FCMB after profit tax rises to N4.6bn

 

FCMB Group’s today announced its fourth quarter 2017 results which showed a remarkable growth of 123 percent year on year to N4.6 billion.
The marked growth in profit before tax was underpinned by a 76 percent year on year growth in pre-provision profit. The strong double-digit growth on this line completely offset a significant spike (+877 percent year on year) in loan loss provisions and an 18 percent year on year rise in operating expenses. Although both revenue lines contributed to the strong growth in pre-provision profits, non-interest income which grew by 356 percent year on year was the major driver.
Funding income also advanced by 26 percent year on year. Moving below the P&L, the growth in profit after tax came in at 38 percent year on year because of a -40 percent year on year reduction in other comprehensive income (OCI).
Sequentially, profit before tax grew by 53 percent quarter on quarter. Similar to the year on year trends, the strong quarter on quarter growth on both revenue lines was the key driver.
Compared with FBNQUEST forecasts, profit before tax and profit after beat by 18 percent and 57 percent respectively, largely because of positive surprises in non-interest income and funding income.
On a full year basis, profit before tax and profit after tax declined by -30 percent year on year and -37 percent year on year respectively, mainly because of a decline in non-interest income.
The bank has proposed a dividend of N0.10 per share.
FCMB shares have outperformed the index year-to-date. The shares have gained 51 percent year to date as against the 7 percent year to date gain delivered by the index.