Finbank Plc hits the market with N120.686 billion net loss

Fin Bank result to September, 2009 shows growth in gross earnings by 18.64% to close at N59.542 billion from N50.187 billion of the previous year. The bank reported N90.804 billion loan loss provisions in the period as against N1.359 billion of the previous year. Besides the loan loss provisions, provisions for other loan losses amounting to N3.883 billion and exceptional items of (N25.953 billion) were also reported. This consequently leads to the bank reporting net loss before tax of N94.357 billion in the period under review as against net profit before tax of N9.713 billion of the previous year. The net loss after tax therefore closed at N120.686 billion as against net profit after tax of N8.256 billion in the previous year.

Fixed assets of the bank grew by 17.65% to close at N13.117 billion from N11.149 billion of the previous year. Working capital situation improved by 71.58% from N73.525 billion to close at N126.155 billion. However, net asset dropped by 161.21% to close with the negative of N85.107 billion as against N139.039 billion of the previous year.

The management has attributed the loss position of the bank to the provision of N88.8b for delinquent loans and advances in line with the CBN audit and diagnostic review of the exceptional items of N25.9b which has been related to provisions of potential loan losses on guarantees and write-off of long outstanding general ledger balances prior to the merger of the bank in 2005. With this financial report, the share price of the bank is much likely to enter another year low and may eventual hit the nominal value.

What a pay-back time for irresponsible and fraudulent banking practice!