Weekly Market Review & Stock Recommendations – May 23, 2022

Dear Client/Reader,

Some of our recommended stocks are mentioned below;

ZENITH BANK

Zenith Plc’s Q1 2022 results showed that gross earnings advanced by 21.75% to ₦191.52bn in Q1 2022 from ₦157.31bn in Q1 2021. Net interest income grew by 20.89% from ₦83.17bn in Q1 2021 to ₦100.54bn in Q1 2022, supported by a 24.91% rise in interest income. Profit before tax advanced by 11.42% from ₦61.02bn recorded in Q1 2021 to ₦67.99bn in the current period. This is attributable to the 159.23% increase in trading income and 16.71% increase in net fees and commission income. Profit after tax went up by 9.68% from ₦53.06bn in Q1 2021 to ₦58.20bn in Q1 2022 after a 9.68% increase in income tax expenses. Earnings per share advanced by 9.47% from ₦1.69 in Q1 2021 to ₦1.85 in the current period. Consequently, Zenith has a BVPS of ₦42.37, P/BV of 0.57x and P/E ratio of 3.26x.

ACCESS BANK

Access Holdings Plc Q1 2022 results showed that Interest income advanced by 20.79% from ₦143.8bn in Q1 2021 to ₦173.69bn in the current period. Net interest income decreased by 7.02% to ₦87.36bn in Q1 2022 from ₦93.96bn in Q1 2021. Profit before tax advanced by 8.47% from ₦60.05bn recorded in Q1 2021 to ₦65.13bn in the current period. Likewise, profit after tax grew by 8.47% from ₦52.55bn in Q1 2021 to ₦57.4bn in Q1 2022. Consequently, earnings per share went up by 9.40% from ₦1.49 in Q1 2021 to ₦1.63 in Q1 2022. Access has a BVPS of ₦30.84, P/BV of 0.32x and P/E ratio of 1.51x.

Please find attached the full market reports.