The Nation Newspaper

Category: Capital Market

  • Cadbury Nigeria grows profit by 124% in Q1

    Cadbury Nigeria grows profit by 124% in Q1

    Cadbury Nigeria Plc started the 2023 business year on a strong note with net profit rising by 124 per cent on the back of double-digit growth in sales.

    The interim report for the first quarter ended March 31, 2023 showed profit of N3.435 billion for the first quarter 2023, a growth of 124 percent on N1.54 billion recorded in similar period in 2022. Turnover rose from N12.789 billion in first quarter 2022 to N16.563 billion in first quarter 2023, an increase of 29.5 per cent. Gross profit also increased from N3.233 billion in first quarter 2022 to N6.359 billion in first quarter of 2023, representing an increase of 96.7 per cent. Earnings per share grew by 124 per cent from 82 kobo to N1.84.

    Managing Director, Cadbury Nigeria Plc, Mrs. Oyeyimika Adeboye, said the company’s performance in the first quarter of the year attested to its resilience that has enabled it to navigate through the challenging business environment.

    “Businesses in Nigeria faced significant economic headwinds in the first three months of the year, which was characterised by tension generated in the build-up to the 2023 general elections, nationwide scarcity of cash caused by naira redesign, persistent Naira devaluation, and difficulty in accessing FX. These significantly impacted on the cost of doing business in the country.

    “Despite the challenging operating environment, we remain committed to delivering superior value to our stakeholders. As a company, we also understand the need to nourish and delight our consumers with the right snacks and we will continue to do what is right for our environment,” Adeboye stated.

    Cadbury Nigeria was certified as a Top Employer in Africa for the third consecutive year while it also emerged second place in the Top Employer in Nigeria category for 2023.

    Cadbury Nigeria is a subsidiary of Mondelçz International (MDLZ), which has operations in over 150 countries around the world. With 2021 net revenues of approximately $29 billion, MDLZ has iconic global and local brands such as OREO, belVita and LU biscuits; Cadbury Dairy Milk, Milka and Toblerone chocolate; Sour Patch Kids candy and Trident gum. Mondelçz International is a member of the Standard and Poor’s 500, Nasdaq 100 and Dow Jones Sustainability Index.

    Cadbury Nigeria is a 74.99 per cent-owned subsidiary of Mondelçz International, the remaining 25.01 per cent of shares are held by a diverse group of indigenous, individual and institutional investors. Cadbury Nigeria’s products include Bournvita, Hot Chocolate 3 in 1, TomTom, Buttermint, and Clorets, which are market leaders in their respective consumer segments.

  • Investors jostle for Access Holdings over N53.32b dividends

    Investors jostle for Access Holdings over N53.32b dividends

    Upsurge in open buy orders is driving Access Holdings as one of the most-sought after stocks at the stock market as investors scrambled to take positions ahead of the closure of register for the holding company’s N53.32 billion dividends.

    Access Holdings was the most active financial services stock and overall second most active stock at the stock market last week, sustaining a recent trend of activities that gathered momentum with the release of the group’s full-year 2022 and first quarter 2023 results.

    Investors staked N16.27 billion on 1.59 billion ordinary shares of Access Holdings in 3,852 deals last week, representing 11.3 per cent and 27.57 per cent of the total traded volume and value during the week. Total turnover at the Nigerian Exchange (NGX) last week stood at 14.029 billion shares worth N59.007 billion in 24,048 deals.

    Market analysts said the increased bargain-hunting for the Access Bank’s holding company was due to opening up of market orders by investors seeking to benefit from the company’s latest dividend declaration.

    “The rationale for this was because the qualification and closure date of Access Holdings for dividend is just a few days away which investors are positioning to partake in the dividend declaration,” analysts at Arthur Steven Asset Management stated at the weekend.

    Access Holdings’ shareholders will receive a final dividend of N1.30 per share in addition to an interim dividend of 20 kobo, representing a total dividend per share of N1.50 for the 2022 business year. The dividend will be paid on May 24, 2023 to all shareholders on the register of the company as at the close of business on May 9, 2023.

