FCMB Group Plc (FCMB) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen, and welcome to our 9-month analyst and investors call. Once again, in the room with me today are a number of my colleagues. First of all, we have Mr. Gbolahan Joshua, who is the Chief Operating Officer; Mr. Deji Fayose, who is the Group CFO, both of whom will be handling this presentation with me. From the holding company, we also have the Executive Director of Coverage and Investment Banking Mr. Femi Badeji. And then we have Mr. Tunji Onamusi, who heads Investor Relations. From the operating companies, we have the CEOs of the bank, Credit Direct and Asset Management and the Chief Risk Officer, respectively, those are Mr. Yemisi Edun, who the CEO of the bank; Mr. Chukwuma Nwanze, who is CEO of Credit Direct; Mr. James Illori, who's the CEO of Asset Management; and the Chief Risk Officer, Ms. Toyin Olaiya. I will be walking you through the first page of this presentation, which, as you can see from the agenda. On the next page, is the 9 months group highlights and strategic update. So after I finish, I'll be handing over to the group CFO, Mr. Deji Fayose to walk us through the performance reviews of the various business areas. Mr. Gbolahan Joshua will take us through the digital business review, and then I will give you the outlook for the end of the year. If I move to Slide 4, which shows the highlights for the 9 months up to September 2024, which includes the audited numbers for the bank. We typically do a 9-month audit in the bank such that we can upstream dividend to the holding company. And from there, we can see that broadly, all indices were up quite strongly, led by total assets that has grown 76% to NGN 6.8 trillion, followed by deposits up 71% to NGN 4.3 trillion. Similarly, loans are up to NGN 2.5 trillion. AUM rose by 36% to NGN 1.3 trillion. Our customer base rose by 15% to 13.9 million. And our profit before tax was NGN 91.8 billion, which was up 67% from the same period last year. In addition to the operating performance, I thought it would be helpful to give you an update on our capital raising program, which will be transformative for this business. We set out upon announcement of the recapitalization requirement of the Central Bank, stating clearly our intentions to retain our international license. We commenced with the first phase, which was a capital raise where we set out to raise NGN 150 billion. We expect to close this by the end of this year. And then throughout the course of 2025, we would be raising a further NGN 250 billion through the minority sale of 2 nonbanking subsidiaries, not entire sales, but just a minority stake in those businesses. And then we are currently also looking at a private placement or a public offer of additional equity that will be issued towards the end of next year, 2025 to the tune of between NGN 150 billion and NGN 170 billion depending on the ticket size that we achieve in the minority sales. I mentioned dilutive or nondilutive because we are currently exploring different class of shares, which may give a coupon -- well, sorry, not a coupon, forgive me, target dividend, but have fewer voting rights attached to them. So where we are currently is that on Phase 1, we were able to raise significantly more than the NGN 110 billion. We are currently undergoing capital verification for that process. We expect that we will conclude and have the SEC approval to list those shares before the end of the year. So far, everything has gone smoothly. The convertible, we already have funds on deposit in the bank for that. And we have also received SEC approval. We have a need to go to our shareholders for an EGM on December 19 as we will need this EGM approval to be able to commence Phase 2 and 3, particularly Phase 3, as well as to be able to take in the convertible -- all of the convertible that we're raising of NGN 40 billion -- of up to NGN 40 billion. The anticipation is that from this exercise of Phase 1, we would probably end up somewhere slightly north of NGN 160 billion and therefore, reducing somewhat what we would require for Phase 2 and Phase 3. At the end of the day, we expect we would have raised about NGN 400 billion, and that would take us beyond what is required to retain our international license. Moving on to Slide 6. I'd like to give you an update on where we are in terms of our strategic imperatives. The group currently runs an ecosystem strategy made up of a number of platforms, our products and third-party products, significant amounts of capital that come not only from our balance sheet, but also third parties that we work closely with, that have missions that are similar to ours. Our customer base, which is growing steadily at about 13.9 million currently and a common technology infrastructure that is enabling us to drive technology synergies and efficiencies across the group. In terms of how we are performing vis-a-vis the strategy, we're seeing that all our platforms are growing strongly. Banking grew 50% in terms of earnings year-on-year. Consumer Finance, 108%; Investment Banking, 63%; and Investment Management, 31%. In terms of technology platforms that are currently at their very early stages, our borderless banking platform was launched in the middle of this year. We're fine-tuning it, and we expect to start beginning to scale in 2025. Our bank as a service platform was also launched and -- last year, in fact, and we've seen 226% growth in terms of revenues year-on-year at about NGN 1.2 billion. In terms of products, payments has been a fairly strong focus for us, and we saw 41% year-on-year growth in terms of transactions on our mobile platforms to NGN 12.8 trillion, 59% growth to lending, to the loan book, which peaked at NGN 2.5 trillion. Current and savings accounts also saw year-on-year growth of 64% year-on-year to about NGN 2.6 trillion. Our Wealth Management business saw 36% growth in AUM to NGN 1.3 trillion. And our advisory and capital raising activities saw 40% year-on-year growth in fees to NGN 1.1 billion over the 9 months. In terms of third-party products, we're also seeing steady growth in insurance, airtime and data sales as well as other services from which we've generated NGN 828 million, NGN 1.2 billion and NGN 176.4 million, respectively. In terms of capital mobilization, FCMB Capital Markets led or participated in 35 transactions in the first 9 months of the year, where we have raised NGN 876 billion to support economic growth. I will pause here and hand you over to Mr. Deji Fayose, who will talk in a bit more detail on the performance of the respective areas of our group.

