FCMB Thrives Despite Headwinds, Realised N20.9 Billion Profit in 2021 FY

First City Monument Bank (FCMB), one of Nigeria’s fast-growing financial institutions, has reported impressive numbers for the Financial Year (FY) ended December 31, 2021. FCMB grew profit after tax by 6.5 percent to N20.894 billion, up from N19.610 billion filed in the 2020 FY.

The lender disclosed in its unaudited financial statements obtained by Investors King.

Gross earnings also inched higher during the period, rising by 4.6 percent from N199.438 billion in the corresponding period of 2020 to N208.528 billion in the period under review. Despite the interest and discount income expanding by 6.9 percent to N161.581 billion, the jump in interest expense from N60.256 billion in 2020 to N71.112 billion weighed on the bank’s net interest income.

Net interest income moderated to N90.469 billion, a 0.32 percent below N90.758 billion recorded in 2020.

Fee and commission income grew by 17.4 percent from N30.163 billion to N35.424 billion while fee and commission expense improved to N7.492 billion, down from N10.608 billion incurred in 2020. Therefore, net fee and commission income jumped by an astonishing 42.8 percent to N27.933 billion in the period under review.

A 59.4 percent reduction in impairment losses on financial instruments from N22.308 billion in 2020 to N9.057 billion in 2021 helped reduce the carried-over amount on a declining asset value. The reopening of branches increased personnel expenses by 5.82 percent to N31.236 billion.

Other operating expenses rose by 38.3 percent to N23.205 billion. The increase in the lender’s expenses eat into profit before tax as profit before tax stood at N23.926 billion, still higher by 9.2 percent when compared to 2020 profit before tax.

FCMB spent a total of N3.033 billion on taxes in the 2021 financial year to post N20.894 billion in profit after tax.

Earnings per share grew from 98 kobo to N1.04.