Despite Half Year positive financial performance, FCMB Holding’s bad loans rise to ₦6.16 billion

Inspite of the financial improvement recorded by the First City Monument Bank Group, (FCMB Holdings Plc), reflected in its half year ended June 30th, 2018 financial results, the company’s bad loans otherwiswe known as non performing loans (NPLs), has risen from its previous position of ₦5.22 billion, to N6.16 billion presently.

The results of the group, which was released to investors recently, on the floor of the Nigerian Stock Exchange (NSE), revealed that despite the improved financial perfomance of the group, from deficits in its 2017 full year, to positives in the first quarter and half year financial for the 2018 financial periods, its bad loans still rose by over one billion naira.

The group was able to improve on its 2017 year ended December 31 poor results, as its first quarter ended March 31, 2018 profits rose to ₦2,586 billion from ₦1,581 billion in the period. Gross earnings moved from ₦38,462 billion in 2017 to ₦42,171 billion in 2018. While earnings per share stood at 0.52 kobo which is above 0.32 kobo that was recorded same period in 2017.

It can be recalled that the group’s 5th annual general meeting ended abruptly, following chaotic atmosphere that which resulted over alleged manipulation of the process of election of the shares’ representatives into the Audit Committee of the group

The meeting which started peacefully, took a turn for the worst when the result of new members that will represent shareholders in the Audit Committee was announced.

The agitation among some shareholders was that the outcome of the election was not acceptable because a particular female contestant votes was manipulated to favour another group, which was seen as a deliberate way to edge out the contestant from the opposing group. The rowdy situation led to altercations and tussle among the leaderships of shareholders advocacy groups, which puts the meeting on hold for more than 45 minutes.

It only took the plea of Chairman of the board Mr. Oladipupo Jadesimi, members of the high table, which included the founder of the group, Otunba Subomi Balogum to calm frayed nerves and brought the situation under control. The ugly situation made it impossible for the group Managing Director Mr. Ladi Balogun to respond to questions that were raised by the shareholders during the meeting.

The company gave its shareholders 10 kobo per share dividend for the full year ended December 31, 2017.

Advertisements