Q3’19: FCMB Suffers 13.5% Decline in Pre-Tax Profit

By Dipo Olowookere

The long-awaited financial statements of FCMB for the period ended September 30, 2019, have finally been released by the board of the company and posted on the Nigerian Stock Exchange (NSE) for public consumption.

In the results briefly analysed by Business Post, the financial company suffered a 13.5 percent decline in the profit before tax (PBT), while the profit after tax (PAT) went down by 4.4 percent.

According to the financial documents, the pre-tax profit in the third quarter of this year reduced to N12.8 billion from N14.8 billion in the same period of 2018, while the post-tax profit reduced to N10.8 billion from N11.3 billion.

However, the gross earnings posted by the company in the first nine months of this year marginally rose by 2.2 percent to N135.8 billion from N132.9 billion.

The results further showed that the interest and discount income made by the firm increased to N101.8 billion in the period under review, higher than N95.4 billion in the corresponding period of last year, while the interest expense rose to N45.6 billion from N42.2 billion, leaving he net interest and discount income at N56.2 billion against N53.2 billion a year ago.

For the fee and commission income, FCMB printed N21.7 billion, higher than N19.9 billion in Q3 2018, while the fee and commission expense stood at N6.4 billion versus N4.4 billion. This left the net fee and commission income at N15.3 billion, lower than N15.5 billion in the first nine months of 2018.

However, the trading income in Q3 2019 improved to N4.8 billion from N4.6 billion, but the other income dropped to N7.4 billion from N13.0 billion.

In the period under consideration, the personnel expenses increased to N21.6 billion from N18.1 billion, while other operating expenses rose to N13.4 billion from N12.8 billion.

According to the financial statements, as at the close of business on September 30, 2019, the earnings per share of FCBM dropped to 54 kobo from 57 kobo.

View the full results HERE

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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