FCMB Group Plc has recorded a pre-tax profit of N117.2 billion for the year ending December 31, 2024, marking a 12.32% increase from N104.4 billion in 2023. The group’s gross earnings also jumped by 53.93%, reaching N794.8 billion, driven by a surge in interest income and trading profits.
Strong Revenue Growth Despite Rising Expenses
The financial report, released on January 30, 2025, on the Nigerian Exchange (NGX), shows that interest and discount income—the bank’s primary revenue source—rose by 75.08% year-over-year, from N354.9 billion in 2023 to N621.5 billion in 2024.
However, interest expenses also saw a steep increase, rising by 122.02% to N396 billion, largely due to higher costs on customer deposits. Despite this, FCMB managed to grow its net interest income to N225.4 billion, a 27.66% increase from N176.5 billion the previous year.
Key Financial Highlights (2024 vs. 2023)
•Gross earnings:N794.8 billion, up 53.93%
•Interest & discount income:N621.5 billion, up 75.08%
•Interest expense:N396 billion, up 122.02%
•Net interest income:N225.4 billion, up 27.66%
•Net fee & commission income:N59.1 billion, up 30.17%
•Net trading income:N60.8 billion, up 568.48%
•Other income:N3.4 billion, up 387.29%
•Personnel expenses:N79.3 billion, up 60.05%
•General & administrative expenses:N86.7 billion, up 36.08%
•Pre-tax profit:N117.2 billion, up 12.32%
•Post-tax profit:N107.9 billion, up 16.05%
Massive Growth in Trading and Other Income
A key factor in FCMB’s impressive earnings was the 568.48% increase in net trading income, which jumped from N9.1 billion in 2023 to N60.8 billion in 2024. This was driven by:
•FGN Bonds trading income:N35.6 billion
•Foreign exchange trading income:N19.31 billion
•Treasury Bills trading:N5.9 billion
Additionally, ‘Other Income’ grew by 387.29%, rising from N699.6 million to N3.4 billion, mainly due to:
•Rental income:N2 billion
•Gains from property and equipment sales:N1.3 billion
Rising Expenses and Growing Asset Base
FCMB’s total personnel expenses increased by 60.05%, reaching N79.3 billion, while general and administrative costs rose by 36.08% to N86.7 billion.
Despite rising expenses, the bank’s total assets grew significantly to N7 trillion, up from N4.4 trillion in 2023. This was fueled by:
•Loans and advances to customers:N2.3 trillion
•Restricted reserve deposits:N1.4 trillion
•Investment securities:N1.1 trillion
On the liabilities side, customer deposits increased to N4.2 trillion, representing 66.8% of total liabilities, while deposits from banks stood at N891.2 billion.
FCMB Group’s Strong Performance Positions It for Future Growth
Despite economic challenges and rising costs, FCMB Group’s strong revenue growth, increased profitability, and expanding asset base show that it is well-positioned for future expansion. With its impressive N794.8 billion revenue milestone and a pre-tax profit of N117.2 billion, FCMB continues to cement its place among Nigeria’s top financial institutions.
Richlist Nigeria will continue to monitor FCMB’s performance and financial market trends.
