FCMB Garners N20.89 Billion Profit In 2021, A 6.5 Percent Increase, YoY



The Oasis Reporters
January 28, 2022

Highlights:
++Gross earnings – N208 billion. Showing a dip of N4.5% at N9 billion from the N199 billion reported the previous year.
+++Net interest income at N90.47 billion fell slightly by N288 million in 2021 as that of the year 2020 was valued at N90.75 billion.
*Net fees and commission income rose significantly by 42%, reaching N27 billion from the previous year value at N19.7 billion. This was driven by fees commission income which rose to N35 billion from N30 billion and a consequent drop in commission expenses to N7 billion from N10 billion during the period.
**Net trading income at N7.1 billion in 2020 saw a slight dip to close at N6.89 billion in 2021 while other revenue fell significantly to close at N3 billion from the N10.5 billion.
***Significantly, the bank was able to reduce the impairment losses on financial instruments greatly from N22.3 billion to N9 billion in 2021.
****Personnel expenses increased in 2021 recording 31.2 billion compared to the 29.5 billion the same period in 2020 while general and administrative expenses also recorded N34.6 billion from the amount reported same time the previous year and other operating expenses was N23 billion in 2021 from N16.8 billion in 2020
°°Profit before tax (PAT) totalled N23.926 billion and was cut down by minimum and income tax expenses at N900 million and N2.1 billion respectively causing the profit for the year to close at N20.9 billion in 2021
**** Earnings per share (EPS) increased by 0.06 to close at N1.04 in 2021.
Going by an unaudited financial report filed to the Nigerian Exchange on the financial report of First City Monument Bank, the lender has reported a Profit After Tax (PAT) of N20.8 billion for the year 2021.
The amount represents a 53% increase from the N13.8 billion in the last quarter and a 6.5% rise from the N19.6 billion reported in the same period the previous year.
Broad Street financial analysts posit that the bank generated the highest profit in the last quarter of the year at N7.09 billion more than N6.2 billion it generated in third quarter, N3.98 billion in second quarter and N3.57 billion in the first quarter.
This is impressive for a commercial lender that started out as a merchant bank with two branches at Broad Street Lagos and Airport Road Kano over 30 years ago. The lender’s transformation into commercial banking has throttled it’s growth speed to approximately 7.1 million customers and 206 branches in Nigeria and a banking subsidiary in the United Kingdom through FCMB Bank (UK) Limited (which is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority.
FCMB’s impressive performance in 2021 as the bank was able to increase PAT despite the significant drop in revenue and improved expenses for the period shows strong fundamentals in an overall global economy that is trying to keep it’s nose above waters owing to the sluggish performance Covid-19 pandemic threw the global economy into. That the leading Tier-2 top lender was able to minimize a loss on financial instruments by a whopping 59.3% from the previous year’s is increasingly making it attractive to more and more significant Investors.
Little wonder that Primrose Investment, noticed the strong fundamentals and purchased additional 21.1million units of FCMB shares worth N65.3 million in the last Q 3, 2021. Some other investors are also trooping in to do same.