    Key extracts of the audited report and accounts for the year ended December 31, 2022 had shown that the group recorded appreciable growth across revenue lines, despite the strong global and national macroeconomic headwinds. Gross earnings rose by 43 per cent and crossed the trillion naira mark to N1.39 trillion in 2022 as against N971.9 billion in 2021. Pre and post tax profits stood at N167.68 billion and N152.20 billion respectively.

    The balance sheet of the group emerged stronger with total assets rising by 28 per cent from N11.73 trillion to in 2021 to N15 trillion in 2022. Customers deposit also rose by 33 per cent to N9.25 trillion as against N6.95 trillion. Loans to customers grew by 25 per cent from N4.45 trillion to N5.56 trillion. Shareholders’ funds increased by 17 per cent from N1.05 trillion to N1.23 trillion.    

    The group’s three-month results for the quarter ended March 31, 2023 showed pre-tax profit of N81.59 billion in first quarter 2023 as against N65.56 billion in first quarter 2022. After taxes, net profit rose from N57.83 billion in first quarter 2022 to N71.66 billion in first quarter 2023.

    Group Chief Executive Officer, Access Holdings Plc, Mr. Herbert Wigwe, said the results showed the group’s deliberate focus on its strategies as it begins to see the dividends of organic and inorganic activities across the ecosystem.

    He explained that the 37 per cent growth in interest income to N827 billion in 2022 was driven by a strong loan book growth despite the high inflationary environment, with net loans and advances to customers growing by 25 per cent across the banking group, with a deliberate focus on credit disbursement to critical segments and growth sectors of the economy.

    He pointed out that the bank also saw good growth across the subsidiaries, with its United Kingdom subsidiary growing by 36 per cent to N1.1 trillion in 2022.

    “Access Holdings ended the year with over 58 million customers across the extensive network of subsidiaries and business verticals. The company’s asset base grew to N15.0 trillion and customer deposits to N9.25 trillion, with CASA mix up by five per cent, to 63 per cent as a result of leveraging innovation, digital technology and financial inclusion to mobilize sustainable low-cost deposits.

    “In the second half of 2022, Access Holdings Plc completed the divestment from Pensions Custodian business and acquired significant shareholding in First Guarantee Pensions Ltd & Sigma Pensions Ltd to form Access Pensions Ltd. This combination resulted in the creation of the fourth largest pension fund administrator (PFA) in Nigeria, with asset under management of N0.9 trilion, putting us clearly in the league of strategic players in the Pensions industry.

    “Our Payment business went live with the Switching business in third quarter 2022, while the other areas of the business will become fully operational from second quarter 2023. The overall business outlook for 2023 remains strong as we begin our new five-year strategic journey which aims to make us one of the top five financial services organisations in Africa by 2027,” Wigwe said.

  • Shareholders okay 110m Euros Heineken loan for Nigerian Breweries

    Shareholders okay 110m Euros Heineken loan for Nigerian Breweries

    • Jamodu retires, Ighodalo chairs board

    Shareholders of Nigerian Breweries (NB) Plc have approved a resolution authorising the company to take an intercompany loan of 110 million euros from Heineken International.

    The loan will be used to settle foreign currency-denominated payment obligations of the company.

    Speaking during the Annual General Meeting (AGM) of the company in Lagos, Chairman, Nigerian Breweries (NB) Plc, Chief Kola Jamodu, said the loan was necessary to help the company address the challenge of foreign exchange (forex) and pay off some of its overdue foreign currency denominated payables.

    He said the loan would ensure that there was no disruption in the company’s operations due to a shortage of imported raw materials as its procurement agent would have stopped its services as a result of the overdue payables.

    “Forex loss was a major impact on our profitability in 2022. Access to forex continues to be a major issue for NB Plc. The increase in our trade payables has been driven majorly by outstanding payments to our foreign trade partners due to unavailability of forex at the official windows,” Jamodu, who retired, after the April 26 meeting, on April 30, 2023, said.

    He noted that despite the market’s competitive nature, the company maintained its market leadership position while ensuring value to the business and its esteemed shareholders.

    He said the company had demonstrated strong resilience under difficult economic circumstances, which were occasioned by inflation and low disposable income.

    Shareholders unanimously approved the dividend payout of N13.87 billion for the 2022 financial year. Shareholder would receive a final dividend of N1.03 per share, having earlier received an interim dividend of 40 kobo that was approved in October 2022.

