FCMB Group, one of Nigeria’s leading banking institutions, has recently announced its highly anticipated earnings forecast for the third quarter ending in September 2023.
The group’s gross earnings for the third quarter are projected to reach an astounding ₦96.499 billion, reflecting the company’s ability to generate substantial revenue across multiple sectors.
A major contributor to the group’s robust financial performance is its interest income, which is estimated at ₦78.964 billion. Despite interest expenses amounting to ₦41.313 billion, FCMB Group is set to achieve a net interest income of ₦37.651 billion.
Foreign exchange earnings are expected to contribute ₦764.201 million while securities trading is projected to generate ₦4.342 billion. FCMB Group has also capitalized on contingent income, transaction commissions, and other sources, amounting to ₦342.988 million, ₦11.407 billion and ₦680.373 million, respectively.
FCMB Group’s net operating income for the third quarter is estimated to be a staggering ₦55.187 billion underscoring its financial stability and growth potential. Despite (loan losses)/writebacks of (₦7.013 billion) and operating expenses of (₦36.166 billion), the group’s profit before taxation is an impressive ₦12.008 billion. With a responsible approach to taxation, FCMB Group is committed to fulfilling its obligations, with a projected taxation expense of (₦1.259 billion). This will result in a commendable profit after taxation of ₦10.749 billion.
While cash flow forecasts for the quarter are not practically possible as the preceding quarter has yet to end, the estimates provided shed light on FCMB Group’s robust cash flow situation. Cash flow from operating activities is projected to generate an exceptional ₦85.019 billion fueled by an operating cash flow of ₦20.748 billion before working capital changes.
Further bolstering this figure, working capital changes are expected to contribute a substantial ₦64.902 billion demonstrating the group’s efficient financial management.
As FCMB Group continues to position itself for growth, cash flow from financing activities is projected to reach ₦20.887 billion. Simultaneously, the company plans to invest strategically, with net cash flow from investing activities estimated at (₦6.080 billion).
