Zenith Bank Plc
Zenith Bank, is expected to release its full year results on Tuesday the 6th of March. The stock at its current price of ₦31.55 has lagged price-wise, compared to tier one peer GT Bank at ₦48.50 and even tier two lender, Stanbic Ibtc, which closed Friday at ₦47.00. Year to date, the stock has appreciated by 23.05%.
The bank’s stock could rally slightly if it were to releases its results this week. In a notice to the NSE sometime in January, the bank had given notice of a board meeting where the financial statements would be considered, as well as possibilities of dividend payments.
Zenith’s most recent results for the 9 months ended, September 2017, show a vast improvement in terms of top and bottom line. Gross Earnings increased from ₦380 billion in 2016 to ₦531 billion in 2017. Profit after tax increased from ₦95 billion in 2016 to ₦129 billion in 2017. Earnings per share also increased from ₦3.03 in 2016 to ₦4.11 in 2017.
GT Bank Plc
GT Bank, is known for its early release of results alongside its tier one peers. The bank is expected to publish its FY 2017 results on Thursday the 8th of March. Year to date, the stock has appreciated by 19.02%. In a notice to the Nigerian Stock Exchange,in January, the bank indicated that its board would meet to discuss its audited financial statements for the year ended, December 2017.
Though some analysts are of the opinion, that the expected dividends have been priced in, GT dropping its results this week could lead to a minor rally in the banking sub index.
Results for the 9 months ended, September 2017, show that interest income increased from ₦181 billion in 2016 to ₦248 billion in 2017. Profit after tax also increased from ₦117 billion in 2016 to ₦125 billion in 2017. Earnings per share increased from ₦117 billion in 2016 to ₦125 billion in 2017.
Nestle Nigeria Plc, on Friday released its results for the 2017 financial year and they were superlative. Revenue increased by 31% from ₦181 billion in 2016 to ₦244 billion in 2017. Profit before tax also increased from ₦21.5 billion in 2016 to ₦46.8 billion in 2017. Profit after tax jumped by a massive 326% from ₦7.9 billion in 2016 to ₦33 billion in 2017.
The company has proposed a final dividend of ₦27.50, bringing total dividends for the year to ₦42.50. Nestle closed at ₦1400 on Friday’s trading session, down 10.03% year to date. Though Nestle is currently trading at 36 times its earnings, investors may decide to buy into the stock with the expectation of capital gains.
Japaul Oil and Maritime Services Plc was the biggest gainer on the NSE, in last week’s trading session. The stock opened at ₦0.42 and closed at ₦0.63, gaining 50%. Investors are reacting positively to news of Milos Global, a private equity firm, investing in the company. Prior to this, the stock had joined a handful of stocks, that were trading below the ₦0.50 kobo floor, initially in place.
Seplat Plc last week released its financial statements for the 2017 financial year, and the company has returned to profitability. Seplat made a profit before tax of ₦13 billion in 2017, compared to a loss before tax of ₦47 billion in 2016. A ₦67 billion tax credit received in 2017, pushed the profit after tax for 2017 to ₦81 billion; a.
A huge improvement from the loss after tax of N45 billion made in the preceding year. There will be no dividend payments however, as the company aims to conserve capital.
The oil and gas firm also announced its intentions to raise a 5/ 7 year U.S. dollar denominated bond. The bonds will be guaranteed by several of Seplat’s subsidiaries and proceeds will be used to refinance existing indebtedness and for general corporate purposes.
Seplat closed at ₦700 on Friday’s trading session, up 11.80% year to date. The stock is currently trading at 4.14 times its earnings, leaving room for some upside in line with general market sentiments.