Thank you, Ladi. Good afternoon, ladies and gentlemen. I'll now walk you through Slide 7 to 24, which covers our group financial highlights as well as the 9-month results of our banking division and nonbanking division. I'll start with Slide 8, please, which is a snapshot of our group income statement. And where we can see that gross earnings have grown by 67% driven by 44% and 28% increase in our net interest income and noninterest income, respectively. And despite a 52% increase in operating expenses. And whilst impairments reduced by 22% year-on-year. This is [indiscernible] that composed the following slides. Move to Slide 9, please. Our interest income grew by 86.5% to NGN 445.8 billion at end of 9 months from NGN 239.1 billion in the previous year. And this was driven by a growth in yields on earning assets. While our interest expense increased by 129.4% due to higher funding costs over the period. This led to a decline in net interest margin to 5.5% at the end of 9 months 2024, which we'll touch on as we go on. Our noninterest income, on the other hand, grew by 27.6% year-on-year to NGN 131.6 billion, largely driven by growth in our trading income in the bank over the period. Revenues from electronic banking contributed the highest to fees and commission, while foreign exchange revenues also declined year-on-year by 31%. Slide 10, please. The above factors have led to an overall growth of 67% in our year-on-year PBT, which resulted in a 70 basis points and 10 basis points growth in our return on average equity and our return on average assets, and these have closed at 21% and 2%, respectively. In terms of our group earnings contribution, which is on Slide 11, we have recorded resilient year-on-year profitability growth across all our 4 business divisions. With Consumer Finance contributing a year-on-year growth of 108%, Investment Banking 63%, the Banking Group 50% and Investment Management 31%. In addition, the contribution from our nonbanking divisions have also grown from 20% in 9 months 2023 to 28% in 9 months 2024. And whilst the Banking Group contributed 72%. Contribution from the Nigerian Bank, declined 68%, 9 months 2024, and despite a 53% year-on-year PBT growth due to increased contributions from our operating companies. Slide 12 is a snapshot of the group annual numbers that I've just discussed. So we can please proceed to Slide 13, which looks at our group operational expenses. Year-on-year, operating expenses have grown by 51.7% from a growth in our personnel costs following the upward revision of remuneration, as well as regulatory costs from NDIC and AMCON expenses. Despite these increases, overall, the group recorded a cost-to-income ratio of 55.4% from 9 months 2024, and our guidance of less than 60% for full year 2024 will be driven by the Group's commitment to effective cost management as well as nonoccurrence of revelatory expenses in the fourth quarter of this year. On Slide 14, our net interest margin declined to 5.5% from 8% due to an increase in funding costs over the period. As we saw cost of funds increased by 260 basis points from 5.9% in 9 months 2023 to 8.5% in 9 months 2024. Overall, our NIM in 2024 was lower than expected as 2024 was an unusual year because of the significant increases that we saw in CRR and will led us to purchase expensive deposits to meet liquidity needs. To improve our NIM, we're currently driving low-cost deposit mobilization to pay down on expensive deposits, as well as private capital as communicated previously, will be used to utilize and pay down on expensive term deposits. We expect that with these factors, our cost of funds will go down and our NIM will improve going to 2025. Slide 15, please. Our NPL ratio increased by 90 basis points to 5.4% as of September 24, from 4.5% last year. And when net impairment loss on financial assets also declined year-on-year by 22%. And this has resulted in an improvement in cost of risk to 2.7% from 3.9% in the previous year. The next slide is a breakdown of our ratio calculations. I think that we can proceed and take you to the next section, which is the highlights of our banking division from Slide 17 to 21. On Slide 18, our banking [indiscernible] recorded a year-on-year