Category: Capital Market

Africa’s largest cement producer, Dangote Cement Plc recorded a turnover of N1.02 trillion in the third quarter with Nigeria accounting for about 64 per cent of the group cement sales.

Key extracts of the interim report and accounts of Dangote Cement for the third quarter ended September 30, 2021 released at the weekend showed that group cement sales stood at 22.2 million tonnes. Sales volume in Nigeria remained strong and accounted for 14.1 million tonnes despite heavy rains in the third quarter. Pan-African operations accounted for the balance of 8.2 million tonnes.

Total turnover stood at N1.02 trillion in third quarter 2021 as against N761.44 billion in third quarter 2020. Profit before tax rose from N271.96 billion in 2020 to N405.5 billion in 2021. Net profit after taxes stood at N278.25 billion in 2021 as against N208.69 billion in comparable period of 2020. The group’s taxes had increased from N63.28 billion in third quarter 2020 to N127.24 billion in third quarter 2021. With these, earnings per share increased from N12.25 in third quarter 2020 to N16.23 in third quarter 2021.

Group Chief Executive Officer, Dangote Cement Plc, Michel Puchercos, described the results as “a solid set of the results” noting that group volumes rose by 15.4 per cent compared with the first nine months of 2020.

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He noted that the economic performance and efficiency initiatives across the group enabled the offsetting of inflationary pressures on some of its cost lines.

“Our Nigerian business recorded volume growth of 18.7 per cent in nine months 2021 at 14.1mt and despite operating in a complex, challenging, and fast-moving environment, Dangote Cement is consistently delivering superior profitability and returns to the shareholders.

“Our alternative fuel project is at an advanced stage which aims to leverage waste management solutions, reducing CO2 emissions and sourcing material locally,” Puchercos said.

Dangote Cement is Africa’s leading cement producer with nearly 48.6Mta capacity across Africa. A fully integrated quarry-to-customer producer, it has a production capacity of 32.25Mta in its home market, Nigeria. Its Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.25Mta of capacity across five lines; its Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta while its Gboko plant in Benue state has 4Mta.

In addition, it has operations in Cameroon-1.5Mta clinker grinding, Congo-1.5Mta, Ghana -1.5Mta import, Ethiopia-2.5Mta, Senegal-1.5Mta, Sierra Leone-0.5Mta import, South Africa-2.8Mta, Tanzania-3.0Mta and Zambia with 1.5Mta.

 

 

 

Experts will brainstorm on the importance of the capital market in sustainable development of the economy at the maiden capital market conference of the Nigerian Exchange (NGX).

Vice President Yemi Osinbajo is expected to lead discussions as the keynote speaker at the inaugural Nigerian Capital Market Conference scheduled for November 30, 2021.

Themed “The future ready capital market: Innovating for Nigeria’s sustainable recovery”, the conference will bring together policymakers, government, financial experts, business leaders, investors, international development partners, regulators and other market stakeholders, to share insights and broaden the thinking needed for greater capital flows through innovative sources of financing.

Key topics to be discussed include driving capital market recovery through policy advocacy; driving government’s economic growth plans using the capital market; and the role of the private sector in growing the capital market.

The conference,  a hybrid event, will be hosted by Chairman, NGX, Mr. Abubakar Mahmoud and Chief Executive Officer, NGX, Mr. Temi Popoola. The onsite event will hold at Transcorp Hilton, Abuja, with an opportunity for online participants to join via Zoom and YouTube.

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Mahmoud stated that the capital market occupies a critical position in the economic growth and development of Nigeria and Africa.

According to him, following the successful demutualisation of the defunct Nigerian Stock Exchange (NSE), the NGX is well-positioned, as a more agile and responsive exchange, to chart the course for the next phase of growth.

“Through the Nigerian Capital Market Conference, we are adopting a collaborative approach to ensure that we can continue to create value for domestic, regional and international market participants as their needs become increasingly sophisticated,” Mahmoud stated.

