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Published On: Mon, Apr 3rd, 2017

 FCMB leverages forex to ride headwind, profit up by 201%

 

FELIX OLOYEDE

FCMB Group was beneficiary of the devaluation of the naira last year as its profit after tax went up by 201.19 percent to N14.3 billion in 2016 from N4.8 billion the previous year, on the back of foreign exchange gains.

The bank had gross revenue was up by 16 per cent to N176.35 billion last year from N152.51 billion in 2015 with 16.62 percent of this from foreign exchange which contributed N29.31 billion to the bank’s bottom-line  in 2016 instead of N5.43 billion the corresponding year.

FCMB is giving its shareholders a paltry dividend of 10 kobo per share, the same amount it paid out last year. The bank’s net interest income grew by 8.75 percent to N69.53 billion in 2016 compared with N63.94 billion it raked in from interest income in 2015. But FCMB net operating income increased by a whopping 238.12 percent to N33.56 billion during the period under review.

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The poor state of the Nigerian economy last year reflected in the lender’s impairment provisions, which surged significant by 136.29 percent to N 35.52 billion against N 15.03 in 2015.

And while FCMB asset only grew slightly by 1.14 percent to N1.17 trillion in 2016, it also succeeded in reducing its liability by -0.32 percent to N993.9 billion in 2016.

This was on the back of deposit from customers which fell to N657.61 billion last year, a 6.08 percent reduction from N 700.22 billion recorded the previous year and 65.17 percent cut in Retirement benefit obligations to N17.6 million in 2016 instead of N50.54 million it paid out penultimate year.

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The bank’s total equity was up from N162.39 billion in 2015 to N 178.872 billion during the period under review, indicating a 10.15 percent rise.

Its retained earnings also increased significantly by 88.91 percent to N32.46 billion in 2016 compared with N17.18 billion in the corresponding year, while FCMB’s earnings per share grew to 72 kobo during this period from 24 kobo in 2015.

 

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