₦airaland Forum

Abdul4trust1:
The worst CBN governor in Nigeria history

Ibime:
12th Sept. I go sell by 11th

Mazinewmoney:
You're right Master. But is there a possibility of the coin getting to a dollar in 5 years time? No matter the pump and dump

Sysdatek:
Gate.io check bmonusdt

Ruben225571:
Someone ask why i bought C98”

Here’s ur answers “ I bought cos of
the new event of #C98 on 26th August” which is tomorrow padi me

Always do ur own research “ don’t always stay here on Nairaland and be waiting for someone else to use his or her data(subscription) and be given you news/ post up and down “ as well signal to buy!!


Unless you don’t wanna make money!!

DenreleDave:



Small love portion

Sleep love portion

Sexy love portion

Ruben225571:
Is like TA and FA doesn’t work on SLP anymore!!

DieRich5:
hodl brother, don't make the mistakes I made dis week..........I sell slp at loss at $.15 the next day it shoot to $.17 after selling..........

Slp is a good coin, the reason is down cus of the pump from 1546 to 1780 when others re still down so she Dy relax now before shooting and also AXS ain't moving too

Follow ur mind.....God help us all
I'm still feeling the pain

Ibeme:
Abeg you get recommendations on who fit pump next?

I've done the rounds and I'm clueless as to who's next

cc Jedisco, Openheaven2019, priceaction, PAWG

Intendy:
Stocks with new 52 week lows

Zenith Bank #16.20k

Fidelity #1.47k

GTB #25.95k

Jaiz #0.37k

Oando #3.60k

Ecobank #7.00k

Transcorp #0.84k

Dangote sugar #9.55k

Ucap #1.80k

Fbnh #4.65k

Law Union #0.36k

Total #105.80k

Uacn #4.95k

valentinenwoko:
Share reconstruction: is true or a joke

lancee:
I read all over again to digest it..I think its 5% on commission or else wahala go dey ..jijo pple doing 2-3 days self go dey affected
You sell self at loss double wahala

Agbalowomeri:
5% on COMMISSION
If na 5% of transactions who go remain for market. Na me born Nigeria ni

lancee:
Pls house got a message from morgan about this 5% VAT from Thursday

I beg how the thing go be like/work for example selling share worth 1 million naira ..Is the VAT going to be like 50k naira??

pluto09:
https://www.newtelegraphng.com/2019/07/cbn-bars-banks-from-treasury-bills-auction/

Agbalowomeri:
I will see more value at 4.5

Kagame:
I don’t know how long you’ve been following ETI but if you remember a few years ago there we’re allegations of financial impropriety (outright stealing actually) and cooking of books leveled against the board members and guess what, a disgruntled senior executive was the whistle blower who reported to SEC.Actually,the board members advanced loans to themselves and wrote it off as bad loans in addition to other underhand stuffs �

SEC tried to come in and clean things so I don’t know how they are doing now but corporate governance failure is a huge thing to be worried about.A look at their financials for 2-3yrs will tell you what is happening there and guide you towards making a good investment decision.

Kagame:
FBNH has like another 3-4 yrs before it fully recovers.Normally,if you are an SIB and your NPL is above 5% upwards to alarming levels,CBN will invite you to present a 4yr remediation plan which I think FBNH did in 2015.

As you rightly pointed out ,the books will improve this year but that’s just halfway through the journey.This year,FBNH will likely write off over N300bn from their loan books due to Atlantic energy. For proper context, FBNH has made total NPL provisions of over 500bn since 2015 but yet, this huge amount only gives just over 80% (about 70,if you use IFRS 9) coverage ratio, this is really unprecedented in the history of Nigerian banking industry, smaller banks would not survive this ~ the rot is really deep.

If you look at their 2018 audited results, you will realize that NPL increased to about 29% from 25% . Why? The implementation of IFRS 9 which provides for proactive loan provisioning.With this accounting standard, there’s another N200bn of loans which has been moved to stage 2 (payments of interest and principal missed for 9months or so).

With the possible write off this year, NPL ratio will come down to manageable single digit but the bank will require more capital which means they will have to retain a lot of their profits and pay less dividend for a few yrs cos they can’t even come to raise Tier 1 from the market ~ they already have the biggest number of shares among listed banks and the current pricing is not favorable. As a matter of fact , the GMD of FBNH admitted that the bank (First bank) will not upstream dividend to the holding company except they make a significant recovery from their bad loans.

I have a positive bias for the current management, they are not afraid to let you know how bad things are ,which is good cos they were hired to clean up the mess. I believe in a few yrs when they are done with the transformation, the bank will come out stronger and will reward investors by way of capital appreciation and dividends . But there’s something very Nigerian (apologies) about FBNH that tells me that in a few years, probably in 5yrs time, after the current management might have left, the bank will return to old ways of sharing the “national cake” like we do in Nigeria.To avert this , the culture of the bank needs to change to one of excellence and efficiency like their peer GTB.

On current prices,if I’m to invest in any Nigerian bank with the aim of making my return in less than 10yrs , I’d put my money in Zenith ~ heck it’s 14% dividend yield and they are sitting on tonnes of cash by way of shareholders funds, I only worry a little about their corporate governance and their inability/reluctance to crack retail banking.That explains why investors price them a lot lesser than GTB.

