Renaissance Reinitiates Coverage of 9 Nigerian Banks on Polls

Renaissance Capital, the Russian emerging-markets bank with operations in Africa, reinitiated coverage of six Nigerian banks with “buy” ratings after the end of general elections in Africa’s most populous nation.

“The recent election cycle has, on balance, been positive, and should shift market focus away from political risk,” analysts David Nangle, Adesoji Solanke and Armen Gasparyan wrote in an e-mailed note to clients today. “Credit growth has started to recover and should deliver 15 percent sector-wide in fiscal 2011, while margins should see upward pressure from a rising-rate environment.”

Renaissance recommended buying shares of Fidelity Bank Plc (FIDELITY), First City Monument Bank Plc (FCMB), First Bank of Nigeria Plc (FIRSTBAN), Skye Bank Plc, United Bank for Africa Plc (UBA), and Zenith Bank Plc. (ZENITHBA) It reinitiated coverage of Access Bank Plc (ACCESS), Diamond Bank Plc (DIAMONDB) and Guaranty Trust Bank Plc (GUARANTY) with “hold” recommendations.

Nigeria’s ruling People’s Democratic Party retained a majority in national legislative and state-governor elections last month that were called the cleanest in a decade in Africa’s top oil producer, according to results released by authorities.

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

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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