Banking
FCMB: Braving the Odds to Deliver Value
Owing to the rising default in loan repayment forced by the COVID-19 pandemic and the declining economy that affected borrowers’ revenue inflow, First City Monument Bank (FCMB) faced an upsurge in credit loss expenses in the third quarter but its management waded through the strain and maintained the elevated profit performance it demonstrated at half-year.
The situation, which affected lenders globally, also forced the bank’s net loan impairment expenses to rise to N5.6 billion quarter-on-quarter in the third quarter ended in September 2020. This pushed up the year-to-date loan loss expenses to more than N13 billion, jerking up the year-on-year rise from 41 per cent at half-year to over 70 per cent at the end of the period.
The resumption of new lending in 2019 after two years of break, occasioned by the Loan to Deposit Ratio (LDR) policy of the Central Bank of Nigeria (CBN), appears to be fuelling the rising asset losses.
Last year, the bank grew the customer credit portfolio by 13 per cent and further growth of close to 11 per cent had happened at the end of the third quarter to N793 billion.
The bank’s management is not letting the asset quality strain to impede the impressive growth record of the bottom line. Instead, it gained speed on profit growth from the half-year position to 30 per cent year-on-year at the end of the third quarter.
FCMB is maintaining the path of growing profit for the third consecutive year though it has remained well below the peak profit figure of N22 billion attained as far back as 2014.
The bank maintained its earnings growth levers on the upbeat, spurred by a step up in interest earnings from 8 per cent growth at half year to 10 per cent increase year-on-year to N112 billion at the end of the third quarter. This was punctured by non-interest income, which shrank from 13 per cent increase at half-year to close flat at N34 billion at the end of September 2020.
Nevertheless, FCMB is still seeing the highest growth rate in revenue in four years in the current financial year. Interest income is growing at the highest rate in for the bank since 2014.
At over N146 billion at the end of the third quarter, gross earnings improved by 7.8 per cent year-on-year, slowing down from over 9 per cent improvement at half-year. This remains the best revenue growth record for the bank in four years against a slight decline in 2019.
Interest cost extended its benign behaviour in the third quarter with a year-on-year decline stepping up from 3 per cent at half-year to roughly 4 per cent to close at N44 billion at the end of the third quarter. Improving interest income with declining in interest expenses are the favourable combination for FCMB in 2020. The share of interest income devoted to interest expenses went down from 45 per cent to 39 per cent over the review period. The positive effect is a top record growth of 21 per cent in net interest income to N66 billion at the end of the third quarter compared to less than 5 per cent improvement at the end of 2019.
The major increase in impairment loss on financial assets however did not let all the increase in net interest income get down into profit. Net loan impairment expenses rose by 70 per cent to over N13 billion at the end of September 2020. The expenses claimed nearly 20 per cent of net interest income against 14 per cent in the same period last year.
With the strength of improving revenue and declining interest expenses, FCMB was able to dilute the impact of rising credit loss expenses and still add some momentum to the bottom line.
The bank closed the third quarter with an after-tax profit of roughly N14 billion, which is a year-on-year growth of 30 per cent – stepping up from 29 per cent record at half-year.
Profit is accelerating this year from 16 per cent growth the bank recorded at the end of 2019. The ability to grow profit more than three times ahead of revenue underscores a gain in profit margin this year. Net profit margin improved from 7.9 per cent in the same period last year to 9.5 per cent at the end of the third quarter. This is the highest net profit margin the bank has seen since 2015. The strength came from cost saving from interest expenses and a moderated operating cost during the review period.
The improvement in interest income reflects the expansion of earning assets with loans and advances growing by N77 billion over the 2019 closing figure of N715 billion and investments rising by N64 billion to over N303 billion over the same period.
Over the nine months of the year, it has grown the size of the balance sheet by N369 billion or 22 per cent to close at over N2 trillion – the strongest growth since 2012. Earnings per share amounted to 70 kobo at the end of the third quarter operations, improving from 54 kobo per share in the same period last year.
The bank remains on track with our full-year expectation that it would retain the key strengths of growing revenue, moderating interest expenses and improving profit margin and stay the course of rebuilding profit for the third straight year in 2020.
By Aduragbemi Omiyale
More than $700 million was disbursed in loans to Micro, Small, and Medium-sized Enterprises (MSMEs) in 2025 by Moniepoint, the financial technology (fintech) firm said in its inaugural Impact Report titled Creating Financial Happiness.
The report also revealed that for three out of four borrowers, a loan from Moniepoint was the first formal business credit their enterprise had ever accessed because of the strategies deployed by the organisation to make financing more accessible to small business owners.
“Ten years ago, we began this journey with a simple but audacious goal — to build financial infrastructure that worked for everyone. Today, that goal has crystallised into our mission of creating a world where every African, everywhere, can experience financial happiness.
“This report shows how that vision is taking shape, through the lives and businesses that are improving because they now have access to the right financial tools.
“For 75 per cent of the businesses we lent to this year, ours was the first formal business loan they had ever received. We also significantly expanded lending to women-owned businesses because we know that when African women thrive, entire communities are uplifted,” the chief executive of Moniepoint Incorporated, Mr Tosin Eniolorunda, stated.
The report showed that Moniepoint now serves over 20 million businesses and individuals, processing over $250 billion in transaction value annually.
It also highlights the impact of expanded access to credit, banking, and business management tools for MSMEs in Nigeria, which face a funding gap of approximately $32.2 billion.
In addition, businesses that received credit recorded a 36 per cent increase in average transaction value, while enterprises banking with Moniepoint employed more than 8 million people in 2025.