    Shareholders described the payment of dividends to shareholders as commendable, despite the challenges confronting the business.

    National Coordinator, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, applauded the board and management of the company for managing the business effectively, as reflected in the improved performance in profit and revenue recorded by the company for the 2022 financial year.

    “The company’s financial performance for the 2022 financial year was good. NB Plc has done well with the payment of dividends to shareholders, especially with the economic hardship we are facing and the low purchasing power of consumers. It shows that the company saved for the rainy day,” Okezie said.

    Chairman Emeritus, the Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, lauded the company’s management for its financial performance despite the challenging macroeconomic outlook.

    While commending the company for the payment of dividends to shareholders, Nwosu hailed the current leadership for demonstrating immense capacity to drive the company to greater heights with some of the bold decisions taken in the course of the 2022 financial year.

    “I would like to express deep appreciation to the board and management of Nigerian Breweries Plc for showing great leadership in managing the business amidst challenges. On behalf of other shareholders, I would like to commend everyone, including the staff, for their contribution that has resulted in a good performance for the company. I am confident that this year would also benefit the company,” he said.

    Managing Director, Nigerian Breweries Plc, Mr. Hans Essaadi, expressed his gratitude to all the company’s shareholders for their invaluable support, stating that the company remains committed to delivering long-term growth to its shareholders, inspite of the current economic headwinds and challenges.

    Company Secretary & Legal Director, Nigerian Breweries Plc, Mr. Uaboi Agbebaku, stated that the 2022 financial year witnessed a growth in performance, as evident in the rise of its net revenue by 26 per cent from N437.2 billion in 2021 to N550.5 billion in 2022.

    A breakdown of the company’s audited results shows that the profit after tax recorded for the 2022 financial year grew by eight per cent from N12.9 billion to N13.9 billion.

    He explained that the cost of sales, marketing, and distribution expenses were under severe pressure due to inflation, devaluation of the naira, and high energy costs.

    Jamodu yesterday retired as the chairman of NB, a post he held for one and half decades.

    At its meeting on April 25, 2023, the board of NB had accepted a notice of retirement from Jamodu. With this, Jamodu retired from the board and as the chairman of the board on April 30, 2023.

    Jamodu joined the board effective March 1, 2006 and subsequently became the chairman from January 1, 2008.

    In a regulatory filing signed by NB’s company secretary, Uaboi Agbebaku, the company said, in line with the board’s succession plan, the board at the April 25, 2023, appointed Mr. Asue Ighodalo as a non-executive chairman effective May 1, 2023. Ighodalo joined the board on January 1, 2022.

    The company commended Jamodu for its outstanding leadership noting that during his tenure, the company recorded several landmarks.

    “During that period, he led the board to oversee the company’s massive growth and transformation as well as its continuing leadership in the brewed product market, including acquisitions and mergers between 2011 and 2014,” NB stated.

    Ighodalo is a lawyer with more than 35 years of experience and a leading figure in corporate Nigeria. He chairs the boards of Sterling Bank Plc and Levene Energy Group and he is also on the board of Okomu Oil Palm Plc. He is the immediate past chairman of the Nigerian Economic Summit Group.

  • Stockbrokers seek govt’s review on employment, admission

    Stockbrokers seek govt’s review on employment, admission

    The Chartered Institute of Stockbrokers (CIS) yesterday called on the Federal Government to grant the institute’s certifications enhanced status of acceptability for employment across all cadres of the Federal Civil Service.

    The institute also urged the government to positively consider its certifications for admission into tertiary institutions for post graduate studies.

    First Vice President, Chartered Institute of Stockbrokers (CIS), Mr Oluropo  Dada, who spoke at the 28th Annual  General Meeting (AGM) of the institute in Lagos, said CIS certifications should be considered as eligible to chart  careers  in the public sector and for admission into post-graduate institutions.

    He assured its members of its ongoing efforts to grow the membership base by attracting millennials and Generation Z.

     According to him, at the heart of growing membership is the introduction of technology to all aspects of the institute’s examinations processes with the full adoption of online examination to all levels of its certification examinations to attract candidates across the globe and introduction of stand-alone -certification to encourage specialisation among its members  and other initiatives.

