Quick Read: FCMB Group reported a 12.32% increase in pre-tax profit to N117.2 billion for 2024, driven by a 53.93% surge in gross earnings to N794.8 billion. Interest and discount income rose 75.08% to N621.5 billion, while net trading income skyrocketed by 568.48%. Despite a 122.02% rise in interest expenses, the group achieved a 16.05% growth in post-tax profit to N107.9 billion.
FCMB Group Plc has announced its financial results for the year ended December 31, 2024, showcasing a strong performance across key metrics. The group reported a pre-tax profit of N117.2 billion, marking a 12.32% increase from the N104.4 billion recorded in 2023. This growth was driven by a significant rise in interest and discount income, as well as robust gross earnings.
The financial report, released on the Nigerian Exchange (NGX) on January 30, 2025, highlights the group’s ability to navigate a challenging economic environment while delivering value to stakeholders.
Key Financial Highlights (2024 vs. 2023)
Here’s a breakdown of FCMB Group’s financial performance for 2024 compared to the previous year:
- Gross earnings: N794.8 billion, up 53.93% year-over-year (YoY)
- Interest and discount income: N621.5 billion, up 75.08% YoY
- Interest expense: N396 billion, up 122.02% YoY
- Net interest income: N225.4 billion, up 27.66% YoY
- Net fee and commission income: N59.1 billion, up 30.17% YoY
- Net trading income: N60.8 billion, up 568.48% YoY
- Other income: N3.4 billion, up 387.29% YoY
- Personnel expense: N79.3 billion, up 60.05% YoY
- General and administrative expense: N86.7 billion, up 36.08% YoY
- Pre-tax profit: N117.2 billion, up 12.32% YoY
- Post-tax profit: N107.9 billion, up 16.05% YoY
Revenue Growth Driven by Interest and Discount Income
FCMB Group’s gross earnings for 2024 stood at N794.8 billion, reflecting a 53.93% increase from N516.3 billion in 2023. This growth was primarily fueled by a 75.08% surge in interest and discount income, which rose to N621.5 billion from N354.9 billion in the previous year.
The group’s loan portfolio played a significant role in this growth, with loans and advances to customers accounting for 69.6% of total income at N433 billion. Investment securities at amortized cost contributed 17.6%, while investment securities at fair value through other comprehensive income (FVOCI) made up 10.6%. Cash and cash equivalents represented 2.05% of the total.
Rising Costs and Expense Management
Despite the impressive revenue growth, FCMB Group faced rising costs during the year. Interest expenses increased by 122.02% YoY, reaching N396 billion compared to N178.3 billion in 2023. A significant portion of this expense was attributed to deposits.
However, the group effectively managed its expenses, achieving a 27.66% increase in net interest income, which rose to N225.4 billion from N176.5 billion in 2023. Net fee and commission income also grew by 30.17%, reaching N59.1 billion.
Record-Breaking Net Trading Income
One of the standout performances in 2024 was the group’s net trading income, which surged by 568.48% YoY to N60.8 billion. This was driven by:
- FGN bonds trading income: N35.6 billion
- Foreign exchange trading income: N19.31 billion
- Treasury Bills trading income: N5.9 billion
Additionally, ‘other income’ saw a remarkable increase of 387.29%, rising to N3.4 billion. This included N2 billion from rental income and N1.3 billion from gains on the sale of property and equipment.
Operational Expenses and Profitability
FCMB Group’s operational expenses also rose during the year. Personnel costs increased by 60.05% to N79.3 billion, with wages and salaries accounting for N58.5 billion. General and administrative expenses grew by 36.08% to N86.7 billion.
Despite these increases, the group maintained strong profitability. Pre-tax profit grew by 12.32% to N117.2 billion, while post-tax profit increased by 16.05% to N107.9 billion.
Assets and Liabilities Overview
FCMB Group’s total assets grew significantly in 2024, reaching N7 trillion compared to N4.4 trillion in 2023. The primary driver of this growth was loans and advances to customers, which amounted to N2.3 trillion. Other contributing factors included restricted reserve deposits of N1.4 trillion and investment securities totaling N1.1 trillion.
On the liabilities side, total liabilities rose to N6.3 trillion from N3.9 trillion in 2023. Customer deposits accounted for the largest share at N4.2 trillion (66.8% of total liabilities), while deposits from banks stood at N891.2 billion (14.1%).
Conclusion
FCMB Group’s 2024 financial results demonstrate its resilience and ability to deliver strong performance despite economic challenges. With significant growth in gross earnings, net trading income, and profitability, the group continues to solidify its position as a leading financial institution in Nigeria. Stakeholders can look forward to sustained value creation as FCMB Group builds on this momentum in the coming years.
