Archive for June, 2009

Below are the analyses of Zenith and Skye Banks by FSDH Securities:

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.

Cordros Capital Limited has prepared a chart of the company results released in the first half of the year. Read below:

Here are the company results and forecasts released in the month of June 2009: Period PAT (N’m)-Curr. PAT (N’m)-Prev. Change STERLING BANK PLC Q2 2009 2431 1871 29.93 ECOBANK NIGERIA PLC Q1 2009 1837 1745 5.27 BENUE CEMENT COMPANY PLC FY 2008 4144 1252 69.79 BENUE CEMENT COMPANY PLC Q1 2009 5349 198.7 2592.00 AFRICAN […]

As 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: Welcome Address Central Bank of Nigeria: The Journey so Far and The Road Ahead Presented by Professor Chukwuma C. Soludo, […]

NSE Report For Week Ended June 19th 2009

Below is the NSE Market Report for the week ended June 12th 2009:

Earlier 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:

Here are the average interest rates for Nigerian banks:

Here are the company results released in May 2009:


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