Get all the latest information on businesses and companies in Nigerian Stock Exchange.
In: companyanalysis
30 Jun 2009Below are the analyses of Zenith and Skye Banks by FSDH Securities:
FSDH - Company Analysis - Skye Bank Plc - June 2009 (18)
The Central Bank of Nigeria recently released the quarterly report for Q1 2009. Here is the summary:
- GDP grew by 6.4% in 2008 and 6.3% for the first quarter compared with 5.7% for the same period in 2008.
- The projected growth was driven mainly the non-oil sector particularly agriculture which accounted for 35.5% (according to the National Bureau of Statistics).
- Broad and Narrow Money contracted by 1.9% and 3.9% respectively relative to the preceding quarter. Decline in Broad Money was a result of the fall in the foreign assets of the banking system.
- There was a general increase in banks’ deposits and lending rates in Q1.
- The spread between the weighted average term deposit and
maximum lending rates widened from 8.13 percentage points in the preceding quarter to 9.97 percentage points.
- The margin between the average savings deposit and maximum lending rates, also, widened from 16.62 to 19.33 percentage points during the period.
- The weighted average inter-bank call rate rose to 15.79 per cent from 14.01 per cent in the preceding quarter, reflecting the liquidity condition in the inter-bank funds market.
- The value of money market assets outstanding rose by 5.5% in Q1.
- Total federally collected revenue stood at N1.18 trillion, a decline of 10.8% and 31.9% from the proportionate budget estimate and preceding quarter levels.
- Oil recipts constituted 71.2% of total revenue. This was a decline of 39.5% from the previous quarter and attributed to the decline in oil and gas sales.
- Crude oil export was 110.7 million barrels for teh quarter.
- Inflation rate was 14.4% compared with 15.1% in the previous quarter.
- There was a net outflow of $5.53billion through the CBN during the quarter.
- The Naira depreciated 17% in value during the quarter.
You can also read the February 2009 monthly report below:
CBN - February 2009 Economic Report (4)
In: company results
30 Jun 2009Cordros Capital Limited has prepared a chart of the company results released in the first half of the year. Read below:
Company Results - Jan - June 2009 (14)In: News| stock exchange| weekly report
30 Jun 2009Here are the company results and forecasts released in the month of June 2009:
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In: News
30 Jun 2009As part of the events marking its 50th anniversary celebration, the Central Bank of Nigeria has organized an international conference holding at the Congress Hall of the Transcorp Hilton, Abuja, Nigeria. Below are the presentations:
Central Bank of Nigeria: The Journey so Far and The Road Ahead
Presented by Professor Chukwuma C. Soludo, CFR – Governor, Central Bank of Nigeria
First Plenary Session - Monetary Policy in an Uncertain World
Monetary Policy in an Uncertain World: A Case for Robust Monetary Rules
Presented by Paul Levine – University of Surrey, UK
Challenges of Monetary making Policy in Kenya
Presented by Professor Njuguna Ndung’u – Governor, Bank of Kenya
The Interaction between Monetary and Financial Stability
Presented by Dr Mier Sokoler – IMF Adviser & former Deputy Governor, Bank of Israel.
Second Plenary Session – Exchange Rate Regimes for Developing and Emerging Markets
Exchange Rate Regimes: What Can We Learn from Hong Kong and Philippines
Presented by Paul D. McNelis – Fordham University, US
Exchange Rate Regimes For Developing And Emerging Markets
Presented by Mike I. Obadan, Ph.D, FNES – Professor of Economics University of Benin
Exchange rate policy for crisis and recovery
Presented by Darryl McLeod – Economics Department, Fordham University and Centre for International Policy studies (CIPS), New York
Third Plenary Session – Monetary Unions among Developing and Emerging Markets
Monetary Unions Among Developing and Emerging Markets: How Many Currencies Does Africa Need?
