FIRST BANK’S SHARES BECOME TOAST OF INVESTORS, AS Q1 PROFIT DOUBLES

Following the impressive performance of First Bank Nigeria Plc in the first quarter 2012 and full year result of 2011 recently released on the Nigerian Stock Exchange (NSE), the bank’s shares have continued to be the toast of investors in the stock market.

First Bank’s profit doubled, while revenue jumped  by 42 per cent in its first quarter financial year ended March 31, 2012.

This is coming after the bank recorded a significant growth in its performance indicators for the full financial year ended December 31, 2011

A review of the bank’s performance on the stock market  show that its shares gained 14.2 per cent from N9.72 per share on17th April 2012 to close at N11.10 per share at the end of trading on Thursday, May 10, 2012.

Specifically, on April 17, 2012 when the bank released its full year audited result to the market, the market value of the stock rose by 4.97 per cent to close at N9.72. Also at the end of market transactions on May 3, 2012, the bank’s stock rose to N10.99 pr share, a whopping 18.68 per cent increase.

While commenting on the performance of First Bank, Executive Director, Market Operations and Technology of the NSE, Mr. Adeolu Bajomo said, “The market has continued to respond positively to First Bank’s stock with added interest developing as its first quarter interim report was released on May 2 2012 with gross earnings having risen by 42.5 per cent in the first three months of the ongoing accounting year. This is an indication that investors of the bank will have cause to smile at the end of the current accounting period.”

Bajomo, commended the management of First Bank for building an institution which over the years, has purposefully transformed into a national pride.

A cursory review of the performance shows that First Bank’s profit doubled, while revenue jumped up by 42 per cent in its first quarter financial year ended March 31, 2012.

This is coming after the bank recorded a significant growth in its performance indicators for the full financial year ended December 31, 2011.

The first quarter result made available by the NSE showed that the bank’s net income rose to N24.5 billion for the three months through March from N12.2 billion in the corresponding period 2011.

It will be recalled that First Bank, which in October 2011 agreed to buy Congo’s Banque Internationale de Credit, is looking to acquire another lender this year in West Africa, Chief Financial Officer, Adebayo Adelabu  has said.

The bank, as gathered is planning to add 120 branches in Nigeria to make a total of 750 branches.
Other performance indicators shows that Bank’s loans and advances increased 12 per cent to N1.89 trillion , compared with a year earlier.  Its deposits climbed 8 per cent to N2.29 trillion.

Meanwhile, it will be recalled that the bank in its full year result ended December 31, 2011, recorded 27.6 per cent growth in gross earnings to N296.3 billion from  N232.1 billion in the corresponding period of 2010.

Operating income grew by 45.6 per cent to N259.2 billion in 2011, from N178.1billion in 2010. It also recorded 92.9 per cent growth in profit before tax and exceptional item to N65.6 billion as against N34 billion in the corresponding period of 2010.

Profit before tax grew by 48.2 per cent to N50.1 billion from N33.8 billion in 2010. Other performance indicators show strong improvement in cost to income ratio to 56.8 per cent from 67.0 per cent in 2010, while 55.1 per cent ratio recorded in the Bank from 65.8 per cent in 2010. Provision for losses of N44.8 billion was recorded in 2011, as against N21.6 billion in 2010, of which loan loss provision was N32.9 billion as against N22.4 billion in 2010.