Investment Firm to Build Overweight Positions in GTCO, ACCESS
Following strong first quarter earnings for financial year 2024 from Tier-1 banking names, analysts at CardinalStone, a multi-asset investment banking firm, said they would begin to build their overweight position in GTCO and ACCESSCORP.
Overweight reflects an analyst’s opinion that GTCO, ACCESSCORP will outperform its sector average over the next eight to 12 months. The unaudited Q1-2024 results, GTCO reported a 4.35times year on year growth in earnings to N676.64 billion with profit after tax of N457.13.
Major pushed for the earnings growth in the period was N331.55 billion fair value gain on financial instruments, which contributed about 49.00% to the entire gross earnings.
Access Holdings profit after tax rose significantly in the first quarter of 2024, up by about 122% year on year to N159 billion, according to its unaudited financial statement filed on the Nigerian Exchange.
The financial services group financial scorecard showed that Interest Income grew by 142.29% year on year to N608 billion from about N251 billion in the comparable period.
Guaranty Trust Holding Company Plc (GTCO) posted strong earnings growth in the first quarter of 2024, details from its unaudited financial statement released on Friday showed. The financial services boutique profit rise sharply, up by about 686% year on year to N457 billion in the first three months of operation.
The financial services group reported a 696.1% year on year earnings per share (EPS) growth, settling at N16.24 at the end of first quarter of 2024 as against N2.04 it reported in the comparable period in 2023.
The significant jump in lenders performance was supported by loan repricing after the Central Bank of Nigeria monetary policy tightening saw benchmark interest surged to 24.75% in March.
Banking index gained 4.68% last week due to renewed interest on lenders with solid fundamentals amidst recapitalisation programme.
