By Goddy Egene
Shareholders of FCMB Group Plc are to share N2.97 billion as dividend for the year ended December 31, 2020, translating into 15 kobo per share.
The dividend, which is higher than 14 kobo paid the previous year, was contained in the audited results released to the Nigerian Stock Exchange (NSE) by financial institution.
FCMB Group recorded gross earnings of N199.023 billion in 2020, up by 9.8 per cent from N181.249 billion in 2019. Interest income stood at N151.023 billion, as against N137.447 billion in 2019, while interest expenses reduced to N60.265 billion from N61.471 billion in 2019. Impairment charges rose from N13.747 billion to N22.307 billion.
Consequently, profit before tax (PBT) printed at N21.912 billion, showing an increase of 8.8 per cent from N20.130 billion, while profit after tax (PAT) grew faster by 13.1 per cent to N19.61 billion, compared to N17.337 billion in 2019. A further breakdown of the performance showed that FCMB Group’s total assets jumped 23.3 per cent to N2.058 trillion, up from N1.669 trillion in 2019. Loans and advances increased from N715.881 billion, just as deposits from customers rose 33.3 per cent to N1.257 trillion from N943 billion.
Commenting on the results, analysts at FBNQuest said on a full-year basis, the bank’s PAT, pre other comprehensive income was up 13 per cent.
“The PAT implies an return on average equity (ROAE) of 13.7 per cent, better than the 10 per cent ROAE that it delivered in 2019. The bank’s management has proposed a dividend of N0.15 (N0.14 2019) per share, or 15 per cent higher than our N0.13 DPS forecast. The proposed divided implies a yield of 5.0 per cent.
“We expect a subdued reaction from the market following the lack of positive surprises in the results and the modest yield implied by the proposed dividend,” FBNQuest said.
Meanwhile, the equities market opened the week positive as the NSE All-Share Index rose 0.71 per cent to 39,493.37 points due to buying interest in MTN Nigeria Plc, Guaranty Trust Bank Plc and Lafarge Africa Plc. Market capitalisation gained N145 billion to close at N20.7 trillion.
Trading activity advanced as volume and value surged 108.1 per cent and 281.8 per cent respectively to 522.2 million shares and N10.7 billion. The most traded stocks by volume were GTBank (230.4 million shares), Union Bank of Nigeria Plc (79.2 million share), and Wema Bank Plc (51.9 million shares).