growth in total assets by 76%, deposits 71% and loans 59%. Year-on-year decline was also recorded in our return on average equity and cost-to-income ratio, which was at a direct result of higher profitability levels that we had in the previous year from FX valuation income. However, operational profit, excluding reval impact as of 9 months has grown by 75% year-on-year, resulted in a 50% growth in profit before tax. Slide 19 highlights the performance of the business segments in our banking group with year-on-year growth in earnings recorded in Personal Banking, SME, treasury and Corporate Banking was also recorded a decline in Commercial and Institutional Banking. Our treasury segment grew by 424% year-on-year, SME 47%; Personal Banking 25%; and Corporate Banking, 14%. In terms of our loan portfolio classification by sector, which is on Slide 20. Our loan portfolio remains diversified across sectors and segments, where the loan book has grown by 59% year-on-year and 4% quarter-on-quarter. Construction in foreign currency loans increased year-on-year due to significant development of the naira, which led to a movement from to 54% to 69% for FCY loans and grew by 48 basis points, from [ 68% to 1% ] in the previous quarter. [ Individual ] banking also grew 2% year-on-year, gaining 6% share of the portfolio to close to 15%. All our sectors are within plan and regulation limits and we intend to grow like this at the end of the year. In terms of the loan book performance itself on Slide 21, NPL ratio increased by 220 basis points year-on-year and 130 basis points quarter-on-quarter, whilst our NPL value also rose by [ 44% ] on the back of challenging macroeconomic headwinds that have impacted SME segment and real estate sector. These loans are mostly secured and at different stages of workout. [ 66% ] of our NPL are in the [ FCY ] portfolio and the Corporate Banking segment. And the banking group remains focused on the quality of its loan book and continue to monitor performance in line with our risk appetite. Slides 22 to 24 are the highlights of the performance of our nonbanking division. And if we just quickly take you through that, we'll start on Slide 23, please. This is a snapshot of all the nonbanking division, where we see that gross earnings have grown by double digits across all nonbanking divisions. Other key metrics to note are the decline in NPL in our Consumer Finance business by 180 basis points. A growth in capital raised for clients by 27% to NGN 877 billion in our investment banking business, and it's a 36% growth in AUM from investment management, where our pensions business contributed 69% of total AUM or NGN 1.3 trillion at the end of September 2024. A quick summary of this is on Slide 24. The Consumer Finance business added over 83,209 new customers and increased disbursements by 68% year-on-year, which led to an interest in income from digital originated loans from NGN 9.1 billion last year to NGN 26.1 billion in 9 months 2024, which is a 187% year-on-year increase. CIR has also improved by 170 basis points, closing at 49.6%, and the business continues to maintain strong liquidity and capital buffers to support this growth in loan disbursements. And for Investment Banking division, gross earnings on PBT grew year-on-year by 26% and 63% and driven primarily by increased capital markets activities, as companies continued to explore capital markets offerings. Our Capital Markets business led or participated in 35 transactions and helping to raise over NGN 876 billion for our clients. For Investment Management business, AUM and management fees from digital products increased by 85% and 81% year-on-year. We also recorded a net inflow of NGN 2.9 billion in the third quarter, representing a 270% year-on-year increase. In addition to this, our new private credit fund, the FCMB-TLG Private Debt Fund also generated AUM of NGN 10.43 billion in its first series and represented an oversubscription of 4.3%. And overall, the Investment Management PBT increased by 31% year-on-year to close at NGN 4.85 billion with our pensions business contributing 51% of that PBT. I'll now please hand you over to our Group COO, Gbolahan Joshua, to take you through our business review.

