FCMB Group Plc reported a pre-tax profit of N117.2 billion for the year ended December 31, 2024, in a financial report released on the Nigerian Exchange (NGX) on January 30, 2025.
This figure represents a 12.32% increase year-over-year from the N104.4 billion reported in 2023, amid a significant surge in interest and discount income.
Interest and discount income reached N621.5 billion, reflecting a robust 75.08% year-over-year growth from N354.9 billion in the previous year.
Additionally, the group’s gross earnings experienced an increase of 53.93% year-over-year, rising to N794.8 billion compared to N516.3 billion reported for the year 2023.
Key Highlights (2024 vs. 2023):
- Gross earnings: N794.8 billion, +53.93% YoY
- Interest and discount income: N621.5 billion, +75.08% YoY
- Interest expense: N396 billion, +122.02% YoY
- Net interest income: N225.4 billion, +27.66% YoY
- Net fee and commission income: N59.1 billion, +30.17% YoY
- Net trading income: N60.8 billion, +568.48% YoY
- Other income: N3.4 billion, +387.29% YoY
- Personnel expense: N79.3 billion, +60.05% YoY
- General and administrative expense: N86.7 billion, +36.08% YoY
- Pre-tax profit: N117.2 billion, +12.32% YoY
- Post-tax profit: N107.9 billion, +16.05% YoY
Commentary
FCMB Group reported gross earnings of N794.8 billion for the year ended December 31, 2024, reflecting a year-over-year increase of 53.93% from N516.3 billion in 2023.
This growth occurred alongside an increase in interest and discount income, which rose to N621.5 billion from N354.9 billion the previous year.
- Loans and advances to customers made up 69.6% of the total at N433 billion, while investment securities at amortized cost accounted for 17.6%.
- Additionally, investment securities at fair value through other comprehensive income (FVOCI) comprised 10.6%, and cash and cash equivalents represented 2.05% of the total.
However, interest expenses increased significantly by 122.02% year-over-year, reaching N396 billion, up from N178.3 billion in the prior year. Expenses from deposits made up a large portion of this.
Despite the rise in expenses, the group’s net interest income was N225.4 billion, reflecting an increase of 27.66% from N176.5 billion the previous year.
Net fee and commission income also saw a rise of 30.17%, increasing from N45.4 billion in 2023 to N59.1 billion in 2024.
Notably, net trading income surged to N60.8 billion from N9.1 billion a year earlier, indicating a substantial year-over-year growth of 568.48%.
- This was largely due to FGN bonds trading income of N35.6 billion and foreign exchange trading income of N19.31 billion, with Treasury Bills trading contributing N5.9 billion.
‘Other income’ increased as well, climbing 387.29% year-over-year from N699.6 million to N3.4 billion in 2024.
- Rental income accounted for N2 billion, while gains from the sale of property and equipment added N1.3 billion.
On the expense front, personnel costs rose by 60.05% year-over-year to N79.3 billion, with wages and salaries at N58.5 billion. General and administrative expenses also increased, reaching N86.7 billion compared to N63.7 billion in the prior year.
Despite these expenses, the group managed to achieve a 12.32% year-over-year growth in pre-tax profit, totaling N117.2 billion compared to N104.4 billion in 2023. Post-tax profit also increased by 16.05%, standing at N107.9 billion.
Assets and liabilities
For the year ending December 31, 2024, the group reported total assets of N7 trillion, a significant increase from N4.4 trillion in the previous year.
- The primary driver of this growth was loans and advances to customers, which amounted to N2.3 trillion.
- This was complemented by restricted reserve deposits of N1.4 trillion and investment securities totaling N1.1 trillion.
Total liabilities also rose, reaching N6.3 trillion compared to N3.9 trillion the previous year.
- Customer deposits accounted for the largest share at N4.2 trillion, representing 66.8% of total liabilities.
- Additionally, deposits from banks were notable at N891.2 billion, making up 14.1%, among other contributing factors.
