Business
FCMB Records N9.9bn Net Loss, Proposes Bonus Issue
First City Monument Bank Plc has announced a net loss of N9.9 billion for the full year which ended December 31, 2011.
The bank’s profit after tax, which stood at N7.9bn in December 2010, fell by 225 per cent to a loss position of N9.9 billion.
Explaining the loss on Monday, the company stated that its net revenue of N54bn was affected by a significant impairment charge of N29bn in the fourth quarter of 2011.
The statement said that the loss was due to the underwriting of several share issues, dating back to 2009, and some non-performing loans sold to the Asset Management Company of Nigeria.
“All legacy loans and weaknesses associated with capital market and oil and gas transactions have been fully regularised through sales to AMCON or outright provisioning/ write-offs,” the bank said in a statement.
The results showed that the bank’s gross earnings, however, rose by 28.3 per cent from N62.8bn in 2010 to N80bn in the year under consideration, while its net operating income rose by 34.5 per cent to 53.8bn up from N40.2bn in 2010.
Thus, the bank has proposed a bonus issue of three new shares for every 20 existing shares held by shareholders as at April 2012.
The statement added that the company expected an improved performance in the next quarter on the back of its merger with Finbank.
It said, “Underlying operational performance was strong as evidenced by the growth indices. The bank’s financial health indicators are also in excellent shape as evidenced by its ratios, particularly asset quality, liquidity and capital adequacy.
“Management expects that the first half of 2012 will see continued improvements and is likely to exceed its released forecasts. Management also expects earnings accretion in the second half of 2012, as FinBank merges with FCMB on July 1, 2012.”
The Chief Financial Officer for FinBank, who is also the Integration Director for FinBank and FCMB, Mr. Patrick Iyamabo, was quoted in a statement last week as saying, “We are on track to meet our integration timeline. A rapid integration process will help contain costs, facilitate accelerated earnings accretion and fast track customer benefits.”
He added that the merger would result in some branch overlaps, which would mean limited branch closures. In those instances, he said customers would be able to use nearby branches that would offer best-in-class products, services and technology.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.