Coronation releases 2021 bank report

Coronation Asset Management has released its report on Nigerian banks titled: “Nigerian Banks, Resilience Built In.”
The report showed that Nigerian banks’ earnings have been remarkably resilient over the interest rate cycle, with their profitability improving over time.

Also, their stock values are remarkably cheap compared to Ghanaian and Kenyan bank stocks.
The report, written by Ope Ani and Guy Czartoryski of Coronation Research, examined what has happened within the Nigerian Banking industry in the last 10 years.

Read:  CBN, experts advocate collaboration on micro-insurance

“It is a unique 10-year study of the margins and profitability of six listed banks: Zenith Bank; GT Bank; Access Bank; FBN Holdings; UBA, and Stanbic IBTC.

“These banks have adapted successfully to many changes in interest rates over the 10 years from 2010 to 2020. Therefore, they are well-positioned for the rise in rates in 2021,” the firm explained in a statement.

Read:  FMDQ lists N50bn CPs, N110bn bond in one week

“While underlying growth in assets has been elusive, especially when data are adjusted for inflation, profitability has generally improved.

“The return on average equity (RoAE) and return on average assets (RoAA) of the six banks studied have both converged and improved over 10 years.

Read:  First Bank hosts fintech summit on open banking

“This trend appears to be under-appreciated by investors, and the report shows the positive investment potential in the sector,” Senior Research Analyst at Coronation Research, Guy Czatoryski said.


Related posts

Banks shut branches early ahead of polls


Nigerian Multi-Asset Broker Kwakol Markets to Participate at the iFX EXPO Dubai 2022


Economists forecast lending rate hike ahead of MPC meeting


Supreme Court order: Banks in partial compliance, begin skeletal re-circulation


As new currencies remain scarce, CBN urges Nigerians to be patient


Economists fault MPC over 18% lending rate


Leave a Comment