FCMB posts N35bn forex gains in six months
FCMB Group, the parent company of First City Monument Bank Limited, made N35.19 billion in foreign exchange gains in the first half of 2024, down from N50.99 billion a year earlier.
Its profit for the period jumped to N59.48 billion from N35.41 billion, according to its earnings report.
The company pointed out that the Central Bank of Nigeria adopted a more liberal foreign exchange management system in 2023, which resulted in a significant movement in the naira exchange rate against the US dollar from N756.24/$ in June 2023 to N1,488.21/$ in June 2024.
“The impact of this foreign currency revaluation of net foreign currency-denominated assets and liabilities held in the non-trading books is represented as foreign exchange gains for the period ended 30 June 2024,” it said.
The President Bola Tinubu-led government said last week that it would impose a one-time windfall tax on the forex gains made by banks following the devaluation of the naira.