Popoola pointed out that given the macroeconomic and fiscal challenges prevalent in the economy, the capital market is a lever to drive savings mobilisation and the creation of wealth and liquidity through policy advocacy, digitalisation and the proliferation of innovative products and services.

He added that the capital market allows the reallocation of capital in favour of addressing critical societal challenges such as the climate crisis and the transition to a net-zero economy.

“As the transformational exchange stimulating the sustainable economic recovery of Nigeria, NGX is strategically positioned to galvanise stakeholders to share actionable ideas and collaborate across sectors and industries to create opportunities to boost growth and development for all. We expect that this inaugural edition of the Nigerian Capital Market Conference will be the first in a series of events that will catalyse the capital market of the future,” Popoola said.

 

Lifepage, a real estate company regulated by Real Estate Developers Association of Nigeria (REDAN), plans to build more than one million homes across Africa as part of efforts to help individuals achieved their dreams of home ownership.

Founder and Chief Executive Officer, Lifepage, Mr Oladipupo Clement said the firm is committed to helping people achieve their goals.

“We want to help you achieve your financial dreams through real estate investment, and as a company we are confident to say that if it’s not creating or retaining wealth, then it’s not Lifepage,” Clement said.

He said the firm has since 2012 served over 5,000 clients, sold about 2.0 million sqm of land and currently developing 200 houses.

According to him, Lifepage’s projects included the Orange Apartments in Dideolu Estate, Ogba Lagos with all apartments sold out, and Almond County Homes in Ikorodu and Mowe Town as well as other projects in Lagos, Ogun, Abuja and Port Harcourt.

He outlined that the firm’s primary interest is to provide landed properties with high level of credibility and integrity, which is aimed to help customers achieve financial aspirations adding that Lifepage and its affiliates look to develop one million homes across Africa by 2041.

 

Speaking on their new project geared at achieving its vision to develop one million homes across Africa by 2041, Clement said they are set to kick off a project.

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“We are set for the grand breaking ceremony of moving to the apartment in Almond County at Mowe town and this is to kick off the second phase of the project. The first phase began on August 1st 2021 involving the sales of land and this second phase will involve the development of homes and apartments,” Clement said.

He noted that with over nine years in business, the firm is passionate about giving back to the society which is why it came up with an initiative called  90-day-end-of-the-year bounty offer which was announced on October 1, 2021 with cash prizes, homes and cars to be won.

“Through this offer, one lucky individual stands the chance to win a 10-year interest-free mortgage for a home while other prizes include N1 million and N500,000,” Clement said.

 

Executive Director, Product Development and Estates, Lifepage, Mr. Opeoluwa Oni explained that anyone who subscribes to any of the company’s products with a minimum of N1 million stands a chance of winning any of the prizes adding that winners will be selected through a draw at the company’s gratitude party scheduled to hold in January 2022.

He outlined that some of the product offerings from Lifepage include investment packages with guaranteed returns on investment, land, and affordable homes situated in prime locations within the country.

Executive Director, Sales, Ajiore Francis said Lifepage has interesting investments packages for everyone for as low as N10,000.

He urged people to position their thinking in a positive direction as they will continue to offer counseling in the course of the business to enlighten clients about their choice of investment.

 

LivingTrust Mortgage Bank Plc has applied for regulatory approval to raise N2.75 billion new equity capital from its shareholders as the mortgage fir seeks to build up its balance sheet for aggressive growth.

LivingTrust Mortgage Bank plans to float a rights issue of five billion ordinary shares of 50 kobo each at 55 kobo per share. The rights issue will be pre-allotted to shareholders as at October 26, 2021 on the basis of one new ordinary share for every share held.

Head, Listings Regulation Department, NGX Regulation, Godstime Iwenekhai confirmed the receipt of application for regulatory approval for the N2.75 billion capital raising.

LivingTrust Mortgage Bank is blazing the trails as the first company on the “growth board” to float a primary issue.

The NGX had earlier this year migrated LivingTrust and three other companies – Chellarams Plc, McNichols Plc and The Initiates Plc to a newly created board-growth board’, which allows small and medium companies with track records of stable operations, growth and minimum corporate governance to list their shares and raise capital through the capital market.