    He explained that local and international collaborations with top-notch tertiary institutions were being exploited  to create awareness of the benefits of certification as securities professionals for the academic community.

     “We are collaborating with tertiary institutions, universities in the country, and foreign institutes too. We believe that the numbers would be there. We are looking at what we can do at the Universities to catch them young and attract new people into the profession.

    “ The institute has also incorporated stand-alone certification to enable its candidates to specialize in any areas of their choice in line with global standards while it is engaging the relevant government agencies to consider the certifications for employment opportunities in the public sector and admission into tertiary institutions”, Dada said.

    Earlier in his welcome address, the President and Chairman of Council, Mr Oluwole Adeosun expressed optimism that the institute had a bright future  reflected  on the success the Institute had achieved in its last thirty years of obtaining the Charter from the Federal Government of Nigeria as the certification and training  body for the country’s capital market which it recently celebrated and branded as CIS@30 .

    “It was the first AGM opened to all members of the institute after the lifting of the COVID -19 public gathering restrictions which limited attendance at the 25th to the 27th Annual General Meetings held between 2020 and 2022.

    “The AGM was an opportunity for us to reflect on the progress we have made over the past year in particular and to set new goals for the institute as we evolve on the heels of the highly successful 30th Anniversary celebration of the Institute’s Charter granted in 1992 by the Federal Government of Nigeria to provide certification and training for professionals in the capital market . I am proud of what we have accomplished so far, and I am excited about the future of the Institute. We have also recognized the outstanding contributions and achievements of some members.

     “I extend my heartfelt appreciation to all members of the Institute for their contributions and support.  I also appreciate the management and staff of the Institute for their hard work and dedication in organizing this year’s AGM,” Adeosun said.

     Registrar and Chief Executive, Chartered Institute of Stockbrokers (CIS), Mr. Josiah Akerewusi, noted that as part of the strategy to grow membership,  the institute had continued to organise essay and quiz competitions for students in the tertiary institutions to create awareness on the regulators , operators and products in the financial market  ecosystem .

     The meeting ratified election of six members to the board. They were Mrs. Nkoli Edoka, Mr. Kurfi Garba, Mr. Jude Chiemeka, Mr. Sunday Babarinde, Dr. Mohammed Momoh, and Mr. Mustapha Akaje.

  • ‘Capital market well positioned to support national finance’

    ‘Capital market well positioned to support national finance’

    Amid concerns over the nation’s public financial structure, Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has assured that the capital market has the depth and structure to support the realization of the nation’s budget.

    Director-General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda, said the market has shown resilience against the global and national macroeconomic headwinds. 

    He noted that while last year was a turbulent one that brought with it increased inflationary pressure and consequent increase in interest rates for the global economy, there is increased optimism that inflationary pressures would be managed in the not too distant future.

    He stated that the global stock market posted its biggest annual drop since the 2008 financial crisis, with the MSCI World Index of stocks losing about a fifth of its value during 2022, the worst performance in 14 years.

    “Last year, the economy faced several challenges, including worsening inflation, rising unemployment, huge fiscal deficit, insecurity, and floods. Additionally, oil theft and volatility in oil prices led to difficulties in foreign exchange management. In an attempt to tame inflation, the CBN raised the monetary policy rate four (4) times during the year, increasing the cost of financing for businesses and dampening corporate activity and performance;

    “Despite these challenges, the economy grew by 3.52 per cent (year-on-year) in real terms, driven mainly by the services sector, which recorded a growth of 5.69 per cent and contributed 56.27 per cent to the aggregate GDP,” Yuguda said.

    He said the safety and security of the capital market, and to address the deficiencies in the Nigeria’s Mutual Evaluation Report (MER), the commission has issued new AML/CFT regulations and guidelines, which mandate CMOs to comply with stringent reporting obligations, such as, application of RBS by reporting entities, screening of clients against United Nation’s Sanction List before on boarding, and continuous monitoring of clients among others.

    He therefore vowed that the SEC will apply zero tolerance to money laundering, terrorism and proliferation financing violations.

