CEM REPORT, FINANCE | Three Nigerian companies, Jaiz Bank, a non-interest bank, Sterling Holdings, a financial services firm, and C&I Leasing, a leasing and business services conglomerate, have announced their earnings forecasts for the first quarter of 2024 and the fourth quarter of 2023 respectively on the Nigerian Stock Exchange.
Jaiz Bank 
Jaiz Bank expects to post a profit after tax of N4.3 billion in Q1 2024, a 61.7 percent increase from N2.66 billion recorded in Q3 2023. The bank also projects its other income to be N886.94 million, its income from financing and investment to be N16.3 billion, its profit/loss before tax to be N4.78 billion and its gross earnings to be N17.18 billion.
The bank’s latest financial report for September 2023 showed a 186 percent increase in profit after tax to N2.66 billion, compared to N930.87 million in the same quarter of 2022. However, the bank’s total expenses, net cash flows and cash provided by operating, investing and financing activities all declined or turned negative in Q3 2023.
Total expenses surged to N5.51 billion in Q3 from N4.35 billion in the same period of 2022. Net cash flows before changes in working capital declined to N10.62 billion from N12.15 billion.
Net cash provided by operating activities stood at a negative of N84.3 billion from a positive of N11.11 billion. Net cash provided by investing activities stood at a negative year-on-year to N60.03 billion from N15.55 billion.
Net cash provided by financing activities dropped to N51.7 billion from N51.73 billion.
Sterling Holdings 
Sterling Holdings projects a profit after tax of N7.02 billion in Q1 2024, a 38.2 percent increase from N5.08 billion recorded in Q3 2023. The firm also forecasts its other income to be N16.62 billion, its interest income to be N56.58 billion, its interest expense to be N21.97 billion, its operating expenses to be N37.96 billion, its profit/loss before tax to be N7.84 billion, its gross earnings to be N73.12 billion and its cash/bank balance at the end of the period to be N260.16 billion.
The firm’s financial report for September 2023 indicated a marginal 7.80 percent increase in profit after tax, reaching N5.80 billion, compared to N5.38 billion in the same quarter of 2022.
However, the firm’s personnel expenses, net cash flows and cash provided by operating and investing activities all increased or turned negative in Q3 2023.
“Net cash flows from operating activities turned negative at N15.8 billion, contrasting with the positive N37.56 billion recorded in the corresponding period of 2022.
“Net cash flows from investing activities also turned negative, amounting to N110.5 billion in Q3, compared to N34.84 billion in the same period of 2022.
“Net cash flows from financing activities increased to N31.14 billion in Q3 from a negative N4.99 billion recorded in the corresponding period of 2022.”
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Sterling Holdings’ cash and cash equivalents at the end of the period also decreased to N211.76 billion from N222.86 billion in Q3 2023.
C&I Leasing
C&I Leasing projects a profit after tax of N178.05 million in Q4 2023, a 2.7 percent increase from N173.26 billion in Q3 2023. The conglomerate also projects its revenue to be N5.96 billion, its profit before tax to be N303.9 million, its cash from operating activities to be N2.63 billion, its cash flow from investing activities to be at a loss of N384.37 million, its cash flow from financing activities to be at a loss of N2.01 billion and its cash and balance at the end of the year to be N558.9 million.
The conglomerate’s financial report for September 2023 showed a decline in revenue, profit before tax, cash from operating activities and cash flow from investing activities, compared to the same quarter of 2022. However, the conglomerate’s cash flow from financing activities improved in Q3 2023.
The three companies attributed their earnings forecasts to various factors, such as the performance of their respective sectors, the impact of the COVID-19 pandemic, the exchange rate fluctuations, the regulatory environment and the macroeconomic conditions in Nigeria. They also assured their shareholders and stakeholders of their commitment to delivering value and growth in the coming quarters.