The new board is also expected to support the small and medium enterprises (SMEs) with direct access to capital and support services from the capital market. Nigeria Bureau of Statistics (NBS) indicates that SMEs account for nearly half of Gross Domestic Product (GDP) and more than three-quarters of employment.

Besides reduction in costs of listing and compliance requirements, the NGX, in collaboration with various strategic business partners and value added service providers, will provide support services aimed at creating competitive edge for companies on the board. These support services include pre-listing diagnostics; institutional services such as audit services, financial advisory, legal advisory, corporate strategic advisory; investor relations; analyst coverage, corporate access and corporate governance and customised trainings.

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For a company to be listed on the growth board, it must be a duly incorporated public limited liability company with at least two years of operations, audited financial statements in line with the International Financial Reporting Standards (IFRS) and must have grown its revenue by a minimum of 20 per cent cumulatively in its last two years of operations.

Also, companies to be listed on the growth board must undertake that their promoters or directors shall retain a minimum of 50 per cent of their shares for a minimum period of 12 months from date of their listing, and that the directors or promoters shall not directly or indirectly sell or offer to sell such securities during that 12-month period.

The framework meanwhile provides alternative requirements for listing for each segment. Under the entry segment, a new business may be considered for listing if it can provide evidence of investment in it by a core investor or a strong technical partner that has a minimum of two years’ operating track record, or a majority shareholder who is either a High Net Worth Individual (HNI) or is a director of a listed company. Under Nigerian rules, HNI is an individual with net worth of more than N100 million.

Besides, companies heading for the entry segment must have market capitalisation of not less than N50 million, a minimum of 10 per cent of its shares available or to be available to minority retail investors and at least 25 shareholders.

Under the standard segment, a new business may be considered for listing if it that can provide evidence of a core investor or a strong technical partner who has a minimum of four years’ operating track record, or a majority shareholder who is a HNI. The company must also have a minimum market capitalisation of N500 million, at least 15 per cent of its shares must be held or will be held by minority retail shareholders and it must have a minimum of 51 shareholders.

 

 

 

 

The development of the Nigerian economy depends on the depth and development of the nation’s capital market.

Private and public sectors experts who spoke at the annual conference of the Chartered Institute of Stockbrokers (CIS) at the weekend were unanimous on the importance of the capital market to the national economic development.

They called for enabling policies to support the growth of the capital market and further integration of the market into national economic development plans and strategies.

Edo State Governor, Mr Godwin Obaseki, an astute financier, pointed out that there was a nexus between the development of a country’s capital market and the economy as reflected in the percentage of market capitalization to the Gross Domestic Products (GDP) of developed economies.

Chairman, House Committee on Capital Market, Honourable Babangida Ibrahim assued that in recognition of the importance of the market, government will continue to support the market in ensuring that it attracts more participants across different levels.

President, Chartered Institute of Stockbrokers (CIS), Mr. Olatunde Amolegbe said the theme of the 25th annual conference: “Capital Market as a Catalyst for Economic Development and Sustainable Growth” delved deep into the area of macroeconomics on how the government, corporate bodies and individual investors can harness investment opportunities through the capital market.

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According to him, the CIS is on record as being one of the first organisations in Nigeria to embrace technology as its new way of life as it was the first professional body to conduct a full-fledged computer based examination diet.

He outlined that the institute conducts the required training and certification for those candidates that are deemed qualified to practice as no person is permitted to perform core professional functions in the Nigerian capital market without obtaining appropriate certification from the CIS.

Amolegbe said some of the institute’s achievements included provision of free life assurance to all members, reviewing of membership rules and regulation as well as members code of conduct documents to bring them to world class standards, commissioning of a state-of-the-art office complex to provide a conducive atmosphere for staff and members alike and making significant strides in amending the Act that establishes the Institute for global competitiveness amongst others.

He pledged the institute’s commitment to continuous advocacy towards attracting more participants into the Nigerian capital market even as the Institute inducts 321 new Associates and 40 Fellows.

