Onome Amuge

Two weeks before the close of the third quarter, Nigeria’s largest financial institutions are yet to release their second-quarter earnings, raising investor unease as well as questions concerning the country’s financial transparency regime.

United Bank for Africa (UBA), Guaranty Trust Holding Company (GTCO), Access Holdings, and Zenith Bank, which together command a combined market capitalisation of N9.42 trillion, or 10.5 per cent of the Nigerian Exchange’s total value, have all failed to publish their half-year results within the statutory deadline. With the NGX Banking Index flat at –0.1 per cent month-to-date, analysts say the delays have effectively frozen price discovery in one of the market’s most closely watched sectors.

Quarterly earnings releases are considered a cornerstone of investor confidence, providing up-to-date information for valuation and risk assessment. When banks delay filings, markets tend to assume the worst.

The anxiety is heightened by the outsized role banks play in Nigeria’s equities market. The four lenders account for over a tenth of total market capitalisation, and their performance often sets the tone for investor sentiment.

GTCO: under pressure after profit slide

Guaranty Trust Holding Company attempted to calm nerves, disclosing in a filing that it had already sent its audited half-year results to the Central Bank of Nigeria (CBN) for review. The board, it added, has approved an interim dividend pending regulatory clearance.

But GTCO is under scrutiny following a 43 per cent drop in first-quarter profit after tax to ₦258 billion, compared with N457 billion a year earlier. The decline was attributed to the absence of a one-off fair value gain of N331.55 billion recorded in early 2024.

Despite the earnings wobble, GTCO’s valuation remains healthy relative to peers. This is as the bank trades at 1.10 times book value, more than double UBA’s 0.45x, Access’s 0.41x and FirstHoldCo’s 0.47x. Zenith Bank is closer at 0.62x.  However, GTCO shares have drifted lower over the past month.

Access blames cross-border complexity

Access Holdings, Nigeria’s largest lender by assets, cited integration challenges from its recent cross-border acquisitions as a reason for its delay. The bank said the complexity of post-completion audits of newly acquired subsidiaries required more time.

The NGX has granted Access an extension until September 29, subject to CBN approval.

Zenith and UBA also point to regulators

Zenith Bank has similarly requested a six-week extension beyond the August 29 regulatory deadline, which the NGX approved. UBA has pinned its delay squarely on the CBN, promising publication by September 30.

Analysts pointed out that these justifications highlight an underappreciated structural issue, being that the interplay between listed banks, the stock exchange, and the central bank often slows down reporting timelines. They added that while regulatory oversight is essential, persistent delays risk undermining confidence in corporate governance standards.

Market efficiency at stake

For international investors comparing frontier markets, the episode reflects Nigeria’s weak institutional efficiency. While many African peers now enforce tighter reporting schedules, Nigeria’s reliance on regulatory waivers risks eroding its standing.

The timing is also considered awkward. Nigerian banks are entering a more challenging environment, as tighter global financial conditions and domestic monetary tightening squeeze margins. At the same time, the CBN has been pushing lenders to increase capital buffers, leaving investors eager for clarity on balance sheet strength.

According to analysts, the market can only wait for now.  However, while all four banks have committed to publishing results before the end of September, each day of silence leaves traders and portfolio managers speculating about what the numbers might reveal.

Without timely reporting, analysts warn, investor scepticism will deepen, potentially raising funding costs for both banks and the economy at large.