This Day (Lagos)

25 April 2012

Nigeria: Banking Shares Rise On The First Quarter Earnings

The first quarter (Q1) results released by some banks on the Nigerian Stock Exchange (NSE) have continued to reflect positively on the sub-sector.

However, more results are expected to be released to the NSE before the end of this month. Data compiled by THISDAY on Monday banks stocks have largely been on the upbeat since this month.

For instance, while the First Bank of Nigeria Plc's shares advanced significantly by N1.53 to close at N10.88 per share on Monday, from N9.53 per share on April 2, the United Bank of Nigeria Plc has also appreciated by 35 kobo to N2.95 per share, from N2.60 per share as at April 2.

In the same vein, THISDAY checks also revealed that whereas GTBank also improved significantly by N1.85 per share in just 14 trading sessions to N15.65 per share on Monday, from the N13.80 per share it was as at April 2 this year, Skye Bank Plc's shares grew by 5 kobo to N3.90 per share on Monday, compared with the N3.85 per share it stood as at closing bell of April 2.

Similarly, Zenith Bank Plc's share rose by N1.7 to close at N14.10 per share on Monday, from N12.40 per share on the first trading session of this month, while Diamond Bank closed at N2.50 per share on Monday, compared with the N2.38 per share it was on April 2.

UBA had posted a profit before tax of N16 billion for Q1 2012. The bank had also said that it did not anticipate further write-offs in 2012, stating that its balance sheet and capital would be in a robust position to provide a solid foundation for its future growth. UBA posted a N16 billion surpassing the N15.1 billion profit forecast announced earlier in the year.

Details of the performance showed that gross earnings increased by 33 per cent to N53.9 billion from N40.5 billion recorded in the Q1 of 2011. Profit before tax grew by over 200 per cent to N16.1 billion compared to N4.8 billion in the corresponding period of last year.

Diamond Bank's Q1 results this year had also shown significant operating profit growth and falling cost of risk. The commercial bank's gross earnings was N30.7 billion, representing an increase of 51.2 per cent over the N20.3 billion it was in March 2011. Its profit before tax was also N7.5 billion, representing an increase of316.7 per cent.

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