FCMB yet to deliver Q3 2017 result barely 40 days to Q1 2018
Barely about four weeks to the end of the 2017 financial year, the FCMB groups was yet to deliver its 2017 third quarter 2017 unaudited financial statement for the period ended 30th September, 2017.
Daily Times Nigeria recalls that the quoted companies on the Exchange are required to file their quarterly accounts within 30 days after the end of the quarter in accordance with Appendix 111 of the Listing Rules.
In the NSE’s X-Compliance, as at the end of trading on Tuesday, 21 November, 2017, showed that FCMB group featured as the only company in the Q3 interim account report submission default and a tag of minimum regulatory filling (MRF).
It will be recalled that the bank stated shortly after releasing its 2017 H1 result, stated that improvement in interest income and fees and commission in H1 was dampened by high interest cost regime, high non-earning assets in CRR, drop in FX income as well as lower than expected recoveries while increase in CRR despite reduction in deposits continues to reduce liquidity as well as earnings capacity. The bank’s liquidity ratio stands at 30.1% in Q2 2017 from 31.9% in Q1 2017.
However, continued automation investments and cost optimization by the bank led to a 5 per cent QoQ reduction in OPEX, while improvement was recorded in the bank’s investment banking arm particularly brokerage and asset management businesses as capital market activities picked up slightly during the quarter.
All group entities were profitable in 2Q17, except, Microfinance bank, which is expected to be profitable at full year.
Banking group saw 77 per cent PBT decline YoY, while income analysis revealed that QoQ decline in earnings caused decline in other income as higher yields on earning assets were doused by rising cost of funds.
Key performance indicators of the bank in H1 2017 showed that Capital improved marginally, cost of risk remained flat, however, profitability ratios declined while liquidity was tight, albeit above regulatory minimum. Loans declined marginally by 1 per cent QoQ while increase in CRR in spite of drop in customers deposits suggests technical “excess” in cash reserve of N23bn.
The bank, in first half 2017, recorded 7.6 per cent decline in deposits due to personal banking fixed deposits moving to Treasury bills and improved foreign exchange liquidity.
Stories by Bonny Amadi
