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FCMB Group Records 186% Profit Growth, Proposes 50k Dividend

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FCMB Group Plc grew deposits, loans, assets under management, revenue and earnings and improved its environmental, social, and corporate governance scorecard. The Group recorded a profit before tax of ₦104.4 billion, a 186% year-on-year (YoY) increase compared to ₦36.6 billion in 2022 and earnings growth across its business segments: Banking Group 212.

6%, Consumer Finance 67.
3%, Investment Management 40%, and Investment Banking 89.
7%.

FCMB Group, which proposed a dividend of 50 kobo per share for its shareholders, contributed to food security and import substitution in Nigeria by increasing lending to the agricultural sector by 38.4% from N147.4 billion in 2022 to N204.3 billion in 2023.

In addition, the Bank supported over 300,000 smallholder farmers, 56% of whom were women in agriculture, in rural communities to support the sector. Over $280 million of funding from DFI’s and donor agencies was raised during the year to support the attainment of sustainable development goals in critical sectors of the economy.

Leveraging its core banking business, the Group facilitated over $700 million and $100 million in export and remittance flows into Nigeria, respectively, as at December 2023.

In safeguarding the environment, it switched six additional branches of its retail and commercial banking subsidiary (First City Monument Bank Limited) from grid/diesel generators to solar power last year, taking the number of branches running on renewable energy to 160, which represents 78% of total branches.

In addition, the Bank secured funding of up to N13 billion from local development finance institutions for on-lending to customers requiring solar energy solutions to further support its commitment to driving renewable energy.

FCMB’s customer base grew by 15.6% YoY from 10.9 million to 12.5 million for the period ended December 2023, whilst users of its mobile app that offers lending, wealth and payment solutions grew by 31% YoY to 3.4 million. Similarly, the Bank’s agency banking network grew to over 164,000 agents. With an enlarged customer base, an expanded distribution platform, and the use of artificial intelligence to automate and optimise loan underwriting processes, the Group successfully disbursed over 1.5 million loans worth N100.8 billion to individuals, N14.4 billion to micro-enterprises and N177.9 billion to SMEs during the period.

Commenting on the results, the Group Chief Executive of FCMB Group Plc, Ladi Balogun, said:

“FCMB Group Plc grew deposits, loans, assets under management, revenue and earnings and improved its environmental, social, and corporate governance scorecard. The Group recorded a profit before tax of ₦104.4 billion, a 186% year-on-year (YoY) increase compared to ₦36.6 billion in 2022 and earnings growth across its business segments: Banking Group 212.6%, Consumer Finance 67.3%, Investment Management 40%, and Investment Banking 89.7%.

FCMB Group, which proposed a dividend of 50 kobo per share for its shareholders, contributed to food security and import substitution in Nigeria by increasing lending to the agricultural sector by 38.4% from N147.4 billion in 2022 to N204.3 billion in 2023.

In addition, the Bank supported over 300,000 smallholder farmers, 56% of whom were women in agriculture, in rural communities to support the sector. Over $280 million of funding from DFI’s and donor agencies was raised during the year to support the attainment of sustainable development goals in critical sectors of the economy.

Leveraging its core banking business, the Group facilitated over $700 million and $100 million in export and remittance flows into Nigeria, respectively, as at December 2023.

In safeguarding the environment, it switched six additional branches of its retail and commercial banking subsidiary (First City Monument Bank Limited) from grid/diesel generators to solar power last year, taking the number of branches running on renewable energy to 160, which represents 78% of total branches.

In addition, the Bank secured funding of up to N13 billion from local development finance institutions for on-lending to customers requiring solar energy solutions to further support its commitment to driving renewable energy.

FCMB’s customer base grew by 15.6% YoY from 10.9 million to 12.5 million for the period ended December 2023, whilst users of its mobile app that offers lending, wealth and payment solutions grew by 31% YoY to 3.4 million. Similarly, the Bank’s agency banking network grew to over 164,000 agents. With an enlarged customer base, an expanded distribution platform, and the use of artificial intelligence to automate and optimise loan underwriting processes, the Group successfully disbursed over 1.5 million loans worth N100.8 billion to individuals, N14.4 billion to micro-enterprises and N177.9 billion to SMEs during the period.

Commenting on the results, the Group Chief Executive of FCMB Group Plc, Mr Ladi Balogun, said:

“We continue to leverage our unique Group structure to build a technology-driven ecosystem that is fostering inclusive and sustainable growth in the communities we serve. This strategy is enabling us to deliver robust performance in spite of the challenging domestic and global environment.

Barring unforeseen circumstances, we believe this trend will be sustained and accompanied by improving efficiencies arising from greater scale and ongoing digitisation”.

The results across market fundamentals also showed gross revenue of N516.4 billion for the period ended December 2023, an 82.5% growth from N283 billion for the same period the prior year. Net interest income grew by 44.8% from N122 billion in 2022 to N176.6 billion in 2023.