If I want to make my return in 15yrs without checking the NSE everyday and probably retain some hope of transferring equity to my grandchildren,then GTB is it. But it doesn’t come cheap because ,no be only me dey see am, institutional investors wan die there!

There could be other good banks, but I’m sorry they are not on my radar for now.

Apologies I had to quote you with this long epistle, I only wanted to write briefly about FBNH but I found myself delving to other things.

onegentleguy:
Reading thru certain post here, Its clear too see why most Nigerians are BAD people.
A few from amongst us here have a very ill disposed attitude and are ungrateful !!
Heaven knows that all my post (including the revelations), was NEVER with an intent to deceive. ...not even a single one of them.
Having some strong market/in-house contacts, I try to reveal what I hear or know and also guide with the necessary insider information ahead of time, so everyone can benefit from them.
I wasn't doing them in expectation of any kind of reward in return. (don't need any from anyone)
...I was doing them because I sincerely wouldn't wish for any investor to experience what I went thru between 2008 and 2014. ...especially the not-so-knowledgeable ones.
I still remember losing nearly 74M ( over 40% of which, were funds that was put under my control to manage) from the share price fall of OCEANIC BANK and many moribund INSURANCE COYS and over 9M from the Govts ill decision to nationalize AFRIBANK. ...including other heavy and very painful losses.
My quest on NOT to wish those bitter experiences to any human, informed my decision and resolve to improve my financial know-how and also help with guiding as many as I could.
Those who know me and who have in one way or the other benefited from the many advise I gave them, can testify that I NEVER accept to receive any gift or money from anyone.
...I simply tell them to try and extend unto others what I have done to them. (pay it forward)
However, I can now see that some bad eggs here are very UNGRATEFUL, ILL-HEARTED and of a BAD DISPOSITION.
I now also realise I should've taken the advise of 2 or 3 friends here before now.
...my good deeds have now turned against me !!

I shall do well to learn from this going forward.

Mpeace:
Not a bad result. To me, this company is worth more than its current price but less than 50naira.
Poor dividend though.

wanaj0:
Judgement is YET to be delivered that is the crux of the matter.

Yayira:
GTB Facebook and GTB Instagram

Please double confirm your stories before posting them here. BIKO
No be play play matter

maishai:
To build a cement factory of sizable metric tonnes(greater than 2000 metric tonnes per day) would require nearly all the resouces at the disposal of a country, from your ports to all road networks leading to the site, it calls for people skilled at project management in a developing world like Nigeria, that is why only the likes of Dangote and Abdusamad Rabiu have successfully done it because they have the power that be on their side.....Milost should know they are dealing with an ABA man. ABA no dey carry last

onegentleguy:
In the past few weeks, there had been a few calls on the coy UBA from some members here. (my humble self inclusive)
...and so I decided to do a comprehensive analysis on why the stock is a BUY.
This, with respect to its YE 2017 and Q1 2018 results.

A few breakdown;

▪ Strong earnings drive: The bank raked up a 43% and a near 50% in top and bottom line respectively as the drive for earnings and profit diversification particularly from its African subsidiaries begins to yield the much needed fruit.
▪ Stong and robust cost management efficiency: The bank seems to be ahead of the curve with the recent implementation of IFRS 9 by the CBN given that even after a near 12.9% increase in OPEX which had a strain on profit margin, a drop in loan loss charge by over 53% after a loan book clean up, and the compelling of the bank by the CBN to restate their opening equity balance downwards following the adoption of IFRS 9 from Jan 1st 2018, they still managed a solid near 20% position in net profit margin. (...well above the 15% internationally accepted standard).
▪ Gross earnings rose by an approx 18% QoQ 2017/2018, while after tax growth witnessed a near 6.3% improvement.
▪ The bank has consistently maintained a well above average growth in shareholders fund within the last 3 yrs, with an inequality pattern of Y>29.5%<35%. ...where Y is the yield on shareholders fund. In line with this, the fund grew from 448 billion to approx 529.5 billion YoY in 2017.
▪ Along this path, the bank has also seen a 3 yr consecutive growth in EPS from N1.45 to N2.30. ...book value also grew by a whooping approx 92% from N8.05 to N15.48.
▪ As at Q1, the bank is trading at a 0.69k EPS, a slightly above 4.03 price earning and an above average ROAE.
▪ Within the last 3 quarters, the bank has seen a far more greater interest in net inflow of funds with practically zero outflow. ...a few core investors have actually been increasing their stake in the coy.
Looking at the current shareholding structure, the Bank of America merril lynch, STH Ltd and the Bank of New York Mellon, are currently 3 of the biggest FPIs. With the latter 3rd and another core investor, Consolidated trust funds Ltd increasing their stake to 4.4% and 4.7% in that order. The biggest stakeholders are currently Stanbic nominees Nig Ltd and the UBA staff inv trust which holds an 11% and 7.6% stake respectively. There are presently a total of 10 core investors and FPIs with different stakes in the bank.

With a current price earnings ratio of 4.03x, a price to book ratio of 0.71x and book value of approx N15.80, UBA is presently trailing a near 35% margin of safety. (...precisely 34.4% MoS from its intrinsic value).
...this gives a Fair Price of N18.10 based on Q1. ...and therefore presents a juicy 59% discount from Friday's close of N11.35.
UBA is therefore a BUY from my end.

NOTE: This analysis is purely result driven and not any sort of outright recommendation. ...DD still advised as always pls.
My Verdict: Follow ur instinct.

Regards.