₦airaland Forum

starpower:
probably 450 range, the international price kpo is reducing as oil price since quite a lot is used in bio fuel which will affect it demand. Price reduced most times in 3rd quarter then volume in storage very low, rubber price seems to be increasing internationally so could be wrong on my assumptions.

This your bolded caveat further persuades me of your good understanding of the biz, amongst of course, other analysts like crownprince2017 who equally have their own valid viewpoints and convictions.

Many tend to overlook or forget the place of rubber production and exportation in the Okomu/PRESCO success story.

zendi:
You sound sharply knowledgeable in the industry.
Any thoughts or solid info on Ellah Lakes?
It had been a baby stock since Onyiuke/Soludo era that I came into the market.

In those days I thought Ellah Lakes was a cluster of fish ponds. Perhaps because of the word 'Lakes'. Ellah had remained an infant stock since then.

When Chams appeared, I thought it was a chain of Cybercafes.
I cautioned myself, "I hope you've not come to the stock market to invest in Cybercafes".

I started taking chams seriously when it became associated with the national identity card project. I don't know what has become of that.

I feel safer badmouthing chams now that Loco and his e-thugs have disowned it.

Just musing out for your weekend pleasure.

starpower:
it is a seasonal businesses revenue will decline from next quarter and cost will go up for crop management.

You sound sharply knowledgeable in the industry.
Any thoughts or solid info on Ellah Lakes?
It had been a baby stock since Onyiuke/Soludo era that I came into the market.

Redoil:
Nigerian banks have begun releasing their Q1 2025 results, and while many are still posting billions in profit, the era of runaway earnings growth may be drawing to a close.

For years now, Nigeria’s biggest banks, popularly referred to as the FUGAZ, have normalized quarterly pre-tax profits above N150 billion.

However, early numbers from this quarter suggest that growth is beginning to stall, and in some cases, reverse.

GTCO, one of the sector’s most efficient banks, saw its pre-tax profit fall sharply by 41% to N300 billion. FirstHoldCo wasn’t spared either, recording a 20.2% drop.

Access Holdings and Zenith Bank still posted modest growths of around 10%, but even that marks a steep drop from the triple-digit surges seen this time last year. So, what changed?

The cost of staying in business is rising

A closer look at the financial statements tells part of the story. Operating expenses are rising across the board, largely in response to spiraling inflation.

As the cost of doing business climbs, banks are spending more on everything—from technology to salaries. With bigger balance sheets, their overheads are also scaling up.

For instance, FirstHoldCo spent over N19 billion on advertising and promotion—a huge spike compared to last year.

Access Bank reported N41 billion in IT and e-business expenses, while Zenith Bank’s IT spend surged past N21 billion. Personnel expenses are also on the rise, as banks adjust wages and expand their workforce to support growth.

In addition to inflationary pressures, banks are also seeing spikes in statutory costs. The controversial AMCON levy, a resolution fund fee, is taking a bigger bite out of profits.

Then there’s the sharp drop in foreign exchange revaluation gains—another major factor now weighing on bottom lines.

The forex windfall is drying up

Over the last two years, Nigerian banks recorded massive gains from forex revaluation, thanks to multiple currency devaluations. But with the naira now showing relative stability in 2025, those once-in-a-lifetime windfalls are tapering off.

Take Zenith Bank. Its trading gains dropped from N186.3 billion in Q1 2024 to just N12.8 billion this quarter. Last year, the bank made over N1 trillion in revaluation and trading gains.

GTCO’s story is even more dramatic, with unrealized FX gains plunging from N331 billion to just N1.5 billion.

This sharp drop was expected, but its effect on earnings is now clearly visible.

The EPS challenge looms

There’s another factor quietly at play: dilution from last year’s capital raises. In 2024, Nigerian banks raised nearly N2 trillion in fresh equity to meet recapitalization targets.

This means more shares in circulation—and therefore lower earnings per share (EPS), even if total profit still grows.

EPS is critical for valuations and investor sentiment. To maintain or grow EPS at 2024 levels, banks would need to significantly scale up profits—perhaps double or triple current levels.

That will be a tall order, especially as banks are now expected to grow earnings primarily through lending.

While interest rates remain high and risk-free instruments like treasury bills are attractive, expanding loan books in a fragile economy could increase non-performing loans.

Fortunately, most banks have built solid buffers by making provisions during the profitable years. But the risks remain.

What to expect going forward

While more Q1 results are yet to be released, the early signs point to a common trend: earnings growth is cooling off. This doesn’t mean banks are in trouble—it just means investors must adjust their expectations.