Thank you, Deji. Good afternoon, everyone. My name is Gbolahan Joshua. I'll take you through the highlights of our digital business on Slides 26 to 32, covering lending, payments and wealth. Group generated NGN 71.7 billion from digital payments, lending and wealth activities in 9 months 2024. That's an 84% growth from NGN 38.9 billion generated in 9 months 2023. Digital revenues accounted for 12% of gross earnings for 9 months 2024, up from 11% in 9 months 2023, largely driven by lending and payments. For digital loans, we've disbursed over NGN 260 billion to 1.2 million customers at 9 months 2024. That's an increase of 31% from the NGN 199 billion we disposed same period last year. The digital loan portfolio is now NGN 161.2 billion, a year-on-year growth of 37% from NGN 117.8 billion in 9 months 2023. Digital lending now accounts for 74% of digital revenues. That's up from 69% in 9 months 2023, and digital customers increased by 15% to 11.6 million customers from 10.1 million customers in 9 months 2023. On Slide 27, it just shows a breakdown of quarterly acquisitions and our customer trends. We've acquired about 1.3 million customers in 9 months 2024, largely driven by increased cross-selling of our digital products across payments, lending and wealth management. Our agency banking business accounted for 800,000 of the 1.3 million customers acquired. Customers of the group are now 13.87 million customers, and we're targeting to close the year with 14.2 million customers. Slide 28 shows the trend of our agency banking business. We've seen revenues from our agency banking business grew 39% year-on-year, though there was a 26% quarter-on-quarter decline due to a reduction in agent lending activities. Agency Banking contributes 8% of digital payments revenues. We've seen customer acquisition grow strongly 511% year-on-year, largely driven by a revamped digital onboarding platform for the agency business, though we expect lower acquisitions in Q4 as we introduce new operational risk measures. Slide 29 shows an analysis of our digital revenues, NGN 71.7 billion broken down into lending, which generated NGN 53 billion. That's a 99% year-on-year growth from NGN 26.7 billion generated same period last year and payments generated NGN 18 billion, which is 47% growth from NGN 12.12 billion generated same period last year. Digital loans to the retail segment saw a significant growth of 62% year-on-year and digital loans to the SME segment grew by 19% year-on-year. Slide 30 shows the quarterly trend of our digital revenues. We continue to see traction from our digital channels, largely driven by increased adoption, origination and also repeat transactions. We've seen a steady growth over the last few quarters. And in last quarter, which was quarter 3, revenues were up 13%. Slide 31 shows the trend of our digital loan book. Loans have grown 37% from NGN 117.8 billion in 2023 to NGN 161 billion in 2024 and digital loans account for 6.1% of the total loan portfolio. We've seen an increased adoption of the digital lending platforms in our CDL business. That's accounted for a significant growth in the retail digital lending portfolio. The retail digital lending portfolio split 87%, 13% between CDL, which is a micro lending business and the banking subsidiary. Slide 32 just shows the key highlights of our digital business across SME, retail lending, wealth and payments. For SME digital loans, we disbursed a total of NGN 158 billion. That's 24% year-on-year growth from NGN 127 billion with the same period last year. Volume of loan disbursed was slightly above 14,000. Average ticket size of the loans is NGN 12.4 million. Portfolio size is now NGN 80.5 billion, 18% year-on-year growth from NGN 67.9 billion same period last year. For our retail digital portfolio, value of loans disbursed were NGN 102 billion, it's 40% up from NGN 2 billion disbursed same period last year, was disbursed to about 1.2 million customers. Average ticket size is about NGN 35,000. Portfolio size is now NGN 80.9 billion, a significant growth of 62% from NGN 50 billion same period last year. For our digital world, we now have 114,000 customers. Digital wealth revenues have grown 40% year-on-year, and the AUM has grown 86% to NGN 22.9 billion. The pie chart just shows a breakdown of our digital payments with cards and mobile banking, the key drivers, both contributing over 82% of our digital payment revenues. I'll now hand you over to Ladi, who will give the outlook for the remaining period of the year.

