FCMB Plc 9M’ 2018- SURGE IN FOREIGN EXCHANGE GAINS PROPELS PAT

FCMB Plc 9M’ 2018- SURGE IN FOREIGN EXCHANGE GAINS PROPELS PAT

Dear Client/ Reader,

FCMB Plc. results for 9M 2018 showed an impressive PBT growth of 121% y/y from N6.7 bn in 9M’17 to N14.8 bn. The key driver behind the PBT growth was the growth of 165% y/y in trading income and 152% improvement in other income on the back of massive gains in foreign exchange transactions that increased from N428 mn in 9M’17 to N9 bn in the current period, which were strong enough to offset the increase recorded in operating expense by 15% y/y. Non-interest income (NIR) also increased by 66% y/y to N37.5 bn (9M’17; N22.5 bn) while also noting a decline of 9% in interest expenses which reduced to N42.2 bn (9M’17; N46.4 bn). Consequently, Earnings per share spiked massively by 104% y/y from N0.28 in 9M’17 to N0.57 in the current period.

Key Multiples/Ratios

  Book Value Per Share- 9.04

  Net Profit Margin-  8.54%

  Return on Equity – 6.34%

  Return on Asset-    0.88%

  Price to book value- 0.14x

  Total Loan to Total Deposit- 76.71%

  Current Shares Outstanding-  19.8 Billion

  Last closing price N1.32

RECOMMENDATION: BUY

Please find attached FCMB 9M’2018 result.

Regards.

Earnings Flash- FCMB Plc. 9M-2018

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