FCMB losses N11.35 billion in 2011

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Updated March 19, 2012

First City Monument Bank (FCMB) said on Monday it had made a pre-tax loss of N11.35 billion in 2011, compared with a N9.02 billion profit before tax in 2010, on underwriting losses and bad loans.

Revenues rose to N80.39 billion, from N62.68 billion the previous year, it said.

FCMB attributed the loss to the underwriting of several share issues dating back to 2009, and on some non-performing loans sold to Nigeria’s state-backed rescue bank AMCON (Asset Management Company of Nigeria).

“All legacy loans and weaknesses associated with capital market and oil and gas transactions have been fully regularised through sales to AMCON or outright provisioning/ write-offs,” the bank said in a statement.

FCMB said it expects that the first half of 2012 will see improvements and is likely to exceed its released forecasts.
The bank’s shares fell 2.49 percent to 3.70 naira per share on Monday.