Presented by Thorvaldur Gylfason
Monetary Unions Among Developing and Emerging Markets: A Reassessment of the Prospects for ECOWAS
Presented by Ben E. Aigbokhan – Ambrose Alli University, Nigeria
Monetary Unions among Developing and Emerging Markets
Presented by Temitope W. Oshikoya, PhD, FCIB – Director General, WAMI
Fourth Plenary Session – Building Financial Markets and Instituition
Deposit-Dollarization as an Investment Signal in Transition Economies: The Cases of Croatia, Czech Republic and Slovak Republic
Presented by Erick W. Rengifo – Fordham University, US
Building Financial Markets and Institutions: The Place of Values, Knowledge, Wisdom and Understanding
Presented by AG Garba – Ahmadu Bello University, Nigeria
Building Financial Markets and Institutions
Presented by Ademola Ariyo – University of Ibadan, Nigeria
Fifth Plenary Session – Re-thinking Regulation for Financial System Stability and Growth
Re-thinking Regulation for Financial System Stability in Africa
Presented by Chibuike U. Uche – University of Nigeria, Nigeria
Rethinking regulation for financial system stability and growth
Presented by Robert N. McCauley – Senior Adviser Monetary and Economic Department, BIS
Rethinking Regulation for Financial Stability and Growth
Presented by David C. L. Nellor – International Monetary Fund
Rethinking Regulation for Stability and Growth
Presented by Melvin Ayogu – University of Cape Town South Africa
Sixth Plenary Session – Building an International Financial Centre
Building an International Financial Centre
Presented by Dr Omotunde E. G Johnson – Economics and Research Consultant, and former Assistant Director, IMF
Financial Centres: Lessons from History
Presented by Graciela Laura Kaminsky – George Town University, USA
Building an International Financial Centre
Presented by Tayo Fakitesi – University of Lagos, Nigeria
Seventh Plenary Session – What kind of Reforms are Needed for Global Financial System
The Global Financial System And National Economies: Presentation
Presented by Professor John O. Ifediora – George Washington University
What kinds of reforms are needed for the Global Financial System?
Presented by Professor B. H Balami – University of Maiduguri
Central Banking, Financial System Stability and Growth
Presented by Dr. Piero C. Ugolini – Former Assistant Director, IMF and Senior Financial Sector Consultant
In: News| company results| companyanalysis| stock exchange| weekly report
23 Jun 2009Here are the Stockbrokers’ market reports and updates:
FSDH - Weekly Report - June 19 2009 (40)In: News| stock exchange| weekly report
23 Jun 2009June 19, 2009 Market Report
Source: Nigerian Stock Exchange
A turnover of 2.75 billion shares worth N25.34 billion in 53,259 deals was recorded this week, in contrast to a total of 1.92 billion shares valued at N13.77 billion exchanged last week in 51,454 deals. There were no transactions in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors.
The Banking subsector was the most active during the week (measured by turnover volume), with 1.6 billion shares worth N17.1 billion exchanged by investors in 30,684 deals. Volume in the Banking subsector was largely driven by activity in the shares of Diamond Bank Plc, First Bank of Nigeria Plc, U nited Bank for Africa Plc and Access Bank Plc. Trading in the shares of the four banks accounted for 537.82 million shares, representing 34.2% of the subsector’s turnover.
The Insurance subsector, boosted by activity in the shares of Goldlink Insurance Plc and Lasaco Assurance Plc, followed on the week’s activity chart with a turnover of 438.32 million shares valued at N541.4 million in 5,441 deals.
Last week, the Banking subsector led on the activity chart and was followed by the Insurance subsector.
Price Movement
The All-Share Index rose by 0.68% to close on Friday at 28,910.19. The market capitalization of the 193 First -Tier equities closed higher at N6.6 trillion. Also, The NSE-30 Index rose by 2.4% to close at 958.74.
Three of the four sectoral indices appreciated – The NSE Food/Beverages Index rose by 1.07% to close at 527.99. The NSE Insurance Index rose by 0.42% to close at 400.02 and The NSE Oil/Gas Index rose by 6.4% to close at 398.20. However, The NSE Banking Index dropped by 2.71% to close at 502.47.
