2023: FCMB Records Triple Earnings Growth 

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First City Monument Bank Plc (FCMB) posted triple earnings growth in the financial year 2023, according to the group’s unaudited financial statement submitted to the Nigerian Exchange. 

The stock market reacted positively to the earnings announcement as market capitalisation inched higher to about N220 billion at a unit price of N11.1, up from N10.5 on Thursday.

Details showed that profit grew by 3-folds to N95.5 billion from N31.128 billion recorded in the comparable period in 2022. As a result of a share increase in the group bottom line, earnings per share climbed to N4.82, from N1.57 posted in 2022, Marketforces Africa reported.

The group recorded a significant jump in net interest income in 2023 amidst a high yield and lending rate environment – following a strong push by the interest and discount income line. Specifically, net interest income and non-interest revenue of the group rose sharply year on year, up by 45.4% and 171.1% to N177.4 billion and N144.8 billion, respectively, according to the results submitted to the Nigerian Exchange.

The bank’s non-interest revenue witnessed a 17x, bolstered by a significant increase seen in ‘other revenue’ line items on the income statement, driven by foreign exchange gains of N90.9 billion from N5.3 billion in 2022.

FCMB’s performance was significantly boosted by more than N84 billion obtained as dividends from unquoted equities securities in the period, up from about N4.3 billion last year. its unaudited report showed that loan loss expenses spiked by about 166% year on year to settle at N66.3 billion from N25 billion in the comparable year in 2022.

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This amount represents the dividend received from unquoted equity securities held for strategic purposes and for which the Group has elected to present the fair value gain and loss in other comprehensive income, the company said in the results.

In the period, operating expenses and impairment charges rose by 35.6% and 165.5%, respectively. However, the cost-to-income ratio improved to 47.9% from 64.9% in 2022 due to the 83.7% growth in operating income to N322 billion.

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