FBN Holdings Plc shares dropped to its lowest level in almost 13 years on Wednesday, February 24, after the lender by assets warned that earnings for the full year ended December 31, 2015, would be lower than those of 2014.
Shares dropped 4.4 per cent to N3.47 per share, which is its lowest since August 2003.
In statement to the management of the Nigerian Stock Exchange (NSE) and market operators, signed by the Company Secretary, Tijjani Borodo, FBN Holdings said following the review of its management accounts for the 2015, it is expected that earnings will be materially below that of the prior year.
The bank said:“The reduction in earnings is as a result of the recognition of impairment charges on some specific accounts resulting from a reassessment of the loan portfolio within our 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. This is a prudent measure being taken while the bank has commenced active remedial action on the specific impaired accounts,” the bank said.
However, FBN Holdings assured stakeholders that its merchant banking, asset management as well as insurance businesses remain strong and resilient.
