By Benson Esomojumi
FCMB Group Plc has announced a projection of 35 per cent increase in profit after tax per annum from year 2012 to 2015.
The banks said it has also set a target of 25 per cent growth in loan in 2013.
The Managing director of the Holding company, Peter Obaseki, while explaining the ‘Facts Behind the Figures’ in Lagos on Wednesday, said it had put appropriate measures in place to ensure a robust and sustainable rebound after the successful acquisition of Finbank and transition to the new Holding Company structure.
He explained that the company had strategized to improve its net interest margin to accelerated retail lending, current and savings account growth that would facilitate a retail non-interest income growth of 50 per cent, in spite of Cost on Transaction reduction.
He added that it would ensure a sanitized risk asset portfolio with declining loan loss expenses, as well as a strong rebound in corporate banking with increased contributions from investment banking.
Obaseki also pointed out that the rationale for Holdco is to leverage FCMB Group Plc to create shareholders’ value, enhance enterprise wide risk management and governance and create more focus in each of the distinct competencies.
“With the Holdco structure, we are committed to meet up with the risk management requirement of the regulatory authorities as well as protect the interest of shareholders who own the capital. We would also ensure that we engage investors and other stakeholders and ensure that the new governance add value to shareholders,” he said.
The Group Managing Director of the bank, Ladi Balogun, while fielding questions to stockbrokers on the benefits of the merger and the new structure said: “The impact and benefit has far outweighed the losses we incurred in the merger.
Today, we are the leading retail lenders in terms of loans granted on monthly basis. The distribution network has helped the ability to gather deposit and any profit in 2013 is available for cash distribution and 2013 will make a healthy distribution and the dividend on the stock will be the best in the industry.”
He added that the framework for the new structure was quite unique, adding that with the benefits inherent with the acquisition, the bank has taken a leadership position in retail lending in loans.
FCMB had recorded a profit after tax of N15.3billion in its 2012 operations, an increase by 256 per cent over the loss of about N9.24billion in 2011. Total deposits rose from N411billion in 2011 to N646billion in 2012, an increase by 57per cent. This is an indication of an increasing market share for the bank. In the same vein, FCMB’s loans and advances grew by 11per cent to N357billion in 2012 compared to N323billion in 2011.