Thursday, January 04, 2016 5:22 PM / Taiwo Ologbon-Ori
The macro-economic challenges remain daunting; with corresponding strict industry regulations. The new policy by Federal Government on full implementation of Treasury Single Account compounded the liquidity challenges within industry. However, the reduction in harmonized CRR on private and public sector deposit to 25% from 31% is expected to ease the liquidity challenges.
In the face of the above overwhelming challenges, FCMB Plc succumbed to micro economic pressures to post a disappointing financial performance.
Both PBT and PAT declined by 85% and 87% on year-on-year basis respectively. Aside weak performance of interest income and non-interest income, the significant surge in impairment charges contributed to the outlook. This has consequently depressed both ROE and ROA with a plunge by 313.9% and 315.2% on QoQ respectively.
In similar vein, we have observed falling risk assets management as NPL ratio closed above benchmark at 5.8% against 2.7%, driven mainly by impairment charges. Also, operating efficiency maintained unimpressive outlook as CIR remains bloated at 73.90% against 70.3% recorded in previous year comparable period.
Nonetheless, we commend the improved and robust balance sheet outlook with 12% growth on year-on-year basis despite pressure of TSA transfer
Below are the key takeaways from the 9Months earnings presentation as presented by the management of the bank;
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2. FCMB Records N7bn Pre-tax Loss in Q3'15 on the back of Significant Loan Loss Provisions
3. FCMB Group PLC issues a technical profit warning
4. FCMB has stock really bottomed out
5. FCMB breaks 8mths support line on fresh sell-off wave