FCMB Assures on Enhanced Performance as Shareholders Approve Results at AGM
By Nsikan Ikpe
Niche financial services player, FCMB Group Plc has assured that it will continue to provide superior performance that would add significant value to stakeholders in a sustainable manner in spite of the challenging macroeconomic and regulatory environments.
A statement from the financial services institution outlines that proof of this assertion resides in the fact that its subsidiaries are well positioned to deliver more cutting-edge solutions that would provide the best customer experience in their respective target markets now and in the future.
The assurance was given at the 5th Annual General Meeting (AGM) of FCMB Group Plc, a holding company comprising eight entities, namely First City Monument Bank Limited, FCMB Capital Markets, CSL Stockbrokers Limited, CSL Trustees Limited, Legacy Pension Managers Limited, FCMB (UK) Limited, First City Asset Management Limited and Credit Direct Limited, held on Friday, April 27, 2018 in Lagos.
Going by its audited accounts for the year ended December 31, 2017, FCMB Group Plc recorded a gross revenue of N169.9 billion and a profit before tax (PBT) of N11.5billion, while profit after tax (PAT) was N9.4billion. In addition, deposits grew to N689.9billion as at the end of December 2017, an increase of 5%, from N657.6billion in the previous year.
The Group’s capital adequacy ratio also improved to 16.9% from 16.7%, just as asset base increased to N1.19trillion, compared to N1.17trillion at the end of 2016. Non-interest income as at the end of 2017 was N32billion, while loans and advances stood at N649.8billion.
Presenting the Chairman’s report, Mr. Oladipupo Jadesimi said:
‘’We will continue to shore up the capital of the bank through profit retention in preparation for the growth opportunities that we expect as the economy recovers’’.
The new Chairman of the Board of FCMB Group Plc expressed gratitude to shareholders for their continuous support, adding that:
‘’Although we met with a number of challenges as a Group in 2017, I am pleased to say that we were able to surmount them, thanks to the commitment of all the personnel of our Group companies’’.
Also speaking at the AGM, the Group Chief Executive of FCMB Group Plc, Mr. Ladi Balogun, said:
‘’In spite of the reduction in headline numbers, Group performance is an improvement over the previous year after adjusting for the significant FX (foreign exchange) revaluation income enjoyed in 2016. The key drivers of the Group’s performance include increase in income from our non-banking activities, lower impairment charges from the bank and its subsidiaries, and improved operating efficiencies through more pervasive use of technology’’.
Mr. Balogun assured that FCMB Group Plc’s successful acquisition of majority (88.2%) stake in Legacy Pension Managers Limited will go a long way to help achieve further diversification of service offerings and consequent earnings within the FCMB Group. He said:
“ We see significant growth opportunities in the Pension management industry in Nigeria as it is yet to achieve maturity and will support and facilitate strategic organic and inorganic growth initiatives that will position Legacy in the top-tier of its industry over the next few years’’.
Concerning the performance of the flagship of the holding institution, First City Monument Bank Limited, the Commercial and Retail Banking member of FCMB Group Plc, the Group Chief Executive told the meeting it:
‘’showed signs of improvement with growth in income levels (after adjusting for exceptional FX revaluation income in 2016), reduction in impairment charges and substantial growth in our UK business and consumer finance business (CDL), after a difficult 2016. Commercial and Retail Banking remains our largest group, contributing 76.2% of profits and 98.5% of total assets’’.
He, in addition stated that the Investment Banking arm:
‘’Exhibited improved performance, from a loss position in 2016 of N84.0million after tax to a profit position of N430.3million after tax in 2017, largely driven by CSL Stockbrokers Limited. Our stockbroking business remains a top-3 player in its sector and participated as the sell-side broker on the largest ever trade on the Nigeria Stock Exchange in December 2017. CSLS Stockbrokers Limited and FCMB Capital Markets Limited jointly accounted for 4.1% of profits’’.
From left: Chairman, FCMB Group Plc, Mr. Oladipupo Jadesimi; Company Secretary/General Counsel, Mrs. Funmi Adedibu; Founder, FCMB Group, Otunba Olasubomi Balogun and Managing Director of First City Monument Bank Limited, Mr. Adam Nuru, during the 5th Annual General Meeting of FCMB Group Plc held on April 27, 2018 in Lagos.