Wole Olajide
At the close of trade on the floor of the Nigerian Stock Exchange on Tuesday, January 29, 2019, the share price of First City Monument Bank Group (FCMB) closed at N2.00.
On the released date of its third quarter 2018 result in November 29, 2018, the share price of FCMB was N1.32. Just two months after Q3’18 result, the share price has grown from N1.32 to N2. This implies that investors who took position in the stock would have made 51.52% returns on their investment.
In its third quarter result for the period ended September 30, 2018, FCMB grew 11.83% in Gross Earnings closing at N132.87 billion against the previous growth of N118.82 billion in Q3’17.
Interest & Discount Income declined by 0.89% to close at N95.4 billion from the previous close of N96.3 billion in the third quarter of 2017. Interest expense reduced by 9.04% to close at N42.18 billion, bringing the Net Interest Income to close at N53.24 billion, which is a growth of 6.68% year on year.
The Profit before Tax (PBT) of the holding company grew by 115.85% to close at N14.77 billion from the previous PBT of N6.84 billion in Q3’17.
Taxation (Minimum tax and Income expense) in Q3’18 was N3.43 billion bringing the Profit after Tax (PAT) to close at N11.34 billion, which is a growth of 107.38% compared to its previous PAT of N5.47 billion in Q3’17.
The earning per share (EPS) of FCMB for the period under review stands at N0.57, which is a growth of 103.57% from the previous EPS of N0.28 in Q3’17
With reference to the price of N2.00 it closed on Tuesday, January 29, 2019, the P.E ratio of FCMB Group is 3.51x with earnings yield of 28.5%
FCMB Group Plc was incorporated in Nigeria as a financial holding company in November20, 2012, under the Companies and Allied Matters Act, in response to the CBN’s Regulation on the Scope of Banking Activities and Ancillary Matters (Regulation 3). The principal
Activity of FCMB Group Plc is to carry on business as a financial holding company, investing in and holding controlling shares in, as well as managing equity investments in Central Bank of Nigeria approved financial entities. The Company has six direct subsidiaries; First City Monument Bank Limited (100%), FCMB Capital Markets Limited (100%), CSL Stockbrokers Limited (100%), CSL Trustees Limited (100%), FCMB Microfinance Bank Limited (100%) and Legacy Pension Managers Limited (91.64%).