FCMB Group Plc has declared a dividend of 10 kobo per share as the bank has released its financial results for the year ended December 31, 2017, and reported a gross revenue of N169.9 billion.
The Group recorded a profit before tax (PBT) of N11.5 billion and profit after tax (PAT) of N9.4 billion going by the audited results released on Wednesday.
Following these, the financial institution has recommended a dividend of 10 kobo per share to be paid to shareholders.
In demonstration of the enhanced confidence of customers in FCMB, deposits grew to N689.9 billion as at the end of December 2017, an increase of 5 per cent, from N657.6 billion in the corresponding year.
The Group’s capital adequacy ratio also improved to 16.9 per cent from 16.7 per cent, just as asset base increased to N1.19 trillion, compared to N1.17 trillion at the end of 2016. Non-interest income as at the end of 2017 was N32 billion, while loans and advances stood at N649.8 billion.
In a statement, the FCMB Group said: “In spite of the reduction in the headline numbers, the Group’s performance for the year 2017 witnessed an improvement in core operating performance over the previous year after adjusting for the significant foreign exchange re-evaluation income enjoyed in 2016. In line with the re-positioning strategy of the Group for better performance, the key drivers of the performance include increase in income from our non-banking activities, lower impairment charges from the Bank and its subsidiaries, and improved operating efficiencies through more pervasive use of technology.”
In November 2017, FCMB completed the acquisition of an additional 60 per cent stake in Legacy Pension Managers Limited, which increased FCMB’s stake from 28.2 per cent to 88.2 per cent, thereby making Legacy a subsidiary of FCMB. The acquisition helps achieve further diversification of service offerings and, consequently, earnings within the FCMB Group, which will be felt from the 2018 financial year.
FCMB Microfinance Bank Limited, the Group’s dedicated group lending and financial inclusion vehicle, commenced operations as a state microfinance bank in January 2017. The business will be the key driver of FCMB’s informal and agricultural sectors (particularly small-holder farmers) drive across the country. These two sectors account for over 40 per cent of the country’s gross domestic product (GDP).
Following these developments, FCMB Group Plc’s operating companies are now divided along three business groups – Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Investment Banking (FCMB Capital Markets Limited and CSL Stockbrokers Limited); and Asset & Wealth Management (Legacy Pension Managers Limited, First City Asset Management Limited and CSL Trustees Limited).
The bank said: “Barring any unforeseen circumstances, we see improved operating performance in 2018 based on the improving macro-economic and capital markets environment, declining cost of funds for the bank, and the growing contributions of asset and wealth management following last year’s acquisitions.”
