FCMB GROUP PLC FY'21 (Unaudited) Earnings Release

FCMB released its unaudited FY’21 results, reporting Gross Earnings of ₦208.5 billion, 5% higher than 2020 performance. The rise in earnings was primarily the result of a 7% y/y rise in Interest Income to ₦161.6 billion, driven by a 30% increase in Income from loans and advances, which mirrored the improvement in the bank’s loan book in that period as well. On the other hand, the bank reported flat Net Interest Income of ₦90.5 billion as a result of higher Interest Expenses for the year, which printed at ₦71 Billion (+18% y/y).

It is important to note that the bank’s Q4 results were much improved from the previous quarters, with Gross Earnings rising 7% q/q to ₦59.0 billion on the back of a 6% q/q rise in Interest Income and a 9% q/q improvement in Non-Interest Revenue (NIR). The strong Q4 performance followed the trend set in 2020 for strong finishes to the year, with Q4’20 delivering 10% q/q earnings growth. Ultimately, higher transaction volumes and strong income from loans have supported earnings growth in the final quarter of the last two years.

In terms of expenses, the bank reported a 10% y/y increase in Opex to ₦104.4 billion, as AMCON charges rose 23% y/y to ₦10.5 billion, in addition to a doubling of other expenses such as litigation expenses and AGM fees to ₦6.6 billion. However, the bank was successful in dropping Loan loss impairments by 59% y/y to ₦9.1 billion, thanks to a 135% y/y increase in write-backs and recoveries. Overall, the bank declared PBT of ₦23.3 billion (+9% y/y) and PAT of ₦20.9 billion (+7% y/y), yielding an EPS of ₦1.04.