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First Bank, on Monday, posted significant improvement in its unaudited financial result for the third quarter ended September 30, 2010.

The bank, which recorded a loss after tax of N7.992 billion in 2009, posted a profit after tax of N32.562 billion this year, reflecting a 507.43 per cent improvement. First Bank also recorded a 20 per cent growth in its total asset during the quarter, from N2.0 trillion to N2.4 trillion. However, the bank’s gross earnings for the period declined by 10.57 per cent, from N197.988 billion to N177.065 billion.

Balance sheet strength

Commenting on the results, Bisi Onasanya, the Group Managing Director for First Bank, in a statement, said the brand and the strength of the bank’s balance sheet continued to give the bank the flexibility to maximise market opportunities and play a major role in financing key strategic sectors of the economy. “In spite of the tough lending environment, we were able to grow our loan book across different sectors, supported by our robust risk management policies,” he said. “As a result, we are well positioned to increase our market share and profitability in coming periods as we further deploy our balance sheet towards higher yielding assets.”

Other companies

Also, on Monday, nine other companies posted their financial results. Conoil, in its third quarter report, recorded negative turnover of 26.11 per cent and loss after tax of 27.66 per cent.

In its third quarter report, Afribank, one of the rescued banks, recorded negative gross earnings of 50.01 per cent and profit after tax of 103.42 per cent. May & Baker, in its audited report, posted negative turnover of 4.66 per cent and loss after tax of 42.38 per cent.

Market cap hits N8tr

Meanwhile, the market capitalisation of equities at the NSE, on Monday, hits N8.012 trillion following the listing by introduction of 3.72 billion ordinary shares of Multi-Trex Integrated Foods. As a result, the equities’ capitalisation recorded an increase of 0.37 per cent yesterday from last Friday’s figures of N7.982 trillion. The NSE All-Share Index appreciated by 0.23 per cent on Monday to close at 25,102.20 basis points from the previous day’s figures of 25,042.16.

The banking subsector led the market transaction volume for the day with 157.48 million units valued at N1.28 billion, as against the 278.98million units valued at N2.35 billion recorded on Friday. The volume recorded in the sector was driven by transaction in the shares of First Bank, IBTC, Zenith Bank, Access Bank, and Sterling Bank. The total volume of 95.58 million units valued at N952.70 million traded in the shares of the five stocks accounted for 42.38 per cent of the entire market volume.