First City Monument Bank (FCMB) posted gross earnings of N69.620 billion for its second quarter financial result ended June 30, 2014. The result showed an increase of N6.326 billion or 9.9 per cent compared with N63.294 billion achieved in the preceding year.
Also, the Profit before tax grew by N297 million or 3.2 per cent from N9.279 billion in the comparative period of 2013 to N9.576 billion.
The bank for the financial year ended December 31, 2013 paid cash dividend of 30 kobo per ordinary share, representing a total amount of N5.94 billion.
The audited result showed that the group profit before tax (PBT) of N18.2billion, up 12percent from the previous year. The Group also reported improved earnings growth in 2013.
Net revenue rose 16 percent to N84.2billion over prior year. Moreover, the significant developments in key operating areas also impacted on deposits as this grew by 11percent to N715 billion, aided by 21.1percent growth in current and savings accounts, while fixed deposits declined during the year.
The Chairman of FCMB Group, Dr Jonathan Long, pointed out that the Group, which comprises First City Monument Bank Limited, FCMB Capital Markets Limited and CSL Stockbrokers Limited, “has recovered strongly over the past two years and in 2013 made sufficiently strong progress.”
He attributed this to the implementation of initiatives that have improved efficiency and the successful integration of FinBank, which has boosted FCMB in retail banking.
He however said that the intention to pay dividend signifies the desire of the Board to reward the Group’s shareholders for their continued commitment and support.
Also speaking, the Group Managing Director/Chief Executive of First City Monument Bank Limited, LadiBalogun, at the annual general meeting said the Bank delivered improved financial performance, in spite of the challenging regulatory environment, due to the high liquidity levels it maintained and its growing focus on retail banking.
Balogun stated that the Bank’s primary goals in the next three years are to, “ensure that we can achieve a return on equity of over 20percent and a cost-to-income ratio below 55percent.”
He assured that “the Bank will continue to accelerate development of its retail franchise, increase its customer base to four million by 2016 and show growth in retail loans. There will also be a heightened focus on customer experience, while simultaneously defending our corporate and investment banking market share.”
