UK grants FCMB full commercial bank status
The United Kingdom subsidiary of the First City Monument Bank (FCMB UK) Limited has been granted approval by the Bank of England’s Prudential Regulatory Authority (PRA) to commence deposit taking activities for businesses and corporate organisations.
A statement by the FCMB group yesterday said the bank has also been empowered to expand its existing stock broking and corporate finance activities.
FCMB Group also released its financials for the year ended December 31, 2013, with profit before tax (PBT) of N18.2billion, up 12 per cent from last year. Net revenue rose 16 per cent to N84.2 billion over prior year.
The group, which returned to dividend payment, with proposed dividend of 30kobo/share, also reported a number of significant developments in key operating areas.
In 2013, deposits grew 11 per cent to N715 billion, aided by 21.1 per cent growth in current and savings accounts, while fixed deposits declined during the year. Consequently, the bank’s funding mix has improved, with current and savings accounts now accounting for 73.9 per cent of total deposits, which saw a reduction in the bank’s cost of funds during the year in spite of the fact that interest rates remained high throughout 2013.
Loans and advances also grew 26 per cent to N451billion, retail lending, oil and gas and power sector financing were the largest contributors to this growth. FCMB Plc’s total assets (excluding contingencies) now stand above N1trillion. Individual and SME banking combined, now accounts for 44 per cent of total deposits, 32 per cent of risk assets and 19 per cent of profits.
The group reported improved earnings growth in 2013, in spite of the challenging regulatory environment. Successful execution of retail strategy, growth of Bank Assurance and FinBank merger synergies provided necessary revenue growth impetus.
FCMB Limited, the banking subsidiary, continues to improve its balance sheet and credit standing.
In its 2013 financial statements, the bank exhibited abundant liquidity (liquidity ratio of 47%) and robust capital base (capital adequacy ratio of 18 per cent), that protects against downside risks and supports future business growth, without immediate need for capital raising.