Mcy56:

Hope they won't stone me here.
You should have asked during trading hours so I can check this.
I hope Fbnh will release result on time, and not just result......but a good one, so that the current support can hold........if not we should be looking at range 4.65/4.50 as next support.
This is just my opinion.

FBN results will be better than same period last year.

Anniie4u:


FBN results will be better than same period last year.

Q1 result already gives that clue. The question for now is the magnitude of the improvement.

Calebbold:


FBNH Q2 2020 result would likely be out tomorrow

Virtually all results should be out by Thursday as required by NSE. Some may have to release an unaudited result to avoid sanctions.

[quote author=Intendy post=92206354]Stocks with new 52 week lows

International brew #3.30k

Guinness #13.50k

Julius Berger #15.00k

Seplat #282.00k

Total #87.80k[/quot


Please how can I get this info.

http://www.nse.com.ng/Financial_NewsDocs/31028_NASCON_ALLIED_INDUSTRIES_PLC-_QUARTER_2_-_FINANCIAL_ST.pdf


improved result vs prior year

https://businessday.ng/exclusives/article/nigerian-banks-face-biggest-revenue-drop-since-2016/?mc_cid=ee7a1ed4c3&mc_eid=b0e18276fc

[/b]Nigerian banks face biggest revenue drop since 2016[b]


Nigerian banks could see the biggest yearly decline in revenues since 2016 by the end of this year, according to estimates by Renaissance Capital and Fitch Ratings, which point to an, at least 20 percent, dip.

“Banks are dealing with slow growth, fall in lending, a lack of foreign exchange in the market and asset quality issues,” Mahin Dissanayake, senior director, EMEA bank ratings at Fitch, says.

Though Dissanayake expects banks’ revenues to drop at least 20 percent this year, but does not expect any to make a loss. Renaissance Capital also expects a similar decline in bank profits this year.

“We currently expect 2020 before tax earnings for the top six banks to decline by a quarter on average, year-on-year,” notes Adesoji Solanke, an analyst at Renaissance Capital.

“A decline in Profit Before Tax (PBT) by over 20 percent will be the most severe in the past five years,” Solanke says in an email.


The movement in commercial bank lending rates is a factor of profitability, as interest rates tend to rise when profitability is constrained and vice versa. This implies that if banks record lower profits this year it could lead to a hike in interest rates or overall slowdown in lending, which would affect access to credit for businesses and individuals.

Banks have been on the receiving end of an economy tipped by the International Monetary Fund (IMF) to contract by 5.4 percent this year, the most since 1987.

Central bank measures to support the naira have however worsened the burden on lenders already hit by the negative fallout from COVID-19 pandemic and the oil price shock.

The central bank has pulled as much as N900 billion out of the local banking system since raising the cash reserve ratio (CRR) by 5 percent to 27.5 percent in January, according to analysts’ calculations.


Bankers say the effective CRR rate is closer to 60 percent and that the CBN now sits on around N10.4 trillion of bank deposits earning zero interest in CRR.

The CRR rate, which is among the highest in the world, means banks have to work harder to turn a profit in an economy that looks out of sorts and is set for its biggest contraction in over three decades.

Some banks have already indicated they expect a hit to their revenues this year. In April, mid-tier lender Fidelity Bank warned 2020 profits would drop by 15 percent.

A report by Lagos-based credit ratings firm, Agusto & Co, also noted that Nigerian banks’ earnings and profitability were expected to decline drastically in 2020.

“In specific terms, banks’ earnings from their core business are projected to decline in the short term due to an expected rise in impairment charges and lower yields on their loan books,” notes Bode Agusto, the firm’s CEO.

“More so, the contractionary monetary policy stance, exacerbated by discretionary Cash Reserve Requirement (CRR) debits by the CBN, is expected to affect banks’ overall performance this year,” Agusto says.

Whether it is on account of implementing its CRR rule or punishing banks for not lending at least 65 percent of their deposits to small businesses, the CBN has debited banks to the tune of N2.1 trillion in 2020 alone, according to data tracked by BusinessDay.

The general sentiment in the markets is that CRR debits are carried out quite close to FX auctions to prevent the banks from presenting large ticket FX demands at auctions.

