BusinessUpdate

Q1 2024 : N29bn, FCMB’s Profit Exceeds Projection

By update May 22, 2024 #Cover
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FCMB Group Plc recorded an after-tax profit of N28.8 billion, A figure that is more than double the forecast profit of N12.6 billion for the first quarter of 2024 .

The same was the Earnings in the same vein shot up significantly last year when its group after-tax profit target of N73 billion was surpassed by N20 billion to N93 billion – almost three times the closing profit of N31 billion in 2022.

The bank’s interim financial report for the first quarter ended March 2024 shows that foreign exchange gains were unprecedented and a veritable source of strength in earnings for the bank.

The exchange gains, arising from the revaluation of foreign currency-denominated assets, multiplied nearly 15 times year-on-year to N26.8 billion at the end of the first quarter. This propelled the top and bottom lines of the bank to overshoot targets at the end of the quarter.

The same was true of FCMB’s earnings in 2023 when foreign exchange gains improved nearly 20 times from N4.3 billion in 2022 to about N84 billion at the end of the year, tripling the bottom line at N93 billion.

Apart from foreign exchange gains, FCMB also garnered a lot of operating strength from a robust expansion of interest earnings and net trading income.

At over N125 billion, interest income rose roughly 90 per cent year-on-year – about N28 billion ahead of the forecast figure of N97.7 billion for the first quarter. Net trading income grew by 93 per cent to stand at N9.5 billion at the first quarter close.

Net fee and commission income closed flat at less than N12 billion for the quarter, as fee and commission expenses claimed virtually all the increase in the income line.

Driven by foreign exchange earnings, other gains multiplied nearly 15 times to stand at over N27 billion at the end of March 2024.

By update

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