…Net interest income grew by 27.6% from N176.6 billion in the prior year
…The contributions by the divisions were as follows; Banking Group: 69.5%, Consumer Finance: 11.0%, Investment Management: 5.8%, and Investment Banking: 1.6%
FRI APRIL 04 2025-theGBJournal| FCMB Group Plc, Thursday published its Audited Group Results for the full-year ended 31 December 2024, reporting Gross revenue of N794.4 billion for the period ended December 2023, a 53.9% growth from N516.4 billion for the same period prior year.
The a financial services group revenue growth was driven by a 75.2% growth in interest income and an 8.7% growth in non-interest income. The rate of growth in non-interest income was impacted by a 55.7% Year-on-Year decline in other gains from N89.3 billion to N39.6 billion.
FCMB’s Net interest income grew by 27.6% from N176.6 billion in the prior year, to N225.3 billion at the end of December 2024. Yield on earning assets improved to 16.2%, however, Net Interest Margin declined by 1.9% Year-on-Year largely driven by a 122% growth in funding cost.
The audited report also shows operating expenses growth of 45.7% Year-on-Year to N229.1 billion for the period ended December 2024, due to increased personnel costs, regulatory costs, foreign currency linked expenses (e.g technology and foreign subsidiary expenses) and general inflationary pressures. Cost-to-income ratio closed at 59.9% for the period ended December 2024.
Interestingly, net impairment loss on financial assets declined 30.7% Year-on-Year to N41.2 billion, for the period ended December 2024, from N59.5 billion, which resulted in a decline in cost of risk to 1.8% from 3% in the previous year.
Meanwhile, FCMB’s Profit Before Tax grew by 7.1% Year-on-Year to N111.9 billion, largely impacted by a 56.6% decline in revaluation income and the 1.9% decline in Net Interest Margin.
The divisions of the Group reported Year-on-Year growth as follows; Consumer Finance: 83.5%, Investment Management: 27.9%, Banking Group: -7.7% (NIM & other gains decline), and Investment Banking: -35% (one off exceptional gain on divestment in FY 2023).
The Group earnings continue to be diversified with non-bank subsidiaries accounting for over 30% of profits.
The contributions by the divisions were as follows; Banking Group: 69.5%, Consumer Finance: 11.0%, Investment Management: 5.8%, and Investment Banking: 1.6%.
The bank’s loans and advances grew by 28% Year-on-Year from N1.84 trillion to N2.36 trillion at the end of December 2024 while total assets rose by 59.5% Year-on-Year from N4.42 trillion to N7.05 trillion at the end of December 2024.
Customer deposits also grew by 39.4% Year-on-Year from N3.08 trillion to N4.30 trillion at the end of December 2024.
Assets Under Management grew by 35% Year-on-Year from N1.02 trillion to N1.37 trillion at the end of December 2024.
Investment Banking (advisory and primary debt and equity capital markets) transaction value consummated by the Group grew by 47.1% to N1.4 trillion for the period ended December 2024, compared to N945.3 billion in the same period prior year.
FCMB’s digital business comprising Payments, Lending and Wealth continued to record strong growth across revenues, transaction volumes and value with digital now contributing 12.8% to gross earnings.
Key highlights from the digital business are as follows:
-Digital Retail Lending: Over 1.6 million loans, totaling N148.8 billion, were accessed, underwritten, and disbursed via our digital channels for the period ended December 2024.
-Digital SME Lending: Over 18,000 loans, totaling N208.2 billion were accessed, underwritten, and disbursed via our digital channels for the period ended December 2024.
-Digital Wealth Management: AUM in our digital wealth propositions grew to N22.4 billion for the period ended December 2024 from N15.1 billion in the same period prior year.
-Digital Payments, Wealth, and Lending continued to empower a greater number of our customers resulting in a 69.2% growth in digital revenues from N60.3 billion as at December 2023 to N101.9 billion for the period ended December 2024.
Looking ahead, FCMB say they anticipate material EPS growth in FY 2025, underpinned by a continued momentum in our non-banking businesses, a stronger balance sheet, digital transformation, and strategic market positioning.
FCMB Group Plc has scheduled a conference call and webcast for analysts and investors on Tuesday 15 April at 15.00 Lagos / 15.00 London / 10.00 New York / 16.00 Johannesburg, with its senior and divisional management to review these Results and respond to questions from investors and analysts.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