Gainers
Fifty – Six (56) stocks appreciated in price during the week, higher than the fifty (50) in the preceding week. African Petroleum Plc led on the gainers’ table with a gain of N12.91 to close at N102.90 per share while Guinness Nigeria Plc followed with N10.18 to close at N128.20 per share. Other price gainers’ in the Top 10 category include:
+ Oando Plc – N6.83
+ Benue Cement Company Plc – N5.50
+ Nigerian Breweries Plc – N4.70
+ Ecobank Transnational Inc. – N3.65
+ Glaxo Smithkline Consumer Plc – N2.50
+ Conoil Plc – N1.64
+ Dangote Flour Mills Plc – N1.58
+ UAC of Nigeria Plc – N1.50
Losers
Sixty – Seven (67) stocks depreciated in price during the week, lower than the seventy – four (74) in the preceding week. Julius Berger Nigeria Plc led on the price losers’ table, dropping by N3.51 to close at N34.00 per share while Nige rian Bottling Company Plc followed with a loss of N1.97 to close at N23.76 per share. Other price losers in the Top 10 category include:
- 7-Up Bottling Co. Plc – N1.90
- The Okomu Oil Palm Plc – N1.39
- RT Briscoe (Nig) Plc – N1.37
- United Bank for Africa Plc – N1.28
- Lafarge Cement WAPCO Nig. Plc – N1.18
- Bank PHB Plc – N1.15
- First Bank of Nigeria Plc – N1.01
- Flour Mills of Nigeria Plc – N1.00
Two equity prices were adjusted for dividend as recommended by the Board of Directors. Nigerian Breweries Plc was adjusted for an interim dividend of N1.30 per share. Dangote Sugar Refinery Plc was adjusted for a final dividend of N0.35 per share
Company Results
ACCESS BANK PLC: Audited result for the year ended 31st March 2009 shows Gross Earnings of N109,341.1 million as against N57,999.34 million in 2008. Profit after tax stood at N20,814.22 million compared with N15,853.10 million in 2008. The Board of Directors is recommending a dividend of N0.70 per share. The date of closure of register is July 1, 2009 while payment date is on July 14, 2009. The Annual General Meeting is scheduled to hold on Tuesday, July 14, 2009.
OANDO PLC: Audited result for the year ended 31st December 2008 shows Turnover of N339,420.43 million as against N185,892.1 million in 2007. Profit after tax stood at N8,343.32 million compared with N6,343.6 million in 2007. The Board of Directors had earlier recommended a dividend of N3.00 per share. The dates of closure of register and payment would be advised later.
CHAMS PLC: Audited result for the year ended 31st December 2008 shows Turnover of N2,400.34 million as against N4,467.2 million in 2007. Profit after tax stood at N193.02 million compared with N799.32 million in 2007. The Board of Directors had earlier recommended a dividend of N0.03 per share. The date of closure of register is July 10, 2009 while payment date wou ld be advised later. The Annual General Meeting is scheduled to hold on Friday, July 31, 2009.
UAC OF NIGERIA PLC: Unaudited result for the first quarter ended 31st March 2009 shows Turnover of N14,024.33 million, as against N10,565.6 million in the comparable period of 2008. Profit after tax stood at N1,172.64 million compared with N1,039.4 million in 2008.
UNILEVER NIGERIA PLC: Unaudited result for the first quarter ended 31st March 2009 shows Turnover of N10,427.62 million, as against N9,649.72 million in the comparable period of 2008. Profit after tax stood at N1,122.04 million compared with N1,075.53 million in 2008.
SCOA NIGERIA PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N1,647.8 million, as against N1,321.8 million in the comparable period of 2007. Profit after tax stood at N405.6 million compared with N777.2 million in 2007.
CONTINENTAL REINSURANCE PLC: Unaudited result for the first quarter ended 31st M arch 2009 shows Gross Premium of N1,135.3 million, as against N1,034.35 million in the comparable period of 2008. Profit after tax stood at N244.7 million compared with N590.5 million in 2008.
FTN COCOA PROCESSORS PLC: Unaudited result for the first quarter ended 31st March 2009 shows Turnover of N355 million, as against N162.3 million in the comparable period of 2008. Profit after tax stood at N52.91 million compared with N57.0 million in 2008.
TRANS – NATIONWIDE EXPRESS PLC: Unaudited result for the first quarter ended 31st March 2009 shows Turnover of N137.32 million, as against N109.62 million in the comparable period of 2008. Profit after tax stood at N14.8 million compared with N13.42 million in 2008.
MASS TELECOMS INNOVATIONS PLC: Unaudited result for the first quarter ended 31st March 2009 shows Turnover of N550 million, as against N430.6 million in the comparable period of 2008. Profit after tax stood at N35.51 million compared with N22.92 mi llion in 2008.
