Table of Contents
Executive Summary .................................................................4
Nigerian banking post consolidation......................................6
1) Three broad types of banking groups in Nigeria .....................................................6
2) Regulatory and market-driven consolidation...........................................................8
3) Funding..................................................................................................................10
ROE analysis ..........................................................................12
Cost efficiencies.........................................................................................................12
NIMs..........................................................................................................................13
NIR growth ................................................................................................................14
Credit growth .............................................................................................................14
Impairments ...............................................................................................................16
Leverage ....................................................................................................................17
Appendix I: Normalized ROEs...............................................18
Appendix II: Key bank assumptions.....................................22
Appendix III: Stock liquidity ..................................................24
Appendix IV: Naira weakness................................................25
Appendix V: Valuations .........................................................26
First Bank of Nigeria plc ........................................................27
Guaranty Trust Bank plc........................................................28
Zenith Bank plc.......................................................................29
United Bank for Africa plc .....................................................30
Union Bank of Nigeria plc......................................................31
Oceanic Bank plc....................................................................32
Intercontinental Bank plc.......................................................33