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First Bank of Nigeria: FIRST BANK OF NIGERIA: H1 17 results review - impressive capital management despite weaker earnings

    Tellimer Research
    4 August 2017
    Published byTellimer Research
    First Bank reported its H1 17 results and held its investor conference call yesterday. Results for the period ending June 2017 were weak with EPS of NGN0.80 in H1 17, down 18.8% yoy but ahead of our full year estimate of NGN1.04 on a run-rate basis. This implies Q2 17 EPS of NGN0.36 (-12.2%yoy, -16.3% qoq). BVPS was flattish at NGN17.0 (vs FY17f NGN17.1) and annualised ROE declined by 2.3ppt yoy to 9.6% (vs FY17f 6.2%). In spite of weaker profitability in the period, we consider this a solid set of results on account of a notable improvement in key issues for this particular bank, ie asset quality and capital.