In FY’24, we expect FCMB’s gross earnings to improve, as the uptick in interest income (+55.4%) will likely mask the 17.8% decline in non-interest revenue (NIR). For interest income, we foresee support from higher yields and expected expansion in earnings assets while NIR will moderate as revaluation gains wane. Elsewhere, we foresee funding pressures, resulting from upticks in borrowings and Additional Tier 1 (AT-1) capital, limiting netinterest margin (NIM) expansion. Overall, we project a 14.4% increase in operating income, with a PBT of N103.4 billion.
In FY’24, FCMB reaffirmed its strong commitment to building a supportive ecosystem driven by technology to transform its operations and enhance its competitive edge. To this point, in FY’23, the group deployed its proprietary core banking platform to three subsidiaries, with the main bank expected to commence migration in FY’24. Additionally, by employing process automation on loan origination, credit underwriting and disbursement, the bank has transformed its consumer finance business into a FinTech entity. Elsewhere, the bank noted some progress on its technology platforms. The borderless banking platform, which is targeted towards diaspora flows, was commercialized in FY’23. Secondly, its banking as a service platform recorded significant growth in FY’23, more than doubling its transaction volumes to 4.9 million. According to management, these initiatives, coupled with significant investments in human capacity (over 50 in-house engineers) and the utilization of AI are expected to support innovation and growth.
