Connect with us
nairametrics

Companies

FCMB Group Announces N170bn Gross Revenue

Published

on

Ladi Balogun - nairametrics

FCMB| Lagos: April 5, 2018: FCMB Group Plc has released its financial results for the year ended December 31, 2017, reporting a gross revenue ofN169.9 billion. Going by the audited results, the Group recorded a profit before tax (PBT) of N11.5billion, while profit after tax (PAT) was N9.4billion.

And in a demonstration of the enhanced confidence of customers in FCMB, deposits grew to N689.9billion as at the end of December 2017, an increase of 5%, from N657.6billion in the corresponding year.  The Group’s capital adequacy ratio also improved to 16.9% from 16.7%, just as asset base increased to N1.19trillion, compared to N1.17trillion at the end of 2016. Non-interest income as at the end of 2017 was N32billion, while loans and advances stood at N649.8billion.

UBA ADS

In a statement, the FCMB Group said that

“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 revaluation income enjoyed in 2016. In line with the repositioning strategy of the Group for better performance, the key drivers of the performance include an 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% stake in Legacy Pension Managers Limited, which increased FCMB’s stake from 28.2% to 88.2%, 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% 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 financial institution assured that, “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’’.

Deal book 300 x 250

 

 

 

 

 

 

 

 

 

 

Nairametrics often allows the usage of its website for businesses wishing to send out important press releases, articles and other communication forms of their products, services, events, employees, and personalities. Some of these articles are paid for.

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Companies

Podcast: How Covid-19 has birthed a new, vibrant digital economy

Published

on

Does Nigeria have a debt problem?, EMM podcasts

Join Adetayo Adesola, Lawretta Egba and Emmanuel Abara as they dicuss what sectors and industries will succeed and fail in a covid-19 world.

Listen to more podcasts

UBA ADS

GTBank 728 x 90
Continue Reading

Around the World

Air Peace to evacuate stranded Indians from Lagos to Kerala

A list of the passengers to be attended to has already been given and the flight shall depart Lagos on May 30, 2020, to Cochin Airport, Kerala.

Published

on

Air Peace signs deal with Brazillian aerospace company , Air Peace suspends flight operations over COVID-19

The management of Air Peace Nigeria has been contacted by the Indian High Commission in Nigeria to undertake the evacuation of stranded Indian nationals to Kerala, India. This was disclosed by the airline via its Twitter handle.

The airline explained that a list of passengers that would be attended to have been released and it has started reaching out to the Indians on Saturday.

UBA ADS

It stated, “A list of the passengers to be attended to has already been given to us and we have commenced reaching out to them. The flight shall depart Lagos on May 30, 2020, to Cochin Airport, Kerala.”

The flight is not free anyway. According to the airline, payments are expected immediately and they are Economy is $1.300 and Business class is tag $1,700. “You are equally allowed to pay in Naira at N460/$,” it added.

GTBank 728 x 90

However, some Indians in Nigeria has reacted with mixed feelings to the development on Twitter. While some were ready to join the flight back home, others called for the refund of ticket fare booked a week ago.

READ ALSO: Hope rises as Emefiele set to meet MTN, 4 banks today.

For instance, Jayant Khamesra requested for the refund ticket fare of N568, 100, which he paid for a flight from Lagos to Delhi.

Deal book 300 x 250

He said, “Please refund ticket fare P47812 LAGOS to DELHI. No show by Air Peace and it is been 1 week now, there has been no refund or confirmation of the same. Reference ALHN79 amount N568,100. I am sure a good world-class carrier like Air Peace won’t delay refunds purposely. Please act fast.

app

devland
Continue Reading

Companies

Revenues of top African firms to drop by 10% amid COVID- PwC

In the meantime, CFOs are prioritising strategies aimed at protecting/keeping their customers and clients safe. They plan to make the best of the current situation by adopting various necessary strategies.

Published

on

COVID-19

Chief Financial Officers (CFOs) of top African companies are expecting their companies’ revenue to decline significantly in 2020, no thanks to the negative impacts of the COVID-19 pandemic. This is according to a new study that was released by PwC Africa earlier this week, a copy of which was emailed to Nairametrics.

The Details: Focus on the Revenue crisis

According to the report, which was titled PwC’s COVID-19 CFO Pulse Survey, the African CFOs, who were surveyed indicated that the COVID-19 pandemic will impact their business. About 89% of the respondents also believed that their companies’ revenues and profits would decline by 10% and 9%, respectively.

UBA ADS

These findings are coming just about the same time business leaders across the continent and beyond are beginning to adjust to the new normal caused by the pandemic. At the moment, company executives (including the CFOs), would have to make some tough decisions that will determine how they emerge from this difficult economic time. A part of the report said:

“As they manage their process, business leaders including the CFOs we’ve interviewed will be faced with a series of decisions that will have a wide-reaching impact: on their own financial future; on the well-being of their employees, customers and other stakeholders; and on the wellbeing of the society at large.”

It should be recalled that the International Monetary Fund (IMF) had earlier projected that economic activities in Sub-Saharan Africa would decline by 1.6% in 2020. For crude oil-dependent countries like Nigeria, the IMF projected that the economy would contract by an average of 2.8%.

GTBank 728 x 90

READ MORE: Efficient Power: Addressing a Critical Element in Nigeria’s Agro-Industrial Revolution

Will things get back to normal?

According to the report, African CFOs who responded to the survey believed that their companies would eventually get back to normal. In precise terms, 38% of the respondents said their companies would bounce back within three months of the post-COVID-19 era. Unfortunately, nobody knows with certainty when the pandemic would end. This is because there is no cure/vaccine in the meantime, even as the virus continues to spread in parts of Africa.

In the meantime…

CFOs are helping their companies to adopt very strict cost containment strategies. At least, 85% of them said they are effecting cost containment strategies, even as 60% admitted that they are either deferring or completely canceling already planned investments. Others (49%) also noted that their companies are changing their financing plans.

Deal book 300 x 250

Focus on CAPEX

The PwC report went further to note that the CFOs, who typically favour cost containment strategies, disclosed that their companies are focusing on slashing most of their costs on capital expenditure (82%). Similarly, they are also cutting costs by reducing their workforce (52%) and operations (36%).

READ ALSO: FG owes DisCos over N500 billion in electricity Subsidy – PwC 

app

“CFOs clearly favour a strategy of cost containment and of the 33 African respondents who said their company is pursuing this course of action, the majority are focusing on facilities and general capital expenditure (82%) followed by investment in the workforce (52%) and operations (36%).”

devland

In the meantime, CFOs said their companies are prioritising the following needs;

  • CFOs are focused on meeting stakeholders’ needs
  • Ensuring proper financial disclosures, especially bearing in mind that measures taken by companies to contain the pandemic have distorted economic activities, a situation that has implications for financial reporting
  • Community focus and social engagement also remain top priorities for many African companies. Recall that many companies in Nigeria rallied (under the aegis of CACOVID) to donate billions to FG in order to facilitate the fight against the virus
  • CFOs are also focusing on devising new supply chain options for their companies, bearing the disruptions that the pandemic had already caused in this regard
  • CFOs are also prioritising strategies aimed at protecting/keeping their customers and clients safe
  • Most importantly, they plan to make the best of the current situation by adopting various necessary strategies

READ ALSO: A New Wave: Where to Invest in H2 2020

You may download and read the full report by clicking here.

app
Continue Reading