The Paradox of Bank Earnings in Nigeria states that the market performance of the banking sector is uncorrelated with improving revenue and profitability. Using GTBank as an example, the bank has seen erosion of market cap in a period where it has delivered sustained improvements on revenue and profitability. What do Nigerian investors want? And what is the reason behind this market dislocation? I this video, I posit some reasons.
- Economic Growth
- Extraction of fees
- Confidence in markets
- Relative Performance
- Fintechs & Telcos
- Inefficiency in markets
1. Advance your career with Tekedia Mini-MBA (Sept 13 – Dec 6, 2021): 140 global faculty, online, self-paced, $140 (or N50,000 naira). Click and register here.
2. Click to join Tekedia Capital Syndicate and own a piece of Africa’s finest startups with a minimum of $10,000 investment.3. Register and join me every Saturday at Business Growth Playbooks w/ Ndubuisi Ekekwe (Sept 4 – Oct 23, 2021), Zoom, 4.30pm WAT; costs N20,000 or $60.