The Nigerian banking sector is still very profitable. But the days of bumper gains driven by one-off FX revaluations, underpriced equities, and windfall trading income may be behind us.

For investors, it’s time to watch how banks respond: Will they double down on lending? Will costs spiral further? Or will they find new, more sustainable paths to profit?

The golden era of easy bank profits may be fading. What comes next will demand better strategy—and a lot more patience

But this is a Nairametrics essay.
Next time just make some remarks and then link the source, to save space.

Abi PRESCO loot still dey intoxicate, red oil ?

https://nairametrics.com/2025/05/02/nigerian-banks-are-seeing-their-earnings-decline-and-it-could-get-worse/

Mankind2024:
Happy workers' Day!. Take time out to celebrate your journey. You deserve it : :
Here is mine
My investment journey has been a marathon, and I've learned valuable lessons along the way. As a student of legendary investors like Peter Lynch and Warren Buffett, I've read over 50 best-selling books on investing. One key takeaway that has guided my strategy is Warren Buffett's advice: "Never buy a stock that you're not ready to own forever." This principle has been instrumental in shaping my portfolio on both the Nigerian Stock Exchange (NGX) and the New York Stock Exchange (NYSE).
During the challenging period of the Donald Trump tariff war in April 2025(Black days of massive sell off) my portfolio faced significant losses, and I had no new funds to invest. I took a step back, and focused on the local market. Today, days after my birthday, I decided to review my portfolio, and I was pleasantly surprised to see it had recovered from a loss of $22,000 to a gain of over $19,000. I also noticed that my portfolio had surpassed the $100,000 mark, a milestone that indicates a diversified portfolio can rebalance itself even without new investments.
The old adage "Sell in May" seems outdated, as investors now prioritise fundamentally healthy companies and adopt a long-term approach. As the saying goes, "Never kill the goose that lays the golden egg." The principle of delay gratification 👍.
My portfolio's growth from bar $116 to over +$19,000 (May 1st 2024 to 1st May 2025) in gains is a testament to the power of long-term investing. A similar trend is evident in my NGX portfolio, where the gains appear sustainable.
I believe that long-term investing triumphs over short-term gains.
To fellow investors, I say, stay committed to your strategy and focus on the fundamentals (If marrying the fundamental is possible, don't hesitate)
May our investments continue to flourish, and may we reap the rewards of our hard work, and may the fruit of Tinubunomics reforms (T-pain) turn to T-gain in our lifetime. Amen.

You're welcome.
Happy to hear from you since a while.

Agbalowomeri:
His partner in crime is still there

More like his Mentor actually...

And the original Soludo-Cowboys Maradona ....is still there.

Locotrader:
People who get into chams today may shout Hallelujah at the end of today.
The share price will certainly respond to the Q1 result which is expected today.

A positive one

SonofElElyonRet:
You've seen the results ahead of release?

Hmmmn...

not sure Mr Market respects audacity.

Streetinvestor2:
Hunger and poverty they wound people for naija but all these companies just dey hammer for q1 results. Does it mean they have been exploiting the people of nigeria via all this increase in product and services hiding under inflation and government policies.
I am just reasoning the matter oh.

The most shocking is that Nigerians are still guzzling enough beer to keep the breweries not only still in business but to actually remain hammering.

HesInMe:
Yes na. Isn't that how we discovered Chams na hope and prayer with 25% gross margin?

You're right. After all, wetin be DD if not asking questions?

If you no understand the writing on the bus before boarding, how you go know whether na One Chance you wan enter?

ribbit:
Canada saw the mess going on in America, they quickly crushed their magaturd like conversative dream. 😭😭.

Canada can enjoy their far left nationalism until they cross a red line;
Such as getting too friendly with China;
Then they will become 51st state by force.

For now they should get to work rectifying their chronic trade surplus against Trump.

Locotrader:
Just as you are asking about chams.
Continue asking questions

He wants to understand the writing on the bus before boarding the bus.

Loco you no go kee pesin wit laff.

essentialone1:
Na Niger Insurance I carry ooo. Not STD.

Lol.

Mpeace:
Lol. I laf for this one sote them begin to think say FBNH don comot nut for my head.

T called blacks pet eaters.

B called blacks human eaters.

B is more racist than T if I'v not missed something.

essentialone1:
This your Stdinsure fit don turn to Sexually transmitted disease ooo.

My portfolio go survive your mouth.
After you announce the obituary of evansmed the other day, now you wan turn STD insure to the bolded.
And you dey carry Niger Insurance about. God dey.

