Sales volumes crash for Northern Nigeria Flour Mills Plc

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Northern Nigeria Flour Mills Plc released its third-quarter results for the period ending December 2020

  • Revenue of N2.1 billion  (-16% YoY).
  • Cement volumes in metrics tonnes 7.834 vs 13,064
  • Operating expenses of N162 million (+90.5% YoY)
  • Loss per share -53 kobo versus -33 kobo YoY
  • The company share price of N8.75, up 29.82% YTD.
  • The stock is trading at 55% to its Net Book Value and a price-earnings multiple of N4.7

Bottom Line: The crash in volumes was the major reason for the losses. The company has lost more ground to the competition.  This company could be a target for a merger soon.

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2020 FY Results: CHI Plc post N647 million in profit after tax

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Consolidated Hallmark Plc released interim results for the full year ended December 2021. reported a Net Premium Income of N6.15 billion for the year ended December 2020. This represents a 12.49% increase from the N5.46 billion reported same period in 2019.

  • Net Premium Income N5.75 billion, +16.2% YoY
  • Net Claims incurred N2.1 billion vs N1.6 billion YoY
  • Underwriting Profit N1.97 billion vs N1.8 billion YoY
  • Profit after tax N647 million vs N600 million YoY +7.8%
  • Earnings per share 7.54kobo vs 8.55 kobo per share. –11.81% YoY.
  • Consolidated Hallmark Plc is yet to publish any detail on proposed dividends.
  • The company share price of 42 kobo as of when the result was released. +31.25% YTD.
  • P/E ratio based on EPS is 5.63X

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Global Spectrum Energy Services Plc post 77% post-tax decline in 2020 FY results

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Global Spectrum Energy Services Plc released its 2020 FY results reporting a revenue of N2.23 billion representing a 9.42% drop from the N2.46 billion revenue reported a year earlier.

  • Operating expenses during the year was N326.88 million in 2019 compared to N295.68 million in 2019. +10.55% YoY
  • The company reported a profit after tax of N195.58 million in 2020 compared to N75.10 million in 2019. –76.66% YoY.
  • No dividend announcement was made in their press release.
  • The company share price of N4.19, unchanged YTD.

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2020 FY results: Presco Plc post 83% growth in profits

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Presco Plc released its 2020 unaudited FY results

  • Revenue of N23.91 billion vs N19.72 billion +21.22% YoY
  • Operating Profits N10.48 billion vs N8.1 billion, 28.4% YoY.
  • Profit after tax of N7.03 billion vs N3.83 billion a year earlier. +83.25% cut YoY.
  • Earnings per share of 703 kobo vs 374 kobo earnings per share reported in 2019. +87.97% YoY.
  • No dividend announcement was made in their press release.
  • The company share price of N74.50, up 5% YTD.

Bottom Line: This was a decent result, however, Presco’s price-earnings ratio of 14x is a tad expensive. Agric stocks tend to be expensive as Okomu oil is also priced at 13x earnings.

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Lower taxes, cost containment deliver profit boost for Stanbic IBTC

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Stanbic IBTC Bank Plc released its full-year 2020 interim results showing strong growth in profits.

  • Net Interest Income adjusted for impairments was N64.2 billion vs N76.1 billion in 2019, -15.6% YoY.
  • Commissions and fees earned N71.19 billion vs N70.3 billion in 2019, +2.2%
  • Operating income which includes fees and interest was N188.9 billion vs N184.9 billion in 2019, +2.1%
  • The bank reported a profit after tax of N83.21 billion in 2020 vs N75.04 billion a year earlier. +10.90% YoY
  • Tax incurred in 2020 was N11.5 billion vs N15.89 billion in 2019
  • Earnings per share for the period under review is 920 kobo vs 662 kobo in 2019, +10.12%YoY
  • No dividend announcement was made in their press release.
  • The company share price of N44.90 as of when the result was released. It is up 1.93% year to date.
  • Price-earnings ratio of 5.99x

Bottom Line: Stanbic IBTC showed strong resilience amidst unfavorable CBN policies that stifled interest margins. Policies like CRR and LDR affected Stanbic negatively which reflects in lower net interest income.

However, the bank’s profit was boosted by a combination of cost containment and tax efficiency.

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2020 FY Results: First Bank post N80 billion profit as earnings per share prints at N2

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First Bank Plc released its full-year 2020 interim results showing a profit boost from sales of its insurance business.

