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In: Banks|Market Analysis|business|companyanalysis|special reports
31 Aug 2010Afrinvest has prepared a very detailed analysis of the banking sector. It is a top notch report and I recommend that everyone spends some time reading the entire report. From the stats, the 4 top tier banks are First Bank, Zenith Bank, GTBank and UBA. ?
In the past 2 weeks, FCMB, GT Bank, Zenith Bank, Fidelity Bank and Skye Bank released their Q2 and Half-Year results. Here are their financial statements, press releases, and presentations: FCMB H1 2010 Results PresentationFCMB H1 2010 Results Press ReleaseFidelity Bank H1 2010 ResultsFidelity Bank Q2 2010 PresentationFidelity Bank Q2 2010 Press ReleaseFSDH – Company [...]
The Asset Management Corporation (AMCON) Bill was <a href=”http://www.bloomberg.com/news/2010-07-19/nigeria-president-goodluck-jonathan-signs-asset-management-corporation-law.html”>signed into law on July 19th</a>. You can call it the “Bad Bank Bill”. It will create the company (AMCON) that will buy the bad debt from the banks. The hope is that it will stimulate bank lending and ensure the health of the banks.
Here is <a href=”http://www.cenbank.org/”>CBN</a>’s press release after the bill was signed:
<a href=”http://www.cenbank.org/Out/2010/pressrelease/gov/PRESIDENT%20GOODLUCK%20JONATHAN%20SIGNS%20AMCON%20BILL.pdf”>CBN Press Release On The Signing Of The AMCON Bill</a>
<a href=”http://drop.io/hidden/ahltwvu68gm7ccy/asset/dmV0aXZhYmFua2luZ3VwZGF0ZWFtY29ubmlnZXJpYXMtYmFkYmFuay1wZGY%253D”>Vetiva Banking Update – July 2010 – Analysis Of Bad Bank Bill</a>
In: Banks|company results
28 Jul 2010In past week, the banks have been releasing their company results. Below are the results presentations along with the accompanying press releases: Diamond Bank 6M 2010 Results Diamond Bank Q2 2010 Results Diamond Bank Press Release FCMB 6M 2010 Results FCMB 6M 2010 Press Release Zenith Bank 6M 2010 Results First Bank 6M 2010 Results [...]
UBA released its FY09 result for the 15-month period ended December 2009. The highlights are:
• UBA reported gross earnings of N246.7bn (US$1.6bn) for the 15 months ended 31 December 2009, representing a 45.6% increase from the corresponding 12 month period to September 2008.
• Total assets decreased by 7.5% from N1.7tn (US$11.5bn) in 2008 to N1.5tn(US$10.3bn) as at FY2009
• Total loans and advances grew by 40.6% to N606.6bn ($4.0bn) while its loan to deposit ratio went up to 48.7% from 32.4% recorded in the prior year. • Operating income was up 46.0% from N128.2bn (US$852.6m) to N187.1bn (US$1.2bn)
• Deposits and other accounts decreased by 6.6% from N1.3tn (US$8.9bn) as at September 2008 to N1.2tn(US$8.3bn)
• Keeping loan quality at an acceptable limit seemed to be a challenge as Non-Performing Loans (NPL) (as a proportion of gross loans) went up from 4.0% in FY2008 to 8.0%
• The exceptional item reported included a net charge of N38.2bn (US$254.0m) for diminution in the value of assets which significantly hampered the bank’s bottom-line earnings potential; After-Tax Profits went down 94.9% from N41.2bn(US$274.4m) in 2008 to N2.1bn(US$14.1m) for FY2009.
Afrinvest, ARM and Meristem each prepared analyses of the company’s results:
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In: Banks
4 Mar 2010Here is Meristem Securities’ detailed analysis of the Nigerian banking sector. It provides a valuation, ratings, expected turnover, earnings performance, and outlook for each of the banks.
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The Central Bank of Nigeria released new guidelines for the tenures of bank CEOs. Here are the new guidelines:
1. Chief Executive Officers, CEO of banks shall serve a maximum tenure of ten years.
2. All CEOs who would have served for ten years by July 31, 2010 shall cease to function in that capacity and shall hand over to their successors.
3. Where a bank is a product of merger, acquisition, take-over or any other form of combination, the ten–year period shall include the pre and post combination service years of a CEO provided that the bank in which he previously served as CEO was part of the new bank that emerged after the combination.
4. Any person who has served as CEO for the maximum tenure in a bank shall not qualify for appointment in his former bank or subsidiaries in any capacity until after a period of three years after the expiration of his tenure as CEO.
5. The Governor/Deputy Governors of the CBN and the Managing Director/CEO and Executive Directors of the Nigeria Deposit Insurance Corporation, NDIC shall not be eligible for appointment in any capacity in banks until after the expiration of five years from the date of their exit from the CBN or NDIC as the case may be.
6. The Departmental Directors of the CBN and the NDIC shall not be eligible for appointment in any capacity in banks and their subsidiaries under the supervision of the CBN and NDIC until after the expiration of three years from the date of their exit from the CBN or NDIC as the case may be.
7. Henceforth, all banks shall reflect the provisions of these guidelines in the terms of engagement of their CEOs.
You can download the CBN release <a href=”http://www.cenbank.org/Out/2010/publications/pressRelease/GOV/Tenure_Guideline19012010.pdf”>here</a>.
In: Banks|News|company results
17 Dec 2009Here is Bank PHB’s statement on the recently announced N387 billion loss for the 3rd quarter:
In: Banks|company results
16 Dec 2009Here is Vetiva Securities’ analysis of the Q3 results for FCMB. The main issues are shrinking balance sheet and increased provision for loan losses which arent good.
<blockquote>In valuing FCMB, we utilized an Excess Returns Model; assuming a Cost of Equity of 17.00% and Terminal Growth Rate of 4%. A Sensitivity Analysis varying he Discount Factor and Growth Rate scenarios gave a Fair Value range of N7.89 – N8.84.
Checking our valuation with an Adjusted Gordon Growth Model, we derive a valuation for FCMB at 1.26x December 2009F book, with a Fair Value range of N9.32 – N11.63. An average of these valuation methodologies gives a Fair Value range of N8.60 – N10.24. It is our expectation that the stock would trade within this range under normal arket conditions; hence, our “Overweight” rating at current market price of N7.50.</blockquote>
In: Banks|company results
16 Dec 2009Meristem Securities has prepared a detailed breakdown on the bank statements of results detailing their losses. It is stunning Intercontinental – N328billion, Oceanic Bank – N286billion, Union Bank – N222billion, First Inland – N94.7billion, Spring Bank – N16billion, and Bank PHB – N387billion.
In: Banks
16 Dec 2009Here is the copy of the memo Oceanic Bank boss, John Eboh sent to the company’s shareholders explaining the stunning N286billion loss:
In: Banks
13 Nov 2009Cordros Capital has prepared a summary of the profit and loss information for the Nigerian banks. And it is not pretty. All but one (Guaranty Trust Bank) announced steep drops in profit. Guaranty Trust Bank’s profit increased 2.5%.
Profits decreased by as much as 200% for some of these banks. Examples include Access Bank, Ecobank and FCMB.
Check the document below:
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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!
