14 banks
quoted on the floor of the Nigerian Stock Exchange (NSE) have recorded a total
Profit Before Tax (PBT) of N364 billion for the half year that ended on June
30, 2015.
This amount represents an increase of 16 per
cent compared to N314.2billion profit before tax recorded by the same banks in
the same period of 2014.
Details of the results showed that Ecobank
Transnational Incorporated Plc and Skye Bank Plc were the only financial
institutions with highest performance in profit before tax that gained 47 per
cent each.
Ecobank
Transactional Incorporated Bank profit before tax closed the half year at N61.4
billion as against N41.7 billion in H1 2014 while Skye Bank PBT moved from N7.3
billion to N10.7 billion in H1 2015.
Statistics
gathered by our correspondent showed that Access Bank Plc came close at 44 per
cent from N27 billion in H1 2014 to N39 billion, followed by Zenith Bank Plc
that grew its PBT by 25 per cent from N57.9 billion in H1 2014 to N72.2 billion
in H1 20145.
Access
Bank had declared an interim dividend of N0.25 per share, implying a dividend
yield of 5.33 per cent, based on Friday’s closing price of N4.67.
This was
followed closely by Guaranty Trust Bank Plc, which recorded a PBT of N63
billion in the year under consideration, representing a 18 per cent rise over
N53.4billion profit recorded in the similar period of 2014. The bank also
declared an interim dividend of 25 kobo per share.
Unity Bank Plc, with a profit before tax of
N8.8billon, came next, showing a 11 per cent rise compared to N7.9billion
profit in June last year, while, First Bank of Nigeria Holding Plc followed,
rising by eight per cent from N48.3billion in H1 2014 to N52.1billion in the
year under consideration.
Union Bank of Nigeria and Fidelity Bank profit
before tax rose by two per cent from N6.5billion and N9.4 billion to N6.6
billion and N9.7 billion respectively.
Finally
from impressive results, Sterling Bank profit before tax marginally gained one
per cent to N6.1 billion from N5.97 billion recorded in H1 2015.
Analysts
have said the increase in the performance of the banks was as a result of more
prudent management of their activities as against the previous activities of
many of the banks.
They added that banks recently have increased
their gross earnings and drive customers deposit in order to drive growth in
non interest income and profits.
The sector
this year has witnessed severe monetary policies mostly especially from Central
Bank of Nigeria (CBN).
The
Managing Director, Enterprise Stockbrokers Plc, Mr. Rotimi Fakayejo, said banks
half year results might not be sustained over CBN keen interest at strengthen
the foreign exchange market.
He said,
“the foreign exchange market and dwindling oil global prices have weakened
companies earning compared to that of last year
“Half-year
results of quoted companies have not been encouraging and it is quiet expected
because the state of the economy,” he said.
Analysts at
Meristem Securities Limited, in their investment guide for this week, said the
banks were likely to end the year with “fairly strong performances”.
They said,
“The recent earnings releases have been fairly good, and while we expect the
financial performances of most banks will taper off as we go towards full-year
2015, we believe that a few banks will still report fairly strong FY
performances, and declare attractive dividend disbursements.”
From a weak
results, Stanbic IBTC Holding Plc profit before tax dropped by 51 per cent to
N9.5 billion in H1 2015 from N19.9billion in H1 2014, while Wema Bank’s PBT
fall by 31 per cent from N1.7billion in H1 2014 to N1.17billion in H1 2015.
According to the half year results, First City
Monument Bank (FCMB) and Diamond Bank Plc recorded the also recorded decline in
PBT in the period under consideration to 14 per cent and 12 per cent
respectively.
FCMB PBT
moved from N11.14 billion in H1 2014 to N9.5 billion in H1 2015 while that of
Diamond Bank stood at N14.2 billion in H1 2015 as against N16.1 billion in H1
2014.
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