Category: Capital Market

Shareholders of Guaranty Trust Holding Company (GTCO) Plc have approved the payment of N91.236 billion as cash dividends for the 2022 business year with assurance that the holding company will leverage its enlarged opportunities to deliver greater values in the years ahead.

Shareholders received a total dividend per share of N3.10 per share for the year ended December 31, 2022 with payment of final dividend of N2.80 in addition to an interim dividend of 30 kobo earlier paid during the year.

At the holding company’s second annual general meeting held virtually, shareholders commended the board for the financial performance achieved during the period under review despite the operating environment.

Speaking on behalf of shareholders, the immediate past President of Nigeria Shareholders Solidarity Association, Chief Timothy Adesiyan commended the management of GTCO for the impressive 2022 financial performance achieved and the consistent dividend policy of the Group.

He also noted that the Group has contributed to the growth of the economy in its lending to Agriculture, SMEs, Real Sector, among others as seen in the Award obtained by the Group in the year.

Addressing the shareholders, Chairman, Guaranty Trust Holding Company (GTCO), Mr Hezekiah Oyinlola said: “As I reflect on 2022, I recall the challenges we faced at every turn and the prospects that became significant milestones in our journey towards creating a robust yet agile institution.

“As we look across our burgeoning GTCO Universe, we take pride in the concrete outcomes of our diligent efforts and unyielding dedication towards expanding our influence and strengthening our position as a leading provider of financial services in Africa.”

He added:  “In 2022, our ambition was crystal clear, and we set out to achieve it with unwavering focus. We completed the setup of our holding company and acquired full ownership of Investment One Pension Managers and Investment One Fund Managers, now named Guaranty Trust Pension Managers and Guaranty Trust Fund Manager. Our payment subsidiary, HabariPay Limited, also launched in 2022 and almost immediately introduced its flagship product Squad to the market with outstanding reviews.’’

Read Also: Guaranty Trust grows Q1 profit by 36.5%

“The highlight for me is that these newly created businesses – in payments, fund managers, and pensions ran successfully and were profit before tax positive by the end of the year.”

On outlook, Oyinlola stated that, “the momentum we have built-up in recent years means that we are now in a position to leverage every opportunity to grow and sustain our superior financial performance.

“Our diversified business model and agile systems will enable us to adapt quickly to changing market conditions and turn economic tides in our favour. Our customer, centricity and focus on innovation and long-term value-creation, and will continue to be key drivers of our success in the years ahead.”

Group Chief Executive Officer, Guaranty Trust Holding Company (GTCO) Plc, Mr Segun Agbaje, said in spite of the varying challenges and headwinds that weighed on growth in 2022, the Group delivered a decent performance posting a pre-tax profit of N214.2 billion representing a dip of 3.0 per cent from N221.5 billion posted in full year, 2022. PBT contribution from West Africa decreased from 21.0 per cent in December  2021 to 12.3 per cent in December 2022 due to the significant impairment sum of N35.6 billion recognised on the Ghanaian sovereign securities.

He also noted that during the same period, the size of the Nigerian Banking Subsidiary increased to 84.3 per cent from 79.5 per cent, while East Africa’s contribution to the Group grew marginally to 3.4 per cent from 3.0 per cent.

“The Group also benefited from a 0.9 per cent contribution from the Non-Banking Subsidiaries which compensated for the negative 0.8 per cent contribution from the United Kingdom in FY-2022.

“Gross earnings increased by 20.4 per cent to N539.2 billion in full year, 2022 from N447.8 billion in 2021.”

Agbaje explained, “2022 was a year that tested our resilience and our determination. As we face the future, we do so with the confidence that we will maximize all opportunities and deal with challenges as they come.

“I strongly believe that the new holding structure of our organisation will prove to be a propeller in our journey towards sustained growth and success.”

According to GTCO CEO, what we have as Guaranty Trust Holding Company is not a conglomerate but a structure of complementary businesses which helps us remain agile, innovative, and adaptable to changing market dynamics, whilst ensuring that we continue to deliver superior returns to our shareholders.

“We will also continue to dominate the financial services sector, not just because we will continue to pursue technological advancements and digital capabilities that keep us ahead of the curve, but because we will always stay true to the values of hard work, transparency, integrity and putting our customers at the heart of everything that we do.”

