[NIGERIA] FCMB Group Announces Q1 2023 Financial Result, Records Success In Digital Banking

 

First City Monument Bank (FCMB) Group Plc has announced its financial results for the first quarter of 2023 as it demonstrates continued success of its digital banking initiatives across various business segments.

Digital banking initiatives have gained significant traction within FCMB Group, contributing to its overall performance. In the first quarter, digital revenues accounted for 12.0% of gross earnings, equivalent to N10.0 billion.

This substantial growth highlights the Group’s commitment to leveraging digital solutions to enhance customer experiences and drive financial inclusion.

The impact of digitalisation was evident across FCMB Group’s various business lines. In terms of interest income, digital revenues accounted for 8.0% (₦5.2 billion), reflecting customers’ increasing adoption of digital banking services.

Furthermore, digital initiatives contributed 6.4% (₦76.3 billion) of the loan book, showcasing the Group’s focus on digital lending solutions.

In addition, digital channels accounted for 7.0% (₦10.0 billion) of the Assets Under Management (AUM) in the Group’s Asset Management business, reflecting the strength of its digital investment platforms.

However, speaking on the results, the Group Chief Executive, Ladi Balogun, said; “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 enables us to deliver robust performance despite the challenging domestic and global environment. Barring unforeseen circumstances, we believe our growth trend will be sustained and accompanied by improving efficiencies arising from greater scale and ongoing digitisation.”

It is interesting to know that during the period under review, FCMB Group achieved a significant 50% increase in gross revenue. Gross revenue rose to N87.4 billion, compared to N58.3 billion in the corresponding period of the previous year.

This growth was driven by a substantial 41.4% increase in interest income and an impressive 84.2% rise in non-interest income. These results highlight FCMB Group’s ability to generate significant revenue across its diverse business lines.

Also, FCMB Group witnessed a substantial 25.1% year-on-year increase in total assets, reaching an impressive N3.1 trillion at the end of the first quarter of 2023. This growth underscores the Group’s ability to effectively manage and expand its asset base, positioning it for further success in the fast-evolving financial services landscape.

The Group also acquired 500,000 new customers pushing its customer base to 11.4 million. This growth reflects the Group’s commitment to delivering exceptional financial services and its ability to attract and retain a large and loyal customer base.

It also recorded an impressive 78 per cent increase in profit before tax, with N10.7 billion as against N6 billion in the corresponding period of 2022. The banking group, consumer finance, investment management and investment banking segments also recorded notable growth of 108.8 per cent, 6.1 per cent, 47.0 per cent and 18.2 per cent, respectively.

The Group’s Investment Management businesses also achieved notable growth, with a 16.5% year-on-year increase in Assets Under Management (AUM). FCMB Group’s AUM reached an impressive N830 billion by the end of the first quarter of 2023, highlighting the Group’s expertise in managing investments and generating value for its clients.

For those who don’t know, FCMB Group is listed on the Nigerian Exchange Group (NGX) and serves over 11 million customers across four platforms: banking, consumer finance, investment management, and investment banking.