Those debits however hamper wider lending, going against central bank measures of lowering banks’ loan to deposit ratios. Central bank data showed credit to the private sector in April dropped by nearly two-thirds from end-2019.

Faced by lower oil prices and a 19-percent decline in its foreign currency reserves this year, the CBN has dusted its play book from 2016 by trying to suppress demand for FX to conserve its thinning reserves and protect the naira from depreciating sharply against the dollar.

Critics say the strategy failed in 2016, as it worsened an already acute dollar shortage, which contributed in tipping the economy into recession, and led to eventual naira devaluation.

The downsides of micro-managing the FX market have not deterred the CBN from towing the same path this year.

The lack of liquidity at the official market has pushed demand to the black market, which has widened the gap between the rates in both markets to a record N80/$.

While the official rate is around N380/$, the black market rate is much weaker at N460/$.

The dollar shortages have taken a significant toll on banks, which announced plans to reduce the amount customers can spend abroad using debit cards last week, as lenders try to limit foreign currency settlement risk.

One of the banks planning the move, Zenith Bank, says it will temporarily suspend the use of debit cards abroad for cash withdrawals and cut the monthly spending limit abroad by more than half to $200.

The tier-one bank notes that “the review is in response to today’s economic realities” in a notice, advising clients to request prepaid dollar cards.

“Many Nigerian banks cannot open Letters of Credit (LC)s and companies have no access to foreign currency,” a source familiar with the matter says.

“There appears to be attempt to suppress demand for FX; we are headed for the rocks,” the source states.
Bankers say the dollar crunch means it now takes more than six months to settle foreign lines of credit.

Fitch also predicts impaired loan ratios will rise sharply in 2020, with Nigerian banks the most exposed to stress in the oil sector compared to their peers in emerging markets elsewhere.

Commercial banks have written off N1.9 trillion bad loans from their books in the last four years, according to data by Agusto & Co. As at June 2020, they had written off N1.3 trillion in bad loans.

CAP PLC 5 year analysis...
#Stagnant...

creategist:
https://businessday.ng/exclusives/article/nigerian-banks-face-biggest-revenue-drop-since-2016/?mc_cid=ee7a1ed4c3&mc_eid=b0e18276fc

[/b]Nigerian banks face biggest revenue drop since 2016[b]


Nigerian banks could see the biggest yearly decline in revenues since 2016 by the end of this year, according to estimates by Renaissance Capital and Fitch Ratings, which point to an, at least 20 percent, dip.

“Banks are dealing with slow growth, fall in lending, a lack of foreign exchange in the market and asset quality issues,” Mahin Dissanayake, senior director, EMEA bank ratings at Fitch, says.

Though Dissanayake expects banks’ revenues to drop at least 20 percent this year, but does not expect any to make a loss. Renaissance Capital also expects a similar decline in bank profits this year.

“We currently expect 2020 before tax earnings for the top six banks to decline by a quarter on average, year-on-year,” notes Adesoji Solanke, an analyst at Renaissance Capital.

“A decline in Profit Before Tax (PBT) by over 20 percent will be the most severe in the past five years,” Solanke says in an email.


The movement in commercial bank lending rates is a factor of profitability, as interest rates tend to rise when profitability is constrained and vice versa. This implies that if banks record lower profits this year it could lead to a hike in interest rates or overall slowdown in lending, which would affect access to credit for businesses and individuals.

Banks have been on the receiving end of an economy tipped by the International Monetary Fund (IMF) to contract by 5.4 percent this year, the most since 1987.

Central bank measures to support the naira have however worsened the burden on lenders already hit by the negative fallout from COVID-19 pandemic and the oil price shock.

The central bank has pulled as much as N900 billion out of the local banking system since raising the cash reserve ratio (CRR) by 5 percent to 27.5 percent in January, according to analysts’ calculations.


Bankers say the effective CRR rate is closer to 60 percent and that the CBN now sits on around N10.4 trillion of bank deposits earning zero interest in CRR.

The CRR rate, which is among the highest in the world, means banks have to work harder to turn a profit in an economy that looks out of sorts and is set for its biggest contraction in over three decades.

