FCMB Group Plc has reported a 21 percent decline in profit after tax for the financial year ended 31 December 2024 despite recording strong growth in gross earnings.
The audited results released by the Group showed profit after tax fell to N73.3 billion compared to N93 billion recorded in 2023.
Gross earnings for the year rose by 54 percent to N794.4 billion, up from N516.4 billion in the previous year driven by increases in interest income and fee-based revenue.
Interest and discount income increased by 75 percent to N621.8 billion from N355 billion while net trading income rose sharply to N53.8 billion from N9.1 billion recorded a year earlier.
The Group also recorded growth in fee and commission income from N62.2 billion filed in 2023 to N74.3 billion
Net interest income stood at N225.3 billion, a 28 percent increase from N176.6 billion in the previous year.
Despite the strong top-line performance, profitability was impacted by rising expenses and tax liabilities.
Interest expense increased to N396.5 billion from N178.4 billion while personnel expenses rose to N79.3 billion from N49.6 billion.
General and administrative expenses also climbed to N87.5 billion from N63.7 billion on inflationary pressures and expansion-related costs.
The Group’s result from operating activities rose to N112.1 billion from N104.4 billion but higher tax obligations and a new windfall tax introduced during the year eroded the bottom-line gains.
The taxation charge stood at N17.6 billion while the windfall tax added another N17.7 billion in charges during the year. In contrast, the Group did not record any windfall tax expense in the previous year.
The minimum tax also increased to N3.3 billion from N2.2 billion, further affecting overall profitability.
The cumulative impact of these tax-related deductions resulted in a lower profit after tax despite operating profit growth.
According to the Group, the rise in tax-related expenses reflects the new fiscal environment and adjustments to corporate tax policy which came into effect during the reporting period.
The introduction of the windfall tax affected net earnings and is expected to remain a key cost consideration in future performance.
While the Group’s revenue trajectory remains positive, analysts note that sustained pressure on cost and tax obligations may continue to impact net margins.
FCMB Group’s audited statement reflects resilience in core banking and financial services segments but also underscores the increasing weight of fiscal measures on corporate earnings in Nigeria’s evolving economic landscape.
