FCMB Group Plc has reported a profit before tax (PBT) of N14.2billion for the nine-months, ended 30 September 2016. This represents an increase by 453 per cent from N2.563 billion recorded in the comparative period of 2015.
The group attributed the current development partially to its soundness of ratios, steady buffers against the subsisting adverse operating environment, in addition to the lender’s sustained revenue momentum combined with its cost optimisation programme.
The unaudited results as announced on the floor of the Nigerian Stock Exchange (NSE), showed the group’s gross revenue stood at N140.7 billion for the nine-months, a 29 per cent increase from N109.3 billion for the same period last year.
The group also recorded non-interest income of N44.8 billion, an increase of 128 per cent Year-on-Year (YoY), from N19.6 billion a year earlier.
The increase according to the company, was predicated on a 612 per cent YoY increase in FX income, from N5.0 billion for the nine-months ended September 2015, to N35.3 billion for the nine-months ended September 2016.
Managing Director, FCMB Group Plc, Mr. Peter Obaseki, commenting on the result, said: “The audited nine months results for the period ended September 2016, reflects our focus on key soundness ratios and the need to maintain buffers against a sustained adverse operating environment. Accordingly, capital adequacy and liquidity ratios have held up at 17.6 per cent and 36.8 per cent, respectively.
Overall, profit before tax came in at N14.2 billion, a 453 per cent growth, translating to an EPS of 87 kobo, up 30.6 per cent, YoY, Underlying revenue momentum remains strong while cost optimisation programme led to a 2 per cent YoY drop in operating expenses, despite inflationary spiral respectively. The macro economic conditions in the final quarter remains challenging; we will keep up a conservative stance.”
Group Managing Director of FCMB Limited, Mr. Ladi Balogun, while also speaking on the group’s results, stated: “The audited results of the bank reveal that the extraordinary performance of Q2 2016 offset the loss recorded in Q3 of N2.4 billion, thereby resulting in strong year-on-year profit growth of 913 per cent. In order to avoid an unsustainable, non-cash, spike in earnings from further revaluation gains in Q3, the bank also significantly stepped up its loan loss provisions.