New Telegraph

FCMB targets N44.48bn gross earnings in Q1’21

 

FCMB Plc has said it is targeting to achieve N44.476 billion gross earnings for the First quarter of 2021.

In its Q1 2020 earning forecast obtained from the Nigerian Stock Exchange (NSE), the bank also projected to rake in N35.858 billion in interest income. Its projection for profit before tax stood at N4.212 billion and N3.531 billion for profit after tax during the stipulated period.

FCMB’s Q3 PBT was up 20 per cent y/y to N4.8bn. The earnings growth was driven by pre-provision profit growth of 9 per cent y/y and a 7 per cent y/y reduction in opex. These positives overshadowed a 138 per cent y/y increase in impairments for credit losses according to analysts at FBNQuest.

In terms of revenue, funding income grew 30 per cent thanks to the low interest rate environment which drove a reduction in funding cost, and a y/y expansion in earning on risk assets. In contrast, non-interest income declined by 22 per cent y/y because of a 58 per cent y/y reduction in other income. PAT came in at N361m (-N1.0bn in ‘Q3 2019).

Shareholders of FCMB Group Plc had approved the payment of a cash dividend of 14 kobo per ordinary share, which translates to N2.77 billion, for the year ended December 31, 2019.

The shareholders, who gave the endorsement at the 7th Annual General Meeting (AGM) of the Group in Lagos, also applauded the financial institution for its resilience, dynamism and impressive performance recorded last year despite the challenging operating environment.

The AGM was held by proxy, following the outbreak of the COVID-19 (novel coronavirus) pandemic, and streamed live via www . fcmb. com/AGM to shareholders of the financial institution who were unable to physically attend due to the lockdown imposed by the Government.

The decision to hold the AGM by proxy was to avoid unnecessary physical contact among attendees and in line with the social distancing protocol to avoid the spread of the pandemic. The meeting was previously scheduled before COVID-19 hit Nigeria.

The Chairman of FCMB Group, Mr. Oladipupo Jadesimi noted that in compliance with the Companies and Allied Matters Act (CAMA), a quorum was formed at the meeting to carry on the business of the day.

Presenting the report for the year ended December 31, 2019, Jadesimi stated that all the three business groups within FCMB Group Plc reported improved performances, in terms of higher earnings and profits, compared to what was achieved in 2018.

He expressed gratitude to shareholders for joining the meeting as well as their unflinching support, which has made FCMB to wax stronger.

According to him, “the Board of Directors have adopted a policy that seeks to provide investors with a stable and sustainable form of capital distribution, with consideration given to the growth and capital requirements of the business, thereby maximising long-term share value for shareholders”.

Also speaking at the AGM, the Group Chief Executive of FCMB Group Plc, Mr. Ladi Balogun, said, “our businesses continue to improve with growth in other key indicators, such as loans and advances, deposits and Assets Under Management (AUM), which grew by 13.1 per cent, 14.7 per cent and 28.3 per cent, respectively. Our customer base also grew by 27.5% across the Group from 5.5 million to 7 million. Overall customer satisfaction has shown positive trends, with a net promoter score of 31 in Banking and 23 in Asset Management.

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