He announced the commencement of the institute’s full-blown remote examination as candidates from the United States, United Kingdom and Hong Kong participated in its professional examination last September.

Africa’s largest digital payments hub, MFS Africa has signed an agreement to acquire Baxi, one of Nigeria’s leading super-agent networks. The deal, which is subject to approval from the Central Bank of Nigeria, will be the second highest fintech acquisition in Nigeria to date.

With the acquisition, MFS Africa will expand its pan-African network into Nigeria, connecting Nigerian businesses to the continent and the rest of the world.

The acquisition is a major expansion for MFS Africa given Nigeria’s status as home to one of the most dynamic markets in the continent; Africa’s largest economy and home to the largest number of small and medium enterprises (SMEs). It is also the largest remittance market in Africa and home to one-third of intra-Africa remittance flows.

Founder and Chief Executive Officer, MFS Africa, Dare Okoudjou said the deal was a pivotal step in the company’s journey noting that by combining Baxi’s network of SMEs operating as agents with its pan-African network, MFS Africa aims to take Nigeria’s SMEs to the rest of Africa and the world.

“Our expansion into Nigeria brings us one step closer in our mission of making borders matter less,” Okoudjou said

Following the acquisition’s close, MFS Africa will build Baxi into a key node on its digital payment network, allowing customers to make regional and global payments to and from Nigeria. MFS Africa will also expand Baxi’s proposition for offline SMEs to select markets within MFS Africa’s footprint of 320 million mobile wallets across more than 35 African countries.

Founded in 2014 by Degbola Abudu and Folu Majekodunmi, Baxi is one of Nigeria’s largest independent SME-focused electronic payment networks. Baxi provides a cash-in and cash-out offering as well as value-added services — account opening, money transfer, bill payment and more — to the last mile. Through its network of more than 90,000 agents, Baxi has already processed over $1 billion in transactions this year.

Chief Executive Officer, Baxi, Degbola Abudu said the deal would lead to additional value creation for the Nigerian market.

“We’re thrilled to partner with the MFS Africa team to expand our service offering for individuals and SMEs. We believe that we’ve barely scratched the market’s potential. Only 3% of Nigerian SMEs have access to credit products. By teaming up with MFS Africa, and with the strong support of our local commercial banking partners, we can offer more value-added products and services, such as cross-border payments, to support Nigerian SMEs in their growth,” Abudu said.

Previous restrictions to mobile network operators’ participation in mobile money services have restrained the sector’s growth in Nigeria. To serve the more than 55 per cent of Nigerian consumers currently excluded from formal financial services, Nigerian fintechs that have built strong agent networks are the crucial interface to reach Nigeria’s 31 million financially underserved and  67 million financially unserved populations. Supporting and nurturing SMEs is crucial to Nigeria’s economy, as they contribute 50 per cent of Gross Domestic Product and provide 76 per cent of jobs. With its presence in 36 Nigerian states, Baxi fills a critical gap by providing unbanked Nigerians and informal SMEs access to financial services.

The focus areas of both companies are complementary. Baxi simplifies and integrates online and offline payments for SMEs and merchants in Nigeria through its omni-channel distribution network. MFS Africa simplifies cross-border payments, integrating payments via one hub.

Following the acquisition of Beyonic in 2020, MFS Africa continues to accelerate and lift its growth with strategic investment and acquisition, which are supported by its shareholders. LUN Partners and FT Partners served as financial and strategic advisors to MFS Africa in this transaction. PWC Nigeria and Nihilent advised MFS Africa on Commercial, Product and Technological due diligence. Da Hui and TNP were legal advisors to MFS Africa. Baxi was advised by financial advisor Verdant Capital and DAI Magister. Their legal counsels were Udo Udoma & Bello-Osagie (UUBO) in Nigeria and Akin Gump Strauss Hauer & Feld LLP in London.

 

The Association of Securities Dealing Houses of Nigeria (ASHON) at the weekend elected Mr Sam Onukwue as its new chairman, following statutory retirement of Chief Onyenwechukwu Ezeagu after five years of service.

