The Central Bank of Nigeria has approved FCMB Plc. financial results for the year ended April 2005 with growth in most key performance indicators .
The Bank\'s balance sheet as at 30th April 2005, rose by over 100 per cent from N30.7b recorded in 2004 to N63.2b. Total assets grew by 116 per cent from N23.7b to N51.3b.
Cash and short-term funds increased from N3.9b to N7.4b representing over 89 per cent growth and signalling a stronger liquidity position. The bankÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s deposits position also grew by 55 per cent from N17.3b in 2004 to N26.8b, whilst total loans and advances also inched up from N8.12b to N11.78b (45.6%). During the period under review, off balance sheet engagements increased from N7.0b in 2004 to N11.9b representing 70 per cent growth.
According to the bank a significant post balance sheet event that is not reflected in the balance sheet is the additional N16billion of capital raised from the bankÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s IPO that was approved by SEC in July 2005.
The bank profit and loss account for the year ended 30th April 2005, show that gross earnings rose by 97 per cent from N3.1b in 2004 to N6.1billion. Net interest margin grew from N713m to N1.7billion representing a growth of over 140 per cent. The bankÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s level of efficiency anchored on cost optimisation scheme improved significantly during the period under review as Profits grew by over 300 per cent from a modest N264million recorded in 2004 to N1.09billion in 2005. The full year PBT figure includes substantial loan loss provision of N770.9million, the majority of which is ascribed to losses caused by interbank placements made to banks that were adversely affected by industry consolidation.
The bank hopes that a significant portion of this provision would be recovered when the affected banks are able to conclude their consolidation arrangements. The bank is proposing a cash dividend of N0.075 per share to reward shareholders registered in the book of the bank as at 30th April and this will be approved at the AGM. The bankÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s Auditors - Price Water House Coopers remarked that during the year under review, \"FCMB has kept proper books. The assets have been properly valued and adequate provision made for losses and the diminution in the value of such assets.\"
It will be recalled that recently, CBN approved FCMB IPO proceeds of over N16billion as new capital and this has strengthened the capital base of the bank and increased the shareholdersÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢ funds to over N23billion. Also, the bank has impressively advanced in its merger process with Cooperative Development Bank and this automatically takes the ShareholdersÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢ funds to well over N25billion.
To ensure that the shareholders get adequate returns for their huge investment following re-capitalisation, the bank is being restructured as a retail bank to enable it take advantage of low cost funds in the economy and significantly improve on its performance.
The apex bank - CBN has shown strong support for the new retail focus of the bank by approving additional ten branches recently. Also, as part of its ongoing restructuring scheme, FCMB Plc, has beefed up its management team with highly experienced and dynamic senior management staff from various retail banks in the country.
Analysts are of the opinion that if the new dynamic posture of the bank is carefully blended with its traditional culture of excellence and professionalism, FCMB Plc clearly, is in an upbeat mood and one of the banks to watch out for in post consolidation years.