Investors are now Await More Banks Earnings

Analysts argued that the anticipated flurry of results from the banks, would determine the direction of the stock market as well as pattern of investment in money market windows in the second quarter of the year.

Zenith Bank had last Friday reported gross earnings of N244 billion, showing an increase of N26.8 per cent above the N192.49 billion posted in the 2010. Its profit before tax and profit after tax rose by 21 per  cent and 18 per cent from N50.03 billion to N60.7 billion and from  N37.41 billion to N44.2 billion respectively.

A tentative timetable on the anticipated full year results of some banks obtained by THISDAY, showed that while the results of Diamond Bank Plc is expected to be announced to the market by the end of this month, that of GTBank Plc was currently awaiting the Central Bank of Nigeria’s approval and could be released this week. 

While the timetable revealed that United Bank for Africa Plc could release both its full year and first quarter 2012 results by first week of April, First City Monument Bank’s full year results would also be announced before first week in April.

Generally, experts at Renaissance Capital (RenCap) predicted positive earnings from the industry.

Commenting on GTBank’s anticipated results, RenCap, forecast net loan growth of 16 per cent for the year.

RenCap explained: “On the cost side, GTBank recorded muted growth in the first nine-month of the year with costs up 5 per cent. We are looking for a similar trend to be maintained, resulting in a cost/income ratio of 46 per cent, marginally down from the 47 per cent at during the nine month of 2011 and 700 basis points below the 53 per cent recorded at full year 2010.

“We expect a cleaner loan book, relative to full year 2011, to result in a lower impairment cost ratio of 1.6 per cent versus the 2.3 per cent we forecast for full year 2011. Bottom line, we expect healthy earnings growth of 47 per cent which will include the one-off from the sale of non-core businesses.”

It also showed that while Fidelity Bank Plc and Access Bank may also announce their  results either this month or early April, Skye Bank before the end of March, that of First Bank of Nigeria Plc may be available on April 17th.