FCMB Group doubles profit in Q3

FCMB Group Plc recorded significant growth in the bottom-line in the third quarter, raising hopes of improved returns from the financial services holding group.

Key extracts of the interim report and accounts of FCMB Group for the nine-month period ended September 30, 2018 showed that  gross earnings rose by 11.8 per cent to N132.87 billion in third quarter 2018 as against N118.82 billion in third quarter 2017. Profit before tax rode on the back of improved risks and costs management to double pre-tax profit from N6.84 billion in 2017 to N14.77 billion in third quarter 2018. While income tax expense jumped from N1.37 billion in 2017 to N3.43 billion in 2018, net profit after tax still doubled from N5.47 billion in 2017 to N11.34 billion in 2018. With this, earnings per share leapt from 28 kobo in third quarter 2017 to 57 kobo in third quarter 2018.

FCMB Group comprises of eight subsidiaries including First City Monument Bank Limited, FCMB Capital Markets, CSL Stockbrokers Limited, CSL Trustees Limited, Legacy Pension Managers Limited, FCMB (UK) Limited, First City Asset Management Limited and Credit Direct Limited.

The third quarter 2018 report represents considerable improvement on the earnings outlook of the group, after it struggled with constrained top-line and bottom-line in the year ended December 31, 2017.

Headline figures, however, showed a top-down decline in actual figures. Gross earnings dropped from N176.35 billion in 2016 to N169.88 billion in 2017. Profit before tax declined from N16.25 billion to N11.46 billion. Profit after tax also dropped from N14.34 billion to N9.41 billion. Consequently, earnings per share dropped from 72 kobo in 2016 to N48 kobo in 2017.

However, group deposits grew to N689.9 billion in 2017, an increase of five per cent on N657.6 billion recorded in 20167. The Group’s capital adequacy ratio also improved to 16.9 per cent in 2017 as against 16.7 per cent in 2016. Asset base also increased to N1.19 trillion in 2017 compared with N1.17 trillion in 2016. Non-interest income stood at N32 billion in 2017 while loans and advances totalled N649.8 billion during the year.

The group paid N1.98 billion as cash dividend for the 2017 business year, representing a dividend per share of 10 kobo, the same amount paid for the 2016 business year.

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