INTERNATIONAL BREWERIES PLC: Audited result for the year ended 31st December 2008 shows Turnover of N931.92 million as against N561.7 million in 2007. Profit after tax stood at N63.5 million compared with loss after tax of N118.21 million in 2007. The date of closure of register is July 27, 2009. The Annual General Meeting is scheduled to hold on Wednesday, August 5, 2009.
AFRICAN PAINTS (NIG) PLC: Audited result for the year ended 31st December 2008 shows Turnover of N42.6 million as against N59.9 million in 2007. Loss after tax stood at N61.81 million compared with loss after tax and extra-ordinary items of N16.42 million in 2007. The Annual General Meeting is scheduled to hold at Plot 51 Morison Crescent Oregun Industrial Layout on Thursday, July 30, 2009 by 11.30a.m.
AFRICAN PAINTS (NIG) PLC: Unaudited result for the first quarter ended 31st March 2009 shows Turnover of N14.7 million, as against N10.52 million in the comparable peri od of 2008. Loss after tax stood at N5.9 million compared with N8.1 million in 2008.
CADBURY NIGERIA PLC: Unaudited result for the first quarter ended 31st March 2009 shows Turnover of N5,361.2 million, as against N5,564.1 million in the comparable period of 2008. Loss after tax and exceptional items stood at N650.1 million compared with loss after tax of N651.91 million in 2008.
Company Forecasts
UNILEVER NIGERIA PLC: The Company forecasts Turnover of N20,928.0 million and profit after tax of N2,013.0 million during the half year ending June 30, 2009.
GLAXO SMITHKLINE CONSUMER PLC: The Company forecasts Turnover of N3,759.25 million and profit after tax of N371.5 million during the third quarter ending September 30, 2009.
FTN COCOA PROCESSORS PLC: The Company forecasts Turnover of N386.65 million and profit after tax of N74.6 million during the third quarter ending September 30, 2009.
MAY & BAKER NIGERIA PLC: The Company forecasts Turnover of N2,136.08 million and profit before tax of N196.0 million during the half year ending June 30, 2009.
BERGER PAINTS NIGERIA PLC: The Company forecasts Turnover of N787.9 million and profit after tax of N59.64 million during the third quarter ending September 30, 2009.
VITAFOAM NIGERIA PLC: The Company forecasts Turnover of N9,414.6 million and profit after tax of N523.8 million during the full year ending September 30, 2009.
LAW UNION & ROCK INSURANCE PLC: The Company forecasts Gross Premium of N3.0 billion and profit after tax of N511.53 million during the half year ending June 30, 2009.
LAW UNION & ROCK INSURANCE PLC: The Company forecasts Gross Premium of N4.25billion and profit after tax of N724.7 million during the third quarter ending September 30, 2009.
OTC Market For FGN Bonds
A turnover of 250.8 million units worth N257,482.64 million in 1,396 deals was recorded this week, in contrast to a total of 233.6 million units valued at N236,498.34 million exchanged in 1,258 deals during the week ended Thursday, June 11, 2009. The most active bond (measured by turnover volume) was the 5th FGN Bond 2013 Series 1 with a traded volume of 34.93 million units valued at N34,712.83 million in 172 deals. This was followed by the 4th FGN Bond 2010 Series 7 with a traded volume of 17.5 million units valued at N17,969.3 million in 106 deals. Twenty – Seven (27) of the available forty-Two (42) FGN Bonds were traded during the week, compared to twenty-eight (28) in the preceding week.
In: News| stock exchange| weekly report
16 Jun 2009Here are the NSE reports from Zenith Securities, FSDH, and Forte Assets:
Forte Asset - Weekly Report - June 12th 2009 (39) FSDH - Weekly Report - June 12th 2009 (33) Zenith Capital - Weekly Report - June 12th 2009 (40)June 12, 2009 Market Report
Source: Nigerian Stock Exchange
A turnover of 1.92 billion shares worth N13.77 billion in 51,454 deals was recorded this week, in contrast to a total of 3 billion shares valued at N26.9 billion exchanged last week in 57,553 deals.
There were no transactions in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors.
The Banking subsector was the most active during the week (measured by turnover volume), with 919.42 million shares worth N9.67 billion exchanged by investors in 29,375 deals. Volume in the Banking subsector was largely driven by activity in the shares of First Bank of Nigeria Plc, Access Bank Plc, Skye Bank Plc, United Bank for Africa Plc, Bank PHB Plc and First City Monument Bank Plc. Trading in the shares of the six banks accounted for 462.13 million shares, representing 50.3% of the subsector’s turnover.
