Bloomberg News

First City Nigeria Has Longest Losing Streak in Eight Months

May 30, 2012

First City Monument Bank Plc (FCMB), the Nigerian lender that acquired Finbank Plc in 2011, had its longest streak of losses in eight months.

The stock fell for a fifth day, losing 4.8 percent to close at 3.97 naira in Lagos, the commercial capital, its longest series of declines since September 2011.

Former shareholders of Finbank sold FCMB stock because they were disappointed by the conversion of their holdings after the acquisition, according to Raheem Mohammed, chief operating officer of Lagos-based Kundila Finance Ltd.

“They are selling to limit their loses,” he said by phone today. First City recently distributed to former shareholders of Finbank their new share certificates, Mohammed said. “They are just selling on the floor of the exchange.”

The Central Bank of Nigeria fired the chief executive officers of eight of the country’s 24 lenders, including Finbank, following a debt crisis in 2008 and 2009.

To contact the reporter on this story: Vincent Nwanmain Lagos at vnwanma@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net


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