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.
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.
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