FCMB Reports 31.1% Rise in Profit to ₦19.6B in 2020, Proposes 15K Final Dividend

By
Esan Bolaji
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0
Fitch Affirms FCMB at 'B-'/Stable; off Rating Watch Negative

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

The gross earnings and profit after income tax recorded by FCMB for the year ended 31 December 2020 was N199.44billion and N181.25billion respectively.

The Directors of the financial group affirm that the FCMB is strategically poised for continued growth and development.

Further Earnings Analysis by Brand Spur revealed the following:

  • 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.