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| Group Managing Director/ Chief Executive Officer, FCMB, Mr. Ladi Balogun |
The unaudited financial results of First City Monument Bank Plc (FCMB) for the nine months ended September 30, 2012, (FCMB) Plc has shown that bank’s profit before tax improved by 23 per cent to N12.1 billion.
This came, just as the financial institution announced that it has concluded its business combination with former rescued bank- FinBank, which it acquired recently.
A statement from the bank Tuesday said the International Financial Reporting Standards - compliant group financial results for the period under review showed steady improvement in year-on-year performance of the bank even as it’s annualised Return on Equity (ROE) jumped by 45 percent to 11 percent from 7.6 per cent in the corresponding period of 2011. The bank attributed this to improved balance sheet leverage.
The Group Net Revenues for the same period increased by 36 percent (year-on-year) to close at N34.5 billion, just as its non- interest revenue stood at N6.6 billion indicating an eight per cent growth.
According to the result, the Group’s operational expenses (year-on-year) went up by 60 per cent. However, the bank attributed this to the “consolidation of FinBank numbers for the first time in 2012 though it witnessed a decline by seven per cent (quarter-to-quarter) coming primarily from the realisation of cost savings from the pre-merger rationalization exercise conducted in the first half of the year.”
FCMB recorded loan loss provisions of N1.3 billion in the third quarter period against the write-back of N0.8billion it recorded in the second quarter. This, it further explained came from a recovery of previously-provisioned assets from both FinBank and FCMB.
On the balance sheet side, the bank’s capital adequacy and liquidity ratios stood at 22 per cent and 56 per cent respectively. Its risk assets grew by 10 percent (quarter-on-quarter) from N327billion to N363 billion, arising from continued retail loan growth and trade finance growth while non-performing loans (NPL) ratio fell from 6.4 percent in second quarter 2012 to 4.9 percent in the third quarter.
Commenting on the result, Group Managing Director/ Chief Executive Officer, FCMB, Mr. Ladi Balogun said: “2012’s main activity has been the FinBank acquisition and merger, which is now complete from a legal and regulatory perspective. The FinBank acquisition and subsequent merger has added 30 per cent to the balance sheet and transformed the Bank’s liquidity profile.
“It has taken the Loan-to-Deposit ratio (LDR) from 87 per cent to 59 per cent and the liquidity ratio from 50 per cent to 56 per cent compared to this time last year and has also doubled our distribution capacity from 130 to 280 branches and two million customers.”
Source: Thisdaylive
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