FCMB targets N44.48bn gross earnings in Q1 2021

[Edoman]

[color=var(--atc)]FCMB targets N44.48bn gross earnings in Q1 2021[/color]
 December 9, 2020





View galler

[url=https://punchng.com/fcmb-targets-n44-48bn-gross-earnings-in-q1-2021/][/url]
source: google.com
‌

Johnson Okafor
The FCMB Group has said it is targeting to achieve N44.48bn gross earnings for the first quarter of 2021.


In its Q1 2020 earning forecast obtained from the Nigerian Stock Exchange, the bank also projected to rake in N35.86bn in interest income. Its projection for profit before tax stood at N4.21bn and N3.53bn for profit after tax during the period.


FCMB’s Q3 PBT was up 20 per cent year-on-year to N4.8bn. The earnings growth was driven by pre-provision profit growth of nine per cent y/y and a seven per cent y/y reduction in opex. These positives overshadowed a 138 per cent y/y increase in impairments for credit losses, according to analysts at FBNQuest.

 In terms of revenue, funding income grew 30 per cent, thanks to the low interest rate environment which drove a reduction in funding cost, and a y/y expansion in earning on risk assets.
In contrast, non-interest income declined by 22 per cent y/y because of a 58 per cent y/y reduction in other income. PAT came in at N361m (-N1.0bn in ‘Q3 2019).


The analysts said, “Although still below the regulatory minimum, FCMB’s asset quality ratio deteriorated by 90bps q/q to 4.4 per cent due to a spike in NPLs for the oil and gas loan book. On a positive note, management indicated that it expects to receive regulatory approval for its acquisition of AIICO Pensions before the end of the year.


“Given FCMB Pensions’ AUM size of N340bn, when concluded the AIICO merger will take its total AUM to N500bn and move it to number 7 from 9 on the league table.”