Beyond access to credit, Moniepoint’s payments infrastructure is extending financial access to underserved communities, as customers without smartphones or reliable internet can use the company’s USSD service, which turns a basic feature phone into a banking tool.
It was observed that people without smartphones carried out over $170 million in transactions by dialling a simple code.
Across the country, Moniepoint’s POS terminals operate in all 774 local government areas and enable payments for 100 million people in 2025. These gains are showing up in how people experience their financial lives.
In surveys of Moniepoint users, 83 per cent reported that their quality of life has improved, and 85 per cent reported increased confidence in achieving their financial goals.
Beyond its commercial operations, the report also highlights Moniepoint’s broader contribution to economic and social development through investments in talent, education, entrepreneurship and community development.
Guided by the UN Sustainable Development Goals, the financial giant has expanded employment pathways through initiatives such as Women in Tech and DreamDevs engineering programmes, while supporting STEM education, financial literacy, women entrepreneurs and underserved children, collectively reaching tens of thousands of beneficiaries.
Through strategic delivery partnerships, Moniepoint has also supported large-scale government intervention programmes, enabling subsidised food distribution to more than 800,000 people in northern Nigeria.
By Aduragbemi Omiyale
It was a double honour for Zenith Bank Plc at the prestigious Euromoney Awards for Excellence 2026, clinching the biggest and most coveted national and continental awards in banking.
The lender was named Africa’s Best Bank and Nigeria’s Best Bank, the latter for the second consecutive year, at a ceremony held on Thursday, July 16, at The Peninsula London Hotel, London, England.
The Euromoney Awards for Excellence are among the most respected in the global financial industry, evaluating banks on criteria including strategy, profitability, risk management, digital transformation and impact on stakeholders. Victory at the awards is regarded as a mark of the highest distinction in global banking.
“We are deeply honoured by these recognitions from Euromoney. Being recognised as Africa’s Best Bank and Nigeria’s Best Bank reflects the trust of our customers, the dedication of our unicorn workforce, and our unwavering commitment to building a truly African global financial institution.
“These awards inspire us to do even more to deliver superior value, drive financial inclusion, and support the growth of businesses across Africa,” the chief executive of Zenith Bank, Ms Adaora Umeoji, said.
The dual recognition of Zenith Bank is a testament to its sustained excellence in financial performance, customer service, digital innovation, and its contribution to economic development across Nigeria and the wider African continent.
In this year’s edition, a record of over 770 entries were received from world-class financial institutions, including HSBC, Morgan Stanley, Citibank, Barclays, Standard Bank and DBS Bank of Singapore.
Zenith Bank has continued to deliver strong financial results while accelerating investments in technology, artificial intelligence, and digital banking solutions.
In the 2025 financial year, the bank grew gross earnings by six per cent year on year to N4.19 trillion and delivered profit after tax of N1.04 trillion, while reducing its non-performing loan ratio from 4.7 per cent to 3.8 per cent.
In keeping with its dividend policy, Zenith Bank rewarded its investors with a record-breaking total dividend of N10.00 per share (totalling N410.69 billion) for the 2025 financial year, representing a 100 per cent increase over N5.00 per share paid in 2024.
By Adedapo Adesanya
The Wireless Application Service Providers Association of Nigeria (WASPAN) has asked the Federal High Court in Lagos to suspend the enforcement of the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital, Electronic, Online or Non-Traditional Consumer Lending (DEON) Regulations 2025 pending the determination of its appeal against an earlier judgment.
The application follows the dismissal of WASPAN’s substantive suit challenging the regulations, although the court made significant pronouncements on the regulatory responsibilities of the FCCPC and the Nigerian Communications Commission (NCC).
Justice Ambrose Lewis-Allagoa had ruled that the FCCPC possesses powers under Sections 104, 105, 106, and 163 of the Federal Competition and Consumer Protection Act to investigate anti-competitive conduct, protect consumers, and issue regulations.
The court also held that there was no conflict between the FCCPC Act and the Nigerian Communications Act, affirming that while the FCCPC oversees competition and consumer protection, the NCC remains the statutory regulator responsible for licensing telecommunications operators.
However, the judge clarified that “the FCCPC lacks the power to issue telecommunications licences,” adding that “nothing in the DEON Regulations creates a telecommunication licensing.”
Despite the ruling, WASPAN has filed a notice of appeal and is seeking an injunction to preserve the status quo pending the outcome of the appellate process.
In its Motion on Notice, the association asked the court for “an order of injunction restraining the Defendant whether by itself, officers, employees, agents or such other persons howsoever named from enforcing, implementing and/or otherwise giving effect to the enforcement and/or implementation of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025” pending the hearing and determination of the appeal.
WASPAN also requested an order preventing the FCCPC from interfering with services provided by its members under the disputed regulations.
Specifically, it sought an order restraining the commission “from taking any steps towards interfering with or preventing the Plaintiff’s members from providing or continuing to provide or deploy any services or product governed by the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025.”
In addition, the association urged the court to restrain the FCCPC “from imposing any sanction, penalty, punishment or fines on the Plaintiff’s members” over any alleged non-compliance with the regulations while the appeal is pending.
According to WASPAN, the interim reliefs are necessary to preserve the subject matter of the appeal and prevent actions that could render the appellate proceedings ineffective.
Business Post reports that the latest application extends the legal battle over the FCCPC’s DEON Regulations and sets the stage for the Court of Appeal to further clarify the scope of the commission’s regulatory authority in Nigeria’s digital lending and telecommunications sectors.