Under the change of leadership,  Mr Sehinde Adenagbe, the Second Vice Chairman and Ms Ifeyinwa Ejezie, the Public Relations Officer, also  scaled up the corporate ladder to emerge the First and Second Vice  Chairman respectively.

Prior to his election at the association’s hybrid annual general meeting at the weekend, Onukwue was the First Vice Chairman. He had also served as the Assistant Financial Secretary, Financial Secretary and General Secretary.

Onukwue, the fifth chairman of ASHON, is a graduate of Accounting from the prestigious Yaba College of Technology, a Fellow of the Institute of Chartered Accountants of Nigeria as well as the Chartered Institute of Stockbrokers.  He also holds an MBA from the University of Lagos and an M.Sc. from Leeds, UK.

He has extensive banking and capital market experience spanning over 30 years, including his robust service at the Central Bank of Nigeria (CBN), merchant and commercial banks as well as multinational financial institutions.

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He also serves on the board of many companies, top class professional bodies and trade groups.

Addressing members at the meeting, Ezeagu highlighted some of the achievements during his tenure.

“Without the risk of immodesty for blowing one’s trumpet, it is considered important at this grand occasion to put on record the few things we were able to achieve. These include but not limited to creation of visibility for the association as a respected voice in capital market issues, widening the scope of income generating activities for our members outside the NGX and NASD platforms by promoting the Lagos Commodities and Features Exchange, our representatives negotiated with the relevant parties on the demutualization of NGX Group and our members got a favourable share of 78 per cent  holding, the presentation of the position of the association during the Joint Public Hearing on the Demutualisation Bill and Unclaimed Dividends at the National Assembly, meetings with market elders, past and present chairmen of NGX Council  on the way forward for the market amongst others,” Ezeagu said.

Other new members of ASHON’s governing council are  Olubunmi Ajayi, Sigma Securities Limited, Oluwadare Samuel Adejumo, Pivot Capital Limited,  Olumuyiwa Adeyemi,  Atlas Portfolio Limited,  Kolawole Thomas Oyedokun, DSU Brokerage ServicesLimited, Charles Egbunonwo, Forthright Securities  & Investment Limited, and Chief Ezeagu, the immediate past chairman who becomes an ex-officio member.

 

The Federal High Court of the Federal Capital Territory (FCT), Apo, Abuja at the weekend upheld the no case submission filed by suspended Director General of the Securities and Exchange Commission (SEC), Mounir Gwarzo, discharging him of all corruption allegations.

In a ruling that may reopen Gwarzo’s quest for justice over his suspension, Justice Olukayode Adeniyi of the Federal High Court discharged Gwarzo on all six counts filed against him, as well as the second defendant, Jamila Muhammad.

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) had arraigned Gwarzo and Muhammad before Justice Olukayode Adeniyi on charges bordering on gratification and abuse of office.

It was alleged that Gwarzo while serving as SEC DG knowingly held a private interest as a director and shareholder of Outbound Investment Limited, a company which was awarded a contract to supply and install units of air conditioners and refrigerators at SEC Lagos zonal office thereby committed an offence contrary to and punishable under Section 12 of Corrupt Practices and Related Offences Act, 2000.

Gwarzo was said to have also used his position as SEC DG to gratify himself when Outbound Investment Limited was awarded the contract to supply and install units of air conditioners and units of refrigerators at SEC Lagos zonal office by the Commission, thereby committed an offence contrary to and punishable under Section 19 of the ICPC Act.

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Muhammad on her part, was accused to have, while being a public officer used her position to gratify herself when Outlook Communications Limited, where she was a shareholder and director was awarded a contract by SEC thereby committed an offence contrary to and punishable under Section 19 of the ICPC Act.

that as at the time of the said contracts, the first defendant was still a director or shareholder in Outbound Investment Ltd, especially considering the fact that the prosecution admitted that the first defendant, in his extra-judicial statement had told the investigators that he had resigned and relinquished his shares since 2012.

