|
FY 15 |
FY 14 |
YoY growth |
% of FY 15E forecasts |
Q4 15 |
Q3 15 |
QoQ |
|
| Gross Earnings |
152,508 |
148,637 |
2.6% |
107% |
43,214 |
31,941 |
35.3% |
|
| Net interest income |
63,937 |
72,634 |
-12.0% |
92% |
15,227 |
14,274 |
6.7% |
|
| Non-interest revenue |
25,760 |
28,185 |
-8.6% |
96% |
6,131 |
7,099 |
-13.6% |
|
| Operating expenses |
(66,979) |
(66,304) |
1.0% |
96% |
(16,491) |
(16,835) |
-2.0% |
|
| Impairment charges |
(15,033) |
(10,640) |
41.3% |
74% |
254 |
(11,540) |
N/A |
|
| PBT |
7,768 |
23,943 |
-67.6% |
127% |
5,206 |
(7,003) |
N/A |
|
| PAT |
4,761 |
22,133 |
-78.5% |
97% |
2,895 |
(6,435) |
N/A |
|
| EPS |
0.24 |
1.12 |
-78.5% |
97% |
0.15 |
(0.32) |
N/A |
|
| Source: Company data *unless otherwise stated |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet (N’ million)*
|
|
|
FY 15 |
FY 14 |
YoY growth |
% of FY 15E forecasts |
9M 15 |
QoQ |
| Loans |
592,957 |
617,980 |
-4.0% |
103% |
568,496 |
4.3% |
| Total Assets |
1,159,534 |
1,169,365 |
-0.8% |
100% |
1,171,349 |
-1.0% |
| Deposis |
700,217 |
733,797 |
-4.6% |
98% |
703,227 |
-0.4% |
| Total liabilities |
997,143 |
1,008,999 |
-1.2% |
100% |
1,012,991 |
-1.6% |
| Net Assets |
162,391 |
160,365 |
1.3% |
98% |
158,358 |
2.5% |
| BVPS |
8.20 |
8.10 |
1.3% |
98% |
8.00 |
2.5% |
| Source: Company data *unless otherwise stated |
Key ratios
|
|
|
FY 15 |
FY 14 |
change (pps) |
Q4 15 |
Q3 15 |
change (pps) |
| Asset Yields |
13.0% |
13.7% |
-0.7 |
13.3% |
8.7% |
4.6 |
| WACF |
6.7% |
5.5% |
1.2 |
9.4% |
4.2% |
5.2 |
| Net interest margins |
6.7% |
8.4% |
-1.7 |
6.4% |
5.9% |
0.5 |
| Cost-income ratio |
74.7% |
65.8% |
8.9 |
77.2% |
78.8% |
-1.6 |
| Cost of risk |
2.6% |
1.7% |
0.8 |
-0.2% |
8.1% |
N/A |
| PBT margins |
5.1% |
16.1% |
-11.0 |
12.0% |
N/A |
N/A |
| PAT margins |
3.1% |
14.9% |
-11.8 |
6.7% |
N/A |
N/A |
| Effective tax rates |
38.7% |
7.6% |
31.2 |
44.4% |
8.1% |
36.3 |
| ROE |
4.8% |
14.6% |
-9.7 |
|
|
|
| ROA |
0.4% |
2.0% |
-1.6 |
|
|
|
| CAR |
16.9% |
19.3% |
-2.4 |
|
|
|
| Source: Company data |
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Commentary
· First City Monument Bank Group Plc. (FCMB) released audited FY 2015 results, wherein gross earnings rose 2.6% YoY (9M: +2.4%) to N152.5 billion while PBT and PAT climbed 68% (9M: -85%) and 79% higher (9M: -87%) YoY to N7.8 billion and N4.8 billion respectively.
· In addition, FCMB announced a dividend of N0.10 per share (FY 15E: N0.05, FY 14), which translates to ~12.5% dividend yield at current pricing.
· A quick read through Q4 15 numbers show a recovery from the impairment hit Q3 15, when the bank booked an N11.5billion write-down largely on legacy downstream O&G loans, with FCMB recording recoveries of N254 million over the quarter.
· The benign trend in loan loss provisioning line masked a spike in Q4 15 interest expense (despite commencement of monetary policy easing in Q4 15) with annualized WACF jumping 520bps QoQ to 9.4%.
· FCMB trades at a current P/E and P/B of 3.3x and 0.1x respectively which are both at discount to peer averages. Relative to last trading price of N0.8, our FVE at N1.84 implies a BUY rating.
· More analysis to follow.
· Conference call details to follow. |
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