By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE) – First City Monument Bank (FCMB) Thursday announced it will declare a N9.00 billion ($57 million) Loss by issuing a Profit warning for the year ended December 31, 2011.

This is contained a Notice to the Nigerian Stock Exchange (NSE) by the Bank and obtained by www.investadvocateng.com in Lagos Nigeria.

FCMB said the Loss is as a result of observed deteriorations in Restructured Loans and Legacy Investments due to additional Net Provisions and write-offs between the Third and Fourth Quarter (Q3 and Q4) of year 2011.

“The Bank has notified The Exchange that following observed deteriorations in restructured loans and legacy investments, the Bank has made additional net provisions and write-offs between Q3 2011 and Q4 2011. These provisions will result in an after tax loss of around N9 billion” FCMB said.

A breakdown of the N9.00 billion proposed Loss include, impairments to equity underwritings to the tune of N4.9 billion, Losses recorded on the sale of systematically significant and other loans – N11.6 billion, primarily in the oil trading sector; and other loan losses and write-offs worth N13.0 billion.

The Bank further affirmed that 98 percent (98%) of the Assets sold and written off in 2011 were as a result of restructured loans or underwritings initiated prior to 2009.

“The results to be announced next week will show that Operating Income (prior to these non-recurring charges) grew by 115%. Capital adequacy remains high at 25% after the acquisition of Finbank Plc. In addition, liquidity and efficiency ratios have continued to improve in Q4 2011 and have been further enhanced by the recent acquisition” FCMB said.

However, the Management of the Bank expects that the first two quarters of 2012 will see continued improvements and is likely to exceed its released forecasts for the first half-year.

The Bank forecast a Gross Earnings of N24.503 billion, Profit After Tax (PAT) of N2.366 billion and Profit Before Tax (PBT) of N3.155 billion for Q1 of year 2012.

FCMB informs that details of the results will be announced on Monday March 19th 2012, followed by a conference call on Tuesday March 20th 2012.