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Banks Urged to Rise to Fintechs Challenge

Dike Onwuamaeze A report on the Nigerian banking sector has stated that the current phase of rising interest rates in the Nigerian financial market will not pose challenge to the sector. It also warned that the banking sector should not be complacent to the threat posed by financial technology companies (fintechs) on its profitability and growth. The report, which was released Monday by Coronation Asset Management (CAM) with the title, “Nigerian Banks, Resilience Built-In,” showed that the Nigerian banking system has been resilient over the interest rate cycle, adding that its profitability has improved over time while the stock values of Nigerian banks have remained remarkably cheap compared to their counterparts in Ghana and Kenya.

Coronation Asset Management has released its report on Nigerian Banks, Nigerian Banks, Resilience Built In – Ghana Visions

Coronation Asset Management has released its report on Nigerian Banks, Nigerian Banks, Resilience Built In – Ghana Visions
ghanavisions.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ghanavisions.com Daily Mail and Mail on Sunday newspapers.

Nigerian banks stock cheaper than Ghana, Kenya — Report

Written by Ope Ani and Guy Czartoryski of Coronation Research, It examines what has happened within the Nigerian Banking industry in the last 10 years. The report noted that in terms of valuations, and despite a significant rally in share prices over the past year, Nigerian bank stocks look remarkably cheap, both in relation to other Sub-Saharan African banks and in relation to their own valuation history. Five years ago the median prospective price-to-earnings (PE) ratio was around 5.0x. Now it is 2.5x. This downward shift in ratings has exposed meaningful value for today’s investors. According to the report,  four of the banks’ shares changed very little over 10 years, but for Access Bank there is a significant market share gain and for FBN Holdings a remarkable shrinkage in its relative standing.

Nigeria s mutual funds grow by N1 5tr

He said the nation’s mutual fund is developing fast with total assets increasing by N1.57 trillion, a 50 percent increase last year, noting that it could have done better with the right knowledge of the industry. He further explained that despite the increase, the sector has access to only 14 percent of the huge pension fund available in the country, and needs to do more to become a force in the country’s financial sector. “Diverse measures stand in the way of the development of the industry, adding that although it is growing rapidly, his team believes the nation’s mutual fund requires several more years of growth to reach N12.3tr.”

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