UK grants FCMB full commercial bank sta­tus

Daily Trust - - BUSINESSS - From Kay­ode Ekun­dayo, La­gos

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.

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