FCMB Plc released its much awaited 2015 9 Months results showing pretax profits dropped a whopping 84% to N2.5billion compared to the N16.7 billion reported same period in 2014. The bank had weeks ago issued a profit warning that results were going to be bad.
Some Investors had anticipated a terrible result following the likely losses it is expected due to loans given to debtors in the oil and gas sector. Indeed the company made a loss provision of about N15 billion for the first 9 months of the year. The loan provision almost wiped out N17.8billion in Net operating income it reported for the period.
Analysts are now of the opinion that the losses may actually be more than what they has now been reported with the full year results pointing at a loss. A look at the 3 months to September 2015 results reveal that the company posted a loss of about N7 billion in that quarter alone. More losses are anticipated in the fourth quarter and perhaps in the first quarter of 2016 as positions begin to unwind.
FCMB already laid off over 300 staff this year in a bid to restructure its finances but face a huge task of raising more capital to augment its dipping capital adequacy ratio.