FBNQuest’s Nigerian Expertise Broadens ResearchPool’s African Offering

FBNQuest Nigerian Research Joins ResearchPool
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Research providers are crucial to the ResearchPool platform and we are constantly adding new providers and their insights. Today we have over 10,000 financial reports and 29 research providers on the platform.

To help investors keep up with all the latest developments at ResearchPool and find the research providers with exactly the expertise and coverage they are looking for, today we are delighted to highlight and welcome a new provider on our platform.

FBNQuest

FBNQuest, the brokerage, banking and asset management arm of FBN Holdings, is now offering in-depth and qualitative research reports covering macroeconomics, fixed income and equities from their research arm on our platform. Their offering includes timely market commentary and detailed analyses with a focus on Nigeria’s local economy, major sectors listed on the Nigerian Stock Exchange (NSE) and the Federal Government of Nigeria bond market.

FBNQuests research joins our growing offering of research on African markets and Frontier markets.

Brokers: A New Kind of ResearchPool Provider

FBNQuest represents a new type of research provider on ResearchPool: the brokerage firm offering its research separate from trading agreements. Open access marketplaces like ResearchPool offer a global audience, separate revenue stream and future MiFID II compliance for brokers and banks.

Skye Bank PLC: All eyes still on capital raise

FBNQuest’s most recent investment report covers the Nigerian bank Skye Bank PLC and is available for purchase on a pay as you basis:

Doubts on 2015E ROAE guidance on our part: Reconciling Skye Bank’s 2015 ROAE guidance of 12.5% (unchanged) with a worse cost of risk guidance (4.0% vs 3.5% previously, despite management stating that Atlantic Energy and a telco exposure are no longer problematic) in particular is difficult. Even though we have increased our 2015-16E EPS forecasts by an average of 23.6% (on the back of increases to our non-interest income forecasts), we believe the bank’s much-awaited N30bn capital raise will remain the single most important driver for the shares. The bank’s capital adequacy ratio as of end-September was 17.3%. Management guides to the ratio falling to the minimum regulatory limit of 15% by end-2015, depending on some transactions (loans). Given that a private placement is just as realistic as a rights issue at this stage, the risk of dilution is high. We maintain our Underperform rating, despite the shares having lost -23% ytd (ASI: -16.1%). We have increased our price target by 48% to N1.9 due to our earnings upgrade and a 65% reduction in the goodwill balance (revaluation has led to other assets balance moving up)…

Start reading FBNQuest’s report on Skye Bank and keep an eye out for further updates to stay on top of our new research providers.

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