FCMB Q3 2008/09 RESULTS: EXPLANATION FOR CONFUSING LAY-OUT - 13 MARCH 2009
Good evening all,
Ahead of our intention to publish our Q3 2008/09 Results in the national newspapers and on our IR website on Monday 16 March 2009, the NSE released the results, as is now common-place, as soon as they had granted approval, yesterday, Thursday 12 March.
As you may have noticed, some aspects of the NSE release appear confusing. Having had to attend to a number of queries from some analysts based on the way the results were set out in the NSE release yesterday, we would like to clarify any confusing elements of the results and provide more information on the factors that contributed to the performance of Q3, especially, as it affects the slowing down of quarter on quarter PAT.
Therefore, firstly, the results published by the NSE is, hereby, restated in the clearer format set out below:
| 9-MONTH TO JAN 2009
|9-MONTH TO JAN 2008|
|% CHANGE||3-MONTH TO JAN 2009|
|3-MONTH TO JAN 2008|
Secondly, please be aware that there was a substantial loan loss provisioning that had to be made in the third quarter to January 2009 (i.e. Nov 08-Jan 09 period) to accommodate identified credit losses especially in respect of margin finance activities. The total loan loss provisions grew by N5.7billion from N1.7billion in 2008 to N7.2billion a growth of 322% for the 9-month period while for the third quarter to Jan 2009 (3 months) the growth in loan loss provisioning was 610% or N3.97billion. This loan loss expense accounted for the lower growth of profitability (compared to gross revenue) in the 9-month period ended January 2009 and the 27% decline in profitability of the 2009 Q3 compared to the same 3-month period of the previous financial year. It is the intention of the bank to take identified losses promptly in order that the next financial year will be unaffected by such losses.
While the current financial year will remain challenging, the bank will benefit from a diversified business strategy, its corporate finance capabilities and returns from significant investments in transaction banking and retail banking.
We also intend to hold an analysts and investor conference call, as well as, issue a more comprehensive press release in the next few days and will keep you updated with any details.
We apologise for any inconvenience that this confusion may have caused and thank you for your continued interest in First City Monument Bank.
FOR: FIRST CITY MONUMENT BANK PLC.
Investor Relations Analyst
Head, Investor Relations
Chief Financial Officer