Have you ever wondered what it takes to drive significant revenue growth in today’s fast-paced financial world? At FCMB Group, the numbers speak for themselves. By the end of December 2024, the Group had recorded an impressive 53.9% increase in gross revenue, reaching a whopping N794.4 billion. This surge was largely powered by a remarkable 75.2% growth in interest income and a steady 8.7% rise in non-interest income. Even amidst the backdrop of high funding costs, net interest income grew by a solid 27.6%, bolstered by improved yields on earning assets.
Switching gears to the digital side of things, FCMB Group’s digital business is nothing short of a modern-day success story. Digital revenues saw an incredible growth of 69.2%, skyrocketing from N60.3 billion to N101.9 billion by the end of December 2024. Take a moment to ponder this: over 1.6 million retail loans amounting to N148.8 billion and more than 18,000 SME loans totaling N208.2 billion were disbursed through digital channels. Not stopping there, the digital wealth management team worked tirelessly to push their Assets Under Management (AUM) up to N22.4 billion, a solid leap from N15.1 billion in the preceding year. It makes one reflect on the limitless potential of digital transformation in the banking sector.
Confidence from customers in FCMB remains buoyant, with deposits witnessing a significant 39.4% increase year-on-year to N4.30 trillion, up from N3.08 trillion in the preceding year. It makes you ask, what fosters such unwavering trust from customers?
Speaking of growth, FCMB Group’s total assets saw a promising 59.5% year-on-year increase to N7.05 trillion, a steep climb from N4.42 trillion the year before. Loans and advances followed suit with a 28% hike, reaching N2.36 trillion, while the Assets Under Management across the Investment Management division grew by 35% to N1.37 trillion. No doubt, these figures reflect a robust trajectory for the group.
Ladi Balogun, the Group Chief Executive of FCMB Group Plc, succinctly captures the essence of these achievements: “Overall, we anticipate significant earnings per share (EPS) growth in full-year 2025, underpinned by a continued momentum in our non-banking businesses, a stronger balance sheet, digital transformation, and strategic market positioning.” These words echo the vision and the relentless efforts behind these remarkable results.
As part of its forward-looking recapitalisation strategy, FCMB Group successfully raised N144.6 billion through a public offer to secure the National Banking License for its banking subsidiary. Future capital-raising endeavors are in the pipeline to meet the Central Bank of Nigeria’s minimum capital requirement for an International banking license. Behind every number is a strategic decision and a seasoned execution. What drives such relentless pursuit is the aspiration to lead in the competitive banking landscape.
The Banking Group, contributing a hefty 69.5% of the group’s profit before tax (PBT), witnessed a slight dip of 7.7% year-on-year due to reduced net interest margins and a decline in other gains. Interestingly, the Investment Banking segment experienced a 35% decline, reflecting the absence of a one-time divestment gain from the previous year.
On a brighter note, the Group’s Consumer Finance division charted an astonishing 83.5% increase in PBT, while Investment Management delivered a robust 27.9% growth. These figures tell a tale of balancing challenges with triumphs, an evergreen narrative in the business world.
Looking to the future, FCMB has a clear roadmap for driving earnings growth in 2025. By refining net interest margins, expanding digitally enabled payment solutions for cost-effective deposit funding, and deepening engagement in premium retail and institutional banking, the bank envisions steering its growth trajectory further. Prospects for consumer finance remain positive, fuelled by digital innovation and progressive product offerings, while Investment Banking is primed to leverage heightened capital market activities. Investment Management foresees sustaining its steady growth pattern. With the right strategies in place, FCMB seems poised for another year of success and innovation.
Edited By Ali Musa
Axadle Times International–Monitoring.