    “We must all ensure that we continue with the implementation of the revised Capital Market Master Plan (CMMP), alongside the implementation of other initiatives. Over the years, we have relied on the support of CAMMIC, Technical Committees and Working Groups in the implementation of the Master Plan.

    “In line with the RCMMP, we will review and align the structure and scope of work of the various technical committees and working groups to ensure seamless implementation of the plan and continue to rely on the stakeholders,” Yuguda said.

    He assured that in protecting investors and creating an enabling environment for fit-and-proper capital market operators to thrive, the commission will prioritize its planned increase of on-site inspections and improved collaboration with trade groups and other relevant stakeholders.

    He commended the capital market community, for their unwavering commitment, which has played a crucial role in the Commission’s efforts to build a robust capital market adding that, their contributions and support have been instrumental to driving progress in the capital market and the country.

  • Nigeria’s forex reserves hit new low at $35.33b

    Nigeria’s forex reserves hit new low at $35.33b

    After a one-week breather, Nigeria’s foreign exchange (forex) reserves reversed to its recent negative trend, dropping by $79.77 million to close weekend at a new low of $35.33 billion.

    The latest position represented a new low, after the nation’s forex reserves dropped over 11 weeks to $35.39 billion earlier this month.

    The Anation’s external reserves had dropped by $111.10 million to $35.39 billion, its 11th consecutive weeks of decline.

    Nigeria’s forex reserves had lost more than $1.82 billion in nearly three months of a free fall. Official forex reserves status data report obtained from the CBN indicated that forex reserves had depleted from $37.211 billion by January 16, 2023 to $35.39 billion, setting a new low at $35.33 billion at the weekend.

    Nigeria’s external reserves, which closed 2022 at about $37.08 billion, had picked at $37.211 billion on January 16, 2023. It has since been on the decline, dropping to lower level every week over the past 10 weeks.

    Most analysts agreed that Nigeria’s shaky forex reserves position and currency crisis were directly due to the CBN’s currency management stance. The apex bank’s fixed-rate, controlled exchange policy has seen the emergence of parallel markets with some 290 basis points between the official rate and the market-driven, unofficial parallel market.

    Analysts have called for major forex and macroeconomic reforms to stem decline and encourage direct and indirect forex inflows into the country.

    Analysts at Cordros Capital said they believed the forex crisis “will remain over the short-to-medium term” as there is no positive signal that denotes an improvement in forex supply relative to the pre-COVID-19 levels.

    “Moreover, considering the tepid accretion to the reserves given low crude oil production and elevated premium motor spirit (PMS) under-recovery costs, foreign portfolio investors (FPIs) who have historically supported supply levels in the Investors & Exporters Window will be needed to sustain forex liquidity levels in the medium to long-term,” Cordros Capital stated at the weekend.

    Analysts at Cordros Capital attributed the persistent slowdown in capital importation to foreign investors’ lacklustre interest in the country “given an unclear foreign exchange framework, an uninspiring macro narrative, elevated global interest rates, and heightened global uncertainties”.

    “While we believe a new government will be a breather for the country in the short term as sentiments are likely to improve, we think foreign capital inflows will remain low compared to pre-COVID levels over the medium term in the absence of significant reforms in the forex, fiscal and monetary policy frameworks,” Cordros Capital stated.

    Analysts at Afrinvest (west Africa) said Nigeria’s capital importation continues to weaken below its pre-COVID level of $24 billion, “primarily due to the investors’ aversion to subsisting forex policies”.

    “Specifically, the prominence of capital controls to manage the ongoing forex crisis complicates fund repatriation from Nigeria and, by the same token, discourages new investments by offshore players,” Afrinvest stated.

    According to analysts, the existence of a multiplicity of forex windows muddles clarity around forex administration, subsidises the government sector at the expense of the large private economy, and contributes to the widening premium of parallel market rates to the official market.

  • Investors scout for Transcorp, Access Holdings’ shares

    Investors scout for Transcorp, Access Holdings’ shares

    •Prospective energy deals, dividends trigger scramble

    Transnational Corporation of Nigeria (Transcorp) Plc and Access Holdings Plc were the most-sought after stocks at the market as investors scrambled to take positions in the two companies.

    Trading report at the weekend indicated that Transcorp was the most-traded stock and the highest gainer at the Nigerian Exchange (NGX), with the conglomerate’s share pricing rising by 45 per cent.

