FCMB Group CEO speaks to H1'22 revenue drivers

FCMB Group has recently announced a remarkable 80% increase in profit after tax, totaling 13.7 billion naira for the first half of this year. The Group CEO, Ladi Balogun, attributes this outstanding performance to a combination of factors, including a diversified business model and strategic digital transformation initiatives. Balogun highlighted the success of their ecosystem encompassing banking, consumer finance, asset management, and investment banking, all of which contributed to double-digit growth across their various businesses. A key driver of FCMB's strong performance has been their focus on financial inclusion, particularly in supporting micro, small, and medium enterprises (MSMEs). During the period, FCMB dispersed approximately 52,000 loans, with 77% directed towards women entrepreneurs. The average ticket size of these loans amounted to around 99,000 naira, indicating a commitment to reaching the underserved segments of society. FCMB's dedication to empowering women-led businesses has been recognized internationally, securing funding from institutions such as the Africa Development Bank and the Massacad Foundation to further boost MSME lending. Furthermore, FCMB's deliberate strategy to promote gender diversity within the organization, with 30% of the board and 40% of senior management positions held by women, underscores their belief in the value and sustainability that women leadership brings to the business. Balogun emphasized the importance of prudent leadership, noting its positive impact on the performance of women-led enterprises supported by FCMB. In light of the challenging operating environment and uncertainties surrounding the upcoming election cycle, FCMB remains optimistic about sustaining its growth momentum. Balogun highlighted the resilience of their diversified business model and emphasized the critical role of digital innovation in carving out new market opportunities. The Group's continuous investment in various initiatives is expected to yield further positive results in the future. FCMB's proactive approach to risk management, capital strengthening, and sustainability measures are aimed at mitigating potential risks in the operating environment. Noteworthy is their eco-friendly initiative of transitioning 150 branches to renewable or solar energy sources, reducing reliance on diesel generators and enhancing cost management in the face of escalating fuel costs. This strategic move aligns with FCMB's commitment to operating in an environmentally sustainable manner. As FCMB Group charts a path forward, bolstered by robust financial results and a strategic outlook, the Group looks poised to navigate challenges and capitalize on growth opportunities in the evolving business landscape.