Improved earnings lift FCMB’s profit by 18%

First City Monument Bank (FCMB) Plc has reported a growth in its after-tax profit year on year by 18% on the back of improvement in its gross earnings for the year ended 31 December 2019.

The lender detailed the full account of its financial performance in the review period in its Unaudited Annual Report 31 December 2019, published on the website of the Nigerian Stock Exchange (NSE) on Wednesday.

Largely driven by strong growth in Interest and Discount Income, Gross Earnings rose by 5.1% from N177.249 billion at Full Year 2018 to N186.684 billion in the corresponding period of 2019.

Profit Before Minimum Tax and Income Tax responded to the positive drift, inching up from N18.442 billion at FY2018 to N20.006 billion at FY2019, signalling an 8.5% increase.

Profit for the Period stood at N17.720 billion at FY2019 up from N14.972 billion at FY2018, representing an 18% rise.

Earnings Per Share (EPS) appreciated by 18.7% from N0.75 at FY2018 to N0.89 at FY2019.

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FCMB was incorporated as a private limited liability company in April 1982 and obtained a banking licence in August 1983. Its operations span micro lending, trusteeship, asset management, stockbroking, custodial services, investment banking, personal banking, corporate banking and commercial banking.

It obtained a publicly quoted company status in December 2004. It acquired 100% shareholding in the defunct FinBank in 2010.

FCMB currently has about 19.803 billion outstanding shares valued at over N36.635 billion. Its dividend yield is 7.57%, the last dividend payout being the 14k per share declared in April 2019.

FCMB currently trades on the floor of the NSE at N1.85 per share.

Earnings Per Share is the profit that each unit of a company’s ordinary shares  yields  during a particular period. It is simply calculated by dividing the Profit After-Tax by the company’s total outstanding shares.  Increase in a company’s EPS often reflects an improvement in its bottom-line while a fall, on the other hand, indicates a declining profit.

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