 billion in 2021.
Likewise, funds providers’ claims spiked to N97.582 billion in the period, from N71.127 billion, representing an increase of 37.19% year on year following a 500 basis points policy rate hike in 2022. Up by 23.44% year on year, the group’s net interest income printed at N120.408 billion from N90.913 billion in the corresponding period in 2021.
Similarly, the group experienced a healthy surge in its fees and commission income line with a growth of 18.28% in its net position, rising from N28.752 billion in 2021 to N34.009 billion 12-month after.
In the period, FCMB net impairment losses on financial instruments rose sharply by 33.79% to N24.954 billion, from N15.238 billion in the comparable year. Also, the group reported growth in personnel expenses to N35.713 billion in addition to its N43.176 billion general and administrative expenses.
FCMB recorded more than 64% pretax profit growth in the year. Profit before tax inched higher to N37.100 billion in the financial year 2022, from N20.916 billion in the year 2021.
Overall, the bank’s total assets increased to N2.974 trillion from N2.493 billion. This pushed significant positioning in the fixed income market. FCMB’s investment securities expanded by 69% to N629.673 billion from N372.548 billion year on year.
At the end of 2022, the group increased its balance sheet size. At the group level, total assets printed at N2.974 trillion from N2.493 trillion in the comparable period. # FCMB Boosts Profit by 56% to N32.6 Billion
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