FCMB Group Plc confirms its target to achieve N96.499 billion in gross earnings during the third quarter of 2023.
This is contained in its Q3 2023 earnings forecast released via the Nigerian Exchange (NGX).
The group also projects to rake in N78.963 billion in interest income. Targets for a profit before and after tax were put at N12.008 billion and N10.749 billion, respectively. While the projection for interest expenses stood at N41.312 billion, forecasted taxation for the period was put at N1.258 billion.
FCMB Group Plc’s audited group results for December 31, 2022, showed a Profit Before Tax (PBT) of N36.6 billion, representing a 61% Year-on-Year growth.
Double-digit growth was recorded across all business segments, with the banking group growing by 71.7%, while the consumer finance, investment management, and investment banking segments grew by 25.6%, 45.7%, and 26.7%, respectively.
The company, which proposed a dividend of 25k per share, also delivered environmental, social, and governance results in climate action, financial inclusion, food security, community initiatives, customer acquisition, and digital transformation.
It switched 12 additional branches to solar power in 2022, removing 75% of its branch network from grid/diesel generators, and provided micro-loans totalling N13 billion to 120,000 MSMEs.
The agency’s banking arm extended its partnership to 100,000, acquiring over 211,000 customers. Working alongside partners, FCMB supported 280,000 smallholder farmers, created over 600,000 jobs, and helped deliver Africa’s first cassava-based Sorbitol Factory.
The Group’s financial results also showed a 35.5% growth in gross revenue to N283 billion from N212 billion the previous year. It was driven by a 35.5% growth in interest income and a 26.9% growth in non-interest income.
Deposits rose 25.1% to N1.94 trillion in December 2022 from N1.55 trillion the previous year, while loans and advances witnessed a 12.4% surge to N1.20 trillion as against N1.06 trillion in 2021. The Group’s total assets increased by 19.6% from N2.50 trillion to N2.98 trillion in December 2022.
Investment Banking (advisory and primary debt and equity capital markets) transaction value consummated by the Group rose to N857.1 billion in 2022, compared to N582.9 billion in 2021. This delivered a 47% growth in fees from capital raise and financial advisory services over the period. The financial service Group’s Assets Under Management (AUM) also sustained its growth trajectory rising to N783.7 billion in 2022, up by 49.0% from N525.7 the prior year.
Net interest income grew 34.2% to N122.0 billion for the first twelve months of 2022, compared to N90.9 billion in 2021. This was driven by a growth in the yield on earning assets from 11.0% to 12.7%, which increased Net Interest Margin (NIM) from 6.2% to 7.0%
(Naira Metrics)