Posted by By SEUN ADESIDA on
First City Monument Bank Plc (FCMB) has recorded remarkable growth in its financial performance for the half year ended October 31, 2007, recording 140 per cent and 101 per cent increases in profitability and earnings, respectively.
First City Monument Bank Plc (FCMB) has recorded remarkable growth in its financial performance for the half year ended October 31, 2007, recording 140 per cent and 101 per cent increases in profitability and earnings, respectively.
According to the bank's un-audited financial statement just released, gross earnings for the period stood at an impressive N21.89 billion as against N10.88 billion recorded in the same period in 2006, indicating a growth of 101 per cent and a reflection of the exponential growth in business activities of the bank during the half year.
In the same vein, the bank's level of profitability grew by 140 per cent when compared with the half year result in the last financial year. Profit before tax moved up to N6.76 billion from N2.82 billion achieved in 2006, representing a growth in absolute terms of
N3.94 billion while profit after tax stood at N5.343 billion as against N2.23 billion recorded in the preceding year.
Profit margin, which signifies operational efficiency in the period under review was 31 per cent compared to 26 per cent for half year in 2006. This, according to a statement from the bank, was made possible as a result of its ability to successfully manage its expenses more efficiently and focusing on higher margin activities.
The impressive result recorded in the first half of the financial year is also driven by the fact that an increasing number of the over 60 branches opened by the bank in the last 36 months are now operating profitably.
True to its aspiration to be the leading consumer bank in Nigeria, FCMB in partnership with Sabre Capital Worldwide recently launched two ground breaking consumer products called My-Salary Plus and My Home.
MySalary Plus Account product was introduced to ensure that salary earners can easily access unsecured, non-collaterized loans of up to N10-million, while MyHome provides home owners great opportunity to use their existing homes to raise cash to meet other financial obligations with tenors up to 20 years.
With the anticipated success of the bank's recently concluded public offer and the consolidation of the group's successful capital market activities, it is expected that profit and balance sheet growth will accelerate even faster in the second half of the financial year. Consequently this year is likely to be one in which the bank surpasses its forecasts and attains record growth once again.