FBN Holdings expects drop in 2015 earnings

FBN Holdings Plc. on Wednesday in Lagos notified the Nigerian Stock Exchange (NSE) that its expected earnings for the financial year ended Dec. 31, 2015 would be below its 2014 figures. The information is contained in a profit warning letter by FBN to the NSE.
FBN in the letter, signed by its Company Secretary Mr Tijjani Borodo, said that its earnings would be materially below its 2014 figures.
It said that the reduction in earnings was due to the recognition of impaired charges on some specific accounts, resulting from a reassessment of the loan portfolio of its commercial banking business. “This reassessment was driven by the challenging macro environment, coupled with fiscal and monetary headwinds, which have resulted in marked reduction in domestic output,” it said. The statement said that it was a prudent measure being taken while the bank had commenced active remedial action on the specific impaired accounts.
“Our merchant banking and asset management and insurance businesses remain strong and resilient. We reiterate our 2016 focus on restoring shareholder value by driving improvement in underlying asset quality, cost efficiency, enhancing revenue generation and extracting synergies across the group and growth through innovation.”
The letter was entitled FBN Holdings Full year Dec. 31, 2015 Earnings Guidance.