The Insurance subsector, boosted by activity in the shares of Goldlink Insurance Plc and Lasaco Assurance Plc, followed on the week’s activity chart with a turnover of 553.2 million shares valued at N528.8 million in 6,446 deals.
Last week, the Banking subsector led on the activity chart and was followed by the Insurance subsector.
Price Movement
The All-Share Index dropped by 1.3% to close on Friday at 28,713.67. The market capitalization of the 193 First -Tier equities closed higher at N6.55 trillion. Also, The NSE-30 Index dropped by 2.44% to close at 936.31.
All the four sectoral indices depreciated – The NSE Food/Beverages Index dropped by 14.02% to close at 522.38. The NSE Banking Index dropped by 0.002% to close at 516.4 8, The NSE Insurance Index dropped by 0.77% to close at 398.34 and The NSE Oil/Gas Index dropped by 2.05% to close at 374.25.
Fifty (50) stocks appreciated in price during the week, lower than the fifty – six (56) in the preceding week. Mobil Oil Nigeria Plc led on the gainers’ table with a gain of N5.37 to close at N112.87 per share while Benue Cement Company Plc followed with N4.24 to close at N34.66 per share. Other price gainers’ in the Top 10 category include:
• Ecobank Transnational Inc. – N3.06
• Guinness Nigeria Plc – N3.02
• Nestle Nigeria Plc – N3.01
• Union Bank of Nigeria Plc – N2.93
• Intercontinental Bank Plc – N1.41
• Presco Plc – N1.35
• PZ Cussons Nigeria Plc – N0.90
• Northern Nig. Flour Mills Plc – N0.89
Seventy – Four (74) stocks depreciated in price during the week, higher than the seventy – one (71) in the preceding week. Oando Plc led on the price losers’ table, dropping by N7.83 to close at N82.17 per share while Flour Mills of Nigeria Plc followed with a loss of N5.12 to close at N29.00 per share. Other price losers in the Top 10 category include:
• Dangote Sugar Refinery Plc – N4.92
• Julius Berger Nigeria Plc – N4.15
• UACN Property Dev. Co. Plc – N3.14
• Total Nigeria Plc – N2.50
• Dangote Flour Mills Plc – N2.30
• Glaxo Smithkline Consumer Plc – N1.86
• The Okomu Oil Palm Plc – N1.46
• Nig. Bottling Co. Plc – N1.35
The price of BOC Gases Plc was adjusted for dividend of N0.26 per share as recommended by the Board of Directors.
New Listing
The 4,966,666,668 shares in favour of MTECH Communications Plc were admitted to the Daily Official List at a price of N2.50 per share on Tuesday, June 9, 2009 by way of Introduction. The Company was listed in the Information, Communication and Telecommunications subsector. By this action, the number of listed companies a nd securities increased to 208 and 296, respectively.
Company News
OANDO PLC: Audited result for the year ended 31st December 2008. The Board of Directors is recommending a dividend of N3.00 per share. The date of closure of register of members and payment would be advised later.
BENUE CEMENT COMPANY PLC: Audited result for the year ended 31st December 2008 shows Turnover of N16,45.71 million as against N5,473.44 million in 2007. Profit after tax stood at N4,144.3 million compared with N1,252.23 million in 2007. The Board of Directors is recommending a bonus of 1 for 4. The date of closure of register is July 6, 2009. Annual General Meeting is scheduled to hold on Thursday, July 23, 2009.
BENUE CEMENT COMPANY PLC: Unaudited result for the first quarter ended 31st March 2009 shows Turnover of N9,319.05 million, as against N1,041.1 million in the comparable period of 2008. Profit after tax stood at N5,349.64 million compared with N198.7 million in 2 008.
UTC NIGERIA PLC: Audited result for the year ended 31st December 2008. The Board of Directors is recommending a dividend of N0.03 per share. The date of closure of register of members is June 22, 2009 while payment date would be advised later. The 41st Annual General Meeting is scheduled to hold at Cinema Hall of the Ogun State Council for Arts and Culture (Cultural Centre), Abeokuta, Ogun State on Tuesday, July 7, 2009 by 11.00a.m.
