FCMB Records N5.8bn Q1 Profit
The First City Monument Bank (FCMB) Group Plc said it posted a profit before tax (PBT) of N5.8 billion in the first quarter ended 31 March 2015. This represents an increase by four per cent, compared with the N5.6 billion realised in the comparable period of the first quarter ended 31 March 2014.
The results presented on the floor of the Nigerian Stock Exchange (NSE) showed that during the period, FCMB sustained the profitable growth of its commercial banking (FCMB Limited), financial advisory (FCMB Capital Markets Limited) and stockbroking (CSL Stockbrokers Limited) businesses.
Similarly, the Group’s total assets grew by 20 per cent from first quarter 2014, to N1.2 trillion as at the period under review, while its deposits grew by 11 per cent, from prior year to N760 billion. In addition, its loans grew by 18 per cent year-on-year to N582 billion.
The business growth resulted in improved financial performance, as net interest income grew by eight per cent from prior year, to over N18 billion. FCMB also finished the quarter with robust capital and liquidity ratios, at 22 per cent and 41 per cent respectively.
The retail banking division continued to gain momentum as its total retail deposits grew by 32 per cent year on year, and now accounts for 53 per cent of the bank’s deposits. Meanwhile, the retail loan portfolio, now at 35.8 per cent of total loans.
Commenting on the results, the Managing Director of FCMB Group, Mr. Peter Obaseki said: “The business environment in the first quarter was subdued by the political activities and a degree of uncertainties which have largely cleared-out. While return on average equity fell by 2.1 per cent year-on-year, we expect this to recover in the subsequent quarters based on strong capital and liquidity positions.”
On his part, the Group Managing Director/ CEO of FCMB Limited, Mr. Ladi Balogun explained that the activities of the commercial and retail banking group resulted in a 15 per cent growth, from prior year, in revenues, though profit after tax grew by a modest four per cent year-on-year.