The impressive unaudited results of banks for the third quarter-ended September 31, 2011 have impacted positively on prices of equities in the banking sub-sector in  last two weeks.

Consequently, the Nigerian Stock Exchange (NSE) Banking 10 Index, which measures the performance of the banking sub-sector, has appreciated by 7.1 per cent between October 17 and 28, 2011.

The Banking 10 Index   rose from 281.05 to 301.01 within the period. The positive growth reduced the sub-sectoral  index year-to-date (YTD) loss from 32.55 per cent to 20 per cent last week.

According to market operators, the impressive results by banks had been instrumental to the positive development witnessed in the banking sub-sector in particular and the market in general. Apart from the  banking index,  the NSE benchmark index rose by 3.2 per cent last week to close at 20,903.16.  Thus the YTD performance of the All-Share Index has improved from negative 21.4 per cent to 16.3 per cent within the period under review.

Some of the banks that declared their results include: Guaranty Trust Bank Plc, First Bank of Nigeria Plc, Zenith Bank Plc,  , Access Bank Plc, Skye Bank Plc, Ecobank Nigeria Plc,  United Bank for Africa Plc Sterling Bank Plc, First City Monument Bank Plc and Stanbic  IBTC Bank Plc.

For instance, Zenith Bank reported  gross earnings of N182.955 billion in 2011, indicating a growth of 31 per cent above the N139.601 billion in 2010. Profit before tax rose by 28 per cent from N39.159 billion to N50.134 billion, while PAT grew from N31.131 billion to N42.95 billion. Zenith Bank retained the high level of customers’ confidence as customers’ deposits rose by 17 per cent from N1.318 trillion to N1.545 trillion.

Similarly, Guaranty Trust Bank posted  gross earnings  of N126.144 billion  as against N107.178 billion in the comparable period of 2010. Profit after tax rose from N28.82 billion in 2010 to N37.92 billion in 2011.

First Bank of Nigeria Plc posted gross earnings of N211.166 billion for the Q3 ended September 30, 2011, up from N177.065 billion in 2010.
The bank ended the period with profit after tax (PAT) of N42.89 billion, up by 32 per cent from N32.562 billion in 2010.

First City Monument Bank Plc  recorded  a growth of   73 percent in PAT to N7.9billion from N4.6billion.

The bank explained in a statement that “growth in year-on-year profitability was driven by a 41 per cent increase in net interest income and a 29 per cent growth in non interest income with operating income growth coming in at 36 percent on a year-on-year basis”.

FCMB added that its operating income benefited largely from balance sheet growth due to increased patronage, the higher interest rate environment and the sustained generation of non-interest income.

Access Bank Plc  posted   N82.165 billion  gross earnings in 2011, compared with N77.954 billion  in 2010.Profit before tax of N16.425 billion, up 16.79 per cent  on the prior year N14.065 billion.

PAT stood at  N12.812 billion, up 34 per cent from the N9.564 billion in 2010. Quarter on quarter, the bank’s after tax profit returned higher by 58.56 per cent when compared to its Q2 2011 PAT of N8.08 billion.

Source: ThisDay/Goddy Egene