Directors of First City Monument Bank Plc Monday recommended a bonus issue of three shares for every 20 shares instead of a cash dividend as the financial institution reported a net loss of N9.9 billion for the year ended December 31, 2011.
The bank explained that its net revenue of the N54 billion was affected by a significant impairment charge of N29 billion in the fourth quarter of 2011.
FCMB had last week sent a notice to the Nigerian Stock Exchange (NSE), informing it about the loss.
Making the audited results available yesterday, the bank reported gross earnings of N80 billion, up 28 per cent from the N63 billion in 2010.Net revenues rose by 35 per cent from N40 billion to N54 billion while Operating Profit (before provisions) soared by 116 per cent from N9 billion to N18.5 billion.
However, the bank ended the year with a loss of after tax of N9.9 billion, a decline of 225 per cent from the previous year’s profit of N7.9 billion.
Total assets stood at N602 billion compared with N539 billion in 2010, while deposits grew by 22 per cent from N335 billion to N409 billion.
According to the bank, provision coverage for total non-performing loans was 128 per cent while capital adequacy and liquidity ratios stood at 28 per cent and 44 per cent respectively.
FCMB explained that underlying operational performance was strong as evidenced by the growth indices.
It said: “The bank’s financial health indicators are also in excellent shape as evidenced by its ratios, particularly asset quality, liquidity and capital adequacy. All legacy loans and weaknesses associated with capital market and oil and gas transactions have been fully regularised through sales to AMCON or outright provisioning/ write-off. Of all loans booked since January 2010, less than one per cent are classified as non-performing.
“Of the total N29bn loan charge in the fourth quarter of 2011, 99 per cent were pre-2010. Management expects that the first half of 2012 will see continued improvements and is likely to exceed its released forecasts. Management also expects earnings accretion in the second half of 2012, as FinBank merges with FCMB on 1 July 2012. Target earnings per share is in the region of N1.10 for 2012.”
Meanwhile, the Nigerian Stock Exchange (NSE) advanced by 1.13 per cent to close at 21,060.21 as heavy weight equities booked gains. Dangote Cement Plc, Nigerian Breweries Plc and UAC of Nigeria Plc were among the price gainers.
Investors traded 207.88 million shares worth N4.088 million exchanged in 3,499 deals.