BETTER-THAN-EXPECTED RESULTS AND SELL PRESSURE DROVE ATTRACTIVE UPSIDE POTENTIALS.
•We have made upward revision to our FY 2015E following the better-than-expected Q2 2015 results. Our new forecasts combined with the current depressed price levels have led to rating upgrade across our universe of banking stocks: Guaranty Trust Bank (GTB, upgrade to HOLD); FBNH (upgrade to BUY); Access Bank (upgrade to BUY) and Zenith Bank (BUY recommendation maintained).
•Across our coverage universe, we have made upward revisions to our earnings forecasts post the Q2 2015 results. This was informed by a mix of a strong q/q growth in interest income, which more than offset the rise in OPEX and the huge spike that we saw in the sector’s impairment charges. We highlight that our conservative estimates post the Q1 2015 results also contributed to the upward review of our earnings forecasts.