By Alex C
FCMB Group Plc has announced a Profit After Tax (PAT) of N4.8 billion for the three months period ended March 2014, up 14% from N4.2 billion for the same period in 2013. Financial performance highlights of its unaudited result shows a Profit Before Tax (PBT) of N5.6 billion for the first quarter 2014, up 15% from N4.8 billion for the same period in 2013. The Group’s earnings analysis reveals Net interest income of N16.4 billion for Q1 2014, an increase of 25% Year-on-Year (YoY), from N13.1 billion for Q1 2013.
The Group’s operating expenses went up by 11% YoY to N15.5 billion, for the first quarter 2014, from N14.0 billion for the first quarter 2013. Its total assets increased by 11% YoY to N992.4 billion (N895.2 billion as at March 2013), but fell by 2% Quarter-to- Quarter (N1.0 trillion as at December 2013).
Customer deposits rose 9% YoY to N687.3 billion (N628.4 billion as at March 2013), but dropped 4% QoQ (N715.2 billion as at December 2013).
Mr. Peter Obaseki, Managing Director, FCMB Group Plc, said that the Group reported positive developments in most of its key operating areas. On the Group’s statement of comprehensive income, operating income rose by 16% from N19.3 billion in Q1 2013 to N22.3 billion in Q1 2014.
“It is noteworthy that the investment banking group’s contribution to the Group’s pre-tax profits increased in 1Q14. FCMB Capital Markets Limited and CSL Stockbrokers reported pre-tax profits of N198 million, 128% higher than the same period in 2013,” Obaseki stated.
Mr. Ladi Balogun, Group Managing Director/ CEO of FCMB Ltd, noted that total deposits fell by 4% from the December 2013 figure of N717.4 billion due to expected reductions in wholesale deposits. While the total loans grew from N329.0 billion in Q1 2013 to N493.3 billion in Q1 2014 a growth of 50%, Balogun disclose that the growth was supported by the Group’s retail business that witnessed a 90% loan growth, from the same period in 2013, to N105.4 billion in Q1 2014.
“Net interest margin continued to climb to 8.8% on the back of the robust retail loan growth, whilst Return on Average Equity for the commercial and retail banking activities rose to 14.9%. We expect margins, profitability and efficiency ratios to continue to improve in spite of the challenging regulatory environment. We also expect both loan and deposit growth to be robust in subsequent quarters,” Balogun explained.
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