Analyst: Olumide Sole 4th Quarter Performance In its Q4 results, UBA’s Gross Earnings came in at ₦767 billion, 213% higher y/y. This was as a result of a 199% y/y growth in the bank’s Interest Income to ₦409 billion, thanks to improvements across all the interest income lines. Meanwhile, Non-Interest Revenue (NIR) also grew by...
Analyst: Olumide Sole*o.sole@vetiva.com Amid prevailing macroeconomic challenges and potential headwinds from external and domestic shocks, the Central Bank of Nigeria (CBN) announced the upward review of the minimum capital requirements for commercial, merchant, and non-interest banks in Nigeria. Consequently, the CBN looks to strengthen the capital buffers of Nigerian banks to drive growth in the […]
Analyst: Moshood Salaudeen* m.salaudeen@vetiva.com Inflation remains elevated in top SSA economies In February, headline inflation moderated in 5 out of the top 10 economies in Africa, compared to 4 in January. Notable declines were recorded in Morocco (-2.0ppts), Ethiopia (-1.2ppts), Kenya (-0.6ppts), and Ghana (-0.3ppts). The largest upticks were observed in Egypt (+5.9ppts), Angola (+2.1ppts),...
Ibukun Omoyeni* i.omoyeni@vetiva.com In the second meeting of the year, the Cardoso-led Monetary Policy Committee (MPC) raised the Monetary Policy Rate by 200bps to 24.75% and adjusted the asymmetric corridor around the MPR to +100/-300bps. While the Cash Reserve Ratio (CRR) for commercial banks was left unchanged at 45%, the Committee raised the CRR of...
Analyst: Oluebube Nwosu* o.nwosu@vetiva.com Target price: ₦35.91 Rating: SELL TL;DR Revenue: ₦594.6 billion, marking an impressive 51% y/y increase. Profit After Tax: ₦8.26 billion, showcasing a substantial 91% y/y increase. Net operating losses (FX impacted): ₦77 billion loss as against ₦4.2 billion gain in Q3’23. Q3 revenue growth expands gross margin In the third quarter...
Analyst: Oluebube Nwosu* o.nwosu@vetiva.com Target price: ₦25.64 Rating: SELL TL;DR Q4’23 revenue grows by 26% y/y to ₦197.8 billion. Q4’23 net finance expenses jump 4.6x as FX losses and finance costs hit ₦66.4 billion and ₦17.5 billion respectively. Q4’23 loss came in at ₦49.1 billion (Q4’22: ₦1.6 billion loss). Robust revenue growth in a challenging...