FCMB Group PLC

FCMB Group Plc announces a Profit before Tax of N2.6 billion for the nine-months, ended 30 September 2015.

LAGOS, NIGERIA – 29 JANUARY 2016: FCMB Group Plc (Bloomberg: FCMB) (“FCMB Group”) announced its Unaudited Group Results (though containing the Bank’s Audited Results), for the nine-months ended 30 September 2015.

Financial Performance Highlights:

Earnings Analysis:

  • Revenue of N109.3 billion for the nine-months ended September 2015, an increase of 2% from N106.7 billion for the same period prior year.
  • Profit before tax (PBT) of N2.6 billion for the nine-months ended September 2015, down 85% from N16.8 billion for the nine-months 2014.
  • Net interest income of N48.7 billion, for the nine-months ended September 2015, a decline of 1% Year-on-Year (YoY), from N49.1 billion for the same period prior year.
  • Operating expenses up 3% YoY to N50.5 billion, for the nine-months ended September 2015, from N48.9 billion for the same period prior year.

Financial Position:

  • Loans and advances up 1% YoY to N568.0 billion in September 2015 (N565.0 billion in September 2014), down 9% Year-to-date (YTD) (N618.0 billion in December 2014).
  • Total assets up 12% YoY to N1.17 trillion in September 2015 (N1.04 billion in September 2014), but flat YTD (N1.17 trillion in December 2014).
  • Customer deposits down 3% YoY to N703.0 billion in September 2015 (722.0 billion in September 2014) and down 4% YTD (N733.8 billion in December 2014), largely driven by the withdrawal of deposits into the Treasury Single Account (TSA) by the CBN.

Key Ratios

  • Capital Adequacy Ratio – 18.3% (19.0% for nine-months September 2014).
  • Liquidity Ratio – 35.8% (32.2% for nine-months September 2014).
  • Loan to Deposit Ratio – 80.8% (78.2% for nine-months September 2014).
  • Cost to Income Ratio – 73.9% (70.3% for nine-months September 2014).
  • Non-Performing Loans (NPL) to Total Loans Ratio – 5.8% (3.6% for full-year 2014).
  • Low-Cost Deposit Mix – 65.8% (65.7% for nine-months September 2014).

Commentary:
Mr. Peter Obaseki, Managing Director of FCMB Group Plc, had this to say about the results:

“The Group’s nine months’ profit before tax, dropped YoY to N2.6 billion, with the significant earnings drop largely coming from our commercial banking activities. This was caused by a specific impairment of N5.4 billion on a contracted receivable with a reputable and creditworthy going concern that we are hopeful of recovering and additional impairments of N6 billion on our loan book. Revenue also came under significant pressure due to various regulatory and macroeconomic headwinds, with the lull in the capital markets also adversely affecting equity capital transactions and other businesses under our investment banking arm. However, top-line revenue continues to hold up on the back of a strong and resilient retail business, transaction services and alternate channel offerings; improving liquidity and stable capital adequacy.

Against the backdrop of a weak macroeconomic environment, the priority in the coming months will be on cost efficiencies - especially cost of risk - capital preservation, loan and receivable recoveries and sustaining the momentum in our retail banking activities.”

Conference Call & Webcast for Results

FCMB Group Plc (Bloomberg: FCMB) will be hosting a teleconference call and webcast for analysts and investors onThursday 4 February at 15.00 Lagos/ 14.00 London/ 9.00 New York/ 16.00 Johannesburg, with its senior and divisional management to review these Results and respond to questions from investors and analysts.  

The teleconference call facility can be accessed by dialling: 
Nigeria Access Number: +234 (0) 708 060 1884 
UK Access Number: +44 20 7136 2054 
USA Access Number: +1718 971 5738 
South Africa Access Number: +27 (0) 800 991 539  

And then entering the following confirmation code: 9940440 

Participants will have to quote the above code when dialling into the conference call.  

Participants can log on to the link for the webcast by going to the ‘Upcoming Events’ or ‘What’s New’ sections on FCMB’s Investor Relations homepage, which can be accessed by clicking on www.fcmbgroupplc.com/investor-relations  

Webcast access on mobile devices - QR code:  
Access the live and On-Demand version of the webcast from mobile devices running iOS and Android.  

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Participants should please register for the call/ log-on to the webcast at least five minutes before the start of the conference call.

