Earnings Update Report on First Bank Plc which highlights the latest interim results and an update on our Full Year ’10 earnings outlook on the company.

Q2’10 Results:

1. First Bank reported a 6.7% decline in gross earnings to N122.3bn (US$812.6m) from N131.1bn (US$871.1m).
2. PBT however went up by 637.4% to N31.7bn (US$210.6m).
3. The bank recorded a profit margin of 25.9%, an improvement from the 24.7% recorded in Q1 ‘10.

FY’10 Outlook:

1. This recent performance reveals the challenges faced by many banks in growing top-line numbers as a result of a slowdown in credit expansion, amongst other factors.
2. We reiterate our positive stand on the bank’s earnings potential riding on the back of its strong balance sheet.
3. We however review our forecast of gross earnings down from N277.6bn (US$1.8bn) to N249.8bn (US$1.7bn) while we review PBT up from N51.2bn (US$340.2m) to N56.3bn (US$374.1m). We also establish a 12-month price target of N17.50 and upgrade our recommendation on First Bank to a BUY.

You can download the report below:
Afrinvest – First Bank 6M 2010 Report

Here is the report below:

Profit after Tax (PAT) of Nigeria International Bank Limited (NIB) a subsidiary of Citigroup in Nigeria has declined by 10.05 percent in its result for the year ended December 31, 2007.

In the period under review, the PAT of NIB decreased from N7.722 billion in year 2006 to N6.946 billion in year 2007 indicating a decline of 10.05 percent.

In the same vein, Profit before Tax (PBT) also declined from N10.555 billion in year 2006 to N8.413 billion in year 2007 indicating a decline of 20.3 percent.

However, Net Earnings increased slightly from N14.851 billion in year 2006 to N15.248 billion in year 2007 showing an increase of three percent. While Earnings per Share (EPS) also declined by 9.78 percent from 276 Kobo in year 2006 to 249 Kobo in year 2007.

Shareholders funds of the bank grew slightly from N33.812 billion in year 2006 to N35.031 billion in year 2007 showing a growth of four percent.

John Holt (1st Qtr), Guiness (3rd Qtr), Glaxo Smithkline (1st Qtr), Morison Industries (1st Qtr), and CAP Plc (1st Qtr).

TURNOVER  08 N4.354b,       07 N3.836b
PBT             08 N267.551m,  07 N219.901m
TAXATION  08 (N85.616m)   07 (N70.368m)
PAT            08 N181.935m,  07 N149.533m

PBT     08 N306.715m,  07 N167.658m
TAXA  08 (N98.149m)  07 (N53.651m)
PAT    08 N208.566m,  07 N114.007m

GROSS REV                  07 N2.535b        08 N2.191b
PRODUCTION COST    07 N1.799b,       08 N1.467b
GROSS PROFIT            07 N404.897m,   08 N446.351m
SALES/ADMIN COST   07 N324.512m,   08 N318.721m
NET P(Loss)AT           07 (N18.267m)    08 N135.321m

TURNOVER        08 N9.690b,   07 N8.290b
PBT                   08 N1.582b,   07 N441m
TAXATION       08 (N506m)    07 (N141m)
PAT                  08 N1.076b,   07 N300m

TURNOVER      07 N2.813b,        06 N1.636b
PBT                 07 N868.177m,   06 N546.905m
TAXATION      07 (N110.194m)   06 (N55.442m)
PAT                07 N757.982b,     06 N491.462m

PROPOSED DIVIDEND 12K

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