Customer confidence in FCMB remained strong, as deposits rose by 58.5% YoY from N1.94 trillion to N3.08 trillion, just as loans and advances grew by 54% from N1.20 trillion to N1.84 trillion.

The Group’s total assets increased by 48.3% from N2.98 trillion to N4.42 trillion at the end of December 2023.

FCMB Group’s Assets Under Management increased by 29.6% last year from N783.7 billion to N1.02 trillion.

The value of investment banking transactions consummated by the Group rose to N945.3 billion for the period ended December 2023, compared to N857.1 billion in the same period the prior year.

FCMB Group, a financial services holding company headquartered in Lagos, Nigeria, and listed on the Nigerian Exchange Group (NGX), has strategic interests in companies serving over 12.5 million customers across five key platforms: banking, consumer finance, investment management, investment banking, and financial technology.

The Group and its subsidiaries are building an ecosystem that promotes inclusive and sustainable growth in their communities, primarily in Africa, its diaspora, and the United Kingdom, by connecting people, capital, and markets.

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Customs Intercepts Four Containers with N1.1bn Illicit Drugs in Apapa

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From Anthony Nwachukwu, Lagos

Riding on the mantra of zero tolerance for smuggling, the Apapa Port Command of the Nigeria Customs Service (NCS) said it has foiled an attempt to smuggle illicit drugs worth approximately N1.1 billion in four 40ft containers into the country.

The command said the items included 236,783 bottles containing codeine and barkadin cough syrup packed in a total of 2,174 cartons, adding that three of the seizures were made in APM Terminals and one at Kachicares Bonded Terminal.

The Area Controller, Compt. Babatunde Olomu, explained that during a joint examination of 1×40 container number MRKU0377493 on October 11th, the officers “found prohibited CSP cough syrup in 34,800 bottles.

A statement from the Customs Public Relations Officer, Apapa Area Command, CSC Usman Abubakar, quoted Compt. Olomu to further disclose that “the offensive importation was also found to have expired. The smugglers packed them in 174 cartons with 200 bottles per carton.”

He added: “On the same day, during another examination in the same terminal, a 1×40 container TGBU8886020 was found to be laden with 39,700 bottles of DSP cough syrup packed in 100 bottles per carton.”

Also, on October 15th, another 1x40ft container, TCKU6800526, which was dropped at APMT Container Terminal and declared to contain essential goods, was upon examination found to contain a concealment of 19 cartons of CSJ cough syrup for throat and chesty cough with codeine 100ml packed in 200 bottles per carton.

At Kachicares Resources Terminal, a 40ft container, SUDU8579006, said to contain kitchen wares, was upon examination on October 15th discovered to have concealed Barcadin cough syrup for throat and chesty cough in 100ml, Olomu said.

“They were packed in 1,584 cartons. Another set of 83 loose bottles was also found in the container.”

He restated that “Apapa Command is committed to seamless trade facilitation powered by robust stakeholder engagement, but will not compromise on our revenue collection and anti-smuggling mandates as we facilitate trade.

“For the umpteenth time, I want to warn perpetrators of unlawful trade to steer clear from Apapa Port, as our eagle-eye officers relying on intelligence, technology and on-the-job experience are out to uncover all their smuggling antics.”

Olomu has directed further investigations into the seizures to unravel further details that could lead to the arrest of the suspect(s) involved.

It will be recalled that Federal Government banned the importation of codeine cough syrup in 2018 following its abuse and the adverse effects on many youth who get addicted to it.

Codeine abuse has been found to cause nausea or vomiting, making addicts feel sleepy, unable to concentrate or think clearly, and further behave irrationally, including spurring criminal activities and deviant behaviours capable of setting the society backward.

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PDP Shops for Damagum’s Replacement

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By Mike Odiakose, Abuja

Peoples Democratic Party (PDP) Governors Forum has mandated the Plateau State governor, Caleb Mutfwang to organize leaders of the party in North Central Zone to meet and nominate a substantive National Chairman for the party.

This was one of the key decisions taken by PDP Governors during a virtual meeting on Tuesday before the Ondo State governorship rally to lay to rest the leadership crisis rocking the party.

At an earlier meeting on Monday the Acting National Chairman, Umar Damagum was given soft landing to continue as Acting National Chairman on the understanding that he will quit as soon as the National Executive Committee (NEC) agrees on substantive National Chairman.

Other NWC members that were suspended last Friday by the two warring NWC factions of the party were also given leeway to return to office and maintain status quo.

According to a source at the PDP Governors Forum meeting, Damagum was directed to formally call for a NEC meeting on Oct. 24 as earlier agreed by various organs and stakeholders of the party.

It was Damagum’s reluctance to call for a NEC meeting that eventually culminated in the showdown at the NWC meeting last Thursday.

The Plateau State governor, who is the leader of the PDP in the North Central Zone is said to have agreed to lead the search for the new national chairman to complete the tenure of Dr Iyorcha Ayu.

Mutfwang was hitherto among the minority PDP Governors that were in support of Damagum’s continues stay in office as Acting National Chairman.