Thank you very much, Gbolahan. We expect that 2024 will close strongly. and this will be driven by a number of factors. Firstly, in the banking group, we traditionally have a stronger Q4 because of the nonrecurrence of AMCON levy that was taken across the first 9 months of the year. At our current run rate, we also expect that digital revenues will hit NGN 100 billion this year, and that will be growth of 65% from what we attained last year. Investment Management, we also expect 30% PBT growth due to increased share of our pensions business, digital wealth platforms as well as associated management fees. Investment Banking, we expect year-on-year growth of about 12%, driven by sustained performance from our capital markets activities and a stronger H2 performance from our equity capital markets business. In the consumer finance business, we also expect to grow 80% year-on-year, driven by sustained operational performance through process automation and increased adoption of self-service channels. Thank you very much for listening, and we look forward to receiving your questions.

[Operator Instructions]. Dear speakers at this moment, there are no questions over the phone lines. Please proceed with any written questions.

All right. We see 3 questions currently. So the first question is how is the capital raising going? We had alluded to it at the early part of our presentation, but I will recap once again. Thankfully, we say it's progressing very well. We had a successful public offer that was significantly oversubscribed, in fact, beyond the expectations that we had. We're able to finish in record time. We are also able to secure deposits for the convertible that is to follow. We expect the total amount raised will be north of NGN 160 billion from this phase. It technically means that if all is approved by the regulators, we would be beyond the requirements for the national license and well on our way for the international license. We have 2 other phases to go, which are minority sales in 2 of our businesses and a final capital raise towards the end of next year. And so far, the remaining 2 phases are progressing on track, and we are confident of a successful conclusion. The second question is apart from Nigeria and the U.K., which other geographies would FCMB looking to explore for banking business? So we're currently in the final stages of formulating our priority list of markets. We've been looking at a number of markets and a number of targets over the last few years. Suffice to say that we expect that we will increase our presence in a few key African markets and a couple of Western markets that have strong diaspora, trade or investment flows with the key African markets that we would be in. The final -- well, the third question that I see here is, can we elaborate on the bank's CAR as at 9 months? Maybe I'll request for the CEO of the bank to take that.

Okay. The banks at about 9 months is above 15% as was alluded to at early part of presentation. That was audited. So the audited without the new capital lease was above 15%.

The final question that we have on the screen is from [ Ifayu ] I will try and pronounce the last name. [ Osella ] I probably pronounced it right, forgive me. The question is -- or the questions I see here, and there are several of them, 6, it seems, 7 actually. First is -- the company reported significant increase in customer deposits in Q2 and Q3 2024. Could we elaborate on the key factors driving this surge? So I think a number of factors here, but may -- I will give it a shot at a high level, and then I'll also ask -- the bank's CEO to add if there are other things. So generally, we have been seeing quite a lot of traction from our digital strategy and our payment strategy, our agency network, which we're also using to drive not just customer acquisition, but transactions. The effect of those has been material increase in the deposits. It would also be fair to say that there have been significant cash reserve requirement debits that in order to fund some of those at times, we've had to take additional fixed deposits. And so that also contributed partially to the increase. I don't know if there's anything else to say...