ECOBANK NIGERIA PLC: Unaudited result for the first quarter ended 31st March 2009 shows Gross Earnings of N14,859.72 million, as against N11,355.4 million in the comparable period of 2008. Profit after tax stood at N1,837.7 million compared with N1,745.22 million in 2008. The Board of Directors explained that the Bank received the sum of N45billion from
Ecobank Transnational Incorporated (ETI) as deposit for shares towards the Bank’s proposed Right Issue later in the year.
STERLING BANK PLC: Unaudited result for t he half year ended 31st March 2009 shows Gross Earnings of N20,491.9 million, as against N15,712 million in the comparable period of 2008. Profit after tax stood at N2,431.31 million compared with N1,871.02 million in 2008.
Company Forecasts
NESTLE NIGERIA PLC: The Company forecasts Turnover of N16,500.0 million and profit after tax of N2,220.0 million during the third quarter ending September 30, 2009.
JOHN HOLT PLC: The Company forecasts Turnover of N8,457.0 million and profit after tax of N323.0 million during the fourth quarter ending September 30, 2009.
BENUE CEMENT COMPANY PLC: The Company forecasts Turnover of N16,542.9 million and profit after tax of N6,846.23 million during the third quarter ending September 30, 2009.
BENUE CEMENT COMPANY PLC: The Company forecasts Turnover of N16,695.72 million and profit after tax of N6,728.35million during the fourth quarter ending December 31, 2009.
AIRLINE SERVICES & LOGISTICS PLC : The Company forecasts Turnover of N1,277.24 million and profit after tax of N239.73 million during the third quarter ending September 30, 2009.
PRESTIGE ASSURANCE PLC: The Company forecasts Gross Premium of N2,575.0 million and profit after tax of N590.0 million during the third quarter ending September 30, 2009.
OASIS INSURANCE PLC: The Company forecasts Gross Premium of N297.0 million and profit after tax of N202.21 million during the third quarter ending September 30, 2009.
NEM INSURANCE PLC: The Company forecasts Gross Premium of N4,661.8 million and profit after tax of N952.5 million during the third quarter ending September 30, 2009.
Report On The OTC Market For FGN Bonds
A turnover of 233.6 million units worth N236,498.34 million in 1,258 deals was recorded this week, in contrast to a total of 368.5 million units valued at N376,493.2 million exchanged in 1,178 deals during the week ended Thursday, June 4, 2009. The most active bon d (measured by turnover volume) was the 4th FGN Bond 2013 Series 1 with a traded volume of 24.31 million units valued at N24,211.23 million in 131 deals. This was followed by the 4th FGN Bond 2017 Series 9 with a traded volume of 24.3 million units valued at N23,381.53 million in 149 deals. Twenty – Eight (28) of the available forty-Two (42) FGN Bonds were traded during the week, same as in the preceding week.
In: companyanalysis
12 Jun 2009Earlier this week, Fitch, the ratings agency released a 12-page report on 12 of the 23 Nigerian banks. Here are some of the main points:
1. Excesses that have been built up in the banks in recent years is likely to negatively impact their financial performance for years to come.
2. The economic crisis has taken its toll on the banks but the consolidation exercise of 2005/2006 places them in a better position to absorb ongoing risks.
3. Fitch believes the recent trend of slower credit growth is a positive development.
4. Rapid earnings growth since 2005 masked the increasing levels of risk in the system. Higher impairment charges are expected as the economy slows.
5. Fitch expects that Nigerian banks will need to manage their costs and overhead structures more closely going forward
6. The sector is characterised by weak efficiency ratios which have resulted from an underdeveloped economic infrastructure and because many banks lack operational scale.
You can read download the report below:
Fitch Ratings Of Nigerian Banks (113)
Here is the press release from Nasdaq:
Fitch Ratings-Johannesburg/London-10 June 2009: Fitch Ratings says in a report published today that the excesses which have been built up in Nigerian banks in recent years is likely to negatively impact the financial performance of the sector for the next couple of years. In addition, the economic effects of the global credit crisis have also taken their toll, but the sector is relatively well positioned to absorb ongoing risks because of significantly higher minimum capital requirements that followed the system-wide consolidation in 2005 and 2006.
