FCMB’s Profit Rises to ₦19.6Bn from ₦17.3Bn; Proposes 15K Final Dividend

26 MARCH 2021: FCMB Group Plc announced its Audited Group Results for the full-year ended 31 December 2020.

Earnings Analysis

• Gross revenue of ₦199.4 billion for the twelve months ended December 2020, was a 10% growth from ₦181.3 billion for the same period the prior year.
• Net interest income rose by 20% Year-on-Year from ₦76.0 billion, for the full year 2019, to ₦90.8 billion for the full year 2020.
• Non-interest income of 37.8 billion, for the twelve months ended December 2020, a 9% Year-on-Year increase from ₦34.8 billion for the same period the prior year.
• Operating expenses rose 10% Year-on-Year to ₦84.3 billion for the full year 2020.
• Net impairment loss on financial assets increased by 62% Year-on-Year to ₦22.3 billion, for the twelve months ended December 2020, from ₦13.7 billion for the same period the prior year.
• Profit after tax (PAT) of ₦19.6 billion, for the full-year 2020, rose 13% Year-on-Year.

Financial Position:

• Loans and advances grew, 15% Year-on-Year and 4% Quarter-on-Quarter to ₦822.8 billion in December 2020.
• Total assets increased 23% Year-on-Year and 1% Quarter-on-Quarter to ₦2.06 trillion in December 2020.
• Customer deposits rose by 33% Year-on-Year and 5% Quarter-on-Quarter to ₦1.3 trillion in December 2020.
• Assets Under Management grew by 23% Year-on-Year to ₦495.2 billion in December 2020.

FY20 Key Ratios:

• Capital Adequacy Ratio – 17.7%.
• Liquidity Ratio – 34.2%.
• Non-Performing Loans (NPL) to Total Loans Ratio – 3.3%.
• Cost to Income Ratio – 65.6%.
• Net Interest Margin – 8.1%.
• Earnings per share – 98 kobo

Proposed dividend

The Board of Directors recommended a cash dividend of 15 kobo per issued and paid-up ordinary share for the year ended 31 December 2020 (2019:14kobo). This is subject to approval at the Annual General Meeting. Payment of dividends is subject to withholding tax at a rate of 10% in the hand of recipients.