FCMB Group Plc on Monday released its results for the first quarter of 2015, reporting increases in profits and earnings.
The results, which the group filed with the Nigerian Stock Exchange, showed that it made a profit after tax of N5.277bn, nine per cent higher than the N4.826bn it recorded in the corresponding period of 2014.
Also, in the three months ended March 31, 2015, the group grew its earnings by 16 per cent year-on-year – from N33.819bn in the same period of last year to N39.288bn.
Its profit before tax, which stood at N5.769bn in the review period, was four per cent higher than the N5.69bn it posted in the corresponding period a year ago.
Commenting on the results, analysts at FBN Capital Research explained that the boost to PAT could be traced to a close to tripling of other comprehensive income to N652m and a -34 per cent year-on-year reduction in the tax charge.
“PBT growth was modest because although profit before provisions grew nine per cent y/y to N24.4bn, partly offset by a 61 per cent y/y rise in loan loss provisions to N2.1bn and operating expenses (+6.5 per cent y/y),” they added.
The analysts explained that both funding income (+8.3 per cent y/y) and non-interest income (+11 per cent y/y) contributed to the growth in profit before provisions, although funding income growth was held back by a greater increase in interest expense (+29 per cent y/y) relative to interest income (+17 per cent y/y), implying some margin erosion.
They said, “Relative to our forecasts, PBT missed by 21 per cent. However, PAT came in just 4.5 per cent behind our forecast because the tax charge was slightly less than half our forecast and we did not have a forecast for other comprehensive income.”
FCMB Group had on Thursday last week at its Annual General Meeting received the approval of its shareholders to pay a dividend of 25 kobo per ordinary share for the year ended December 31, 2014.
In approving the dividend, the group’s shareholders had commended it for its financial performance in the financial year.
At the event, the Chairman of FCMB Group, Dr. Jonathan Long, had informed shareholders at the AGM that the Group, which comprises First City Monument Bank Limited, FCMB Capital Markets Limited and CSL Stockbrokers Limited, had “achieved a strong and sustained growth over the past three years.
He said in 2014, the group continued the profitable development of its core banking, capital markets and stockbroking businesses.
“We are confident that this will help us consolidate the gains made over the past years and face the economic challenges which we are confronting in 2015,” he had said.
On his part, the Managing Director, FCMB Group Plc, Mr. Peter Obaseki, explained that the group was on track to deliver on its promise to its various shareholders.
According to him, the financial holding company structure adopted by FCMB in 2013 has given it the opportunity to diversify its revenue sources and minimise its exposure to the risks inherent in some of the businesses in its portfolio of investments.
Obaseki had added that despite regulatory and macroeconomic challenges, “our future outlook is bright, our capital base remains strong, the bank’s strategies are yielding results and we will focus more on improving contribution to revenue from the non-banking businesses, especially in the wealth management space.”
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Source : Punch