The presentation and all other related documents, for the call, will be posted under the ‘What’s New’ section on FCMB’s Investor Relations homepage, which can be accessed by clicking on www.fcmbgroupplc.com/investor-relations from 15.00 Lagos/ 14.00 London on Wednesday 3 February.

For those who are unable to listen to the live call, the recording of the webcast will be available under ‘Financial Results – 2015’ by clicking on the ‘Financial Information’ tab on FCMB’s Investor Relations website, which can be accessed by clicking on  www.fcmbgroupplc.com/investor-relations The webcast recording will be done in real-time, so it will be available as soon as the conference call & webcast begins at 15.00 Lagos/ 14.00 London on Thursday 4 February.  

For further information, please contact:   

Ori Rewane: Head - Investor Relations, FCMB Group Plc 

Tel:         +234 (0) 1 279 3030 and +234 (0) 1 279 30 33 

Email:    This email address is being protected from spambots. You need JavaScript enabled to view it.   


Patrick Iyamabo: Chief Financial Officer, FCMB Group Plc 

Email:    This email address is being protected from spambots. You need JavaScript enabled to view it.   

OR This email address is being protected from spambots. You need JavaScript enabled to view it.


– ENDS –

Notes to editors:

About FCMB Group Plc

FCMB Group Plc’s roots date back to 1977, with the formation of City Securities Limited (CSL), a stockbroking and issuing house and registrar business. CSL rapidly climbed the league of issuing houses and brokers between 1977 and 1982, handling the listings and initial public offers of many of the leading blue-chip companies on the Nigerian Stock Exchange (NSE). First City Merchant Bank Limited was established in 1982 with seed capital from the success of CSL. It began operations as a licensed deposit taker and merchant bank on 11 August 1983 assuming the corporate finance and issuing house activities of CSL and becoming the first Nigerian merchant bank to be established without government or international support. First City Merchant Bank Limited soon became a leading merchant bank in Nigeria, as measured by profitability, and, in 2000, the first and only merchant bank to achieve N1 billion profit. With the advent of universal banking in 2001, First City Merchant Bank Limited converted into a universal bank. It changed its name to First City Monument Bank Limited and commenced commercial banking activities, while its corporate finance activities were spun-off into a new subsidiary – FCMB Capital Markets Limited.

 

In 2004, the bank changed status from a private limited liability company to a public limited liability company, and was listed on the NSE in December of that year. In 2010, the Central Bank of Nigeria (CBN) issued Regulation 3 (Scope of Banking Activities and Ancillary Matters, No. 3, 2010), which required banks to divest their non-banking businesses or retain them under a CBN-approved financial group structure. As a result of this reorganisation, the newly created FCMB Group Plc became the holding company, with First City Monument Bank Plc (FCMB Plc), CSL Stockbrokers Limited (CSLS) and FCMB Capital Markets Limited (FCMB-CM) as direct subsidiaries. Shareholders of FCMB Plc were also migrated to FCMB Group Plc via a one-for-one share exchange between FCMB Group Plc and FCMB Plc. FCMB Plc, the bank, was thereafter re-registered as a limited liability company, becoming First City Monument Bank Limited (FCMB Limited). In 2014, CSL Trustees Limited also became a direct subsidiary of FCMB Group Plc.

 

FCMB Group Plc is listed on the Nigerian Stock Exchange (NSE) with the ticker symbol (FCMB) and has 19,802,710,781 ordinary shares held by approximately 522,028 shareholders. FCMB Group Plc and its subsidiaries each function as separate and distinct operating companies with separate Boards of Directors and Executives.

 

FCMB Group Plc’s vision is to be the premier financial services group of African origin. At the centre of its businesses lies a talented work-force that drives a comprehensive bouquet of financial services including micro-lending, asset management, stock-broking, trusteeship and custodial services, foreign exchange, personal banking, corporate and commercial banking, investment banking (including financial advisory, debt & equity capital markets, project & structured finance transactions) and transaction banking products delivering cash management, trade and liquidity management solutions to corporate, commercial, public sector, financial institutions and small & medium-scale enterprises.

 

First City Monument Bank Limited has approximately 3 million customers and 254 branches and cash-centres spread across every state of the Federal Republic of Nigeria and in the United Kingdom through FCMB UK (which is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA in the United Kingdom).  

More information can be found at www.fcmbgroupplc.com  

FCMB Group Plc, First City Plaza, 44 Marina, Lagos, Nigeria. 

Tel: +234 (0) 1 279 3030 and +234 (0) 1 279 30 33.

 

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