FCMB’s credit losses exceed profit, hit N57bn

FCMB Group Plc’s profit before tax for the first nine months of this year failed to keep pace with its net impairment loss on financial assets.

The parent company of First City Monument Bank saw its profit jump 108 percent year-on-year to N55.1 billion while its net impairment loss on financial assets widened to N57.0 billion from N18.7 billion, resulting in a growth in cost of risk to 3.9 percent. 

An impairment loss is a drop in an asset’s net carrying amount (cost of acquisition minus depreciation), which is more than that asset’s future undisclosed cash flow.

Read: FCMB’s half-year profit surges 80% as interest income rises

FCMB’s net interest income grew by 29.5 percent from N93.1 billion to N120.5 billion, driven by a growth in the yield on earning assets.

Loans and advances grew by 34.3 percent year-on-year from N1.19 trillion to N1.59 trillion.

Total assets increased by 32.2 percent year-on-year from N2.93 trillion to N3.88 trillion at the end of September.

Customer deposits grew by 39.1 percent year-on-year from N1.82 trillion to N2.53 trillion at the end of September. 

Assets under management grew by 26.1 percent year-on-year from N756.1 billion to N953.7 billion at the end of September.