FCMB posts 14% increase in 2014 Q1 PAT.

FCMB posts 14% increase in 2014 Q1 PAT.

        With the effect of the increase in cash reserve ratio for public funds held by banks biting hard on their revenue, FCMB reported a meager 7% increases in it GROSS EARNINGS on a QoQ basis. The bank was however able to make a 25% increase in its NET INTEREST INCOME due to well managed interest expenses.

      The bank also reported a 15% and 14% increases in its PBT and PAT respectively while its Q1 EPS improve slightly from 0.21k to 0.24k.

     The bank was able to manage its operating expenses but performed poorly in it loan losses which increased from 410mill to 1305bill representing 218% change on a QoQ basis.

      With a Q1 EPS of 0.24k ,PE of 14.07 and 2014 FY estimated EPS of 0.97k and PE of 3.52 coupled with a Book value of N7.51 makes FCMB to be in my STRONG WATCH view.