The court noted that the prosecution did not investigate this. The prosecution witnesses did not show how they came about the CAC documents tendered as they admitted that they did not have any physical interaction with the CAC. They also did not tender the letter by which they applied for CTC of the documents, even though they said they applied to the CAC for the documents.

Furthermore, in respect of Counts two, four and six-allegation that the first defendant conferred unfair and corrupt advantage on himself, the court held that the prosecution witnesses admitted, during cross-examination, that neither the first defendant nor his relatives benefitted from the said contracts and awards. The prosecution witnesses also admitted that they did not investigate the procedure for award of contracts in SEC.

On the whole, the court held that the prosecution had not made any case to warrant an invitation to the first defendant to enter his defence. Gwarzo was accordingly discharged on all six counts.

The court also toed the same line and discharged Muhammad on the remaining eight counts which referred solely to her.

 

The federal government at the weekend listed the October tranches of its monthly savings bonds on the Nigerian Exchange (NGX), paving the way for the general investing public to trade on the bonds.

Two tranches of the monthly Federal Government of Nigeria Savings Bonds (FGNSBs) were listed at par value at the NGX.

Government listed a 2-Year FGN Savings Bond due October 13, 2023 at a coupon of 6.899 per cent per annum. It also simultaneously listed a 3-Year FGN Savings Bond due October 13, 2024 at coupon of 7.899 per cent per annum. A total of 66,455 units of the 2-year bond and 248,951 units of the 3-year bonds were listed at par aloe of N1000 per unit

The October issuance is the 52nd issue of the savings bond, which was introduced in 2017. The federal government had cut coupon on the October issuance of savings bonds by more than one basis points.

Government had offered its 2-Year FGN Savings Bond due September 15, 2023 at a coupon of 7.92 per cent per annum while the 3-Year FGN Savings Bond due September 15, 2024 was offered at a coupon of 8.92 per cent per annum.

Market analysts however said interest rate or coupons on government and other securities are reflective of the existing market situation noting that yields had fallen considerably in recent period and the ongoing rates still represent good returns compared to other saving instruments.

Application list for the two tranches of bonds for October 2021 opened on Monday, October 04, 2021 and closed on Friday, October 08, 2021. The settlement date for the issuance, which becomes the effective calculation date was Wednesday, October 13, 2021.

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The coupon payment dates for the October bonds, which pay interest rate quarterly, are January 13, April 13, July 13 and October 13 respectively.

The FGNSB was introduced in 2017 as a mass instrument for nationwide mobilization of savings and investments. Minimum subscription to the FGNSB is usually N5, 000 while the bond pays coupon or interest rate on a quarterly basis.

Usually, the minimum subscription to the bonds, offered at N1,000 per unit, is N5,000 or five units and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.

GTI Securities Limited, one of the authorised distribution agents for the FGNSB, noted that the savings bonds help to deepen national savings culture while providing opportunity to all Nigerians irrespective of income level to contribute to and benefit from national development.

According to the stockbroking firm, FGNSB enables all Nigerians opportunity to participate in and benefit from the favourable returns available in the capital market.

 

GTI Securities noted that the savings bonds are acceptable as collateral for loans by banks and can be sold for cash in the secondary market before maturity.

The bonds are usually listed on the stock exchange for trading, thus providing liquidity for investors who want to exit before maturity.

Savings bonds are good for savings towards retirement, marriage, school fees and house projects among other targets while assuring on its safety as the bonds are backed by the full faith and credit of the Federal Government of Nigeria.

 

Access Bank Plc has completed acquisition of the majority equity stake in Botswana’s fifth largest bank, African Banking Corporation of Botswana (BancABC Botswana) Limited.

In a regulatory filing at the Nigerian Exchange (NGX), Access Bank stated that it has completed acquisition of 78.15 per cent in BancABC Botswana.

BancABC Botswana, a well-capitalised bank poised for growth, is expected to form part of Access Bank’s nexus for trade and payments in Southern Africa and broader COMESA trade region.

Access Bank stated that BancABC Botswana’s achievements in retail banking space will provide an opportunity for it to deploy its best-in-class digital platforms and product suites to the Botswana market.