  • Net Interest Income after adjusting for loan losses was N205.8 billion vs N239 billion, (-22.1% YoY)
  • Net fees and commissions of N103 billion vs N83.8 billion, (+25.1% YoY).
  • Operating income for the group was N373.8 billion vs N398.1 billion (-17.6% YoY)
  • Profit after tax without discontinued operations N65.9 billion vs N73.8 billion, (-21.5% YoY)
  • Profit from discontinued operations (sale of its stake in FBN Insurance) N13.3 billion
  • PAT with discontinued operations is N79.71 billion in 2020 compared to N73.67 billion a year earlier. +8.20% YoY
  • Earnings per share for the period under review is N2.18 from N1.95. +11.79%YoY
  • No dividend announcement was made in their press release.
  • The company share price of N7.35 as of when the result was released. It is down 6.37% year to date.

Bottom Line: Company’s result was worse than expected, however, it received a major boost from its sale of FBN Insurance in 2020.

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2020 FY Results: Sterling Bank records 10% earnings growth

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Sterling Bank Plc released its full-year 2020 interim results

  • Net Interest Income after adjusting for loans impaired is N54 billion vs N58.8 billion in 2019 (-8% YoY).
  • Operating income of N81.8 billion vs N81.7 billion YoY.
  • Operating expenses also fell 3% to N69.2 billion.
  • The bank reported a profit after tax of N11.69 billion in 2020 compared to N10.6 billion a year earlier, (+10.30% YoY)
  • Earnings per share for the period under review is 41 kobo from 37 kobo, (+10.81% YoY)
  • Customer deposits of N951.3 billion vs N892.6 billion, (+6.6% YoY)
  • No dividend announcement was made in their press release.
  • The company share price of N1.90 as of when the result was released. It is down 7.62% year to date.

Bottom Line: Sterling Bank is close to hitting N1 trillion in deposits and will probably hit this benchmark in the first quarter of the year. This suggests most of its initiatives towards driving customer deposits have paid off.

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2020 FY Results: Coronation Insurance Plc post N759 million profit as earnings per share prints at 3 kobo

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Coronation Insurance Plc reported a Net Premium Income of N9.68 billion for the year ended December 2020. This represents an 18.5% increase from the N9.48 billion reported same period in 2019.

  • Total claims paid during the year was N4.70 billion compared to N1.71 billion claims paid a year earlier. +174.7% YoY
  • The insurance firm also reported an underwriting profit of N2.95 billion compared to N2.93 billion a year earlier. +0.75% YoY.
  • Profit after tax for the year was N759.27 million compared to N214.33 million a year earlier. +254.26% YoY.
  • Earnings per share for the year printed at 3.16 kobo per share compared to 2 kobo per share. -58% YoY.
  • Coronation is yet to publish any detail on proposed dividends.
  • The company share price of N0.59 as of when the result was released. +33% YTD.

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2020 FY Results: Axa Mansard Plc post N4 billion profit as earnings per share prints at 26kobo

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Axa Mansard Plc reported a Net Premium Income of N33.3 billion for the year ended December 2020. This represents an 18.5% increase from the N28 billion reported same period in 2019.

  • Total claims paid during the year was N19.9 billion compared to N17.5 billion claims paid a year earlier. +13.7% YoY
  • The insurance firm also reported an underwriting profit of N7.5 billion compared to N6.1 billion a year earlier. +22.95% YoY.
  • Profit after tax for the year was N4.2 billion compared to N2.9 billion reported a year earlier. +44.83% YoY.
  • Earnings per share for the year printed at 20kobo per share compared to 26 kobo per share. –23.08% YoY.
  • Axa Mansard is yet to publish any detail on proposed dividends.
  • The company share price of N1.4 as of when the result was released. +33% YTD.

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2020 FY Results: Fidelity Bank post N28 billion profit as earnings per share prints at 97kobo

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Fidelity Bank Plc released its full year 2020 interim results showing Net Interest Income of N104 billion up from 25.3% from the N83 billion reported a year earlier.

  • Net interest income after adjusting for loan impairments fell to N88.3 billion from N88.34 billion representing a 0.04% drop year on year.
  • The bank reported a profit after tax of N28 billion in 2020 compared to N28.4 billion a year earlier. –1.4% YoY
  • Earnings per share for the period under review is 97 kobo from 98 kobo. +1%YoY
  • No dividend announcement was made in their press release.
  • The company share price of N2.7 as of when the result was released. It is up 8% year to date.

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