EW Nation

FCMB in a potential ending diagonal

First City Monument Bank (FCMB) Group has maintained robust financial momentum in 2024, demonstrating resilience and strategic growth in Nigeria’s competitive banking sector. In the first half of the year, FCMB recorded a profit before tax of ₦64.2 billion, a remarkable 68% year-over-year (YoY) increase from ₦38.2 billion in H1 2023. This growth underscores the group’s capacity to capitalize on high-interest-rate environments and manage operational efficiencies effectively​.

  • Gross Earnings: ₦374.5 billion in H1 2024, a 57% YoY rise from ₦238.2 billion in the same period last year.
  • Net Profit: ₦59.5 billion, reflecting a 68% YoY growth.
  • Net Interest Income: ₦106.2 billion, up 47% YoY.
  • Customer Deposits: Increased by 26% to ₦3.9 trillion, signaling improved customer confidence.
  • Loans and Advances: Grew by 32% YoY to ₦2.43 trillion​.

The bank has successfully leveraged rising interest rates to boost interest income, which surged by 81% YoY to ₦269.2 billion. FCMB also recorded a notable reduction in net impairment losses, which dropped by 33% YoY, further bolstering profitability. However, operational costs, including a 74% YoY increase in wages, highlight the need for continued cost management​

From a market perspective, FCMB’s stock performance has mirrored its strong financial results, with trading volumes rising alongside investor interest. Analysts observe support levels forming around key historical price points, with the bank’s improving fundamentals likely driving upward momentum in the near term. Investors should watch for quarterly updates and macroeconomic shifts influencing Nigeria’s banking landscape.

FCMB Group’s strategic focus on increasing customer engagement, expanding loan portfolios, and improving efficiency positions it for sustained growth. As Nigeria’s economic recovery continues, the bank’s proactive measures in digital banking and tailored financial products are expected to solidify its market position.

FCMB remains a solid choice for investors seeking exposure to Nigeria’s financial sector, blending strong fundamentals with growth potential​

 
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FCMB completed Wave 3 at 12.1. The capitulation was a wave A sell off to wave 4 at 6.15. Thereafter, following that move to the wave 4, FCMB has commenced a move to wave 5 with a potential target of 15NGN.

 

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