March 15, 2012

The Bank has notified The Exchange that following observed deteriorations in restructured loans and legacy investments, the Bank has made additional net provisions and write-offs between Q3 2011 and Q4 2011. These provisions will result in an after tax loss of around N9 billion as follows:

1.Impairments to equity underwritings – N4.9 billion

2.Losses recorded on the sale of systematically significant and other loans - N11.6 billion, primarily in the oil trading sector; and

3.  Other loan losses and write-offs - N13.0 billion

It further stated that 98% of the assets sold and written off in 2011 were as a result of restructured loans or underwritings initiated prior to 2009.

The results to be announced next week will show that operating income (prior to these non-recurring charges) grew by 115%. Capital adequacy remains high at 25% after the acquisition of Finbank Plc. In addition, liquidity and efficiency ratios have continued to improve in Q4 2011 and have been further enhanced by the recent acquisition.

The Management of the Bank expects that the first two quarters of 2012 will see continued improvements and is likely to exceed its released forecasts for the first half-year.

FCMB informs that details of the results will be announced on Monday March 19th 2012, followed by a conference call on Tuesday March 20th 2012.


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