July 31, (THEWILL) – FCMB Group has announced its Unaudited Group Results for the first half ended 30 June 2022, grossing revenue of N126.2 billion for the six months ended June 2022.
The result is 34.0 per cent growth from N94.2 billion for the same period prior year. This was driven by a 35.0 per cent growth in interest income and a 30.5 per cent growth in non-interest income.
Net interest income grew by 39.9 per cent from N42.9 billion, for the first six months of 2021, to N60.2 billion in H1 2022. This was driven by a growth in the yield on earning assets from 9.9 per cent to 10.9 per cent which led to an increase in NIM from 7.0 per cent to 7.2 per cent.
Digital continues to gain traction across our various businesses and now accounts for 13.6 per cent of gross earnings, 9.3 per cent of interest income, 6.6 per cent of the loan book and 7.9 per cent of the AUM of our Asset Management business.
Operating expenses grew 19.1 per cent Year-on-Year to N57.1 billion in the first six months of 2022, largely due to increased regulatory costs, technology related costs and general inflationary pressures.
Net impairment loss on financial assets increased Year-on-Year to N10.7billion, for the six months ended June 2022, from N4.0 billion for the same period prior year. H1 2022 cost of risk was 1.9 per cent.
According to the group, PBT grew by 73.2 per cent Year-on-Year to N15.4 billion with strong double-digit growth in each of their business segments as follows; Banking Group 84.2 per cent, Consumer Finance 42.7 per cent, Investment Management 41.9 per cent, and Investment Banking 253.8 per cent.
Earnings diversification; banking subsidiaries contributed 70.8 per cent of Group profits, whilst our other non-banking subsidiaries contributed 29.2 per cent (Consumer Finance 13.8 per cent, Investment Management 11.0 per cent and Investment Banking 4.2 per cent).
Loans and advances grew by 22.3 per cent Year-on-Year from N916.7 billion to N1.1 trillion in June 2022.
Total assets increased by 18.3 per cent Year-on-Year from N2.2 trillion to N2.7 trillion in June 2022.
Customer deposits grew by 22.3 per cent Year-on-Year from N1.3 trillion to N1.6 trillion in June 2022.
Assets Under Management grew by 47.3 per cent Year-on-Year from N500 billion to N736 billion in June 2022.
Explaining key non-financial highlights, the bank stated that
“In areas of climate action, we transitioned 8 branches from grid/diesel generators to solar power in H1 2022, taking the number of branches running on renewable energy to 150 (i.e., 73 per cent of total branches) as at June 30th.
“As in financial inclusion, we provided N6.3 billion loans to over 52,000 MSMEs at an average ticket size of N99,000, 77 per cent of which were women. Our focus on financial inclusion and MSMEs have been further bolstered by a $17.3 million funding partnership with Mastercard Foundation to provide affordable loans to 100,000 MSMEs over the next 5 years with a focus on 90 per cent participation by women”.
“We contributed to food security and import substitution in Nigeria by growing our lending to the agricultural sector from N53.6 billion in H1 2021 to N87.9 billion in H1 2022, a net disbursement of N34.3 billion over the last one year which represents 16.5 per cent of our total loan growth over the period”.
Also in customer acquisition, the bank added that “we acquired over 900,000 customers in the period including 250,000 customers from our PFA acquisition, compared to 400,000 in H1 2021. Our customer base crossed the 10 million mark in H1 2022”.
In investment banking, “FCMB Capital Markets raised and advised on investments in the Nigerian public and private sector totaling ₦294billion in the first 6 months of 2022, compared to ₦264billion in H1 2021” .
“We continue to leverage our unique group structure to enable a technology-driven ecosystem of platforms, customers, partners, talent, and capital to contribute to the sustainable and inclusive growth of the communities we serve. We believe that in spite of the challenging domestic and global environment, FCMB Group is well positioned to sustain the performance trend in financial and non-financial metrics,” the bank stated.
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