By InvestAdvocate

Lagos (INVESTADVOCATE)-FBN Holdings Plc on Wednesday issued a profit warning for the year ended December 31, 2015, the financial Holdco said in an issuer’s announcement with the Nigerian Stock Exchange (NSE).

“Following the preliminary review of the FBN Holdings Plc management account for the year ended 31 December 2015, it is expected that earnings will be materially below that of the prior year. The reduction in earning 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,” FBNH said

According to the financial Holdco, 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 affirmed it’s a prudent measure being taken while the Bank has commenced active remedial action on the specific impaired accounts. “Our Merchant Banking and Asset Management as well as insurance business remain strong and resilient,” FBNH added.

The lender said further details of the Group’s financial performance will be disclosed when the full year audited financial results are announced and during the subsequent results conference call.

“We reiterate our 2016 focus on restoring shareholder value by driving improvements in underlying asset quality, cost efficiency, enhancing revenue generation and extracting synergies across the Group, as well as growth through innovation,” FBNH said.

Shares of the lender at the close of today’s trading on the Nigerian bourse declined by 4.41 percent to N3.47 per share from N3.63 per share traded the previous session; losing 32.36 percent Year-to-Date (Y-t-D).