Home Analysis FUGAZ Banks gross earnings decline marginally in FY 2018

FUGAZ Banks gross earnings decline marginally in FY 2018

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Last Friday, FBN Holdings released its results for the 2018 financial year, thus completing the quintuplet of expected statements from the five biggest banks by shareholders funds in the country (going by the acronym FUGAZ).  

Here is a comparative look at the topline and bottom line of all banks.  

Gross Earnings 

The FUGAZ banks made a total of N2.63 trillion as gross earnings for the 2018 financial year. Zenith Bank led the pack with gross earnings of N630 billion. FBN Holdings took a distant second with N583 billion while Access Bank took third place with N528 billion.

  UBA took the fourth position with N464 billion in earnings, while Guaranty Trust Bank rounds up the top 5 with N434 billion in earnings. 

Year on year, this amounts to a slight decline. 2017 FUGAZ gross earnings amounted to N2.67 trillion (figures used for the 2017 financial year are as restated in 2018 financial statements).  

Profit before tax 

The five banks made a total of N720 billion as profit before tax for the 2018 financial year. Zenith Bank again took first place with N231 billion as profit before tax. Guaranty Trust Bank took second place with N215 billion as profit after tax. UBA took third place with N106.7 billion made as profit before tax.

 Access Bank made N103 billion as profit before tax. FBN Holdings rounds up the top 5 with N65.2 billion as profit before tax, for the 2018 financial year. 

Year on year, this marks an increase as the five banks made a total of N606.1 billion as profit before tax for the 2017 financial year.  

Coronation Research

Profit after tax 

FUGAZ Banks made a total of N610 billion as profit after tax for the 2018 financial year. Zenith Bank again led the pack with a profit after tax of N193 billion. Guaranty Trust Bank followed closely with N184 billion. Access Bank takes a distant third place with N94.9 billion. 

Coronation Research

UBA takes fourth place with a profit after tax of N78.6 billion. FBN Holdings rounds up the top five with a profit after tax of N59.7 billion.

Earnings per share 

Guaranty Trust Bank had the highest earnings per share of the five banks with an EPS N6.54. Zenith Bank follows closely with an earnings per share of N6.15 per share. Access Bank takes a distant third with an earnings per share of N3.31. 

UBA takes the fourth place with an earnings per share of N2.20, while FBN Holdings rounds up the top 5 with an earnings per share of N1.65.

Dividend per share 

Zenith Bank paid the highest dividend of the 5 banks, with a total dividend pay out of N2.80. Guaranty Trust Bank was next with a N2.70 payout. UBA takes a distant third with a total dividend payout of N0.65 per share.  

Access Bank takes fourth place with a total dividend payout of N0.50 per share. FBN Holdings rounds up the list with a N0.26 dividend. 

PE Comparison  

On a PE ratio basis, GT Bank has the highest multiple, as it trades at a PE ratio of 5.3 times earnings. FBN Holdings is next with a PE ratio of 4.3 times earnings.

Zenith Bank is trading at a PE ratio of 3.3 times earnings. UBA is trading at a PE ratio of 2.8 times earnings.  Access is trading at the lowest multiple among the FUGAZ banks, at 2.7 times earnings.  

 All the lenders are however trading lower than the average PE ratio on the exchange of 7.5 times earnings.  

 

 

 

 

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