FCMB Reports 78% Decline in Profit

FCMB Group Plc (FCMB) has recorded a decline of 78.36per cent in its profit after tax for the year ended December 31, 2015.
According to the bank result released on the Nigerian Stock Exchange (NSE), yesterday, profit after tax (PAT) stood at N4.76 billion from N22 billion recorded in 2014. 
Following this, the financial institution has recommended a dividend of 10 kobo per share.
Going by the audited results, FCMB’s revenue was up by three per cent to N152.5 billion in 2015, as against N148.6 billion in 2014. 
However, net interest income decreased by 12 percent Year-on-Year (YoY) to N63.9 billion, compared to N72.6 billion in the previous year. Fees and commissions rose by 10 per cent to N15.8 billion, driven by a strong surge in electronic banking income, offsetting the drop in Commission on Turnover and Trade Finance fees. Other income dropped by 31 per cent to N8.8 billion due to a N4.8 billion reduction in foreign exchange gains. Total assets dropped marginally by one per cent to N1.16 trillion.
It would be recalled that the company has announced profit warning.
Commenting on the financial results, the managing director of FCMB Group Plc, Mr. Peter Obaseki, said, “Full year 2015 result, came in with profit after tax of N4.8 billion; although underlying top-line and sustainable revenue momentum remains strong and in line with our strategic thrust. Key soundness ratios, including liquidity and capital buffers, were maintained in a rather challenging operating environment within all the operating companies. The clear and direct future challenge is to unlock more value to shareholders by tackling operational efficiencies and accelerating the pace of momentum, not just in the bank but also microfinance and wealth management.”
In his comments, the group managing director/CEO, First City Monument Bank Limited, a key subsidiary of FCMB Group Plc, Mr. Ladi Balogun, stated that, “Inspite of the challenging policy and macroeconomic environment we believe that these trends will continue,  and we will witness a steady improvement in performance indices in 2016 as our retail and transaction banking activities continue to evolve positively, our loan recovery efforts yield results and our efficiency drive gathers more momentum.”

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