FCMB Group’s 2015 Profit suffers 67.6% decline

By Chioma Obinagwam

FCMB Group Plc said on Wednesday its pretax profit for the period ended December 31, 2015 climbed down 67.6 percent to N7.76 billion from N23.94 billion declared a year ago.

Similarly, profit after tax (PAT) declined 78.5 percent to N4.76 billion from N22.13 billion recorded the same period of 2014.

However, gross earnings of FCMB inched up 2.6 per cent to N152.50 billion from N148.63 billion posted in the 2014 audited year end, the company said in a filing with the Nigerian Stock Exchange (NSE).

The board of directors of FCMB declared a dividend of 10 kobo per share to its shareholders in the review period of 2015 compared to 25 kobo dividend paid in year 2014; representing a decline in dividend payout of 60 percent.

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FCMB Group had in January this year issued a profit warning in expectation of its delayed third quarter (Q3) 2015 earnings before the end of January 2016.

Peter Obaseki, the Managing Director (MD) of FCMB Group Plc, in a notice to the Nigerian Stock Exchange (NSE) said Q3 2015 earnings as at September 2015, will be materially below earnings for the same period in 2014, due to two factors: a spike in impairments particularly in the energy sector and the significant reduction in trade finance-related revenues due to foreign exchange illiquidity.

“This trend continued in fourth quarter (4Q15) and largely emanated from wholesale banking activities, while retail banking showed greater resilience and earnings momentum. 2016 will be characterised by continued growth in retail contribution, stabilisation of wholesale banking revenues and increased focus on cost efficiencies (opex, funding and risk) in order to restore earnings levels,” Obaseki added.