FCMB Group Plc, a Nigerian tier-2 lender, financial holding company and the parent company of First City Monument Bank Limited forecast significant drops in its earnings for the fourth quarter ending 31 December 2020.
The drops were obvious from the Group Earnings Forecast for the fourth quarter ending 31 December 2020 published by the Nigerian Stock Exchange (NSE) recently. When compared to figures from the banks 2019 Q4 reports.
A comparative analysis of the Bank’s forecast figures for fourth quarter 2020 and the figures for the fourth quarter 2019 revealed that the bank’s Gross Earnings dropped by 10.6 percent from N50.86 billion in Q4 2019 to a forecast of N45.46 billion in Q4 2020.
Data Source: NB Research
Similarly, Interest Income dropped by 6 percent from N39.48 billion in Q4 2019 to N37.08 billion in Q4 2020, while the Q4 2020 forecast of N18.37 billion for Interest Expenses was almost at par with the N18.42 billion actual for Q4 2019.
The N18.72 billion forecast for Net Interest Income shows a drop of 11 percent from the actual of N21.05 for Q4 2019. Loan Losses however, dropped by over 183 percent to N1.46 billion in Q4 2020 from N4.14 billion in Q4 2019.
Profit Before Tax (PBT) and Profit After Tax (PAT) were both forecast to drop by 35 percent and 33 percent from N7.20 billion and N6.13 billion in Q4 2019 to N4.70 billion and N4.13 billion in the forecast for Q4 2020 respectively. Nigeriabanker