FCMB Group announced its group results, for the half year ended 30 June 2014. The company reported a profit before tax of N11.1 billion, up 5% from the same period in 2013.
Net Interest Income was N32.4 billion, an increase of 20% from N26.9 billion over the same period in 2012.
Loans and advances were up 43% YoY to N555.3 billion from N389.2 billion as at June 2013.
Mr. Peter Obaseki, Managing Director of FCMB Group Plc, had this to say about the results:
“The Group reported positive developments in most of its key operating areas. On the Group’s statement on financial position, customer deposits and loans & advances rose 26% and 43% YoY toN756.9 billion and N555.3 billion, respectively. On the Group’s statement of comprehensive income, operating income increased by 12% from N40.8 billion for the first half of 2013 to N45.7 billion for the first half of 2014, operating expenses also rose by 12% from N28.5 billion in HY13 to N32.0 billion in HY14 and pre-tax profits were up 5% to N11.1 billion. Net interest margins also increased by 3.5% YoY to 8.6%.
It is also noteworthy that the investment banking group’s contribution to the Group’s pre-tax profits increased during the six-months ended 30 June 2014. FCMB Capital Markets Limited and CSL Stockbrokers reported pre-tax profits of N587 million, 41% higher than the same period in 2013.
Toward the end of the second quarter, we saw encouraging signs and strengthening pipelines across our operating companies and some improvements in markets activity. Barring any major adverse developments, we expect that transactions in the pipeline will feed into the results for the second half of the year.”
Mr. Ladi Balogun, Group Managing Director/ CEO of FCMB Ltd, commented on the results thus:
“The commercial & retail banking arm of the Group showed resilience, making a profit before tax of N10.8 billion up by 5% from the profit of N10.2 billion in the first half of 2013. On our statement of financial position, total deposits increased by27%, growing from N600.4 billion for the first half of 2013 to N763.0 billion for the first half of 2014 and up 11% from the March 2014 figure of N687.3 billion. Our total loans grew from N389.0 billion in June 2013 to N554.9 billion in June 2014 – a growth of 43%, due
largely to a seasonal rise in agricultural lending.
We expect margins and profitability to improve, in the subsequent quarters, as we focus on our business mix – replacing corporate with retail loans and deposits – and improving operating efficiency.”