HALISTER1: Nigeria May Delay Minimum Capital Rule for Banks: RenCap

Nigeria May Delay Minimum Capital Rule for Banks: RenCap

(Bloomberg) -- Nigeria’s central bank may delay minimum capital adequacy ratio of 16% for systemically important banks, which is scheduled to take effect on July 1, Renaissance Capital analysts Adesoji Solanke, Olamipo Ogunsanya say in note.
  • “We view this positively given the difficulties in boosting capitalization levels in this environment”
  • Ongoing FX shortages have deteriorated; bank shares may rally post naira devaluation on back of FX flows, although it may fuel another round of capital pressure and NPL formation
  • Fidelity Bank MD returned to role after been questioned by Economic and Financial Crimes Commission, acting MD Mohammed Balarabe appointed deputy; co. running business process review with PwC, benefits of which will be apparent from 4Q and into 2017
  • Guaranty Trust Bank in talks to raise $200m from development finance instutitions at ~100bps than would’ve been in past
  • United Bank for Africa plans to expand to 25 African countries over next 3-5 years from 19; expansion won’t require new capital; co. seeing some stress in commerce, trade finance book
  • Access Bank is net long dollars; in event of naira devaluation to 300 vs USD, impact on balance sheet will be 10b naira, according to bank
  • FNB Holdings to address capital position by shrinking risk- weighted assets, retain more earnings, efficiency improvements
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
FIDELITY NL (Fidelity Bank PLC)
GUARANTY NL (Guaranty Trust Bank PLC)
UBA NL (United Bank for Africa PLC)

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