A new report by Coronation Asset Management on Nigerian Banks titled ‘Nigerian Banks, Resilience Built In’ has shown that Nigerian banks’ earnings have been remarkably resilient over the interest rate cycle, even as their profitability has also improved over time.
It said: “In terms of valuations, and despite a significant rally in share prices over the past year, Nigerian bank stocks look remarkably cheap, both in relation to other sub-Saharan African banks and in relation to their own valuation history. The report, which was written by Ope Ani and Guy Czartoryski of Coronation Research, examined what has happened within the Nigerian Banking industry in the last 10 years.“It is a unique 10-year study of the margins and profitability of six listed banks: Zenith Bank; GT Bank; Access Bank; FBN Holdings; UBA, and Stanbic IBTC. These banks have adapted successfully to many changes in interest rates over the 10 years from 2010 to 2020.