FBN Holdings Nigeria’s largest lender by assets has just issued a profit warning today.
According to a statement signed by the Banks Company Secretary Tijani Borodo :
Following the preliminary review of FBN Holdings Plc (“FBNH” “FBN Holdings” or the “Group”) Management Accounts for the year ended 31 December 2015, it is expected that earnings will be materially below that of the prior year. The reduction in earnings is as a result of the recognition of impairment charges on some specific accounts resulting from a reassessment of the loan portfolio within our commercial banking business.”
In other words FBN Holdings will see a spike in non performing loans and as a result this could wipe out all earnings of the Bank in 2015. FBNH as at 12.49 pm had about 26.7 million shares on offer without a single bid. The share price is currently down 4%.
We had in an earlier piece flagged that FBNH was a perpetual under performer and not a stock to buy.
Keep an eye out as Nairametrics intends to do a comprehensive analysis of the banks with recommendations on buy, sell or don’t touch with a ten feet pole…