Others that initially opposed replacement of Damagum are Seyi Makinde of Oyo State, Ahmadu Fintiri of Adamawa State and Agbu Kefas of Taraba State.

The choice of the North Central Zone is expected to be presented to NEC on Oct. 24 by the Plateau State governor on behalf of the zone for ratification.

The Daily Asset reliably gathered that PDP leaders and governors are also considering suggestions to push aside all members of the present NWC once a new National Chairman emerged and inaugurate a National Caretaker Committee.

Those pushing for a National Caretaker Committee argue that the present NWC members, after the recent suspensions and counter-suspensions, cannot work as a united team because of bad blood and mutual suspicion.The pro-National Caretaker Committee leaders further argue that the incoming National Chairman from North Central may be overwhelmed if he inherits an already divided NWC.

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Over 100 Tanker Fire Victims Put in Mass Grave

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By Ubong Ukpong, Abuja

A mass burial was held on Wednesday for more than 100 victims of a devastating petrol tanker explosion in Majiya town, Taura Local Government Area of Jigawa State.

The victims were said to be scooping spilled petrol from an overturned fuel tanker after the driver reportedly lost control of the petrol laden tanker.

Eye witnesses said the incident occurred at 12:30 pm on Tuesday when the ill fated tanker conveying fuel from Kano to Yobe State had the accident at Majiya town in Jigawa State.

Official reports on Wednesday indicated that no fewer than 50 persons sustained varying degrees of injury during the explosion.

Police authorities said the victims and other residents in the locality had rushed to the scene to scoop up the spilled fuel when the tanker exploded, igniting a massive fire.

“The residents were scooping fuel from the overturned tanker when the explosion occurred, sparking a massive inferno that killed 94 people on the spot,” said Jigawa State Police Public Relations Officer, DSP Lawan Adam.

Adam said more than 50 persons who sustained serious injuries were taken to hospitals for treatment.

Following the tragedy, President Bola Tinubu has directed the Secretary to the Government of the Federation (SGF), Senator George Akume, to lead a Federal Government delegation to Jigawa State.

The government delegation will comprise the Minister of Defence, Mohammed Badaru Abubakar; Minister of Transportation, Senator Saidu Alkali; Corps Marshall of the Federal Roads Safety Commission (FRSC), Mr Shehu Mohammed; and the Senior Special Assistant to the President on Community Engagement (North West), Abdullahi Tanko Yakasai.

While in Jigawa, the delegation will visit the scene of the incident to assess the situation and visit injured persons in hospital.

Tinubu directed that emergency aid, including medical supplies, food, and shelter, be extended to the more than 50 victims receiving treatment and others affected by the fire.

A statement on Wednesday released by his spokesman, Bayo Onanuga, said the President extended his deepest condolences to the families of the victims.

“He expresses his heartfelt prayers and support to the government and people of Jigawa during this time of tragic loss and grief.

“He prays for divine comfort for the bereaved families and the peaceful repose for the souls of the departed,” the statement added.

President Tinubu pledged his commitment to a comprehensive review of fuel transportation safety protocols across the country.

He restated his directive to the Federal Roads Safety Corps (FRSC) to strengthen night travel measures, such as increased patrols, stricter enforcement of safety regulations, and other highway safety mechanisms.

Tinubu said anyone found responsible for breaches of safety standards will be held accountable as he reaffirmed the government’s unwavering commitment to ensuring such incidents do not recur.

Similarly, Deputy Speaker House of Representatives, Rt. Hon. Benjamin Okezie Kalu yesterday expressed deep pain over the tanker explosion.

A statement through Levinus Nwabughiogu, his Chief Press Secretary, disclosed that Kalu extended his deepest condolences to the families and loved ones of the victims, while commiserating with the government and the entire people of Jigawa State over the sudden deaths.

Also reacting to the incident, the Ministry of Petroleum Resources has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to investigate the tanker explosion.

The Minister of State for Petroleum Resources, Heineken Lokpobiri, in a statement issued by the ministry, expressed regrets over the circumstances surrounding the unfortunate incident.

The statement read: “The Minister of Petroleum Resources, Senator Heineken Lokpobiri, has expressed deep sorrow over the tragic petrol tanker explosion in Majiya Town, Taura Local Government Area, Jigawa State, which resulted in the loss of over 100 lives and left dozens more injured.

“On behalf of the Ministry of Petroleum Resources and the Federal Government, we extend our heartfelt condolences to the families and loved ones affected by this devastating incident.

“The Minister has instructed the Nigerian Midstream and Downstream Petroleum Regulatory Authority to promptly commence a detailed investigation into the circumstances surrounding this unfortunate event.”

The Minister also urged Nigerians to avoid approaching vehicles transporting petroleum products that have been involved in accidents or mechanical failures.

He called on petroleum transporters to ensure that only certified drivers who comply with safety standards, as stipulated by the Federal Road Safety Corps, are employed to transport petroleum products.

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