To align with the Central Bank of Nigeria’s recapitalisation mandate, FCMB completed the first phase of its capital raising programme, which saw issued shares double from 19.8 billion in 2023 to 39.6 billion in 2024. The capital injection helped the bank raise its capital adequacy ratio to 18 per cent and secure a national banking licence for its subsidiary, First City Monument Bank Limited.
Lagos, Nigeria – First City Monument Bank (FCMB) Group has reported a profit after tax of N73.34bn for the 2024 financial year, reflecting a decline from the N90.02bn posted in the previous year, despite raising N144.6bn through a public offer.
The audited full-year financial statements filed with the Nigerian Exchange Limited on Friday indicated that the recently raised capital had minimal impact on earnings due to regulatory approvals being finalised in December 2024. The bank, however, expects this capital boost to significantly influence profitability in 2025.
According to the group, “The capital raised in FY 2024 had a limited immediate impact on earnings due to the timing of regulatory approvals (completed in December 2024); however, this will be a key driver of profitability in FY 2025.”
Despite the year-on-year dip in post-tax profit, FCMB recorded a 7.1 per cent increase in profit before tax, which rose to N111.9bn. Gross revenue surged by 53.9 per cent, climbing from N516.4bn in 2023 to N794.4bn in 2024, driven primarily by a 75.2 per cent rise in interest income and an 8.7 per cent uptick in non-interest income.
The growth in non-interest income was, however, moderated by a significant 55.7 per cent drop in other gains, which fell from N89.3bn to N39.6bn within the review period. Net interest income grew by 27.6 per cent, from N176.6bn in 2023 to N225.3bn in 2024.
Operating expenses rose sharply by 45.7 per cent to N229.1bn. The group attributed this spike to increased personnel expenses, inflationary pressures, higher regulatory charges, and foreign currency-related costs, particularly in technology and international subsidiary operations.
In terms of revenue sources, FCMB’s earnings remained well-diversified. Its banking division contributed 69.5 per cent of total profits, followed by consumer finance at 11 per cent, investment management at 5.8 per cent, and investment banking at 1.6 per cent. Collectively, non-banking subsidiaries accounted for over 30 per cent of the group’s profitability.
To align with the Central Bank of Nigeria’s recapitalisation mandate, FCMB completed the first phase of its capital raising programme, which saw issued shares double from 19.8 billion in 2023 to 39.6 billion in 2024. The capital injection helped the bank raise its capital adequacy ratio to 18 per cent and secure a national banking licence for its subsidiary, First City Monument Bank Limited.
The group further noted that additional phases of the capital raise are underway to ensure the bank retains its international banking licence and strengthens its financial position.
Looking ahead, FCMB has outlined three strategic initiatives to drive future growth: enhancing net interest margins via a stronger capital base, expanding digital payments and collections to achieve an 80 per cent low-cost deposit funding ratio, and deepening its presence in the premium retail and institutional banking markets.
FCMB Group offers a broad range of financial services through its various subsidiaries, including FCMB Capital Markets, FCMB Trustees, FCMB Microfinance Bank, Credit Direct Finance, CSL Stockbrokers (and its subsidiary, FCMB Asset Management), and First City Monument Bank along with its UK subsidiary and FCMB Financing SPV. The group also owns a significant stake—91.71 per cent—in FCMB Pensions Limited.
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