Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

First City Bank Nigeria Falls to 3-Month Low After Loss Forecast

Don't Miss Out —
Follow us on:

March 15 (Bloomberg) -- First City Monument Bank Plc, a Nigerian lender, fell by the daily limit to a three-month low after it forecast a loss of as much as 9 billion naira ($57 million) for the year through December.

The stock lost 5 percent to 3.80 naira, its lowest closing value since Dec. 7, extending its decline this year to 9 percent. That compares with a 1.7 percent rise in the Nigerian Stock Exchange All-Share Index over the same period.

The loss stems from non-performing loans and “impairments to equity underwriting” for which it made provisions of 29.5 billion naira, the Lagos-based lender said today in an e-mailed statement. FCMB completed the acquisition of Finbank Plc, a lender bailed out by the central bank in 2009, in February.

“We expect the market to react negatively to the announcement initially,” FBN Capital Ltd. wrote in an e-mailed note today. “However, we expect the shares to recover ultimately,” it said.

FCMB management expects the first two quarters of 2012 “to see continued improvements” with the lender likely to exceed its forecast for the first half of the year, according to its statement.

To contact the reporter on this story: Vincent Nwanma in Lagos at vnwanma@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.