FCMB rakes in N9.6bn PBT in H1 as customer base grew by 260,000

In spite of the tough operating environment, FCMB Group Plc half-year results showed that its revenue increased 11 per cent Year on Year (YoY), to N77.4 billion in 2015, although PBT dropped 14 per cent YoY to N9.6 billion.

The bank boasts of total assets growth of 15 per cent YoY to N1.22 trillion and up 5% Year-to-Date (YTD).

Within the period under review, FCMB grew its deposits by 4 per cent to N785.8 billion.

According to the bank in a statement, the diversification of FCMB across commercial banking, investment banking and wealth management, provided some cushion as earnings from non-banking activities proved more resilient.

FCMB Ltd – the commercial and retail banking subsidiary of FCMB Group Plc, continued to validate its increased drive into retail, contributing 21 per cent (N1.7billion) of its PBT.

The retail group also grew deposits 21 per cent YoY to N431.2billion, or 54 per cent of total deposits.

The result showed that the bank acquired 260,000 customers in the first half of this year and continued its drive of inclusive lending, granting just over 9,100 new loans to micro-enterprises.

FCMB’s credit card offering saw increased patronage, with over 17,000 cards issued in the first half of this year. Corporate banking activities were constrained by scarcity of foreign exchange and tight monetary policy, which affected trade finance, foreign exchange trading and lending activities.

In the first half of 2015, the bank’s UK wholesale banking subsidiary, FCMB Bank (UK) Ltd, broke even after 14 months of operations as a deposit-taking institution. FCMB Bank (UK) Ltd’s profit contribution is expected to continue improving.

The investment banking group of FCMB Group Plc – comprising of financial advisory (FCMB Capital Markets Ltd (FCMB-CM)) and stockbroking (CSL Stockbrokers Ltd (CSLS)) – delivered a 6 per cent YoY increase in Profit After Tax (PAT) of N414m, driven by financial advisory, equity capital raising and asset management fees.

On the operating side, FCMB-CM had notable accomplishments, including winning lead adviser and structure mandate to a US$445 million term facility for a key gas provider.

Also, FCMB-CM was mandated as adviser and arranger of debt facilities,with an aggregate value of over US$520 million for clients, in the oil& gas and power sectors.

Additionally, FCMB-CM was mandated as financial adviser to raise an aggregate value of c.US$30 million equity finance on behalf of clients in the health and agro-allied sectors and, on a scheme of merger by a client in the fast-moving consumer goods sector.

The Managing Director, FCMB Group Plc, Mr. Peter Obaseki, opined that the group results for H1 2015 reflects a deliberate conservative stance aimed at maintaining robust capital buffers in the face of a tough macro-economic and regulatory environment.

“Capital adequacy ratio remains strong at 19.8% despite proactive jump in non-performing loan ratio from 3.6% as at FY14 to 5.2% at the end of H1; gross revenue went up 11% on H1 2014 and return on average equity slowed down to 10.3%.

The underlying retail franchise is getting stronger, while capacity exists to take on sizeable pipe-line transactions in H2,” he noted.