₦airaland Forum

FBNH Q1 2020
Earnings Propped by Growth in Non Interest Income

First Bank Nigeria Holding (FBNH) recently released its unaudited financial results for Q1, ended 31st, March 2020 to the Nigerian Stock Exchange, which indicated a strong performance in earnings amidst the lower yielding interest environment. The bank recorded a gross earnings of NGN 159.68 Billion in Q1, 2020 from NGN 139.43 Billion in Q1, 2019, representing an increase of 14.52% q/q in earnings for the period. The increase in topline revenue year-on year (y/y) was supported by the advancement in non-interest income by 88.93%.

Net interest income was down by 15.92% to NGN 60.25 billion, mainly resulting from a 4.22% reduction in interest income, which was due to the declining interest environment. Interest Income dropped by 4.22% to NGN 104.90 billion from NGN 109.53 billion in the corresponding quarter of 2019. The decline in interest income was as a result of 76.71% and 11.00% drop in interest income received from banks and investment securities to NGN 2.49 billion and NGN38.48 billion respectively in Q1 2020. Although, the bank’s loan book expanded by 12.69% to NGN 2.93 trillion. Also, interest expense advanced by 17.91% from NGN 37.86 billion in Q1 2019 to NGN 44.65 billion in the period under review, majorly driven by growth in interest paid to banks on deposit from NGN 7.19 billion in Q1 2019 to NGN 17.90 billion, representing an enhancement of 149.35% in the period of 2020. However, interest paid to customers on deposit dropped by 2.69% from NGN 27.38 billion to NGN 26.64 billion in Q1 2020.

In the period under review, Non interest revenue advanced by 88.93% from NGN 26.32 billion in Q1 2019 to NGN 49.73 billion in Q1 2020. The rise in non interest revenue was propped up by the growth in fees and commissions (6.82%), Net gains on investment securities (747.52%), financial instrument (2816.94%) and dividend income (102.93%). Furthermore, operating expenses spiked by 7.88% to NGN 71.60 billion from NGN 66.37 billion in Q1 2019 driven by increase in personnel expense (4.43%), depreciation cost (24.83%) and other operating expense (7.91%). Profit before tax (PBT) stood at NGN 28.68 billion indicating an increase of 61.45% from NGN 17.76 billion recorded in Q1 2019, supported by the drop in impairment charges and increased operating margin. Profit after tax (PAT) in Q1 2020 stood higher by 59.33% to NGN 23.14 billion from NGN 14.52 billion at the end of the corresponding period of 2019.

Net Loans and advances expanded by 12.69% to NGN 2.93 trillion from N2.60 trillion in FY 2019. Loan to Deposit ratio stood at 53.56% when compared with FY 2019 which settled at 53.27%. Total deposits also expanded by 12.09% from NGN 4.88 trillion in FY 2019 to NGN 5.47 trillion at the end of Q1 2020. Our blended target price is N13.06. We recommend a BUY at current market price, as the stock trade’s at a discount to our intrinsic value.

Broker's Analysis - For Info purpose, not any sort of advice :

UNILEVER NIGERIA PLC Q1 2020
THE TOUGH GET GOING FOR A U-CURVE RECOVERY

Unilever Nigeria Plc published its Q1 2020 earnings report for the period ended 31st, March 2020, indicating a revenue of N13.329 billion vs N19.236 billion in the corresponding period of 2019. We noted sales slowdown by 40.72% across the Home and Personal Care segment, while export surged by 71.65% despite the persistent boarder closure by the Federal Government of Nigeria.
Furthermore, cost of sales (COS) dipped significantly to print N9.90 billion against N15.37 billion recorded in Q1 2019. As a result, gross profit settled weaker marginally at N3.426 billion vs N3.869 billion recorded in the corresponding period of 2019. Thereby, gross margins closed the period at 25.7%, 27.72% stronger when juxtaposed with 20.11% recorded Q1 2019. Moving on, operating profit further plunged by 65.63% as Unilever aggressively embarked on market visibility, increasing branding and marketing expense by 108.96%, likewise overhead cost soaring by 100.04%.
Considering the low interest environment, finance income settled lower by 38.31% while finance cost plummeted by 99.35%, consequently recording a profit before tax of N948 million, representing 53.23% decline from N2.027 billion recorded in Q1 2019. Tax credit of N165.96 million cushioned profit for the period to N1.114 billion, representing 26.71% decline when compared to N1.520 billion profit recorded in Q1 2019.
The report indicates the continued struggle for Unilever to increase sales in light of increased competition compounded by a tougher operating environment. Our 12m target price for shares of Unilever using a blended model is N22.95, therefore, we recommend a BUY at current price levels.

pluto09:
Flat result, just as expected.

This is a good result in my layman's understanding.
The prevailing situations in Q1 2019 was nothing to be compared with 2020. They tried. *PAT edited*

But wait o, is there no more analysis on this thread again or the analysts are on sabbatical?
Abeg make Una come back biko.