Some banks have already indicated they expect a hit to their revenues this year. In April, mid-tier lender Fidelity Bank warned 2020 profits would drop by 15 percent.

A report by Lagos-based credit ratings firm, Agusto & Co, also noted that Nigerian banks’ earnings and profitability were expected to decline drastically in 2020.

“In specific terms, banks’ earnings from their core business are projected to decline in the short term due to an expected rise in impairment charges and lower yields on their loan books,” notes Bode Agusto, the firm’s CEO.

“More so, the contractionary monetary policy stance, exacerbated by discretionary Cash Reserve Requirement (CRR) debits by the CBN, is expected to affect banks’ overall performance this year,” Agusto says.

Whether it is on account of implementing its CRR rule or punishing banks for not lending at least 65 percent of their deposits to small businesses, the CBN has debited banks to the tune of N2.1 trillion in 2020 alone, according to data tracked by BusinessDay.

The general sentiment in the markets is that CRR debits are carried out quite close to FX auctions to prevent the banks from presenting large ticket FX demands at auctions.

Those debits however hamper wider lending, going against central bank measures of lowering banks’ loan to deposit ratios. Central bank data showed credit to the private sector in April dropped by nearly two-thirds from end-2019.

Faced by lower oil prices and a 19-percent decline in its foreign currency reserves this year, the CBN has dusted its play book from 2016 by trying to suppress demand for FX to conserve its thinning reserves and protect the naira from depreciating sharply against the dollar.

Critics say the strategy failed in 2016, as it worsened an already acute dollar shortage, which contributed in tipping the economy into recession, and led to eventual naira devaluation.

The downsides of micro-managing the FX market have not deterred the CBN from towing the same path this year.

The lack of liquidity at the official market has pushed demand to the black market, which has widened the gap between the rates in both markets to a record N80/$.

While the official rate is around N380/$, the black market rate is much weaker at N460/$.

The dollar shortages have taken a significant toll on banks, which announced plans to reduce the amount customers can spend abroad using debit cards last week, as lenders try to limit foreign currency settlement risk.

One of the banks planning the move, Zenith Bank, says it will temporarily suspend the use of debit cards abroad for cash withdrawals and cut the monthly spending limit abroad by more than half to $200.

The tier-one bank notes that “the review is in response to today’s economic realities” in a notice, advising clients to request prepaid dollar cards.

“Many Nigerian banks cannot open Letters of Credit (LC)s and companies have no access to foreign currency,” a source familiar with the matter says.

“There appears to be attempt to suppress demand for FX; we are headed for the rocks,” the source states.
Bankers say the dollar crunch means it now takes more than six months to settle foreign lines of credit.

Fitch also predicts impaired loan ratios will rise sharply in 2020, with Nigerian banks the most exposed to stress in the oil sector compared to their peers in emerging markets elsewhere.

Commercial banks have written off N1.9 trillion bad loans from their books in the last four years, according to data by Agusto & Co. As at June 2020, they had written off N1.3 trillion in bad loans.

We warned that danger looms on Nigerian banks. The poor economy is constraining them while the CBN's erratic and irrational policies are suffocating them, destroying values as fallouts. To give an idea of the extent of the crisis, Zenith bank has limited use of their debit cards to maximum $200 per month! The crisis is serious.

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The banks are struggling, seriously struggling. CBN is running them aground. The government sees them as the new cash cows and mills them mercilessly. These are unusual times for Nigerian banks

Goody morning experts in the house,

Is it advisable to buy Seplat now?

Darasimis:
Goody morning experts in the house,

Is it advisable to buy Seplat now?

Have you looked at their H1 2020 result released this morning?

Darasimis:
Goody morning experts in the house,

Is it advisable to buy Seplat now?

Patiently wait for SEPLAT at sub N150 unless you want to lose your money

BARGAIN HUNTERS TAKE NOTE!

CBN's ill advised increase in LDR has exposed many banks to significant risks. Non performing loans have exponentially increased. While official CRR is 27.5, through sporadic and punitive take over of bank fund, many bank's CRR is as high as 60% limiting their ability to maneuver in these unusual times.

