FCMB ANNOUNCES ITS RESULTS FOR THE 9 MONTHS ENDED 30 SEPTEMBER 2010 - 28 OCTOBER 2010
LAGOS, NIGERIA – 28 OCTOBER 2010 – First City Monument Bank PLC (Bloomberg: FCMB NL) announces its results for the 9 months ended 30 September 2010.
- The Group profit before tax for the 9-month period ended September 2010 grew to N6.1bn from N0.3billion for the same period previous year. The main contributor to this is improved assets quality culminating in a net write back of N1.8bn in 2010 as against a large N12.7bn charge in the previous year.
- Quarterly profitability trend has also shown improvement growing from N1.1bn in 1st quarter to N2.3bn and N2.6bn in 2nd and 3rd quarters respectively, largely due to loan growth and related income.
- Total Gross earnings fell 20% in 2010 to N44bn from N55bn in 2009 while it has been oscillating between N14.3bn and N15bn in the past three quarters. This trend was as a result of general fall in interest income on loans and liquid assets.
- Net Interest Margin remained flat in the 3rd quarter at previous year rate of 5% though an improvement over the average of 6% 1st and 2nd quarters.
- Non-interest income grew 13% year-on-year in 2010 to N9.9bn from N8.8bn it was in the corresponding period of 2009. This was largely driven by increase in loans volume and transaction commissions. Though the line witnessed a quarter-on-quarter decline in 3rd quarter arising from recoveries of earlier written-off loan recognized in the preceding quarter.
- Cost Income ratio improved in the course of the year from 91% in 2nd quarter to 84% in 3rd quarter. Further improvement is expected on this in 4th quarter.
- Operating expenses grew marginally by 6% between the 1st and 3rd quarter due to the impact of prior investments in retail infrastructure and various ongoing projects to improve the competitiveness of the business.
- The Group’s Balance Sheet grew by about 11% in the course of the year (December 2009 to September 2010) with risk assets and deposits growing by 30% and 15% respectively. Significant portion of the growth in risk assets came in the ninth month of 2010, hence the impact on interest income will be felt in the 4th quarter.
- Loan quality improved in 3rd quarter with the non-performing loan ratio falling to 7% largely due to loan growth in 3rd quarter and recoveries in prior periods.
The steady improving trend in the performance of the business is expected to continue, driven by asset growth, tactical and strategic cost containment initiatives and growth in non-interest income coming primarily from transaction commission and corporate finance fees.
The summary performance is detailed below:
Group Unaudited Results |
GROUP |
|
BANK |
||
FOR THE NINE MONTHS ENDED |
SEP. 2010 |
SEP. 2009 |
|
SEP. 2010 |
SEP. 2009 |
|
N'000 |
N'000 |
|
N'000 |
N'000 |
|
|
|
|
|
|
Gross Earnings |
44,549,038 |
55,017,661 |
|
41,008,857 |
51,936,894 |
|
|
|
|
|
|
Interest and Discount income |
32,448,283 |
45,128,738 |
|
29,788,656 |
43,153,551 |
Interest Expense |
(16,684,318) |
(21,788,582) |
|
(16,433,147) |
(21,523,990) |
Net Interest and Discount Income |
15,763,965 |
23,340,156 |
|
13,355,509 |
21,629,561 |
Other operating income |
12,100,755 |
9,888,923 |
|
11,220,201 |
8,783,343 |
Net operating income |
27,864,720 |
33,229,079 |
|
24,575,710 |
30,412,904 |
Operating expenses |
(23,534,925) |
(20,266,959) |
|
(21,523,936) |
(18,676,984) |
Provision for / Write back of Losses |
1,771,446 |
(12,663,987) |
|
1,829,753 |
(12,611,202) |
Profit before tax |
6,101,241 |
298,133 |
|
4,881,527 |
(875,283) |
Taxation |
(1,525,310) |
(74,533) |
|
(1,220,382) |
- |
Profit after tax |
4,575,931 |
223,600 |
|
3,661,145 |
(875,283) |
|
|
|
|
|
|
BALANCE SHEET AS AT |
GROUP |
|
BANK |
||
|
SEP. 2010 |