According to the Access Bank, the acquisition would enable BancABC Botswana to compete better in its core business segments.

Group Managing Director, Access Bank Plc, Dr. Herbert Wigwe said the successful completion of the acquisition would provide significant synergies by combining BancABC Botswana’s strong retail banking operation with Access Bank’s wholesale banking capabilities.

“It will also strengthen the quality of earnings through revenue diversification and growth in the corporate and SME banking segments for BancABC Botswana. The combination is another step towards our broader vision of becoming the World’s Most Respected African Bnak,” Wigwe said.

Wigwe had recently noted that over the last few months, the banking group had successfully completed acquisitions in South Africa, Mozambique, and Zambia, emphasising its footprint in key markets around the globe.

“We will continue to grow our presence in geographies with significant growth potential, especially where they support our global customers.  As we become Africa’s Gateway to the World, we would also seek markets which support our trade and payments aspirations and the African Free Trade Agreement,” Wigwe said.

According to him, to further enhance its operating efficiency and ensure strong returns on invested capital, the bank would bring the best of group assets, specifically digital banking capabilities that support individuals and businesses, enhance financial inclusion, and deliver the benefits of a strong network effect across its enlarged group.

“Throughout the pandemic, we have been able to demonstrate our ability and willingness to support our customers, our communities, and our colleagues.  As the outlook improves, and as business returns to a new normal, we will continue to support our communities in order to stimulate growth and create new opportunities,’’ he said.

 

To accomplish our vision to be the World’s Most Respected African Bank, we are working together across the group on the back of our robust balance sheet, increased retail momentum and efficiency,” Wigwe said.

Key extracts of the audited report and accounts of Access Bank for the six-month period ended June 30, 2021 showed that gross earnings rose by 14 per cent from N396.8 billion in first half 2020 to N450.6 billion in first half 2021. The bank’s top-line remained anchored on its core banking activities with interest and non-interest income accounting for 71 per cent and 29 per cent respectively. Profit before tax the period rose by 31 per cent from N74.3 billion to N97.5 billion. After taxes, net profit rose by 42 per cent from N61 billion in first half 2020 to N86.9 billion in first half 2021. The overall profitability outlook was driven largely by a robust growth across income lines and increasing operating cost efficiency. The bank’s core business interest income rose by 30 per cent growth while net fee and commission income grew by 45 per cent. Meanwhile, interest expense slipped by 0.7 per cent.

The bank’s balance sheet closed June 2021 at N10.1 trillion, 16 per cent above N8.7 trillion recorded at the end of the year ended December 31, 2020. Net loans and advances also increased from N3.6 trillion in December 2020 to N4.0 trillion in June 2021. Despite loan increase, non-performing loans (NPL) ratio remained flat at 4.3 per cent, below the industry’s benchmark of 5.0 per cent. The bank’s capital and liquidity ratios remained well above regulatory benchmarks, with a Capital Adequacy Ratio (CAR) of 21.3 per cent and a Liquidity Ratio (LR) of 50.7 per cent, which enabled the bank to drive its aggressive growth strategy.

Further analysis showed that cost-to-income ratio declined by 5.70 percentage points to 60.1 per cent in first half 2021 as against 65.8 per cent in first half 2020. A breakdown of the top-line indicated that retail banking business grew by 24 per cent from N95.8 billion in first half 2020 to N118.6 billion in first half 2021. These included 46 per cent increase in interest income and 37 per cent growth in revenue from channels and digital businesses. The strides in retail business drove savings deposits up by four per cent to N1.4 trillion in June 2021 from N1.3 trillion in December 2020. Cost of funds reduced to 2.9 per cent in first half 2021 as against 3.7 per cent in first half 2020.

Shareholders of Access Bank received about N10.7 billion as interim cash dividends for the first half 2021.The interim dividend per share of 30 kobo represented a 20 per cent increase on 25 kobo per share distributed for the first half of 2020, in line with the established dividend payment pattern of Access Bank, which pays dividends twice a year.