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Three banks project N33bn profit for Q2


Three banks have projected a combined profit of N33.76bn for the second quarter of 2024.

The financial institutions include FCMB Group, Sterling Financial Holding Company and non-interest bank, JaizBank, disclosed this in their second quarter projections filed with the Nigerian Exchange Limited.

FCMB projected the largest post-tax profit of N18.84bn on the back of projected N135.98bn revenue, with anticipated N57.79bn net interest income and N908.54m foreign exchange earnings.

Loan losses were projected to be around N8.90bn and the group’s taxation was predicted to hit N1.79bn.

Its cash flow estimate for the period was N32.82bn from operating activities, while cash and cash equivalent was expected to begin that quarter at N675.19bn and close at N806.08bn.

Sterling Holdco on its part projected N10.01bn post-tax profit and N79.38bn gross revenue Q2.

It expected N60.66bn interest income and N60.66bn taxes during the period.

The financial group projected N260.16bn cash/bank balance at the beginning of the quarter but expected it to dip to N246.18bn at the end of Q2.

For non-interest bank, Jaiz Bank, PAT was projected to be N4.91bn during the period, while eyeing N19.32bn gross earnings.

It expected N17.99bn income from financing and investment and N13.47bn net revenue from funds.

However, the return on equity of investors was expected to decline by N4.52bn and

impairment charges and taxation to stand at N1.89bn and N545.96m, respectively.

In terms of cash flow, JaizBank projected that cash balance at the beginning of the period would be N149.04bn and increase to N181.19bn at the end of Q2.

However, Unity Bank has projected a loss after profit worth N21bn as gross earnings were expected to moderate to N24.89bn.

The bank predicted N16.27bn interest expense and N20.90bn revaluation loss and N20.75bn pre-tax loss before tax.

Its projected statements of cash flows indicated a negative figure of N255bn as net cash flow from operating and investing activities.

At the beginning of the period, the cash and cash equivalent was projected to be N46.27bn and expected to increase to N49.69bn at the end of Q2.

Unity Bank recorded N47.92bn loss at the end of September 2023, according to its unaudited nine-month results released to the Nigerian Exchange Group Limited.

The bank recorded a loss of N38.162bn due to foreign exchange revaluation but expected it to reverse if the local currency strengthened.

With the naira depreciating by the 45 per cent second of February, the situation does not look upbeat for the bank.

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