DEC. 2009 |
|
SEP. 2010 |
DEC. 2009 |
ASSETS: |
N'000 |
N'000 |
|
N'000 |
N'000 |
Cash and Short term Investments |
92,593,689 |
140,739,698 |
|
85,938,519 |
136,182,721 |
Loans and advances |
313,460,163 |
239,897,986 |
|
310,699,032 |
238,010,395 |
Long Term Investments |
63,174,781 |
40,341,992 |
|
63,116,979 |
40,284,190 |
Investment in Subsidiaries |
|
|
|
10,865,468 |
10,865,468 |
Other Assets |
18,937,668 |
20,822,633 |
|
11,327,191 |
13,376,549 |
Property, plant and equipment |
23,506,166 |
21,817,923 |
|
23,058,111 |
21,361,771 |
|
511,672,467 |
463,620,232 |
|
505,005,300 |
460,081,094 |
LIABILITIES: |
|
|
|
|
|
Deposits |
305,859,773 |
266,012,607 |
|
308,316,308 |
272,624,017 |
Due to other banks & Financial Institutions |
15,000,000 |
13,681,208 |
|
15,000,000 |
13,681,101 |
Borrowings |
25,516,610 |
30,178,530 |
|
25,516,610 |
30,178,530 |
Other Liabilities |
31,940,669 |
24,154,843 |
|
25,197,738 |
15,470,386 |
|
378,317,052 |
334,027,188 |
|
374,030,656 |
331,954,034 |
CAPITAL AND RESERVES |
|
|
|
|
|
Share capital |
8,135,596 |
8,135,596 |
|
8,135,596 |
8,135,596 |
Reserves |
125,219,819 |
121,457,448 |
|
122,839,048 |
119,991,464 |
Total Capital and Reserves |
133,355,415 |
129,593,044 |
|
130,974,644 |
128,127,060 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
511,672,467 |
463,620,232 |
|
505,005,300 |
460,081,094 |
|
|
|
|
|
|
ACCEPTANCES AND GUARANTEES |
60,966,371 |
50,492,799 |
|
60,966,371 |
50,492,799 |
Group Unaudited Results |
|
|
|
2010 QUARTERLY TREND |
2010 Q3 |
2010 Q2 |
2010 Q1 |
|
N'000 |
N'000 |
N'000 |
INCOME STATEMENT |
|
|
|
Gross Earnings |
14,787,865 |
15,321,774 |
14,439,399 |
|
|
|
|
Interest and Discount income |
10,514,705 |
10,670,805 |
11,262,773 |
Interest Expense |
(3,804,020) |
(5,662,517) |
(7,217,781) |
Net Interest and Discount Income |
6,710,685 |
5,008,288 |
4,044,992 |
Other operating income |
4,273,160 |
4,650,969 |
3,176,626 |
Net operating income |
10,983,845 |
9,659,257 |
7,221,618 |
Operating expenses |
(8,133,738) |
(7,741,156) |
(7,660,031) |
Provision for / Write back of Losses |
-218,302 |
422,298 |
1,567,450 |
Profit before tax |
2,631,805 |
2,340,400 |
1,129,036 |
Taxation |
(831,423) |
(468,080) |
(225,807) |
Profit after tax |
1,800,382 |
1,872,320 |
903,229 |
|
|
|
|
BALANCE SHEET |
|
|
|
ASSETS: |
|
|
|
cash and short term investments |
92,593,689 |
113,062,383 |
97,330,642 |
Loans and advances |
313,460,163 |
284,069,781 |
280,729,677 |
Long Term Investments |
63,174,781 |
47,499,465 |
57,389,307 |
Other Assets |
18,937,668 |
19,728,856 |
19,473,186 |
Property, plant and equipment |
23,506,166 |
23,799,862 |
21,298,736 |
|
511,672,467 |
488,160,347 |
476,221,548 |
LIABILITIES: |
|
|
|
Deposits |
305,859,773 |
288,003,221 |
278,265,832 |
Due to other banks & Financial Institutions |
15,000,000 |
13,773,868 |
9,930,659 |
Borrowings |
25,516,610 |
17,333,250 |
28,541,101 |
Other Liabilities |
31,940,669 |
36,681,415 |
28,987,683 |
|
378,317,052 |
355,791,754 |
345,725,275 |
CAPITAL AND RESERVES |
|
|
|
Share capital |
8,135,596 |
8,135,596 |
8,135,596 |
Reserves |
125,219,819 |
124,232,997 |
122,360,677 |
Total Capital and Reserves |
133,355,415 |
132,368,593 |
130,496,273 |
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
511,672,467 |
488,160,347 |
476,221,548 |
|
|
|
|
ACCEPTANCES AND GUARANTEES |
60,966,371 |
61,091,312 |
51,671,309 |
|
|
|
|
Conference Call & Webcast for Results
First City Monument Bank Plc (Bloomberg: FCMB NL) will be hosting a teleconference call and webcast for analysts and investors on Tuesday 2 November at 15.00 Lagos/ 14.00 London, with its senior management to review FCMB Plc’s (Unaudited) Results for the 9-month period ended 30 September 2010 and reply to questions from investors and analysts.
