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In: Banks
2 Nov 2009As at the last count, at least 4 Nigerian banks are in the market to raise capital through bond issuance. These are Zenith, UBA, First Bank and Guarantee Trust banks. This report by <a href=”http://www.vetiva.com”>Vetiva</a> provides some details on what these banks are planning to do:
Vetiva - Highlights of Proposed Capital Raising By Banks (312)The <a href=”http://www.cenbank.org”>Central Bank of Nigeria</a> on Wednesday, released the list of debtors with non-performing loans to the banks that were recently taken over (Bank PHB, Equitorial Trust Bank, and Spring Bank). Here is an excerpt of <a href=”http://www.tribune.com.ng/15102009/news/news10.html”>Tribune Newspaper’s</a> report:
<blockquote>IN its ongoing sanitisation of the nation’s banking sector, the Central Bank of Nigeria (CBN), on Wednesday, released another list of individuals, corporate organisations, parastatal agencies and state governments owing five banks whose audit reports were released recently.
The total amount owed the five banks, according to the release, is N346,408,028,581.04, excluding the sum total of non performing loan of Wema Bank, which could not be ascertained at press time.
The non performing loans of the banks as at June 30, 2009 and October 5, 2009 respectively revealed Bank PHB topping the list with N170,073,403,358.39, followed by Spring Banks (N95,594,989,430.06), Equitorial Trust Bank’s (N46,154,945,774.44) and Unity Bank (N36,585,690,018.15).
As usual, names of politicians, businessmen and contractors topped the list. These include the former Managing Director of Wema Bank Plc, Mr. Adebisi Omoyeni whose Independent Securities Ltd owes N5 billion and Barrister Jimoh Ibrahim whose total loan is put at N5 billion also.
Others include Femi Otedola of Zenon Petroleum Gas Limited (N5,154,041,716.86), Peter Ololo of Petosan Oil & Gas Company Limited (N4,548,125,091.02), Chief Oyewole Fasawe (N7,874,801,592.84) and Kola Daisi of National Sports Lottery Ltd (N4,821,060,327.76).</blockquote>
You can download the report below.
CBN-Bank Debtors - Oct 14th 2009 (260)
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 (302)
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 (293)
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 (543)
Proshare NG also provided some analysis:
CB - Dissecting the problems with Nigerian Banks (2160)
Fronteria Post of 4 out of the CBN (217)
Here is Afrinvest’s analysis of the current state of the Nigerian banking sector. You can download their initial analysis of the banking sector as at April 2009 and the more recent analysis. Here is their summary:
The Nigerian Tribune had an article today on the complaints of the stakeholders of the banks taken over by the CBN.
You can read excerpts of the report below. My comments follow.
Below are the CBN Governor’s statement on the bank takeovers and the list of bank debtors:
Here are the main news stories as a result of the recent firing of the heads of Intercontinental, Oceanic, Finbank, Afribank, and Union Banks:
In: companyanalysis
9 Jul 2009HSBC Recently initiated coverage of 5 Nigerian banks namely, Access Bank, First Bank, Guarantee Trust, UBA and Zenith Banks. While there are issues, there is still reason to be optimistic. The summary is below: – Global financial crisis has hit these banks hard; no toxic asset exposure, but beset by internal disclosure and lending issues [...]
Find attached a well-written and thorough analysis of Nigerian Banks prepared by Afrinvest.
I will provide a summary later.
In: business
21 Apr 2009SW8 is now the main investor in Wema Bank. Here is the report from Bloomberg:
Reuters news is reporting that Access Bank and First Bank will be adopting the International Financial Reporting Standards (IFRS).
Prof Soludo, CBN Chief gave a presentation on March 30th and emphatically declared that no bank will be allowed to fail.
He said that banks in distress may be given loans, have their management restructured or be forced to merge with another bank. he stated that Nigerian banks have among the biggest cushions against losses in the world. According to Bloomberg data, their capital adequacy ratio (measure of capital against risk-weighted assets) is at 22% compared with 18.4% for financial companies on the S&P 500.
This blog is dedicated to informing users on the latest business and economic news news from the CBN and Nigerian Stock Exchange. Happy reading!