Business
FCMB’S Profit After Tax plunges despite improved gross earnings
First City Monument Bank (FCMB) Group Plc has posted a 4.85% slide in Profit After Tax (PAT) for the nine months ended 30 September, 2019 compared to the corresponding period of 2018.
This, alongside the details of other Key Performance Indicators (KPIs), is contained in the lender’s Unaudited Financial Statements for the period under review as posted on the website of the Nigerian Stock Exchange (NSE) on Friday
Gross Earnings grew marginally by 2.22% from N132.875 billion at 9 months 2018 to that recorded in the relative period this year.
Profit After Tax (PAT) however tumbled from the N11.341 billion recorded in 2018 to the N10.791 billion recorded this year, signalling a 4.85% drop. The inability of the PAT to respond positively to the growth in the turnover stemmed from two notable factors.
First, the money committed by FCMB to paying interest as captured under the section titled “Interest expense” rose from N42.182 billion at 9 months 2018 to N45.570 billion in the same period this year. Similarly, the bank’s expenditure on fees and commission as reflected under the “Fees and commission expense” grew negatively from N4.429 billion as of September 2018 to N6.404 billion at the corresponding period this year.
The bank’s Earnings Per Share (EPS) also depreciated, from N0.54 at 9 month 2018 to N0.57 at the end of September this year.
FCMB currently sells on the floor of the NSE at N2.01 per share.
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