FCMB DECLARES LOSS IN 2ND QUARTER OF FISCAL YEAR 2015 (Q2-15)
FCMB yesterday released its Q2 2015 results which came in mixed. Both net interest income and other income declined q/q by -9.7% and -1.5% respectively. Consequently, this led to c.7.2% decline in profit before provision. On the other hand, there was an improvement in loan impairment charges, down -22% q/q. Nonetheless, it
was not enough as both pre-tax and after tax declined by 34.2% and 42.7% respectively.
The bank which had garnered negative brand press following their rebanded identity earlier this year recorded weak year-on-year results as both PBT and PAT declined by over 50% each. This was in spite of the 4.5% rise in net interest income as the
weakness in both other income, (down 39.9%) and loan impairment charges, (up 33.1%) weighed on the positive performance in net interest income. We
highlight that the weakness seen in other income was largely driven by the 21.6% y/y decline witnessed in net fee and commission.On the half year basis, the negative trend was the same. Both pre-tax and after tax profits fell by over
13% each. The performance was driven by the 47.6% spike in loan impairment charges and c.6.2%
decline in other income. In addition, the 21.6% in net fee and commission also contributed to the poor
performance as it more than offset the positive 6.2%
improvement in net interest income.
Overall, the results were headlined by sequential
and y/y declines in core operating lines and
surprising q/q improvement in impairment charges.
Other losers includes AFROMEDIA (NGN881.9bn Q3’15), ASHAKACEMENT (12.9% in revenue Q’2’15), 7UP (downside profit Q1’16), PREMIER PAINTS (NGN20.2bn loss Q2’15), NEIMETH and JOHN HOLT where also amongst the top losers while NESTLE, SKYBANK, FIDSON JULIUS BERGER and PHARMADEKO are amongst the price gainers recorded this week.
Compiled, edited & posted by @djshyluckjimmy