Why has nobody mention what's in GTB's Q1?
Make I go check anyway.

ukay2:
Loooooool
He may receive more donations with open account details here than privately

Hhmmm. I hope so.
I rest my case.

ukay2:
Weldone Madam.
Let Pastor post his account details here so that interested individuals can sow seeds to his ministry.
But pastor should promised not to invest in any alcohol or even tobacco companies in the equity markets

Chai!!! Una no go keel person with laugh here.
I don't think posting acct details is allowed here. PM is there nah.

emmanuelewumi:
When he was made a Pastor in the church he had over 2 million units of Nigeria Brewery shares.

Baba is now in his 80s, when asked during his 70th birthday the secret behind his young looks he said a glass of Star lager beer every evening was the secret

Lol.

ukay2:
Loooooool

He needs funds for his evangelism. .....let's help him so that he will stop investing in alcoholic companies.

Honestly, you took this out of my mouth, was about to say something similar.
He's using the fund to support his ministry, you guys should render assistance if it's in your power to do so, so he wouldn't invest in alcohols.

Also, Pastor Veecovee , try and pick a point or two from those comments, though sounds funny but pick salient points out of it. It is well.

emmanuelewumi:
I hope he is not a Marlian pastor

See stone left and right on Pastor.

billtommy:
Huge volumes on offers and bids...what is happening tutor

Tutor? Where Rabbi is?
This my bros or sis in the Lord wants to pursue me here.
That's market for us anyway, uncertainty everywhere.......some coys are rolling out good results but the economic condition as well as the covid situation is causing a lot of uncertainty here and there.
Reason my bosses are advised keying into fundamentally sound stocks much more, around this time.

Princkez:
What's happening in WAPCO

Qualification date is approaching and it seems cheap at 10+, the movmt will be gradual in my opinion sha. If they release good Q1, it will also help a lot.

Zenith: 60.6M bids against 6M offers and not yet on full bid....
Fbnh: 16M bids at 4.20, over 40M total bids.....

S007:
Spirits

Lol. The thing tire person.

Who are these GTB buyers/sellers?

dinyelutochukwu:
He obviously has no charts, depends solely on what he reads here, no due diligence, and when the trades don't go as planned, he comes here to rant.

I don't think so. Seems he makes use of charts and all that.
Bomboclad come and defend yourself.

DeRuggedProf:
Because most insurance marketers don't take an insurance cover themselves.......

DeRuggedProf:
Mcy56, your MM is stringing again...The experiment don enter GTB self..........

Lol. Prof my MM or your own?
Sterling don infect GTB and dangsugar be that.

Prof, who are these 5units chain buyers in dangsugar self?

DeRuggedProf:

Lol.

dinyelutochukwu:
With WAPCO gaining N1 and Zenith finding resistance at N13.70, it seems market reversal is starting earlier than we expect.

Some of those 13.50 in Zenith are crossings......let's see if it will break the 13.70 resistance or not.

Wapco back to 11.....11.35 now.
Oga Oracle mentioned it Xtyday or is it on Monday self.
I hope some were able to decode it. He made reference to another one too.

4shizzle:
...

Hope you saw my mention Xtyday. Couldn't search for your moniker at that time.

*Before you will say I'm the one that didn't allow you to buy Fbnh. It's now we want to collect our own dividend on the floor.

Mcy56:
Reversal may be in view today.
Too early for this assumption? We wait and see.....

GTB: back to 19
Zee: 13.65.....
Fbnh: 4.30.....
.

Reversal may be in view today.
Too early for this assumption? We wait and see.....

E Ku market o.
Bids outweigh offers in GT and Zenith for now......Zee waiting for GT to make the first move.......

. Access.....
.
Let's see how today's trading goes....

emmanuelewumi:
Someone is waiting for it at N1.00

Bargain dreamers.

There was 50M single bid earlier, which was removed and codedly being filled.

47.8M units crossed in Fbnh @4.20. Deep pockets taking position......
Zenith: dumping looks like deliberate attempt to crash the price......quite some crossings at 13.10.......Q1 is on the way..

abuhusna1:
Uacn self isolating cos he don catch corona. In two weeks time he will be alright �

Lol. The isolation is really helping its ministry.

Zenith already halted dumping at 13.35/40, GT at 18.35/40......observed over some period of an hour.......
Fbnh: trading at 4.16/20
Access: refused to go below 6

Let's see how the whole thing goes...

Bomboclad:
WAPCO

Those wapco guys have got no chill at all.
Las las bargain hunters go feed off their dumping and they'll come back to buy higher. Lol.

stcool:
By Oct-Nov 2020

You will be begging me to take your GTB & Zenith sub N10

FBHN sub...N3

NSE patience is key! I am done till further notice!

OK. Noted! God will spare our life beyond Oct/Nov.

kollingz:
Good morning all, pls will I still qualify for dividend if FBH is sold today?

Yes. You qualified already. You can sell.....but why not wait small if you bought it higher? Except you needed some fund anyway.