First City Monumental Bank, FCMB has reported a Profit After Tax (PAT) of N20.8 billion for the year 2021. This is according to an unaudited financial report filed to the Nigerian Exchange on the financial report of the bank.
The amount represents a 53% increase from the N13.8 billion in the last quarter and a 6.5% rise from the N19.6 billion reported same period the previous year.
Further analysis by Nairametrics shows that the bank generated the highest profit in the last quarter of the year at N7.09 billion more than N6.2 billion it generated in third quarter, N3.98 billion in second quarter and the N3.57 billion in the first quarter.
Highlight of the result
- Gross earnings stood at N208 billion, representing N4.5% dip at N9 billion from the N199 billion reported the previous year.
- Net interest income at N90.47 billion fell slightly by N288 million in 2021 as that of the year 2020 was valued at N90.75 billion
- Net fees and commission income rose significantly by 42%, reaching N27 billion from the previous year value at N19.7 billion. This was driven by fees commission income which rose to N35 billion from N30 billion and a consequent drop in commission expenses to N7 billion from N10 billion during the period.
- Net trading income which recorded N7.1 billion in 2020 saw a trivial dip to close at N6.89 billion in 2021 while other revenue fell significantly to close at N3 billion from the N10.5 billion.
- Notably, the bank was able to reduce the impairment losses on financial instruments greatly from N22.3 billion to N9 billion in 2021.
- Personnel expenses increased in 2021 recording 31.2 billion compared to the 29.5 billion the same period in 2020 while general and administrative expenses also went the same route, recording N34.6 billion from the amount reported same time the previous year and other operating expenses was N23 billion in 2021 from N16.8 billion in 2020
- Profit before tax totalled N23.926 billion and was cut down by minimum and income tax expenses at N900 million and N2.1 billion respectively causing the profit for the year to close at N20.9 billion in 2021
- Earnings per share increased by 0.06 to close at N1.04 in 2021.
What this means
FCMB reported an impressive performance in 2021 as the bank was able to increase PAT despite the significant drop in revenue and improved expenses for the period. This is owing to the fact that it was able to minimize a loss on financial instruments by a whopping 59.3% from the previous year’s.