Since commencing operations in February 1991, Guaranty Trust has maintained an unbroken streak of year-on-year growth and a consistent lead in driving the digitization of financial services in Nigeria thanks to its strong service culture, efficient management, world-class corporate governance standards and bias for innovation.

In April 2021, the reorganization of Guaranty Trust Bank Plc to a financial holding company, Guaranty Trust Group Holding Company was completed as part of the company’s strategy to position for future growth and deliver benefits beyond banking to the people, communities and businesses who depend on the value we create to thrive.

•Net proceeds for major infrastructure

The Lagos State Government (LASG) has raised N100 billion in a successful start to the sub-national’s N1 trillion long-term infrastructural financing plan.

Multiple market sources confirmed to The Nation at the weekend that the book building for the N100 billion bond, which closed at the weekend, was oversubscribed by not less than 10 percentage points. 

With the successful closure of the book building, the formal allotment and final approval of issuance are expected to be announced later this week.

Book building method allows investors, especially high networth (HNI) and institutional investors to submit preliminary orders with indicative coupon based on the range. The issuer and its professional parties will then determine the closing coupon based on the order book.

Lagos, Nigeria’s main economic centre, had last week launched the first tranche of capital raising under its N1 trillion Debt and Hybrid Instruments Issuance (DAHI) Programme.

The state sought to raise N100 billion under the Series I Fixed rate Senior Unsecured Bond issuance. Application list for the offer closed on Friday, May 12, 2023.

The net proceeds from the bond issuance will be used to finance priority physical and social infrastructure projects across the state, according to regulatory filings by the government.

LASG offered a 10-year bond with a pricing range of 14.875 per cent and 15.250 per cent. Issuing documents obtained at the weekend indicated that the N100 billion bond issuance is backed by an irrevocable standing payment order (ISPO) and consolidated debt service account (CDSA) from the state’s internally generated revenue (IGR).

Minimum subscription to the issue is N10 million and thereafter in multiples of N1 million.

Coupon will be paid at fixed rate twice a year while the principal repayment will by way of amortisation after a 24-month moratorium. The bond will be listed for secondary trading on the Exchange, after completion of the issuance process.

Read Also: Lagos State agency arrests man for assaulting son

Market analysts said the success and timely closure of the book building underscored the high credit rating of Lagos and friendly market’s disposition as a conscientious regular debt issuer.

Analysts said the Nigerian capital market has the depth to support the nation’s infrastructural development, urging other states to develop competitive financial profile like Lagos to attract long-term funding for major projects.

According to the offer documents, Lagos has been assigned an AA- long-term rating-Stable Outlook, by Agusto & Co and GCR. This represents an upgrade from the previous A+ rating, given the state’s resilient financial condition, robust financial flexibility, suitable expenditure profile and very strong cash-generating capacity to meet local currency obligations in a timely manner from IGR.

Lagos’ IGR is over 70 per cent of the state’s total revenues. In 2021, the state generated total revenue of N771 billion, including IGR of N573 billion.

The reports noted that Lagos State is Nigeria’s economic focal point with a Gross Domestic Products (GDP) of N26.6 trillion, cumulative annual growth rate (CAGR) of 11 per cent from 2017 to 2021, representing some 15 per cent of Nigeria’s GDP.

As part of attractions to investors, the reports pointed out that Lagos State is among the 10 fastest-growing markets in Africa and was ranked the 4th largest city in Africa in 2021, accounting for the location of more than 65 per cent of Nigeria’s industrial capacity. The headquarters for most Nigerian banks are in Lagos as well as top-tier companies and transnational corporations. The state is strategically positioned as a major trade port – with 50 per cent of Nigeria’s port revenue being generated in Lagos from three lighter terminals and two seaports – and a first-choice destination for foreign investors.

Lagos State is also regarded as a leader in the progression and implementation of the National Sustainable Development Goals (SDGs). Over the last 10 years, Lagos State’s spending on infrastructure development within the state has exceeded some N3 trillion. The focus on infrastructure development is essential, fostering economic growth and boosting the State’s financial capacity, enabling it to attract further capital.

• Customer base hits 11.4m

FCMB Group Plc has announced its financial results for the first quarter of 2023, demonstrating the continued success of its digital banking initiatives across various business segments.

Digital banking initiatives have gained significant traction within FCMB Group, contributing to its overall performance. In the first quarter, digital revenues accounted for 12 per cent of gross earnings, equivalent to N10.0 billion. This substantial growth highlights the Group’s commitment to leveraging digital solutions to enhance customer experiences and drive financial inclusion.

