In spite of the challenges posed by the COVID-19 (coronavirus) pandemic and the business environment, First City Monument Bank (FCMB) Group Plc has announced its financial results for the year ended December 31, 2020, with the Group’s gross revenue increasing to N199.4 billion, a 10 percent increase from N181.3 billion achieved in 2019.
The audited results showed that the financial institution remained resilient and improved significantly on market fundamentals.
The positive performance of the financial institution also manifested in profit before tax, which rose to N22 billion from N20.1 billion, for the same period in the previous year.
As a result of the gains, the leading financial services Group has declared a dividend of 15k kobo per share to shareholders, compared to 14 kobo per share in 2019.
FCMB Group, which is a holding company 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); Corporate & Investment Banking (The Corporate Banking Division of the Bank, FCMB Capital Markets Limited and CSL Stockbrokers Limited) and Investment Management (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited), also reported appreciable growth in other key operating areas.
The financial results showed enhanced customers’ confidence in FCMB, as deposits grew by 33 percent to N1.3 trillion from N943.1 billion in the previous year.
Loans and advances also surged by 15 percent to N822.8 billion as at December 2020. Also, the total assets of the Group increased by 23 percent to N2.06 trillion last year.
Moreover, FCMB Group’s net interest income rose by 20 percent to N90.8 billion for the full year 2020, from N76 billion in 2019.
Non-interest income equally increased to N37.8 billion, representing a nine percent growth over N34.8 billion in the previous year.
The Group’s Assets Under Management (AUM) also sustained its growth trajectory by rising to N495.2 billion for the year ended December 2020, up by 23 percent.
Similarly, capital adequacy ratio remained stable at 17.7 percent for the retail and commercial banking subsidiary of the Group (that is, First City Monument Bank, which has a customer base of almost eight million).
The capital adequacy ratio of 17.7 percent is also above the benchmark set by the Central Bank of Nigeria for deposit money Banks in the country.
Liquidity ratio of the Bank stood at 34.2 percent as at the end of the financial year 2020, indicating that the financial institution is in a very healthy position. Non-performing loans to total loans ratio stood at a modest 3.3 percent.
Analysts have already expressed positive views on FCMB’s 2020 financial results, with one of them describing it as “very encouraging.”
A financial expert also said: “The 2020 results of the Group is a strong indication that the business is on a stronger pedestal, with capacity to deliver more value to shareholders, the market and other stakeholders.”
It will be noted that FCMB Group is a frontline financial services institution in Nigeria, with subsidiaries that are market leaders in their respective segments.
Having successfully transformed to a retail banking and wealth management led group, FCMB has continued to distinguish itself through innovation and the delivery of exceptional services.