First City Monument Bank has recorded a 71 per cent rise in earnings to post N111.9 billion in gross profit for year end, December 31, 2024.
The Nigerian Exchange Ltd confirmed the bank’s performance record through a corporate statement.
The growth was impacted by a 56.6 per cent decline in revaluation income and a 1.9 per cent fall in Net Interest Margin.
The Group’s gross revenue stood at N794.4 billion for December 2023 end, marking a 53.9 per cent jump from N516.4 billion in the previous year.
This growth was driven by a 75.2 per cent rise in interest income and an 8.7 per cent increase in non-interest income.
Non-interest income growth was constrained by a 55.7 per cent year-on-year drop in other gains, from N89.3 billion to N39.6 billion.
Net interest income rose by 27.6 per cent, from N176.6 billion in the prior year to N225.3 billion by December 2024.
Yield on earning assets improved to 16.2 per cent. However, Net Interest Margin declined by 1.9 per cent due to a 122 per cent rise in funding costs.
Operating expenses increased by 45.7 per cent, year-on-year, to N229.1 billion.
This was driven by higher personnel costs, regulatory costs, foreign currency-linked expenses, and inflationary pressures.
The cost-to-income ratio closed at 59.9 per cent for the period ending December 2024.
Net impairment loss on financial assets declined by 30.7 per cent year-on-year to N41.2 billion, down from N59.5 billion.
Consequently, the cost of risk lowered to 1.8 per cent from 3 per cent.
The Group’s divisions recorded year-on-year growth, with consumer finance rising by 83.5 per cent and investment management by 27.9 per cent, while the banking group declined by 7.7 per cent.
Group earnings remained diversified, with non-bank subsidiaries accounting for over 30 per cent of profits.
Loans and advances increased by 28 per cent year-on-year from N1.84 trillion to N2.36 trillion at the end of December 2024.
Total assets grew by 59.5 per cent year-on-year, from N4.42 trillion to N7.05 trillion at the end of December 2024.
Customer deposits rose by 39.4 per cent year-on-year, reaching N4.30 trillion from N3.08 trillion by December 2024.
On recapitalisation, the statement read, “In line with the CBN’s directive, the Group focused on strengthening the banking franchise and building a more resilient balance sheet in 2024.
“We completed the first phase of our capital-raising programme, securing N144.6 billion through a public offer. This doubled issued shares from 19.8 billion in 2023 to 39.6 billion in 2024, impacting EPS.
“Subsequent phases of FCMB Group’s capital programme are in progress to ensure First City Monument Bank Limited meets the minimum capital requirement to retain its International Banking License.
“The capital injection has enabled First City Monument Bank Ltd. to secure its National Banking License and raise its capital adequacy ratio to 18 per cent.
“This has created essential buffers to support asset creation in select segments.”
