FCMB non-performing loan increases by over N800m to N28.56bn

First City Monument Bank (FCMB) non-performing loans rose in 2020 when compared to what the lender recorded during the corresponding period of 2019. The creditor’s bad debt increased by 3.18%.

This means the company added over N800 million to it’s non-performing credit within a year, taking the total amount to N28.56 billion in full year 2020, against the N27.68 billion the company reported during the same period in 2019.

The number of loan repayment defaulters rose last year due to impact of COVID-19 on the economy. Income of borrowers – consisting companies and individuals – declined over dwindled revenue which forced companies to downsize and cut salaries to save cost.

Analysis of the financials showed Individuals (N9.05 billion) Real Estate (N5.95 billion), Oil and Gas downstream (5.73 billion), Commerce (N3.57 billion), Information and Communications (N1.57 billion) were the top five non-performing segment during last year’s financial period.

Read also: FCMB names Yemisi Edun acting MD following Adam Nuru’s forced leave

During the COVID-19 pandemic period and ensuing lockdown, while most sectors were affected, the banking industry benefited, as it remained operational as an essential service. This reflected in the company’s earnings report.

FCMB’s 2020 earnings report

Last year, the lender generated N199.43 billion in revenue, surpassing the N181.24 billion it grossed during the corresponding period of 2019. The company’s profit before tax (PBT) and after tax (PAT) also took the same path.

It was gathered that PBT rose to N21,91 billion during the twelve months period of 2020, rising past the N20.13 billion recorded during the same period a year before. profit for the year climbed to N19.61 billion in 2020, from N17.33 billion in 2019.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now