FCMB Group has recorded a Profit Before Tax, PBT, of ₦7.1 billion for the six-months, ended June 30, 2018, H1’18 representing and 86 percent increase from ₦3.8 billion achieved for the same period in 2017.
The positive development reflects the improved performance of the financial institution, as well as effects of diversification through investments in asset and wealth management.
From the details of its unaudited results announced on the floor of the Nigerian Stock Exchange, NSE, the Group’s gross revenue rose to N83.9 billion as at the end of June 2018, from N77.5 billion in the corresponding period of 2017. Similarly, net interest income rose by nine percent Year-on-Year, YoY, from N32.5 billion to N35.3 billion, while non-interest income grew to N16.5 billion, an increase of 29 percent, from N12.8 billion for the same period of last year.
The Commercial & Retail Banking group (which comprises First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited) generated a 32.2 percent increase in PBT to N2.9 billion for half year 2018 from N2.2 billion at the end of first quarter 2018. Revenue increased 3.7 percent YoY, driven by an 8.1 percent YoY increase in non-interest income and an 8.7 percent YoY increase in net-interest income.
The bank stated that the latter’s increase was largely due to reduction in cost of funds from growth in Personal Banking and SME deposits. This increased net interest margin to 7.7 percent for H1’18 from 7.5 percent (H1’ 17). Moreover, non-interest income increased by 6.3 percent, Quarter on Quarter, QoQ to N6.7 billion, due to mobile banking income earned.