Bloomberg News

Guaranty Trust Bank Nigeria Rises to Four-Year High: Lagos Mover

July 19, 2012

Guaranty Trust Bank Plc (GUARANTY), Nigeria’s biggest lender by market value, rose to the highest in more than four years on speculation of increased first-half earnings, according to Vetiva Capital Management Ltd.

The stock rose gained as much as 3.5 percent to 18 naira and closed 0.6 percent up at 17.50 naira in Lagos, the commercial capital, gaining for a fifth day. That’s the strongest price since April 2008 and gives the company a market value of 510.1 billion naira ($3.2 billion).

“The rally in Guaranty is justified because we believe there will be a significant upside to our 37.5 billion naira forecast for after-tax profit in the first half,” Abiola Rasaq, a Lagos-based analyst at Vetiva said by phone today. “I see the possibility of the numbers running to 42 billion naira.”

Guaranty posted net income of 25.3 billion naira for the first half of 2011. First-quarter net income rose 35 percent to 19.3 billion naira, from 14.3 billion naira a year earlier, Guaranty said on April 19.

Company officials didn’t reply to an e-mail message requesting the release date for their results.

Guaranty’s shares have risen 23 percent this year, compared with an 11 percent increase in the Nigerian Stock Exchange All- Share Index over the same period.

To contact the reporter on this story: Vincent Nwanma in Lagos at vnwanma@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net


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