    Access Holdings was the second most-active stock with the second largest turnover, with the intense bargain-hunting driving the holding company’s share price up by 11.86 per cent, one of the 10 highest gains during the week.

    Investors staked N5.94 billion on 3.04 billion shares of Transcorp in 1,171 deals. The open market buy orders pushed Transcorp’s share price up by 44.97 per cent from its week’s opening price of N1.69 to N2.45 per share.

    Access Holdings, which released its audited results for 2022 and 2023 first quarter results during the week, recorded a turnover of 157.79 million shares worth N1.54 billion in 709 deals. The holding company’s share price also rose from its week’s opening price of N8.85 per cent to close weekend at N9.90 per share.

    Transcorp has been the most-sought after company at the stock market in recent days after Lagos businessman and an energy investor, Mr. Femi Otedola, made a move for the conglomerate.

    The board of Transcorp at the weekend confirmed that Otedola was behind multi-billion naira equity deals on Transcorp. The high-stake positioning in Transcorp had sent other investors scouting for the shares of the conglomerate.

    The management of Transcorp said it Otedola had acquired 2.246 billion ordinary shares of 50 kobo each, representing 5.52 per cent equity stake in the conglomerate.

    The board of Transcorp described the Otedola’s investment as “expression of confidence in its leadership and management” as the group continues its unwavering commitment to superior stakeholders’ returns, anchored in our ideology of Africapitalism.

    “Rest assured of our commitment to remain resolute in executing our group’s strategy of making strategic investments in key sectors within the Nigerian economy, our transformation agenda and our ability to contribute positively towards building prosperity for all,” Transcorp stated.

    Otedola’s 5.52 per cent equity stake in Transcorp is above the five per cent threshold set by the market as benchmark for material or significant investment.

    Transcorp, one of the largest publicly quoted conglomerates, has businesses in the power, hospitality, agribusiness and oil and gas sectors. Its notable businesses include Transcorp Hilton Abuja, Transcorp Hotels Calabar, Transcorp Power and Transcorp Energy.

    Transcorp had strengthened its position as a leading player in the power sector with the successful acquisition of 100 per cent ownership stake in Afam Power Plc and Afam III Fast Power Limited, together with a combined installed capacity of about 1,000MW, bringing the group’s total power generation capacity to approximately 2,000 MW.

    The board of Access Holdings had last week recommended distribution of N53.32 billion as cash dividends for the 2022 business year. Access Holdings’ shareholders will receive a final dividend of N1.30 per share in addition to an interim dividend of 20 kobo, representing a total dividend per share of N1.50 for the 2022 business year. The dividend will be paid on May 24, 2023 to all shareholders on the register of the company as at the close of business on May 09, 2023.

    Key extracts of the audited report and accounts for the year ended December 31, 2022 showed that the group recorded appreciable growth across revenue lines, despite the strong global and national macroeconomic headwinds. Gross earnings rose by 43 per cent and crossed the trillion naira mark to N1.39 trillion in 2022 as against N971.9 billion in 2021. Pre and post tax profits stood at N167.68 billion and N152.20 billion respectively.

    The balance sheet of the group emerged stronger with total assets rising by 28 per cent from N11.73 trillion to in 2021 to N15 trillion in 2022. Customers deposit also rose by 33 per cent to N9.25 trillion as against N6.95 trillion. Loans to customers grew by 25 per cent from N4.45 trillion to N5.56 trillion. Shareholders’ funds increased by 17 per cent from N1.05 trillion to N1.23 trillion.    

    The group’s three-month results for the quarter ended March 31, 2023 showed pre-tax profit of N81.59 billion in first quarter 2023 as against N65.56 billion in first quarter 2022. After taxes, net profit rose from N57.83 billion in first quarter 2022 to N71.66 billion in first quarter 2023.

    Group Chief Executive Officer, Access Holdings Plc, Mr. Herbert Wigwe, said the results showed the group’s deliberate focus on its strategies as it begins to see the dividends of organic and inorganic activities across the ecosystem.