Infrastructure from government. What do you mean? Okay. Advanced payment guarantees. Okay. So also -- and I think that's just part of the ordinary course of business. We've been quite active in supporting our customers that are contractors to issue advanced payment guarantees, and that has also seen significant inflows from government as advanced payments of significant infrastructure projects happening in the country currently. Second question, from management's perspective, what would we identify as the primary drivers of performance for 2025? And could we outline the strategic initiatives planned to achieve these targets? I think the first as probably most significant will be our capital raise. The capital raise that we're doing this year and next year will have material impact on our balance sheet. Not only will it fortify the balance sheet, bringing more liquidity and significantly improving our capital adequacy, which will in turn support our ability to retain robust loan growth. But that loan growth, we should stress that in a high interest rate environment will not be as strong as we've seen in the past, at least in local currency, so we will be supporting the export sector very significantly, and that will be hard currency funding. And that's where we're likely to see some loan growth. The capital raise as well will significantly bring down our cost of funds, because we will be paying down on -- a large chunk of the purchase funds throughout the course of that raise. So you will see that immediately flow through to the bottom line once those funds are available on our balance sheet. Currently, the money we've raised is sitting outside the bank with our receiving banks, and so we're not getting the benefit of those funds yet. Other things that are likely to drive the performance of the business next year, I would say, is that we expect a very strong year from our consumer finance business. It succeeded -- it successfully digitally transformed itself such that all its process is pretty much end-to-end with customers, now fully digital. What that's having an impact on is both loan growth accelerating, but at a very safe rate because it's still the same sort of customers that we're lending to. But equally importantly, the efficiency ratios are getting better. So we're seeing cost-income ratio drop significantly. We're also expecting that our asset management business will continue to grow and scale. We have more tranches of our private credit funds being issued. We see acceleration in digital asset management, which is seeing fairly strong growth. And so broadly, I would say digital transformation and the effect of digital is the other sort of big driver to our earnings across the group. In the bank, we will be looking towards ensuring that this helps to accelerate our payments business to bring down the cost of funds, which is going to be one of the key objectives that we have in 2025. So you will likely see a material drop in our cost of funds and a significant growth in the balance sheet. So thirdly, should we expect a dividend payout in line with the 5-year average payout ratio of 15%. I would refer that to the COO or CFO. What should be the expectation in terms of payout ratio?

Yes, it should be in line with that.

Yes. Okay. Can we provide clarity on the motivation for adding the NGN 190 billion capital raise? And does this bring total capital to be raised to NGN 590 billion, which is NGN 340 billion plus NGN250 billion. No, that is not correct. I will ask Deji, do you want to take that because the numbers here are confusing me a bit, certainly more than we are raising?

So Phase 1 is NGN 150 billion. we expect it to be oversubscribed. So we're likely going to raise in excess of NGN 160 billion. What we're going to the shareholders for approval for is an additional NGN 190 billion. So if you add the NGN 190 billion to the NGN 150 billion for Phase 1, it takes it to a total of NGN 340 billion. Now one of the reasons why we have to do an EGM is because for Phase 1, we had a significant oversubscription. And so we need to get shareholders' approval so that we can issue all the shares and take in all the funds we have from the oversubscription.

