FCMB Group Plc has projected a dim outlook for the first Quarter of 2021 (Q1 2021), with the firm’s Profit Before Tax (PBT) set to decline to N4.2 billion in the aforementioned period.
This is according to the firm’s earnings forecast, sent to the Nigerian Stock Exchange today, and seen by Nairametrics.
The earnings forecast when compared with the firm’s last reported financial statement for Q3 2020, indicates a decline in some key financial metrics:
- Gross earnings is set to decrease to N44.48 billion, -7.8% Q-o-Q.
- Profit Before Tax set to decline to N4.2 billion, –11.8% Q-o-Q.
- Profit After Tax set to decline to N3.5 billion, -16% Q-o-Q.
- Interest income is set to fall to N35.86 billion,-0.25% Q-o-Q.
- Interest expense is set to decline to N12.4 billion, -6.4% Q-o-Q
Other important earning forecast figures for Q1 2021 include:
- Net operating income projected at N32.05 billion
- Operating expenses projected at N23.69 billion.
- Loan losses/ write back-projected at N4.16 billion
- Foreign Exchange earnings projected at N400.2 million
The conservative outlook by the firm might be premised on the general uncertainty and fear over the economy, despite assurances of recovery in Q1 2021, as earlier announced by policymakers.
However, with the persistence of the pandemic and the growing spate of insecurity, in addition to the effect of ‘time lags’ on CBN’s recent monetary and fiscal policies, the firm opted for a more conservative and realistic target.