Fitch notes that 2008 marked the end of a period of rapid expansion for the Nigerian banking sector as the global credit crisis and lower oil prices caused a rapid decline in the operating environment. However, the system-wide consolidation of 2005/2006 should place the sector in a better position to absorb the risks that arise from slower growth and deteriorating asset quality indicators. Fitch believes that the recent trend of slower credit growth is a positive development for the sector.
“Despite the challenging operating environment, Nigerian banks continued to report strong earnings growth in 2008 on the back of rapid credit and deposit growth and Fitch expects earnings growth will continue in 2009, albeit at a slower pace,” says Anthony Walker, a Senior Director in Fitch’s Financial Institutions group. However it remains to be seen as to how Nigerian banks will address their share lending exposures in their financial statements. The agency considers that significant impairment charges could arise if these exposures become non-performing or if the value of collateral continues to remain below minimum coverage ratios”.
Fitch believes that the trend of rapid earnings growth since 2005 has masked the increasing levels of risk in the system, and higher impairment charges are expected as Nigeria’s economy slows. The rapid credit growth, which was the fastest of any country covered by Fitch during 2007 and 2008, lead to Fitch’s Macro Prudential Indicator (MPI) increasing to ‘3′ from ‘2′ in May 2009, to the highest risk category. The MPI aims to identify the potential for systemic stress.
Lending in various forms backed by shares has emerged as an important risk consideration following the significant deterioration in Nigerian share prices since early 2008. The Central Bank of Nigeria (CBN) estimates that the sector- wide exposure was between NGN800bn and NGN1,200bn as of end-2008, although estimates in the sector vary depending on the definitions utilised. However, for Fitch-rated banks, the exposures provided by management appear lower compared with the CBN’s estimates. At end-2008, the CBN allowed banks to reschedule these exposures, to prevent their classification as non-performing. The Fitch report shows that no agency-rated bank is expected to breach its minimum regulatory capital requirements, based on the agency’s calculations in a capital- sensitivity test for Fitch-rated banks and assuming a 50% provision for estimated exposures.
Given the present operating environment, Fitch expects that Nigerian banks will need to manage their costs and overhead structures more closely going forward. The sector is characterised by weak efficiency ratios which have resulted from an underdeveloped economic infrastructure and because many banks lack operational scale. This could lead to further market-driven consolidation during 2009 and 2010, as tightening liquidity, deteriorating asset quality and anticipated difficulties in raising new capital see certain banks being acquired by stronger institutions.
The report, entitled ‘Nigerian Banking Sector: Annual Review and Outlook’, contains an overview of the country’s banking sector and recent developments, and is available on the agency’s subscription website, www.fitchresearch.com, under Financial Institutions/Banks/Special Reports.
Here are the average interest rates for Nigerian banks:
