FCMB Reports Impressive H1 2019 Results
By Dipo Olowookere
One of the leading tier-two lenders in the country, FCMB Plc, has continued to show that it has the capability to deliver good returns to its shareholders, going by the first half results of the firm for the period ended June 30, 2019.
For example, the gross earnings reported by the financial institution increased to N89.8 billion from N83.9 billion, while the net interest and discount income rose to N38.7 billion from N35.3 billion, buoyed by the growth in the interest and discount income to N70.4 billion from N64.3 billion and the interest expense of N31.7 billion recorded in H1 2019 against N29.0 billion in H1 2018.
With the fee and commission income rising to N14.2 billion in the period under review from N13.1 billion and the fee and commission expense increasing to N4.1 billion from N3.1 billion, the net fee and commission income closed at N10.1 billion in the period under review in contrast to N9.9 billion in the same time of last year.
In the financial results briefly analysed by Business Post, FCMB said its trading income reduced to N3.5 billion from N3.9 billion. This was mainly impacted by reduction in foreign exchange trading income, which went down to N91.7 million from N1.8 billion and a decline in bonds trading income, which fell to N120.4 million from N264.7 million. However, the treasury bills trading income rose to N3.3 billion from N1.9 billion, while options and equities trading income rose to N35.9 million from N7.3 million.
The firm further said it spent a total of N14.0 billion on its personnel during the period under review, more than N12.0 billion in the corresponding period of 2018, while the general and administrative expenses increased to N14.9 billion from N13.6 billion, with the other operating expenses reducing to N8 billion from N9.1 billion.
For the profit before tax, this improved to N8.8 billion from N7.1 billion, while the profit after tax appreciated to N7.5 billion from N5.8 billion.