    He explained that the 37 per cent growth in interest income to N827 billion in 2022 was driven by a strong loan book growth despite the high inflationary environment, with net loans and advances to customers growing by 25 per cent across the banking group, with a deliberate focus on credit disbursement to critical segments and growth sectors of the economy.

    He pointed out that the bank also saw good growth across the subsidiaries, with its United Kingdom subsidiary growing by 36 per cent to N1.1 trillion in 2022.

    “Access Holdings ended the year with over 58 million customers across the extensive network of subsidiaries and business verticals. The company’s asset base grew to N15.0 trillion and customer deposits to N9.25 trillion, with CASA mix up by five per cent, to 63 per cent as a result of leveraging innovation, digital technology and financial inclusion to mobilize sustainable low-cost deposits.

    “In the second half of 2022, Access Holdings Plc completed the divestment from Pensions Custodian business and acquired significant shareholding in First Guarantee Pensions Ltd & Sigma Pensions Ltd to form Access Pensions Ltd. This combination resulted in the creation of the fourth largest pension fund administrator (PFA) in Nigeria, with asset under management of N0.9 trilion, putting us clearly in the league of strategic players in the Pensions industry.

    “Our Payment business went live with the Switching business in third quarter 2022, while the other areas of the business will become fully operational from second quarter 2023. The overall business outlook for 2023 remains strong as we begin our new five-year strategic journey which aims to make us one of the top five financial services organisations in Africa by 2027,” Wigwe said.

  • Wema Bank’s gross earnings rise 42.3% to ₦131.1bn

    Wema Bank’s gross earnings rise 42.3% to ₦131.1bn

    • …. Bank declares 30kobo per share dividend

    Wema Bank PLC has announced its Audited results for Q4 ended 31st December 2022.

    The bank said in a statement that it recorded Gross Earnings of ₦131.08bn, a Year-over-year (y/y) increase of 42 % (FY 2021: ₦92.14bn).

    Interest Income was up 44.7% y/y to ₦106.07bn (FY 2021: ₦73.30bn).

    Non-Interest Income up 32.8% y/y to ₦25.01bn (FY 2021: ₦18.83bn).

    Profit before Tax (PBT) was ₦14.74bn a y/y increase of 19.1% over the ₦12.38bn reported in FY 2021.

    Profit after Tax (PAT) also increased y/y by 25.5% to ₦11.21bn (₦8.93bn in FY 2021).

    The bank also grew its deposit year to date by 26% as at FY 2022 to ₦1,165.93bn from ₦927.47bn reported in FY 2021.

    Loans and Advances rose by 24% to ₦521.43bn in FY 2022 from ₦418.86bn in FY, 2021.

    Commenting on the result, the Managing Director/Chief Executive Officer of the Bank, Mr. Moruf Oseni said:

    “Our 2022 results show the result of the careful execution of our medium-term strategy as we have deliberately focused on deepening our offerings to the corporate, commercial and retail segments of the market using our digital channels while ensuring best in class customer experience platforms deliver improvements across all customer touchpoints. We expect the bottom line to improve even further in 2023.”

    Also speaking on the result, the Bank’s Chief Finance Officer, Mr. Tunde Mabawonku, explained that the bank’s continuous investment in the digital space has positioned it as one of the leaders in providing digital banking services to individuals and corporates across the country.

    “It has been a good full year performance for Wema Bank with gross earnings growing by 42.3% year on year and earnings per share at 87.2kobo,” Mabawonku said.

    “We have also succeeded in making Wema Bank an integral part of the Fintech ecosystem in the country with our ubiquitous fintech infrastructure support play”.

  • Guaranty Trust records N214.2b pre-tax profit

    Guaranty Trust records N214.2b pre-tax profit

    Guaranty Trust Holding Company (GTCO) Plc, the holding company for Guaranty Trust Bank and other subsidiaries, recorded marginal decline in profitability in 2022 as pre-tax profit dropped to N214.2 billion.

    Key extracts of the audited report and accounts of GTCO for the year ended December 31, 2022 released at the weekend showed that group profit before tax dipped by 3.3 per cent from N221.5 billion in 2021 to N214.2 billion in 2022. The company attributed the decline to a N35.6 billion impairment that was recognised on Ghanaian sovereign securities.

