FCMB Group Reports Impressive Profit Growth, Surges to N38.2 Billion

FCMB Group Plc reported a substantial increase in profit before tax for first half of 2023, reaching N38.2bn, which represents a remarkable 148% surge compared to N15.4bn in the corresponding period of 2022.

The unaudited six-month results, released on the Nigerian Exchange Limited, showcased impressive growth across key indicators. Notably, the banking group division experienced a significant rise of 185.5%, consumer finance grew by 10.3%, investment management by 53.3%, and investment banking by 54.3%.

In June 2023, FCMB Group’s gross revenue surged by 88.7% to reach N238.2bn, a substantial increase from N126.2bn in the same period of the prior year.

This growth was primarily propelled by a 51.9% rise in interest income and an impressive 216.9% surge in non-interest income. Addressing the financial outcomes, Ladi Balogun, the Group Chief Executive of FCMB Group Plc, emphasized the organization’s use of its distinct group structure to construct a technology-oriented ecosystem, promoting inclusive and sustainable growth within the communities it serves.

Balogun expressed confidence in sustaining this trend, accompanied by enhanced efficiencies resulting from greater scale and continuous digitization, barring unforeseen circumstances.

 At the end of June, FCMB Group witnessed a substantial increase in customers’ deposits, rising by 45.3% year-on-year to N2.38tn, compared to N1.64tn in the corresponding period of 2022. Similarly, loans and advances experienced a growth of 37.4% to N1.54tn, up from N1.12tn in the previous period.

 The half-year results also demonstrated impressive performance in environmental, social, and corporate governance activities, making significant contributions to society’s sustainable and inclusive growth.

During the review period, FCMB Group played a vital role in enhancing food security and import substitution in Nigeria by increasing lending to the agricultural sector by 18.4% to N174bn from N147.4bn in the full year 2022.

Furthermore, the company collaborated with partners to provide access to finance for 24,000 rural farmers and supported the rehabilitation of 80,000 farming households in the North-East geo-political zone of the country.

In the realm of climate action, the corporation secured funding amounting to N5bn from local development finance institutions. This funding was earmarked for providing on-lending services to customers seeking solar energy solutions, aligning with the company’s dedication to supporting renewable energy sources.

FCMB capitalized on its banking operations to stimulate foreign exchange flows, facilitating transactions amounting to over $160m in exports and $81m in remittances into the country during the initial half of 2023.

During the six months ending on June 30, 2023, FCMB Group expanded its customer base by an additional 869,000, resulting in a total of 11.7 million customers. This growth contrasts with the 10.1 million customers during the corresponding period in 2022.