Fitch Ratings Reviews Nigerian Banks’ Support Rating

Fitch Ratings, First Bank, seven energyFitch Ratings has revised down the Support Rating Floors (SRF) of 10 Nigerian banks to ‘no floor’ and downgraded nine banks’ Support Ratings (SR) to ‘5’ following a reassessment of potential sovereign support for the banking sector.

As a consequence, the long-term issuer default ratings of First Bank of Nigeria Limited, FBN Holdings PLC, Diamond Bank PLC, Fidelity Bank PLC, First City Monument Bank Limited and Union Bank of Nigeria PLC are downgraded to ‘B-‘ from ‘B’, in line with their stand-alone creditworthiness as defined by their viability ratings.

The agency has affirmed the long-term IDRS of Zenith Bank PLC, Guaranty Trust Bank PLC, Access Bank PLC, United Bank for Africa PLC, Wema Bank PLC and Bank of Industry (BOI).

The downgrade of the nine banks’ SRS and the revision of 10 banks’  SRFs to ‘no floor’ reflects Fitch’s view that senior creditors can no longer rely on receiving full and timely extraordinary support from the Nigerian sovereign if any of the banks become non-viable.

FBN Holdings Operating Expenses Down 5.1%

fbn-holdingsFBN Holdings PLC says the bank’s 3rd quarter 2016 performance demonstrates its underlying resilience, despite the ongoing macroeconomic and business challenges.

According to the management, this has been achieved through sustained revenue generation as well as increased cost efficiency.

FBN Holdings posted a 7 percent increase in gross earnings to 417.3 billion Naira in the third quarter of 2016.

Profit before tax however declined 3.5 percent at 57.4 billion Naira compared with 59.6 billion Naira in the corresponding period of 2015.

Profit after tax was also down 15.3 percent to 42.5 billion Naira, while earnings per share fell to 156 kobo for the period.

The company has assured its customers that the group remains committed to ensuring sustained improvement in First Bank’s performance, with a view to restoring shareholder value.