Market regains as seven banks post Q3 results
The Nigeria Stock Exchange regained traction on Tuesday rising by 63bps to peg the WtD at 0.14% and YtD at 33.60%.
Six banks also posted third quarter results, with all except Access Bank achieving positive growth.
Volume and Value traded both increased by 21.96% and 21.86% compared to previous figure. The market mood as measured by market breadth stays positive (1.29x) with 27 stocks advancing against 21 stocks declining.
The NSE-30 gained 0.86% while Food and Beverages sector also appreciated by 1.49%. Oil and Gas, Insurance and Banking sectors lost 1.13%, 0.86% and 0.35% respectively. Leading the gainers’ chart are ACADEMY (4.74%), IHS (4.56%) and WEMABANK (4.46%) while CUTIX, FO and PRESTIGE led the losers’ chart shedding 9.39%, 7.3% and 5.56% respectively.
The earnings season continued today with the inflow of more results mostly by banking sector. Six banks released their 2013:Q3 results with respective gross earnings and earnings after tax growth as follow: ACCESS (-3.72%, -20.01%), DIAMONDBANK (20.21%, 10.35%), STANBIC (29.50%, 129.48%), SKYEBANK (8.41%,-11.94%), FIDELITYBK (13.43%,-13.83%), ETI (8.17%, 65.93%) and Skye Bank.
For Access Bank, the unaudited results made available on the floor of the Nigerian Stock Exchange (NSE), showed its gross earnings stood at N154 billion at the end of September 2013. It however showed the bank's profit before tax fell by 10.26 per cent to N35 billion as at September 2013, compared to the N39 billion it stood in the comparable period of 2012. The bank's operating income also declined by 7.96 per cent to N104 billion during the period under review, from N113 billion as at September 2012. However, its operating income improved by four per cent from N34 billion in the second quarter, to N35 billion in the review period.
Commenting on the bank's financial performance, the Group Managing Director/Chief Executive Officer, Access Bank Plc, Mr. Aigboje Aig-Imoukhuede said: 'We have commenced the focused implementation of our 2013 - 2017 medium term strategy. Already our customers are enjoying a step change in the quality of service delivery as a result of the introduction of 200 customer experience initiatives which will enhance our customer service to industry leading levels.
'As planned, we have achieved strong loan growth with good quality names and the revenue benefits will begin to accrue from fourth quarter and beyond.'
Also, the Group Managing Director designate of Access Bank Plc, Herbert Wigwe, said: 'The impact of on-going regulatory development has affected the overall operating environment in 2013.'
On the other hand, Skye Bank Plc's gross earnings rose to N102 billion at the end of the period as against the N94 billion it realised in the corresponding period of 2012. But its profit before tax also declined to N14.562 billion at the end of September 2013, from the N16.549 billion it realised in the comparable period of 2012.
The bank also made a profit after tax of N11.650 billion at the end of the years, compared to the N13.229 billion recorded in 2012. The bank said it achieved this feat as a result of its efficient cost management and stable market share. Commenting on the results, the Group Managing Director/Chief Executive Officer, Skye Bank, Mr. Kehinde Durosinmi-Etti, said the results demonstrated the capacity of the financial institution to sustain continuous improvement in major performance indices. According to him, the moderate growth was commendable in the context of the several regulatory policies and tightened liquidity which had constrained profitability margins across the industry.
But unlike its peers, Stanbic IBTC Holdings' nine month profit before tax rose by 126 per cent to N20.33 billion, up from N8.740 billion same period last year. The gross earnings at the Nigerian unit of South Africa’s Standard Bank rose to N83 billion naira during the nine months to September 30, as against the N64 billion achieved last year.
The bank's net interest income also increased to N27.094 billion, from N26.601 billion last year.