FCMB Group Plc (NGX: FCMB) has posted a profit after tax of N20.89bn for the 2021 financial year. The Group; owners of tier 2 bank, First City Monument Bank Limited had posted it’s unaudited annual financial statements for the year ended 31 December 2021 on The Nigerian Exchange.
The reported profit after tax is a 6.54% improvement on its 2020 report, wherein it reported a profit of N19.61bn.
An Analysis of the statement of the profit or loss and other comprehensive income shows a 4.56% growth in Gross Earnings.
FCMB brought in N208.52bn in Gross Earnings, higher than the N199.43bn it brought in for the 2020 financial year. There were growths in earnings from both Interest and discount Income as well as earnings from Fee and Commission Income.
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The Interest and discount income earnings reported was N161.58bn, a 6.99% increase from the N151.02bn reported in the preceding year.
Of this income segment, N136.94bn came from Loans and advances to customers. Investment securities at FVOCI (N11.94bn), Investment securities at amortized cost (N12.10bn) and cash and cash equivalents (N588.28mn) made up the rest.
The banking Group continues to rake in earnings from Fee and commission income. The bulk of the earnings came from the following;
- Account Maintenance: N4.80bn (2020:N3.57bn)
- Asset Management Fees: N3.45bn (2020: N3.09bn)
- Electronics fees and commissions: N12.82bn (2020: N8.61bn)
- Service fees and commissions: N11.88bn (2020: N12.96bn)
There was a 5.82% increase in the amount spent on Personnel, from N29.51bn in 2020 to N31.23bn. There was also an increase of 13.47% in the General and administrative expenses, from N30.47bn to N34.57bn.
The Banking Group paid an Income Tax of N2.13bn to the Government, 14.19% higher than the N1.86bn it paid in 2022.
For each of the 19.80 outstanding shares of FCMB, it made N1.04 for each of them. In 2020, the report basic and diluted earnings per share was N0.98.
An Analysis of the Statements of Financial Position, shows that its total asset of N2.48tn as at 31st Dec. 2021 is being funded by N2.24tn total liabilities and N241.19bn shareholders fund.
Further analysis shows that there was an increased of 20.58% in the total asset when compared with the position as at 31st Dec. 2020.
The increase came primarily from Loans and advances to customers which went from N822.77bn as at 31 Dec. 2020 to N1.06tn as at 31 Dec. 2021.
The Total liabilities also increased, going by 22.37%, from N1.83tn as at 31 Dec. 2020 to N2.24tn as at 31 Dec. 2021.
As was with assets, the increase in liabilities also had to do with customers. Deposits from customers went up to N1.55tn from N1.25tn.
Shareholder’s equity only increased by 8.20% from the N47.48bn as at 31 Dec. 2020.
FCMB Group Plc was incorporated in Nigeria as a financial holding company on November 20, 2012, under the Companies and Allied Matters Act, in response to the CBN’s Regulation on the Scope of Banking Activities and Ancillary Matters (Regulation 3).
The principal activity of FCMB Group Plc is to carry on business as a financial holding company, investing in and holding controlling shares in, as well as managing equity investments in Central Bank of Nigeria approved financial entities.
The Company has seven direct subsidiaries; First City Monument Bank Limited (100%), FCMB Capital Markets Limited (100%), CSL Stockbrokers Limited (100%), FCMB Trustees Limited (formerly CSL Trustees Limited) (100%), FCMB Microfinance Bank Limited (100%), FCMB Pensions Limited (92.80%) and Credit Direct Limited (100%).
FCMB Group Plc is a company domiciled in Nigeria.
The address of the Company’s registered office is 44 Marina, Lagos. These unaudited reports for the year ended 31 December 2021 comprise the Company and its subsidiaries (together referred to as the ‘Group’).
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
