GT Bank's surprisingly good earnings lift Nigerian bourse
Better than expected third quarter earnings reported by GT Bank lifted the Nigerian bourse in early trading today.
Thu, 20 Oct 2016 14:06:48 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- GT Bank's strong earnings performance led to a positive trend in the Nigerian stock exchange, with the banking sector likely to see similar positive reports.
- The consumer sector is grappling with challenges, particularly related to foreign exchange issues, cautioning investors to tread carefully in that space.
- Investors are advised to monitor the fundamentals closely to ensure sustained market growth beyond short-term positive trends.
The Nigerian stock exchange experienced a positive upturn today fueled by the better than expected third quarter earnings reported by GT Bank. Tajudeen Ibrahim, the Head of Research at Chapel Hill Denham, shed light on the factors and figures driving this positive performance. Ibrahim highlighted the strong numbers posted by GT Bank, including a better MPL ratio of 4.1% and a manageable cost of risk of around 3.3%. Of particular note was the impressive average RoE of 36%, surpassing UBA's 18% and the industry average of 14% for 2016. The robust performance of GT Bank has set a positive tone for the banking sector, with expectations of other banks following suit with strong earnings reports. However, Ibrahim cautioned that some banks may face challenges due to the quality of their loan books. Despite potential short-term market upticks, Ibrahim believes that investors will need to closely monitor the fundamentals to sustain long-term market growth.
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