Canadian Leftists have made a bed of tariffs for themselves, with this election.
Trump will make them to lie on it.

raumdeuter:
Who are the racists you are capping for? Is it Biden who supported busing or the one who said you aint black if you don't vote for me

When Trump called Haiti shithole country, and later, pet eaters, there was wailing and caterwauling all over the Left.

But when Biden claimed that Papua New Guineaans ate his Airforce uncle when he was shot down over their territory, implying that blacks are cannibals, no uproar was heard.

Callings blacks cannibals is infinitely more racist than calling blacks dog eaters.

https://www.cnn.com/2024/04/24/world/biden-cannibalism-papua-new-guinea-intl-hnk/index.html

progressing:
Courtville is still showing in my portfolio any advice pls?

essentialone1:
Niger Insurance is still showing in my portfolio. Any advice please?

Evansmed and Stdinsure.
How do I delete them?

basilico:
AOC is likely a 2028 top contender.

With Benie Sanders as her running mate.
Another possible pair is Jasmine Crockett with Hunter Biden.

The US Left is cacotopian in candidate quality.

IYGEAL:
Means the same thing everywhere, generally

It's as opposed to video...something you can see. "The money wey we no see na audio" as one of the Psquares sang.

A company could report audio EPS which is not backed by actual numbers, and their body language isn't anything like that of a company with such numbers.

I can say I have 4 million units of Seplat when in fact I have a sum total of zero shares of Seplat... Audio. You get it?

Okay, I'm an audio billionaire then, thanks.

SonofElElyonRet:
You're welcome..

Actually it's E se (pronounced "eh shay" meaning thank you.. the E is "you"

You could also say "Mo dupe" meaning I thank you". The "Mo" being "I"

The bolded noted. Thanks for the schooling.

SonofElElyonRet:
O lagbara

I grew up hearing of the 7 wonders of the world.
I don't know how many wonders there are now, but you dare not exclude Google when counting.

So I querried Google for the English meaning of this Yoruba you wrote in response to my joke, and the result came out positive and powerful.

E dupe.

Please anybody, what is the meaning of 'audio' in nsempa slang?

SonofElElyonRet:
Thinking of selling my Chams to take care of some needs instead of waiting for new inflow of cash. I'm in a little green now but want to target N2.20. any likelihood of major price rally or I should go ahead and sell at N2.20 target price? Advice needed

So, fear of missing out for rally (fomo),
no allow you sell share go attend to your need. !

You be ijebu man, abi na kwara ?

double chai !

Biden was escalating the Ukraine war while Trump is scratching at the surface of the solution.

The root cause of the war is much deeper than Western leaders seem to understand.
A mammoth peace meeting featuring all actors should be convened to agree on my famous proposal below, posted here on March 02, 2024, for the sake of our planet's safety from a nuclear apocalypse.

zendi:
As Ukraine conferences and counter conferences go on, this is how to stop the war by peace deal, before the war stops humanity by nukes.

1) Russia's Neighbours must not join NATO, EU or any Western Military Alliance.

Russia's Neighbours are Ukraine, Georgia, Finland and Sweden.

They must not also be coerced into Military Alliance by Russia.

Russia's Neighbours must stay NEUTRAL of military alignment.

The wrongheaded rushing of Finland and Sweden into NATO should be cancelled.

2) Crimea should stay Russian.

Every History I've read states that Crimea was Russian before it became Ukrainean.

3) Russia must withdraw from every other inch of Ukrainean territory, annexed or occupied.

Any Ukrainean-Russian who wishes to be Russian citizen should migrate into Russia, which has the widest land mass of any Nation on Earth.

happney65:
Canadians sef use their brains

No, they no get brains at all, let alone use any.

They voted for wider open borders.

Trump will tariff them back to their senses, then seal off America's nothern border to stop the alien invasion from re-routing into America through borderless Canada..

jonnysessy:



I really need to keep my ear to the ground on this forum and not joke with some Monikers calls. Some predictions are top notch.

HesInMe:
A specific EPS is hearsay? Lol.

Stop encouraging people to break the law and potentially get into trouble.

My brother, market intelligence is real and rampant.
Underground info enters the market before the official, and that's why stocks are moving before you know why.
That's how when the inepts are JI-ing, the adepts are already JO-ing.

Just saying, because I know you're to school me on these things, a top games man that you are.

RodgersAkpafu:
It's a very nice series
You should watch it

Reddington is THE man

This fictional character Reddington must be extremely deadly.
The way you, chimex38 and GeeKudi have recommended the Blacklist, if na stock, I for don rush go buy am with no DD sef.

chimex38:
@Bolded...on Point

Anyway, Zizou Zidane came back from retirement

And made tons of money therefrom.