30 July 2018 ( Lagos ): FCMB’s Q2 PBT missed analyst's forecast by 27% due to negative surprises from both revenues lines and opex. When annualised, FCMB’s H1 2018 PBT also tracks behind consensus 2018 PBT forecast of N15.3bn. Consequently, analysts expect to see a subdued reaction from the market.  

On a positive note, Q2 2018 PBT grew by 109% y/y to N3.8bn. The strong earnings growth was driven by a 59% y/y growth in non-interest income and a -51% y/y reduction in loan loss provisions. The y/y growth in non-interest income was underpinned by strong y/y growth in fx trading income and fees generated from card services. Further down the P&L, PAT grew by 75% y/y. The slower growth in PAT relative to PBT was due to a combination of a 76% y/y spike in income tax expense and a negative result of –N677m in other comprehensive income (OCI) vs.-46% Q2 2017.   

On a negative note, PAT declined by 12% q/q mainly because of the negative result on the OCI line.

Analysts rate FCMB shares Neutral.

Source : Tunde Abidoye, Gregory Kronsten, Olubunmi Asaolu, Chinwe Egwim from FBNQuest Capital Limited.

Reporting for EasyKobo on Monday, 30 July 2018 in Lagos, Nigeria