In difficult operating environments, I like to get a feel for the banks that are prepared to deal with the difficult times ahead. Sometimes in life, the simplest assessments tell a lot. I have picked one for today's article. Ten (10) Nigerian banks have so far released their H1 2015 results. This is not about profit this time around. I want to look at the two Double D's that Nigerian Banks are fixated on; the former perennially and the latter temporal. Deposits and Debt (could be borrowings, securities issued or on-lending facilities.)

First Bank increased its deposit base over the first six months of 2015 by $376.5m and reduced its outstanding debt by $412.2m. First Bank succeeded in adding what it values and reducing a burden on its books. If the bank succeeds in reducing its net debt by another $169m, by the end of the third quarter, it would have brought its debt level back within viable investment levels. The bank succeeded in adding more of what strengthens it and reducing what is holding it back.

Barring any strategic change, the bank is best prepared (among banks with H1 2015 earnings released) to deal with the peaks and troughs it will face over the second half of 2015. Another bank worthy of mention is FCMB; the bank, following the principle of "caution is the watchword" was able to also increase its deposit base ($259.8m) and reduce its debt by $6.2m. I acknowledge that Stanbic also achieved the same feat, but, paid a hefty price for its deposits which negates the benefits of the increased deposit base coupled with a year-on-year spike and is therefore excluded.

The only bank among the three to still achieve a gain in pre-tax income was FBN Holdings and reduce its debt in excess of the increase in its deposit base.

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They've been around Long enough to be prepared!