Key Highlights
- FCMB Group Plc reported a 61% YoY growth in Profit Before Tax for December 31, 2022, with double-digit growth recorded across all business segments, including a 71.7% growth in the banking group.
- The company delivered impressive environmental, social, and governance results in climate action, financial inclusion, food security, community initiatives, customer acquisition, and digital transformation, with 12 additional branches switched to solar power and micro-loans totaling N13 billion provided to 120,000 MSMEs.
- FCMB Group’s digital transformation drive witnessed enhanced performance across all business segments, resulting in a 42.0% growth in digital revenues and over 962,000 loans totaling N42.1 billion underwritten and disbursed through its digital retail lending channels.
FCMB Group Plc has released its audited group results for December 31, 2022, reporting 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 impressive 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 totaling N13 billion to 120,000 MSMEs. The agency 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 impressive 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. Customer confidence remained strong as 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%.
The overall customer base of FCMB Group grew by 18.4% to 10.9 million, as it acquired an additional 1.7 million customers in the period, including 250,000 customers from Pension Fund Administrator (PFA acquisition), compared to 900,000 in 2021.
This Group’s digital transformation drive witnessed enhanced performance across all business segments. Digital Payments, Wealth, and Lending continued to empower more customers, resulting in a 42.0% growth in digital revenues from N26.1 billion in 2021 to N37.1 billion in 2022. Thus, digital revenues accounted for 13% of gross earnings from the 12% contribution in 2021.
In digital retail lending, First City Monument Bank and Credit Direct Limited, subsidiaries of the Group, underwrote and disbursed over 962,000 loans, totaling N42.1 billion, as of December 31, 2022, a growth of 17.1% and 24.9%, respectively, from the prior year. Through the Bank’s digital SME lending channels, over 21,000 loans, totaling N165.2 billion were accessed, underwritten, and disbursed, a growth of 1.9% and 43.7%, respectively.
FCMB Group is a financial services holding company listed on the Nigerian Exchange Group (NGX) and headquartered in Lagos. The Group has strategic interests in companies that collectively serve over 10 million customers across five platforms: banking, consumer finance, investment management, investment banking, and financial technology. The Group and its subsidiaries are building and driving an ecosystem that fosters inclusive and sustainable growth in their communities, primarily in Africa, its diaspora, and the United Kingdom.