So the total capital to be raised in terms of -- from the holding company issuing any kind of security will be about NGN 340 billion maximum. And then we will also be raising capital via the sale -- secondary sale of shares in a couple of our subsidiaries, but that will not be issuing new securities per se. On the convertible shares, could we disclose the terms specifically around it? So those shares will be -- as I've indicated, the size now will be reduced to about NGN 20 billion, we expect, naira, because of the oversubscription that we are -- depending on how the capital verification goes. But it will be in the range of that NGN 20 billion to NGN 40 billion that we've indicated, but I think much closer to NGN 20 billion as we await the final results of the capital verification. It will be a mandatory convertible. It will pay a modest single-digit coupon. It will convert next year 2025 after the AGM, so it will not be eligible for dividend. I think the target is to convert by the end of H1. We will convert at a slight discount to the current share price, and that is pretty much it. The purpose of that convertible was to enable a number of investors that were, for one reason or other, unable to invest at the time of the public offer, but also had funding that was in place towards the end of the public offer. But equally importantly, we wanted to manage the level of the number of shares we had in issue at the end of the year, so that we may maintain a dividend per share that is not seen to be below shareholder expectations. We asked to give guidance on which month of private placement/public offer proceeds are expected to reflect in the books. We are hopeful, if all goes well, that in December, we will be able to reflect those in the books. So far, we're aligned with our regulators in terms of the capital verification, but we await final report and approval and then we will get those shares in the books. That's the offer that is closed. The convertible will reflect in the books as debt by January, and it will reflect in the books as equity by July -- in Q3. And we expect that the final phases will reflect between basically in H2 2025, may slip slightly into Q1 '26, but that would only be for administrative purposes. All funds would be in, we expect before the end of the year. Next question is, what is the value of transactions processed? Can we give a detailed breakdown of POS, ATMs and web transactions? I'm not sure we have that here. Do we have that?

So on Slide 6, we gave total payment transactions for mobile and SSD for the period, which was NGN 4.8 trillion Well, in terms of transaction value for most of the channels, our market share is typically about 3.5% to about 4.55%. So actually the rough idea of what the [indiscernible]

What is the value of forbearance loans in the balance sheet? Is it 9 months 2024. I will hand that over to the CEO, the of the bank? Yes, we have to answer the question.

I just want to be sure. So the value of -- so the values are NGN 558 billion. And it represents about 25% of the loan book portfolio.

All right. Thank you. Considering the huge impact of FX losses for the manufacturing and other FCY and import-dependent businesses in the country, what is the strategy of FCMB with respect to corporate banking and investment banking businesses? So we have been fairly focused, I would say, for some years now on sectors that tend to fare relatively well in difficult currency environment. So for example, agriculture remains one of the biggest sectors that we lend to. And that has typically because of the significant rise in food prices, unfortunately, as we found that our agricultural borrowers have fared very well during this period and impairment rates in that book are -- or NPL ratio is sub 3% to the best of my knowledge. We also have a significant portion of our lending to export sectors. I would say export sectors account for probably not less than about 30% of our loan book if we include oil and gas. We're also quite strong in the non-oil sector, although that's linked to agriculture as well. So there's some overlap there. And I think with those 2 sectors combined, we're in a fairly strong position. The distribution of our loan book in other sectors is as reported and manufacturing, if I were just to I think check it's 11% of the loan book. And I would say that a material chunk of what we have there is in sectors that are relatively well protected from devaluation. As I said, food processing, agri business, a number of those also involve manufacturing. Could we please explain the nonrecur of AMC levy, which could explain strong profitability that we expect in Q4. So basically, we are required when we do an audit to have fully accrued for AMCON levy for the financial year. So if we do an audit as at 9 months, we accrue for our entire AMCON levy for 2024 in the first 9 months of the year. That means that our monthly accrual -- COO back, what was the monthly accrual for AMCON levy? so it's about NGN 2.4 billion monthly, which is accordingly about NGN 7.2 billion quarterly, which will not be an expense for Q4. Any other questions for us?

[Operator Instructions] There are no further questions. I would now like to hand the conference over to Ladi Balogun for any closing remarks. Excuse me, just one more question.

Okay. FCMB doesn't have any book with the CBS. So the answer is no. Thank you very much. We look forward to speaking with you again in the new year. I wish everybody a rest for holiday, and thank you very much for your interest in FCMB.