FCMB records N64.2b pre-tax profit in H1 2024

• Published On: 25 July 2024 at 18:33

FCMB Group reported a profit before tax of N64.2 billion in the first half of 2024, up 68% from N38.2 billion in the same time in 2023.

This was stated in the company's quarterly financial report for the period ending June 30th, which was filed with the NGX on Wednesday.

The Group recorded gross earnings of N374.5 billion in H1 2024, a 57% year-on-year rise from N238.2 billion in H1 2023. The bank recorded interest income of N269.2 billion, up 81% year on year from N149 billion in H1 2023, which accounted for the majority of the group's earnings.

The group's net profit for the period was N59.5 billion, up 68% year on year from N35.4 billion reported in H1 2023.

During the quarter, FCMB reported net interest income of N106.2 billion, a 47% increase from N72.3 billion in H1 2023. Additionally, net impairment losses dropped by 33% YoY to N31.3 billion from N47.1 billion in H1 2023.

Key Highlights

Gross earnings: N374.5 billion, up 57% YoY.

Interest and discount income totalled N269.2 billion, up 81% year on year.

Net interest income: N106.2 billion, up 47% YoY.

Net interest margin: 28.4% (-2% points) YoY

Customers' deposits at FCMB grew by 26% in the first half of 2024, reaching N3.9 trillion from N3.1 trillion in FYE 2023. FCMB Group's net loans and advances to customers climbed by 32% in H1 2024, reaching N2.43 trillion from N1.84 trillion in FYE 2023.

The group's borrowings have increased by 162%. Afrexim Bank gave the group with a N112.6 billion loan at the time, accounting for the majority of the group's borrowings.

FCMB's wage and salary expense increased by 74% year on year, from N15.2 billion in H1 2023 to N26.6 billion.

Credit Direct Limited, the group's microlending branch, made an after-tax profit of N3.9 billion on N16.5 billion in revenue. Credit Direct has grown into the group's second-largest division, with N92.7 billion in assets.