CBN- May 2009 Loan Rates (18)
| S/N | Bank | Av. Int. Rate |
| 1 | Access Bank | 14.53 |
| 2 | Afribank Nigeria | 15.00 |
| 3 | Bank PHB | 9.77 |
| 4 | Citibank Nigeria | 8.00 |
| 5 | Diamond Bank | 13.15 |
| 6 | Ecobank | 15.00 |
| 7 | Equitorial Trust Bank | 14.00 |
| 8 | FCMB | 11.50 |
| 9 | Fidelity Bank | 10.62 |
| 10 | First Bank | 3.00-14.75 |
| 11 | Intercontinental Bank | 11.68 |
| 12 | First Inland Bank | 14.75 |
| 13 | GT Bank | 13.50 |
| 14 | Oceanic bank | 2.50-15.00 |
| 15 | Skye Bank | 2.00-15.00 |
| 16 | Spring Bank | 12.40 |
| 17 | Stanbic IBTC | 10.25-15.00 |
| 18 | Standard Chartered | 5.58 |
| 19 | Sterling Bank | 10.62 |
| 20 | Union Bank | 2.00-15.00 |
| 21 | UBA | 4.38 |
| 22 | Unity Bank | 4.00-15.00 |
| 23 | Wema Bank | 15.22 |
| 24 | Zenith Bank | 2.00-15.00 |
In: company results
10 Jun 2009Here are the company results released in May 2009:
| Period | PAT (N’m)-Curr. | PAT (N’m)-Prev. | Change |
| BERGER PAINTS NIGERIA PLC | |||
| Q1 2009 | 32.8 | 34.9 | -6.2 |
| BERGER PAINTS NIGERIA PLC | |||
| FY 2008 | 205.6 | 112.6 | 82.6 |
| BERGER PAINTS NIGERIA PLC | |||
| 2009 FORECAST | 2917.0 | ||
| NIGERIAN AVIATION HANDLING COMPANY PLC | |||
| Q1 2009 | 419.6 | 208.6 | 101.2 |
| NCR NIGERIA PLC | |||
| Q1 2009 | 40.3 | 16.5 | 144.6 |
| CUTIX PLC | |||
| Q3 2009 | 92.9 | 129.7 | -28.4 |
| BERGER PAINTS NIGERIA PLC | |||
| Q1 2009 | 32.8 | 34.9 | -6.2 |
| INCAR NIGERIA PLC | |||
| Q3 2008 | 7.1 | -3.2 | -318.7 |
| A.G.LEVENTIS NIGERIA PLC | |||
| Q2 2009 FORECAST | 550.8 | ||
| FIDELITY BANK PLC | |||
| Q3 2009 | 13154.0 | 9344.0 | 40.8 |
| CAP PLC | |||
| 2008 | 735.6 | 829.8 | -11.3 |
| CAP PLC | |||
| Q1 2009 | 147.8 | 195.4 | -24.3 |
| UBA PLC | |||
| 6 MONTHS + Q2 2009 | 19.9 | 18.4 | |
| CONSOLIDATED HALLMARK PLC | |||
| Q1 2009 | 382.4 | 263.5 | 45.1 |
| LAW UNION AND ROCK INSURANCE PLC | |||
| Q1 2009 | 130.3 | 219.9 | -40.7 |
| VONO PRODUCTS PLC | |||
| Q2 2009 FORECAST | -44.3 | ||
| GUARANTY TRUST BANK PLC | |||
| Q1 2009 | 9476.0 | 5801.0 | 63.4 |
| STANDARD ALLIANCE INSURANCE PLC | |||
| Q1 2009 | 596.5 | 259.5 | 129.8 |
| NATIONAL SPORTS LOTTERY PLC | |||
| Q1 2009 | 140.4 | 841.8 | -83.3 |
| SKYE BANK PLC | |||
| Q1 2009 | 9612.0 | 6705.0 | 43.4 |
| LONGMAN NIGERIA PLC | |||
| FY 2008 | 669.4 | 276.8 | 141.8 |
| DEAP CAPITAL MANAGEMENT AND TRUST PLC | |||
| Q1 2009 | -158.5 | 133.6 | -218.6 |
| CADBURY NIGERIA PLC | |||
| FY 2008 | -2800.0 | -726.9 | 285.2 |
| GOLDLINK INSURANCE PLC | |||
| FY 2008 | 679.7 | 593.9 | 14.4 |
| TANTALIZERS PLC | |||
| Q1 2009 | -110.2 | -95.8 | 15.1 |
| UAC OF NIGERIA PLC | |||
| FY 2008 | 6789.0 | 4554.0 | 49.1 |
| AIRLINE SERVICES & LOGISTICS PLC | |||
| Q1 2009 | 79.2 | 103.6 | -23.6 |
| PRESTIGE ASSURANCE PLC | |||
| FY 2008 | 711.6 | 638.1 | 11.5 |
| ETERNA OIL PLC | |||
| Q1 2009 | -223.1 | 15.7 | -1517.7 |
| GLAXOSMITHKLINE | |||
| Q1 2009 | 593.9 | 405.9 | 46.3 |
| LASACO ASSURANCE PLC | |||
| Q1 2009 | 394.3 | 233.2 | 69.1 |
| ASHAKA CEMENT PLC | |||
| FY 2008 | 2070.0 | 1603.0 | 29.1 |
| BIG TREAT PLC | |||
| FY 2008 | 406.3 | 245.9 | 65.2 |
| ABBEY BUILDING SOCIETY PLC | |||
| Q1 + Q2 2009 | 287.7 | 88.6 | 224.7 |
| FIDSON HEALTHCARE PLC | |||
| Q3 2009 | 364.7 | 268.9 | 35.6 |
| DANGOTE SUGAR PLC | |||
| FY 2008 | 21871.0 | 21478.0 | 1.8 |
| DANGOTE SUGAR PLC | |||
| Q1 2009 | 4193.0 | 6690.0 | -37.3 |
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