The impact of digitalisation was evident across FCMB Group’s various business lines. In terms of interest income, digital revenues accounted for 8.0 per cent or N5.2 billion, reflecting customers’ increasing adoption of digital banking services. Furthermore, digital initiatives contributed 6.4 per cent or N76.3 billion of the loan book, showcasing the group’s focus on digital lending solutions.

In addition, digital channels accounted for seven per cent or N10 billion of the assets under management (AUM) in the group’s asset management business, reflecting the strength of its digital investment platforms.

Group Chief Executive, Mr Ladi Balogun, said: “We continue to leverage our unique group structure to build a technology-driven ecosystem that is fostering inclusive and sustainable growth in the communities we serve. This strategy enables us to deliver robust performance despite the challenging domestic and global environment. Barring unforeseen circumstances, we believe our growth trend will be sustained and accompanied by improving efficiencies arising from greater scale and ongoing digitisation.”

Remarkably, during the period under review, FCMB Group achieved a significant 50% increase in gross revenue. Gross revenue rose to N87.4 billion, compared to N58.3 billion in the corresponding period of the previous year. This growth was driven by a substantial 41.4% increase in interest income and an impressive 84.2% rise in non-interest income. These results highlight FCMB Group’s ability to generate significant revenue across its diverse business lines.

Read Also: FCMB Group pays N5b dividend

Furthermore, FCMB Group witnessed a substantial 25.1% year-on-year increase in total assets, reaching an impressive N3.1 trillion at the end of the first quarter of 2023. This growth underscores the Group’s ability to effectively manage and expand its asset base, positioning it for further success in the fast-evolving financial services landscape.

The Group also acquired 500,000 new customers pushing its customer base to 11.4 million. This growth reflects the Group’s commitment to delivering exceptional financial services and its ability to attract and retain a large and loyal customer base.

It also recorded an impressive 78 per cent increase in profit before tax, with N10.7 billion as against N6 billion in the corresponding period of 2022. The banking group, consumer finance, investment management and investment banking segments also recorded notable growth of 108.8 per cent, 6.1 per cent, 47.0 per cent and 18.2 per cent, respectively.

The Group’s Investment Management businesses also achieved notable growth, with a 16.5% year-on-year increase in Assets Under Management (AUM). FCMB Group’s AUM reached an impressive N830 billion by the end of the first quarter of 2023, highlighting the Group’s expertise in managing investments and generating value for its clients.

Chartered Institute of Bankers of Nigeria (CIBN) has concluded arrangements to hold its Annual General Meeting (AGM) on Saturday.

The AGM will be a hybrid event, online via the zoom platform and physical venue at Ijewere Hall, Bankers House, Victoria Island, Lagos.

The meeting, which will be presided over by the President of CIBN, Dr. Ken Opara, and top bankers and other distinguished dignitaries from other sectors is expected to attend.

Read Also: How to ensure effective internal audit in a changing world, by CIBN President

In a statement, Registrar/Chief Executive, CIBN, Dr. Akin Morakinyo, the host of the meeting, stated that attendees will include chairmen of banks; managing directors of banks, past presidents of the institute, presidents of other professional bodies, top government functionaries, fellows, honourary senior members, associates, microfinance certified and among others.

The yearly reports, accounts, auditor’s report, adoption of the minutes of last year’s AGM and other important matters affecting the Institute and the welfare of members will be considered at the meeting. It is expected that members of the institute all over the world will join via zoom and youtube platforms as well as participate actively at the discussions for the interest of the banking profession and industry in the country.

Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has said the safety of investors and their investments in the capital market is one of its cardinal objectives in rolling out its Regulatory Incubation Programme for Fintechs.

The Director, Registration, Exchanges, Market Infrastructure and Innovation, Mr. Abdulkadir Abbas, started this during an interview in Abuja.

Abbas said the regulatory incubation programme is designed as an interim measure to actually facilitate genuine regulation of Fintechs activities that will conform to the capital market issues.

He said the idea of coming up with this programme, which is like a sandbox, is to be able to come and test innovative ideas as stated in the SEC guidelines adding that the incubation period would be open for one year.

According to Abbas, “It is just for testing, it will not be approved at that stage but all Fintech ideas that conforms with investment activities are defined in Investment and Securities Act 2007 can be tested under that kind of programme. As we informed the market, there is going to be an initial assessment before it can be on-boarded into the regulatory incubation program.

