First City Monument Bank (FCMB) has reported a Profit Before Tax (PBT) of N111.9 billion for the financial year ending December 31, 2024. This was disclosed in a corporate statement released through the Nigerian Exchange Limited on Thursday, confirming the bank’s strong financial performance despite economic challenges.
The statement highlighted that PBT grew by 71 per cent, although this was affected by a 56.6 per cent decline in revaluation income and a 1.9 per cent drop in Net Interest Margin. Despite these setbacks, FCMB’s gross revenue surged to N794.4 billion for the period ending December 2024, representing a 53.9 per cent increase from N516.4 billion in the previous year.
This revenue boost was primarily driven by a 75.2 per cent rise in interest income, along with an 8.7 per cent growth in non-interest income. However, non-interest income was limited by a sharp 55.7 per cent drop in other gains, which fell from N89.3 billion to N39.6 billion year-on-year.
The bank’s net interest income saw a notable rise of 27.6 per cent, increasing from N176.6 billion in the previous year to N225.3 billion by the end of 2024. Yield on earning assets improved to 16.2 per cent, but funding costs surged by 122 per cent, leading to a decline in Net Interest Margin by 1.9 per cent.
Operating expenses climbed by 45.7 per cent year-on-year to N229.1 billion, largely due to increased personnel costs, regulatory fees, foreign currency-linked expenses, and inflationary pressures. As a result, the cost-to-income ratio for the period settled at 59.9 per cent.
A positive development for the bank was the reduction in net impairment loss on financial assets, which dropped by 30.7 per cent year-on-year to N41.2 billion, down from N59.5 billion. This led to a decline in the cost of risk from 3 per cent to 1.8 per cent.
The bank’s various business segments recorded mixed performances. Consumer finance grew by 83.5 per cent, while investment management increased by 27.9 per cent. However, the banking group experienced a slight decline of 7.7 per cent. Group earnings remained diversified, with non-bank subsidiaries contributing over 30 per cent of total profits.
Loans and advances grew significantly, rising by 28 per cent year-on-year from N1.84 trillion to N2.36 trillion at the end of December 2024. The bank’s total assets also expanded by 59.5 per cent, increasing from N4.42 trillion to N7.05 trillion. Customer deposits saw a substantial rise of 39.4 per cent, reaching N4.30 trillion compared to N3.08 trillion recorded at the end of 2023.
Regarding recapitalisation, FCMB stated that in compliance with the Central Bank of Nigeria’s directive, the Group took strategic steps to strengthen its banking franchise and improve its financial resilience. In 2024, FCMB completed the first phase of its capital-raising programme, securing N144.6 billion through a public offer. This move effectively doubled the bank’s issued shares from 19.8 billion in 2023 to 39.6 billion in 2024, impacting Earnings Per Share (EPS).
The bank assured stakeholders that subsequent phases of its capital programme are already underway to ensure that First City Monument Bank Limited meets the minimum capital requirement to retain its International Banking License. The capital injection has also enabled FCMB to secure a National Banking License while improving its capital adequacy ratio to 18 per cent, reinforcing its ability to support asset creation in select segments.
