Best Banking Stocks to Buy Right Now In Nigerian - Learn The Best Stock Market Investing Strategies That Tells You Top Financial Stocks To Invest In

It's not every time you will read my recommendations on popular stocks in Oil and Gas, Banking, Consumer, Healthcare sector, today I decided to share one unpopular and overlooked financial stock no one is talking about. The amazing thing is that, when I find unpopular top-performing stocks, I am always surprised because no one is talking about it on financial news websites in Nigeria.

Which stock are you talking about? My dear, it is one Micro-finance bank's stock, the company is a niche stock that focuses on providing financial products and services, including retail banking, loans and advances, money market activities and financial advisory services to Nigerian police. I am talking about Nigerian Police Force Microfinance bank.

Let's see what the stock's performance had been: In the last 6 months, 3 months and 1 months, the stock is up by 84.35%, 69.6%, and 13.98% respectively. NPF Microfinance bank's share is N2.02 and as this writing, I expect the price to go up.

What is responsible for this growth you may ask? Let's take a quick look at the company's financial statement on the quarterly basis to ascertain the fundamentals.

NPF Micro-finance bank recorded growth on key figures across the board; from Q1, Q2, Q3 to audited result, the stock grew its gross revenue, interest income, profit after tax, and EPS. Besides, all financial ratios like the cost to income, net interest margin, return on equity etc indicates that the financial stock is worth paying attention to.

You can also check this post to see my practical approach to analysing banking stocks including all the metrics that will help you pick the right stocks in the banking sector. All you need to do is plug in the figures from the company's financial statement available on the financial section of Nigerian stock exchange website.

Using the Q4 result, let's understand the core business of NPF Microfinance bank, how they get their money, and performance metrics like return on equity, net interest margin, efficiency, loan risk, EPS and expected growth rate.

The core business of NPF Microfinance bank:

NPF has a total asset value of N15.9bn, out of which N9bn was advanced to customers and N16m held as investment securities. Without further analysis, NPF Microfinance bank is a loan driven bank it relies more on credit to generate interest income more than investment in securities.

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