FCMB Drops by 14% Amidst Earnings Forecast, Dividend Notice
FCMB Group Plc. lost 14.2% of its market value at the Nigerian Exchange, NGX, as investors’ exited positions in the banking stock amidst latest earnings forecast.
The financial services group’s shareholders dumped the stock ahead of 2024 audited financial statement release. At the same time, investors are looking out for FCMB dividend announcement.
Trading data from the Nigerian equities market showed that the banking group’s share price fell to N9.10 on Friday from the opening price of N10.60 in the week. Stock analysts said the negative sentiments on FCMB stocks mirrored overall bearish play in the local bourse in the just concluded week.
The group share performance was caught in between goods earnings performance and investors’ sentiments, reflecting sustained sell pressures in the domestic bourse. The Nigerian Exchange went south for four out of five days due to profit-taking activities.
In a regulatory filing, FCMB told the Nigerian Exchange the group targets net income of N36.638 billion in the first half of 2025. Gross earnings is projected to reach N239.394 billion in the first half of 2025 on the back of expectations that net income will reach N101.180 billion in the same period.
Non-core banking income is expected to be significant as FCMB targets N3.7 billion from foreign exchange movement, more than N3.6 billion from securities trading, and transaction income is expected to hit N18.567 billion in the same period.
The group expects its first half operating expenses to settle at N80.543 billion with N11.377 billion impairment charges on credit losses.
In February, FCMB said its board approved the group’s audited financial statements for the year ended December 31, 2024, as well as payment of dividends, subject to the approval of the Central Bank of Nigeria (CBN).
The group said in a notice that details of the results and the dividend payments, as well as the related corporate actions, will be made to the Exchange upon obtaining approval of the CBN, FCMB told investors. #FCMB Drops by 14% Amidst Earnings Forecast, Dividend Notice Parallel Market Premium Disappears as Naira Exchange Rates Converge
