FCMB Group Plc recorded a pre-tax profit of N117.2 billion for the fiscal year ending December 31, 2024, in a financial report published on the Nigerian Exchange (NGX) on January 30, 2025.
This is a 12.32% year-over-year increase over the N104.4 billion recorded in 2023 when interest and discount revenue significantly increased.
Interest and discount revenue increased by 75.08% yearly to N621.5 billion from N354.9 billion the year before.
Furthermore, compared to the N516.3 billion reported for 2023, the group’s gross earnings increased by 53.93% yearly to N794.8 billion.
Key Highlights (2024 vs. 2023):
- Gross Earnings: N794.8 billion (+53.93% YoY)
- Interest & 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 & 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 & Admin 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)
Analysis
For the year ending December 31, 2024, FCMB Group recorded gross earnings of N794.8 billion, a 53.93% rise from N516.3 billion in 2023.
Interest and discount revenue increased to N621.5 billion from N354.9 billion the year before, coinciding with this rise.
- At N433 billion, loans and advances to consumers were 69.6%, and investment securities at amortized cost comprised 17.6%.
- Furthermore, cash and cash equivalents made up 2.05% of the total, while investment securities at fair value through other comprehensive income (FVOCI) made up 10.6%.
However, interest costs rose 122.02% from the previous year to N396 billion, up from N178.3 billion. A significant amount of this was due to deposit-related expenses.
The group’s net interest revenue was N225.4 billion, up 27.66% from N176.5 billion the year before, despite the increase in expenses.
Additionally, net fee and commission income increased from N45.4 billion in 2023 to N59.1 billion in 2024, a 30.17% increase.
Notably, net trade income increased by 568.48% yearly to N60.8 billion from N9.1 billion the previous year.
- Treasury Bill trading contributed N5.9 billion, FGN bond trading brought N35.6 billion, and foreign exchange trading brought N19.31 billion.
Additionally, “other income” grew, rising 387.29% from N699.6 million to N3.4 billion in 2024.
- Gains from selling real estate and equipment contributed N1.3 billion, while rental revenue made up N2 billion.
In terms of expenses, salary and pay totaled N58.5 billion, while personnel costs increased by 60.05% year over year to N79.3 billion. Additionally, general and administrative costs increased, going from N63.7 billion to N86.7 billion in the previous year.
Despite these costs, the group’s pre-tax profit increased by 12.32% from 2023 to 2024, reaching N117.2 billion from N104.4 billion. Additionally, post-tax profit rose 16.05% to N107.9 billion.
Liabilities And Assets
The group’s total assets for the year ended December 31, 2024, were N7 trillion, a substantial rise from N4.4 trillion the year before.
- Loans and consumer advances, totaling N2.3 trillion, were the main cause of this development.
- N1.4 trillion in restricted reserve deposits and N1.1 trillion in investment securities were added.
In addition, total liabilities increased to N6.3 trillion from N3.9 trillion the year before.
- Customer deposits comprised the highest portion of N4.2 trillion, or 66.8% of total liabilities.
- Among other contributing reasons, bank deposits were noteworthy, amounting to N891.2 billion, or 14.1%.
