FCMB Group Plc announces a Profit before Tax of N12.8 billion for the nine months ended 30 September 2019..

LAGOS, NIGERIA – 29 NOVEMBER 2019: FCMB Group Plc (Bloomberg: FCMB) (“FCMB Group”) has announced its Group Results (containing the Bank’s Audited Results), for the nine-months ended 30 September 2019.

 

Financial Performance Highlights:

Earnings Analysis:

  • Gross revenue of N135.8 billion for the nine-months ended September 2019, was a 2% growth from N132.9 billion for the same period prior year.
  • Net interest income rose by 6% Year-on-Year (YoY) from N53.2 billion, for the nine months of 2018, to N56.2 billion for the nine months of 2019.
  • Non-interest income of N27.6 billion, for the nine-months ended September 2019, a 16% decrease YoY, from N33.0 billion for the same period prior year, driven primarily by non-recurrence of exceptional gains from FX income on convergence of rates in prior year.
  • Net impairment loss on financial assets reduced by 46% YoY to N7.8 billion, for the nine months of 2019, from N14.6 billion for the same period prior year.
  • Operating expenses increased 11% YoY for the nine-months ended September 2019 to N63.2 billion and increased 18% Quarter-on-Quarter (QoQ) to N23.5 billion.
  • Profit before tax (PBT) of N12.8 billion, for the nine months of 2019, fell 13% YoY.

Earnings Mix :

  • Commercial and Retail Banking accounted for 89% of net income, increasing 9% YoY and declining 3% QoQ.
  • Asset and Wealth Management accounted for 9% of net income, declining 7% YoY and grew by 42% QoQ.
  • Investment Banking accounted for 1% of net income, declining by 50% YoY and 102% QoQ).

Financial Position:

  • Loans and advances rose 3% QoQ to N638.1 billion in September 2019 (N617.9 billion in June 2019).
  • Total assets grew a slight 0.3% QoQ at N1.52 trillion in September 2019 (N1.51 trillion in June 2019).
  • Customer deposits rose by 5% to N863.4 billion in September 2019 (N823.0 billion in June 2019).

3Q19 Key Ratios:

  • Capital Adequacy Ratio – 17.97%.
  • Liquidity Ratio – 39.8%.
  • Loan to Deposit Ratio – 73.9%.
  • CBN Loan to Funding Ratio - 57.36%
  • Non-Performing Loans (NPL) to Total Loans Ratio – 3.5%.
  • Cost to Income Ratio – 75.4%.
  • Net Interest Margin – 7.5%.
  • Earnings per share – 54.23k.

9M 2019 Results Overview:

Our year on year growth has faced a few setbacks due to the non-recurrence of exceptional gains from FX income, regulatorily induced fee reductions in the pensions business and a continued lull in the capital markets.

There was, however, strong momentum in certain key underlying value drivers. Our customer base grew by 10% QoQ to 5.9 million from 5.3 million. We sustained our digital penetration drive by growing our mobile banking customers by over 488,000 to over 4.1 million. The bank also saw other key initiatives begin to gain momentum, including, a 124% QoQ and 216% YoY rise in digital lending to individuals and initiation of digital onboarding for personal and business customers. Our assets under management also grew by 31% YoY to N380 billion, which helped reduce the impact of the reduction in fees in the pensions sector

We intend on finishing the year strongly and laying a strong foundation for 2020, where our key priorities will include continued growth in our digital assets and digital transformation of existing assets, renewed emphasis on growing corporate and investment banking and continued acceleration of assets under management in both pensions and non-pensions related products.

Barring any unforeseen circumstances, the last quarter of 2019 should see improved operating performance, driven by anticipated growth in our balance sheet, customer numbers and assets under management, as well as, rising commissions from our digital financial services.

Conference Call & Webcast for Results

FCMB Group Plc (Bloomberg: FCMB) will be hosting a teleconference call and webcast for analysts and investors on Thursday 5 December at 15.00 Lagos /14.00 London/ 9.00 New York/ 16.00 Johannesburg, with its senior and divisional management to review these Results and respond to questions from investors and analysts.

 

The teleconference call facility can be accessed by dialling:

Lagos Access Number: +234 1 227 8750

UK Access Number: +44 (0) 844 571 8892

USA Access Number: +1 631 510 7495

South Africa Access Number: +27 10 500 7996

And then entering the following confirmation code: 7191978

Participants will have to quote the above code when dialling into the conference call.

Participants can log on to the link for the webcast by going to the ‘Upcoming Events’ or ‘What’s New’ sections on FCMB’s Investor Relations homepage, which can be accessed by clicking on www.fcmbgroup.com/investor-relations

 

Webcast access on mobile devices - QR code:

Access the live and on-demand versions of the webcast from mobile devices running iOS and Android.

Participants should please register for the call/ log-on to the webcast at least five minutes before the start of the conference call.

The presentation and all other related documents, for the call, will be posted under the ‘What’s New’ section on FCMB’s Investor Relations homepage, which can be accessed by clicking on www.fcmbgroup.com/investor-relations from 13.00 (Lagos & London) on Tuesday 30 April.

For those who are unable to listen to the live call, the recording of the webcast will be available under ‘Financial Results – 2019’ by clicking on the ‘Financial Information’ tab on FCMB’s Investor Relations website, which can be accessed by clicking on www.fcmbgroup.com/investor-relations The webcast recording will be done in real-time, so it will be available as soon as the conference call & webcast begins at 15.00 (Lagos & London) on Tuesday 30 April.

For further information, please contact:

Ori Rewane: Head - Investor Relations, FCMB Group Plc

Tel: +234 (0) 1 279 30 30 and +234 (0) 1 279 30 33

Email: orighoye.rewane@fcmb.com

Kayode Adewuyi: Chief Financial Officer, FCMB Group Plc

Email: kayode.adewuyi@fcmb.com

OR institutionalinvestorrelations@fcmb.com

 

– ENDS –

 

Notes to editors:

About FCMB Group Plc

FCMB Group Plc is a bank-led financial services group, headquartered in Lagos, Nigeria, with operating companies divided along three business groups – Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Investment Banking (FCMB Capital Markets Limited and CSL Stockbrokers Limited); and Asset & Wealth Management (Legacy Pension Management Limited, First City Asset Management Limited and CSL Trustees Limited). Listed on the Nigerian Stock Exchange (NSE) with the ticker symbol (FCMB), FCMB Group Plc has 19,802,710,781 ordinary shares held by over 521,000 shareholders.

First City Monument Bank Limited, the flagship company, has approximately 3.7 million customers and 204 branches in Nigeria and a banking subsidiary in the United Kingdom through FCMB Bank (UK) Limited (which is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA in the United Kingdom).

More information can be found at www.fcmbgroupplc.com

FCMB Group Plc, First City Plaza, 44 Marina, Lagos, Nigeria.

Tel: +234 (0) 1 279 3030 and +234 (0) 1 279 30 33.

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