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FCMB Forecasts Q1 Earnings of N24.5 Billion

By on January 18, 2012

First City Monument Bank (FCMB) an international banking group based in Lagos Nigeria has released its Q1, 2012 earnings forecast on the floor of the Nigerian Exchange.

The formidable banking group pioneered by Otunba Michael Subomi Balogun has stated that it expects earnings to mushroom 47.8% to N 24.5 billion in the first quarter of 2012, representing a growth of close to 50% above its earnings in Q1, 2011.

The company however also stated it expected profit before tax to drop 7% and net income to fall 11% to N 3.15 billion and N 2.37 billion respectively. The company had reported PBT and Net Income of N 3.4 billion and N 2.67 billion in the first quarter of 2011.

Our analysts speculate that the merger and integration costs of absorbing FinBank could lead to extraordinary expenditure dragging the profitability of the bank in the first quarter. The lag is expected to be compensated for in the second quarter due to a stronger synergy and greater market share.