The teleconference call facility can be accessed by dialing:
UK Access Number: +44 (0)20 7138 0821
USA Access Number: +1 718 354 1361
And then entering the following confirmation code: 6485348
Participants will have to quote the above code when dialling into the conference.
Participants can log on to the link for the webcast from the FCMB Investor Relations website under “What’s New”, which can be accessed by clicking on http://investorrelations.firstcitygroup.com
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 related documents, for the call, will be posted under ‘What’s New’ on FCMB’s Investor Relations Homepage, which can be accessed by clicking on http://investorrelations.firstcitygroup.com from 3pm (Lagos) on Monday 1 November.
For those who are unable to listen to the live call, the recording of the webcast will be available under ‘What’s New’ on FCMB’s Investor Relations Homepage, which can be accessed by clicking on http://investorrelations.firstcitygroup.com from 6pm (Lagos) on Wednesday 3 November 2010.
For further information, please contact:
Ori Rewane (Head, Investor Relations)
Tel: +234 1 270 8847
Email: orighoye.rewane@firstcitygroup.com
Yemisi Edun (Chief Financial Officer)
Tel: +234 1 279 3030
Email: Yemisi.edun@firstcitygroup.com
OR institutionalinvestorrelations@firstcitygroup.com
– ENDS –
Notes to editors:
About First City Monument Bank Group Plc
A universal banking institution with an experienced management team and significant international shareholdings, FCMB is headquartered in Lagos, Nigeria.
Having become a public limited company in 2004, FCMB has its shares listed on the Nigerian Stock Exchange (NSE). Accounting for approximately 5% of total assets in the banking industry, FCMB benefits from a nationwide branch network and an array of unique financial products and services and a strong brand.
Product and service offerings are focused on three main areas (Investment Banking, Retail Finance and Transaction Banking) and include core lending, transaction services, treasury and financial markets, advisory & corporate finance. Key customer segments comprise Corporate, Government, Small & Medium Scale Enterprise and Individuals.
FCMB is the flagship company of the First City Group, one of Nigeria’s leading comprehensive financial services providers. Other members of the group are FCMB Capital Markets - which integrates key skills relating to investment banking and capital markets disciplines, Credit Direct Ltd. (CDL) - a microlending business and City Securities – a securities and investment services firm comprising City Securities Limited Registrars (CSLR), a share registration agent; City Securities Limited Stockbrokers (CSLS) – a stock-broking firm and First City Asset Management (FCAM) - an asset/ fund management firm. All businesses are market leaders in their respective fields.
From its early origins in investment banking, FCMB has emerged as one of the leading and most dynamic financial services institutions in Nigeria. The Bank’s success has been recognised by many industry awards over the years, both nationally and internationally. Most recently it won the Euromoney 2008 award for the Best Equity House in Nigeria and the 2007 award for Best Investment Bank.
More information can be found at www.firstcitygroup.com
Head Office:
Primrose Towers
17A Tinubu Street
Marina
Lagos, Nigeria
+234 1 279 3030