FCMB Group Plc will grow its profit at a rapid 50% per annum over the next 3 years, even as the mid-tier lender is set to launch a Technology Holding Company.
“We are confident to make the projection that with the capital we are raising and the business momentum we are seeing, our PBT growth rate over the next 3 years at least will be over 50% per annum,” said the Group CEO, FCMB Group, Ladi Balogun during its “Facts Behind the Offer” Presentation at the Nigerian Exchange (NGX) on Tuesday.
In 2024 Half Year Group profit before tax or PBT rose 68%, the Banking Group grew 47%, Credit Direct 154%, Investment Banking 110%, and Investment Management 33%.
“Growth is being powered across he Group and we are not just reliant on one part of the business,” Balogun said.
FCMB a diversified financial services Group has launched its public offer seeking to raise N110.9 billion additional capital through the issuance of 15.197 billion shares at N7.30 per share.
This strategic move is part of the bank’s comprehensive plan to meet the Central Bank of Nigeria’s (CBN) capitalization requirements.
Balogun said the transformative capital raise will change lives and the Nigerian economy itself.
FCMB Group will add a technology division to the business by next year, as it is in the process of incorporating a technology holding company and incubating businesses under the Rova brand name, according to Balogun.
One is a cross border payments platform (Rova App), that will support remittances and outbound and inbound payments into Africa for SMEs and individuals. The second is a software as a business platform (Rova Tech) that will provide cloud based infrastructure to FCMB Group and then later sell software as a service to other customers.
“By next year technology will feature as a critical division, generating value for investors in FCMB Group,” Balogun said.
FCMB Group has 13.2 million customers, growing at 2 million customers a year. It in number 7 in Net Assets in Banking, with aspiration to move to Tier-1.
It is top 5 Pensions Fund Administrator (PFA) and will be top-3 by next year, Balogun said.
FCMB Group is number one in consumer lending in Nigeria, through Credit Direct, which has a very high quality loan book and there are plans to IPO the business in the not too distant future.
The Group was named the number 2 on the FMDQ deals league table on debt side in 2023, and is a top 5 broker in stock broking.
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