BrokerHaruna:


We warned that danger looms on Nigerian banks. The poor economy is constraining them while the CBN's erratic and irrational policies are suffocating them, destroying values as fallouts. To give an idea of the extent of the crisis, Zenith bank has limited use of their debit cards to maximum $200 per month! The crisis is serious.

All this one na story. FUGAZ is still strong like Olumo Rock. Banks limit use of their debit cards when there is usually a FOREX crisis, then they revert to the status quo when things stabilize, as they will. Think 2016, we've been here before. Stop mongering fear up and down.

Lion123:


All this one na story. FUGAZ is still strong like Olumo Rock. Banks limit use of their debit cards when there is usually a FOREX crisis, then they revert to the status quo when things stabilize, as they will. Think 2016, we've been here before. Stop mongering fear up and down.

If only you know the extent of the crisis and helplessness faced by the banks, exacerbated by CBN's stupid policies. The risks are real

BrokerHaruna:
CBN's ill advised increase in LDR has exposed many banks to significant risks. Non performing loans have exponentially increased. While official CRR is 27.5, through sporadic and punitive take over of bank fund, many bank's CRR is as high as 60% limiting their ability to maneuver in these unusual times.

With all that you know and say concerning Banks in Nigeria, I don't expect you to still have and operate a Nigerian bank account otherwise please calm down.

BrokerHaruna:


If only you know the extent of the crisis and helplessness faced by the banks, exacerbated by CBN's stupid policies. The risks are real

The risks are real , so what will happen? They will fold up, declare losses or not pay dividends? None of these risk stated will affect the UGZ (UBA,Zenith and GTB). I don't have enough information on Fbnh and Access to make a claim. Those 3 banks behave like chameleon ,they've mastered the art of thriving in the Nigeria murky waters. As far as you still use your ATM or spend money those banks will always make money.

Stop the fear mongering if you are not bold enough to state what will befall the banks. Even in crisis people still make money.

BrokerHaruna:


We warned that danger looms on Nigerian banks. The poor economy is constraining them while the CBN's erratic and irrational policies are suffocating them, destroying values as fallouts. To give an idea of the extent of the crisis, Zenith bank has limited use of their debit cards to maximum $200 per month! The crisis is serious.

Gbenue soun jare!

What do you know about limiting use?

Before 2015, limits for use of naira cards abroad was over $100K.

In 2016 limits for the use decreased to $50K, then $10K, then $5K. Then $1K. Then $100. Then it was stopped totally. That time oil price fell from its high of 100+ to 27.

We heard this same words you say now as at that time. Did heaven fall? No.

Now due to oil price fall and USD liquidity issues, the same is playing out and you screaming. wetin we never see before?

In 2016, I bought USD as high as 510. Now it is even cheaper inspite of the very terrible shock oil went through. And you are there shouting.

Where were you in 2016 when all cards abroad were stopped? Where were you when people were travelling abroad (in 2016) with 100 different naira bank cards with different people's names so that when you add all the small small dollars it will be meaningful?

DrAwo:

Have you looked at their H1 2020 result released this morning?

O'boy seplat result bad gan o.....80% loss in profit compared to same period last year......this covid really hit oil companies o.....or could it be mismanagement? I notice they have a new leadership now

BrokerHaruna:
CBN's ill advised increase in LDR has exposed many banks to significant risks. Non performing loans have exponentially increased. While official CRR is 27.5, through sporadic and punitive take over of bank fund, many bank's CRR is as high as 60% limiting their ability to maneuver in these unusual times.

You are writing 2 contradictory things. First is saying that there is increasing NPLs in banks and at the same time you are chastising CBN for LDR.


CBN said give loans to the people so that businesses can use it. Otherwise we will sterilize the excess funds from you.

Banks are scared of NPLs, so they don't give out the loans as fast as they should when proper risk assessment isn't done. Since they don't do it as at the stipulated time CBN gave for sterilisation, CBN goes ahead and deduct the excess deposit.

Why is CBN doing this? So that banks don't use it to invest/bet on non-core operations like making excess money from Tbills, Bonds, currency.

