FCMB Group Surges 186% in Profit, Delivers Strong Growth Across All Sectors

FCMB Group Plc, a leading Nigerian financial services holding company, defied economic challenges to achieve a remarkable performance in 2023. The company’s results showcase not only impressive financial growth but also a commitment to social

The most striking aspect of FCMB’s performance is the massive 186% year-on-year increase in profit before tax, reaching a record ₦104.4 billion. This growth was driven by strong performances across all business segments, with the Banking Group leading the charge with a surge of 212.6%.

Demonstrating confidence in the company’s future, FCMB proposed a dividend of 50 kobo per share for its shareholders. This move highlights the company’s commitment to rewarding those who have invested in their success.

FCMB goes beyond merely generating profits. They actively promoted environmental and social responsibility in 2023. Their efforts included:

Increasing lending to the agricultural sector by 38.4%, supporting over 300,000 smallholder farmers (with a focus on empowering women in agriculture, as 56% of beneficiaries were female).

Securing funding for renewable energy projects, showcasing their commitment to a greener future.

Embracing Technology for Growth

FCMB actively embraced digital transformation as a key driver of growth. They saw a 31% increase in mobile app users and successfully disbursed over 1.5 million loans through automated processes. Their customer base also climbed a significant 15.6% year-on-year.

Solid Financial Performance

FCMB’s overall financial health is robust. Gross revenue grew by a staggering 82.5%, deposits surged by 58.5%, and total assets grew by 48.3%, all reaching record highs.

Commenting on the results, the Group Chief Executive of FCMB Group Plc, Mr Ladi Balogun, attributed this success to their unique ecosystem that fosters growth and digitization. He believes this trend will continue, further enhancing efficiency and profitability.

“We continue to leverage our unique Group structure to build a technology-driven ecosystem that is fostering inclusive and sustainable growth in the communities we serve. This strategy is enabling us to deliver robust performance in spite of the challenging domestic and global environment. Barring unforeseen circumstances, we believe this trend will be sustained and accompanied by improving efficiencies arising from greater scale and ongoing digitisation”.

The results across market fundamentals also showed gross revenue of N516.4 billion for the period ended December 2023, an 82.5% growth from N283 billion for the same period the prior year.  Net interest income grew by 44.8% from N122 billion in 2022 to N176.6 billion in 2023. Customer confidence in FCMB remained strong, as deposits rose by 58.5% YoY from N1.94 trillion to N3.08 trillion, just as loans and advances grew by 54% from N1.20 trillion to N1.84 trillion. The Group’s total assets increased by 48.3% from N2.98 trillion to N4.42 trillion at the end of December 2023.

FCMB Group’s Assets Under Management increased by 29.6% last year from N783.7 billion to N1.02 trillion. The value of investment banking transactions consummated by the Group rose to N945.3 billion for the period ended December 2023, compared to N857.1 billion in the same period the prior year.

FCMB Group, a financial services holding company headquartered in Lagos, Nigeria, and listed on the Nigerian Exchange Group (NGX), has strategic interests in companies serving over 12.5 million customers across five key platforms: banking, consumer finance, investment management, investment banking, and financial technology. The Group and its subsidiaries are building an ecosystem that promotes inclusive and sustainable growth in their communities, primarily in Africa, its diaspora, and the United Kingdom, by connecting people, capital, and markets.