Posts Tagged ‘analysis

In the past week, a number of banks have released their results. Their statements, press releases and analyses of their results are below.

I will be posting a chart with the summary of the results later.

Courtesy of FSDH and TRW Brokers, here are the stats for stock performance for 2009. It wasnt a pretty picture.

Here is a document dump of different reports and news stories on the banking crisis and the actions taken by the CBN.

Vetiva provides some details on the CBN’s presentation/road-show in the UK in late August. The noted that:
– All write-downs are to be taken in the current quarter (i.e. quarterly results to be released for September ending will feature total provisions for non-performing exposures)
– Results not to feature high profitability margins
– GTBank and Diamond Bank have already accounted for losses as at second quarter of 2009 (i.e. Q2’09 ended June 30, and Q1’09 ended July 31 respectively), so their results in Q3 are expected to be much better than the average performance of most other Banks
– Fourth quarter (ending December) should be strong for Nigerian Banks in general because earnings will no longer be eroded by Non-Performing Loans
Vetiva - Sanusi's Meeting With CNBC Africa - Aug 28th 2009 (511)

One of the most explosive revelations of this entire exercise was the news report by Vanguard in March about the plans to “level” the ground in the banking sector to favour the Northerners and how 5 banks were going to be taken over.
Vanguard March 23, 2009 - The Plan to take over 5 banks (475)

Standard Chartered also prepared an analysis of the events. The pointed out that:
-CBN prints money to fund the initial cost of the bank bailout
-Given the current environment, and the contraction in broad monetary aggregates already underway, this is unlikely to be inflationary
-A diverse range of funding options are open to the authorities
-The hope is that the CBN’s capital injection will be recovered following future private-sector investment in Nigeria’s banking system
Standard Chartered - Nigeria – Paying for the bank bailout - Aug 25 '09 (793)

Proshare NG also provided some analysis:
CB - Dissecting the problems with Nigerian Banks (2767)
Fronteria Post of 4 out of the CBN (383)

FSDH Securities recently released their 2009 outlook. I must commend them for a well written analysis of the economy. You can download it here:

FSDH 2009 Outlook (768)

Their recommendation is:

While we advise investors to take medium to long term positions in the market, we observe that there are opportunities for short-term trading in the market. In a period like this; full of uncertainties, we strongly advise investors in the capital market to invest only in stocks of companies with sound management and good products that can generate and sustain its cashflows. Such companies can increase investments in the long run. Once recovery starts and the level of confidence in the economy improves, both domestic and international, stocks may not trade at the current prices for many years to come.

The highlights of the document are:

While I have been supportive of the CBN’s “interventions” in the stock exchange, I think at the end of the day, they might have to relax the regulations on the FOREX tradings.

The Naira has lost clost to 50% of its value in the last 4 months.

My main reason for the need for relaxing of the regulations is its effects on the banks. Banks make up a huge chunk of the Nigerian Stock Exchange and are a major employer of labour. When you think of it, banks as a whole, will be the second largest employer of labor after the government (federal and state).

Here are the weekly reports from CSL Stockbrokers, FSDH, and Forte Assets.

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As jara, here is Express Discount’s analysis of the current state of the Nigerian Stock Market.

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Here are quarterly and monthly reports for Q3:

Meristem Securities has prepared a table with information on the major stocks on the NSE. Read here:

Here are the analysis of the results for GT Bank, Flour Mills, and Unilever for their last quarters.

If you have noticed, a lot of the companies coming to the market issue so many shares. I for one believe that it is a gimmick and tactic to raise more money. Here is a wonderful article from Proshare NG on the disadvantages: Shun Companies with Overblown Issued Capital It is now time for investors […]

The Nigerian Stock Exchange (NSE) recently issued directives stating that "any company seeking to be listed by introduction on the NSE shall make 10% of its outstanding shares available on the day of listing for market making". This was to prevent the undue price appreciation and manipulation. They also directed that "the quantum of shares […]

Find below FSDH’s analysis of the Q1 results for Mobil PLC.


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This blog is dedicated to informing users on the latest business and economic news news from the CBN and Nigerian Stock Exchange. Happy reading!

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