Even if there will be NPLs, it will be as a result of the existing and currently running loans. But banks being proactive and forward-thinking now will prefer CBN to hold their money at zero interest than lose the money via NPLs in this turbulent times.

RabbiDoracle:


You are writing 2 contradictory things. First is saying that there is increasing NPLs in banks and at the same time you are chastising CBN for LDR.


CBN said give loans to the people so that businesses can use it. Otherwise we will sterilize the excess funds from you.

Banks are scared of NPLs, so they don't give out the loans as fast as they should when proper risk assessment isn't done. Since they don't do it as at the stipulated time CBN gave for sterilisation, CBN goes ahead and deduct the excess deposit.

Why is CBN doing this? So that banks don't use it to invest/bet on non-core operations like making excess money from Tbills, Bonds, currency.

Even if there will be NPLs, it will be as a result of the existing and currently running loans. But banks being proactive and forward-thinking now will prefer CBN to hold their money at zero interest than lose the money via NPLs in this turbulent times.

Thanks for the explanation Rabi. Sometimes when you read such assessments about companies, you are triggered to click the sell button

BrokerHaruna:


If only you know the extent of the crisis and helplessness faced by the banks, exacerbated by CBN's stupid policies. The risks are real

In one message you say there is rising NPL during this Coro period. And in another you are chastising CBN for LDR. Do you want banks to incur more NPLs?

Definitely banks should have made more non-interest income from the sterilized funds but CBN wants loan to go to the real sector.

If banks give more and it goes bad, you will still come here to scream.

Bros try grow brain cells na.

Tvegas:
The risks are real , so what will happen? They will fold up, declare losses, not pay dividends? None of these risk stated will affect the UGZ (UBA,Zenith and GTB). I don't have enough information on Fbnh and Access to make a claim. Those 3 banks behave like chameleon ,they've mastered the art of thriving in the Nigeria murky waters. As far as you still use your ATM or spend money those banks will always make money.

Stop the fear mongering if you are not bold enough to state what will befall the banks. Even in crisis people still make money.

The risk is real is not for Nigerian banks.

Nigerian banks fit ask for your grandmother's certificate of birth before they can give you loan.

Banks are very careful. The working class/middle class loans are backed up with your retirement package. That is why they will tell you to get a letter from your HR signed and approved by the EGM HR of your company before they can give you loan. This is a sure way of securing their loans.

Nigerian banks are not like EU or US banks o.

Aside loans to companies (corporate, business) , individuals (car loan, mortgage loans, personal loans, education loans), EU and US issue huge credit cards, margin facilities. These last 2 loans (credit card and margin facilities) na the one wey dey wound people pass and wound banks as well. But Nigeria doesn't give this. They are the most toxic.

RabbiDoracle:


In one message you say there is rising NPL during this Coro period. And in another you are chastising CBN for LDR. Do you want banks to incur more NPLs?

Definitely banks should have made more non-interest income from the sterilized funds but CBN wants loan to go to the real sector.

If banks give more and it goes bad, you will still come here to scream.

Bros try grow brain cells na.

The challenge I have with the Broker is that he doesn't take his time to read and understand before posting.

Even from the headline, you can understand the post already. It says there will be revenue drop not total revenue loss.

Any SS 1A accounting student will know better

Princkez:
http://www.nse.com.ng/Financial_NewsDocs/31031_ECOBANK_TRANSNATIONAL_INCORPORATED-_QUARTER_2_-_FINANC.pdf

With this result, do you have change of mind

cc BEARBULL

veecovee:
With this result, do have change of mind
cc BEARBULL

Pastor what are you trying to say?
ETI result is good, or maybe I'm the one that doesn't see it well ......let me recheck...

http://www.nse.com.ng/Financial_NewsDocs/31034_FLOUR_MILLS_NIG._PLC.-NOTIFICATION_OF_BOARD_MEETING_AN.pdf pls have they released their audited report for March 2020

onegentleguy:


Not Champion breweries... not PZ Sir !!
However, both asset are underpriced though.

Regards

So can you now reveal the one you referred to Chairman

Mcy56:

Pastor what are you trying to say?
ETI result is good, or maybe I'm the one that doesn't see it well ......let me recheck...

pls has flour mills realeased their 2020 audited report