    The group’s net loan book however increased by 4.6 per cent from N1.80 trillion in 2021 to N1.89 trillion in 2022.

    Deposit liabilities grew by 11.6 per cent from N4.13 trillion to N4.61 trillion. Group’s balance total assets and shareholders’ funds stood at N6.45 trillion and N931.1 billion. Capital Adequacy Ratio (CAR) remained strong at 24.1 per cent. Asset quality was sustained as IFRS 9 Stage 3 Loans ratio (NPLs) improved to 5.2 per cent in 2022 as against six per cent in 2021. However, Cost of Risk (COR) inched up marginally to 0.6 per cent in 2022 as against 0.5 per cent in 2021.

    Group Chief Executive Officer, Guaranty Trust Holding Company (GTCO) Plc, Mr. Segun Agbaje said the results reflected the ability of the group to successfully navigate the peculiar challenges in the different markets where it operates.

    According to him, the resilience of the group underscores its strong business fundamentals and unwavering commitment to sound business strategies.

    “Despite the varying challenges and headwinds that weighed on growth in 2022, we were determined to deliver a decent performance and scale effectively to strengthen our competitive edge and drive long-term growth. 

    “As an organisation, 2022 was quite significant for us being the first year after our corporate restructuring into a financial holding company in August 2021. Today, across our banking, payment, funds management, and pension businesses, we have successfully built a robust ecosystem with immense potential to deepen our addressable market and create more value for all our stakeholders.

    “We will continue to prioritise innovation, service excellence, and execute seamlessly towards achieving our vision of leading financial services in Africa,” Agbaje said.

    He pointed out that the group has continued  to post one of the best metrics in the Nigerian financial services industry in terms of key financial ratios, with pre-tax return on equity (ROAE) of 23.6 per cent, pre-tax return on assets (ROAA) of 3.6 per cent, full impact capital adequacy ratio (CAR) of 24.1 per cent and Cost to Income ratio of 48.0 per cent.

  • Two investors acquire Fidelity Bank’s 3.04b shares placement

    Two investors acquire Fidelity Bank’s 3.04b shares placement

    Fidelity Bank Plc has sold additional shares to two investors in a special private placement valued at about N14 billion.

    Fidelity Bank at the weekend announced the successful completion of its private placement of 3.037 billion ordinary shares of 50 kobo each at N4.60 per share. Two applications were received and were fully allotted for the private placement.

    Regulatory filing indicated that a strategic investor purchased 2.75 billion shares at N4.60 per share in a deal valued at N12.65 billion. This represents about 8.594 per cent in the post-offer share capital.

    Another investor acquired 287.41 million ordinary shares of 50 kobo each at N4.60 in a deal valued at N1.322 billion, representing about 0.897 per cent of the enlarged post-issuance share capital.

    Nigeria’s apex capital market regulator, Securities & Exchange Commission (SEC) has cleared the full allotment of the private placement and the issued shares are expected to be credited to the investment accounts of the investors not later than Friday, May 5, 2023.

    Fidelity Bank had adopted the private placement option as a way to comply with provisions of Section 124 of the Companies and Allied Matters Act, 2020 and the Companies Regulations 2021, and pursuant to Paragraphs 9 and 10 of the Articles of Association of the company. Recent changes in corporate laws disallow keeping subsisting unissued shares, leaving companies with the option of cancelling current unissued authorised share capital or issuing out such shares.

    Shareholders had at an extraordinary general meeting in October 2022 in Lagos approved the private placement, waiving their pre-emptive rights to the unissued shares to be allocated to select private investors and approved that such issued shares to private investors shall rank in all respect equally with the existing ordinary shares of the bank.

    Chairman, Fidelity Bank Plc, Mr. Mustafa Chike-Obi, had explained that the private placement served dual purpose of complying with the new legal requirement and beefing up the bank’s shareholders’ funds.

    According to him, the additional capital from the private placement would support the bank’s growth in line with its corporate objectives.

    Managing Director, Fidelity Bank Plc, Mrs. Nneka Onyeali-Ikpe said the bank was growing in leaps and bounds and needed to expand its capital base to take advantage of emerging opportunities.

    “We will also use the additional capital to enhance our technology infrastructure to enable us to serve more customers,” Onyeali-Ikpe said.