Leadership (Abuja)
Amaka Ifeakandu
8 November 2009
Lagos — First City Monument bank Plc., has declared a profit before tax of N4.8 billion for the financial year ended April 30, 2009. The figure recorded a drop of 77 per cent when compared with N20.52 billion achieved in the corresponding period of 2008. The bank also posted a loss of N479 million for six months result ended October 2009.
The audited result for the financial year ended April 30, 2009, recorded a 36 per cent growth in gross earnings at N71.66 billion. A statement issued by the bank said that the major contributing factor to the decline in bank's profit was due to the significant loan loss provision of N21.9 billion. According to the bank, "This amount was a result of the N7.9 billion provisions as determined by the bank and additional provisions of N14 billion representing 58 per cent of the amount advised by the CBN stress test on the bank's loan portfolio, as at June 30, 2009." Total provisions from the CBN exercise was N24 billion. The balance of N10 billion was recognised in the first quarter ended July 2009, of the current financial year.
For the full financial year, total assets grew by 10 per cent from N467.34 billion to N515.60 billion. Deposits grew by 28 per cent in the year from N251.22 billion to N321.22 billion. Loans grew by 45 per cent, from N189 billion to N273 billion. Non-performing loans rose to 10 per cent of total loans as a result of the stress test. The bank also simultaneously released its first quarter result on July 31, 2009 and second and third quarter results on October, 30 2009. The latter showed that while the balances of the provisions of N10 billion were made in July 2009.
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