The SEC Director said the Commission through the RI, is providing an avenue where fintechs can test their ideas without affecting the market integrity adding that one of the other objective is to be able to create an opportunity to solve  problem in the market.

Abbas stated that the takeoff has been very encouraging with the SEC gaining traction with market participants showing more interest and have commenced the first stage which is the initial fintech assessment route.

He said before the take-off of the RI, the SEC has been having engagement with various fintech applicants some of whom are existing capital market operators.

“Some are market operators; some are actually new interests into the market so we have been having this kind of engagement. And from the time when we announced the takeoff till today, what has been happening is that a lot of applicants are actually accessing what we call the initial assessment form so there is a need which we can now be able to provide the initial information and that is the first stage of on boarding you into the RI, that is where we are now.

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“And we have had couple of engagements and what interest us really is the traction of new fintech companies providing a solution to an existing problem in the market,’’ he added.

But what we are trying to do now very quickly is to encourage more of this fintechs to come now that we have opened this phase. We believe that it will really deepen the market and it will facilitate bringing new products into the market and new ideas will come on board towards solution of existing problem in the market. As I said earlier, the principal plan is to actually provide an avenue of new solutions without compromising on investor protection which is our own key objective”.

Speaking on the legitimacy criteria, Abbass said, “Right, there are five legitimacy criteria. First of all, you must have a kind of idea that will really bring a solution to an existing problem. That is one of the legitimacy criteria. Second, as a fintech company you must be able to really fill the initial assessment form and demonstrate to the commission that your idea or proposal or solution, has conformed to the investment activity that has been under the scope of the ISA which is our own purview.

“Thirdly, you must be able to be ready, to test live using a new test scope of the market with live investors or live customers as it were and then you must be able to commit that you will abide by the rules and regulations if you’re on boarding and the last issue is that you should be ready to now commit that once the rules are put in place after you come out of the regulatory incubation you must now comply with the existing rule that will come out as a result of that testing because we too we are trying to learn and by the time that we learn, we can be able to come up with a rule that would now fit that kind of activity.

“So in terms of percentages, we just started we are already getting more applications, even this morning we received quite a number. So I can say we have quite a number of applicants that are really interested in this testing using the regulatory incubation that the SEC has come up with”.

Securities and Exchange Commission (SEC) has blacklisted six online trading platforms in its latest crackdown on illegal and unregistered firms purporting to offer investment and finance services and products.

In a circular, the apex regulator said the blacklisted e-commerce companies and their websites offering online trading platforms to the investing public were not registered in Nigeria and the financial services offered by them were also not authorised.

The blacklisted firms include Prime Invest and “Primeinv.co, FXBoxed, New Finance LLC and New Fx Limited, Axi24, Evolve Consulting LCC and Trust Fund- Mining Global Pty Limited.

“Members of the public are advised to adopt the greatest diligence in making investment choices. In view of the above, the general public is hereby warned that any person dealing with the above mentioned e-commerce websites is doing so at his or her own risk,” SEC stated.

The blacklisting started after SEC received applications for its regulatory incubation (RI) programme for financial technology (fintech) companies as part of measures to mentor and onboard fintech upstarts into the capital market ecosystem.

Eligible fintech companies and promoters must demonstrate that their innovations meet five eligibility criteria including that such innovation is for application in the Nigeria capital market, safe for investors, a genuine innovation that introduces a new product or process to serve specific investor needs, able to solve existing compliance or supervisory issues and ready for testing.

SEC had earlier warned the public against patronising a set of firms blacklisted by Italy’s securities regulator, Commissione Nazionale per le Soecieta’ e la Borsa (CONSOB).

CONSOB had blacklisted five additional e-commerce websites for offering unauthorised and fraudulent financial services. The blacklisted websites included CMS or capmarketstrategy.io, Bitsterzio, Invest Atlas, Ether-Arena Limited and Ether-Arena Limited operating under veneab.co.

CONSOB had ordered Internet Service Providers (ISP) operating in Italy to block public access to the blacklisted websites and called on prospective investors to adopt the greatest diligence in making investment choices.

CONSOB advised investors that common sense behaviors are essential to safeguarding one’s savings, including checking the registration status or otherwise of such e-commerce websites.

SEC cautioned the public that the e-commerce websites were not registered and the financial services offered by these e-commerce websites were also not authorised by the SEC.