FCMB posts N14.3bn PAT in 2016

FCMB Group Plc has reported a profit after tax (PAT) of N14.34 billion for the financial year ended 31 December 2016. This represents an increase of 201.22 per cent from N4.760 billion recorded in the comparative period of 2015. The annual results as announced on the floor of the Nigerian Stock Exchange (NSE), showed the group’s profit before tax (PBT) stood at N16.251 billion in 2016 as against N7.768 billion in 2015, accounting for 109.20 per cent. Its gross revenue was N176.351 billion for the financial year, a 15.63 per cent increase from N152.507 billion for the same period last year.

The group attributed the current development partially to its soundness of ratios, steady buffers against the subsisting adverse operating environment, in addition to the bank’s sustained revenue momentum combined with its cost optimisation programme. The Board of Directors recommended a cash dividend of 10 kobo per issued and paid up ordinary share for the year ended 31 December 2016. This is however, subject to approval at the Annual General Meeting. Payment of dividends is subject to withholding tax at a rate of 10 per cent in the hand of recipents.

FCMB Group reported a profit before tax (PBT) of N14.2 billion for the ninemonths, ended 30 September 2016. This represents an increase by 453 per cent from N2.563 billion recorded in the comparative period of 2015.

The unaudited results showed the group’s gross revenue stood at N140.7 billion for the nine-months, 29 per cent increase from N109.3 billion for the same period last year. The group also recorded non-interest income of N44.8 billion, an increase of 128 per cent Year-on-Year (YoY), from N19.6 billion a year earlier.

The increase according to the company, was predicated on a 612 per cent YoY increase in FX income, from N5.0 billion for the nine-months ended September 2015, to N35.3 billion for the nine-months ended September 2016.

Group Managing Director of FCMB, Mr. Ladi Balogun, while speaking on the group’s results stated : “The audited results of the bank reveal that the extraordinary performance of Q2 2016 offset the loss recorded in Q3 of N2.4 billion, thereby resulting in strong year-on-year profit growth of 913 per cent. In order to avoid an unsustainable, non-cash, spike in earnings from further revaluation gains in Q3, the bank also significantly stepped up its loan loss provisions. The macroeconomic climate is taking a significant toll on the bank’s borrowing customers across all segments.

“Accordingly, the bank will maintain high provision coverage ratios (currently 131 per cent), continue to strengthen our capital adequacy ratio (currently 16.9 per cent) and our liquidity ratio (currently 36.8 per cent).” Balogun noted : “While our prudential ratios should continue to strengthen into Q4 (modestly buoyed by a tier 2 capital injection of N7.5 billion in November), we do not anticipate improvement in the fourth quarter earnings.

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