Shareholders commend FCMB’s 2016 performance, approve dividend

Shareholders of FCMB Group Plc have applauded the financial institution for its resilience, dynamism and the enhanced performance recorded last year despite the challenging operating environment.

The shareholders, who gave the commendation at the 4th Annual General Meeting (AGM) of the Group in Lagos on April 28, also unanimously approved the payment of a cash dividend of 10 kobo per ordinary share, which translates to N1.98 billion, for the year ended December 31, 2016.

FCMB Group is the holding company of First City Monument Bank (FCMB) Limited, FCMB Capital Markets Limited, CSL Stockbrokers Limited and CSL Trustees Limited.

The audited accounts of the Group for last year showed a profit before tax (PBT) of N16.3 billion, an increase of 109% compared to the N7.8 billion for the same period in 2015.

Profit after tax also rose to N14.3 billion as against N4.8 billion prior year. Gross revenue as at the end of December 2016 was up by 16% to N176.35 billion from N152.51 billion in the previous year.

In his address at the AGM, the Chairman of FCMB Group, Dr. Jonathan Long, represented by a Director, Mr Bismarck Rewane, attributed the performance recorded last year to the professionalism and commitment the financial institution brought to bear in its business and operations.

He added that, ‘’the Group has shown itself, capable of weathering the storm and I am confident that the year ahead will prove to be no exception’’.

Also speaking, Mr. Ladi Balogun, the Group Chief Executive of FCMB Group Plc and until recently the Group Managing Director of First City Monument Bank Limited, said that the realities of 2016 have been a good test of the resilience of the Bank’s turnaround programme commenced in 2015, adding that, ‘’across most indices, we have recorded progress and we intend to stay this course in the coming year’’.

These include a stronger balance sheet, accelerated market share in retail banking, enhanced customer experience as a means of growing customer base, alternate channels penetration, support to businesses, containment of operating expense, among others.

for instance, the net revenue position of that First City Monument Bank Limited, which is the flagship of FCMB Group, rose by 33% to N112.6 billion as at December 31, 2016 from N84.9 billion, while its loan book grew by 11% in nominal terms to N659 billion.

In addition, the Bank rolled out an additional 108 Automated Teller Machines (ATMs) across different locations to increase the tally to 755 and on-boarded 370,000 new customers on the mobile banking platform.

He added that the Bank’s Small and Medium Enterprises (SMEs) segment also returned to profitability, just as personal banking business also witnessed an impressive performance with an increase in customers acquisition from 43,000 monthly in 2015 to 53,000 monthly in 2016.

On the future outlook for the Bank, Mr. Balogun, informed that, ‘’we have built a solid business model around retail and transaction banking to deliver sustainable profit growth, effective use of technology to boost efficiency, reduced risk appetite and a great customer experience.

Cross section of the shareholders commended the board for their good performance in the 2016 financial year.