The Nation Newspaper

Category: Capital Market

  • Nigerian Breweries assures on returns as shareholders get N7.5b dividend

    Nigerian Breweries assures on returns as shareholders get N7.5b dividend

    By Taofik Salako, Deputy Group Business Editor

     

    The board of Nigerian Breweries (NB) Plc has reassured shareholders that the company remains committed to improving returns on investments.

    The assurance came at the company’s annual general meeting as shareholders approved distribution of N7.5 billion as dividends for the 2020 business year.

    Chairman, Nigerian Breweries (NB) Plc, Chief Kola Jamodu said each shareholder would receive a final dividend of 69 kobo per ordinary share of 50 kobo, having received an interim dividend of 25 kobo per share earlier in the year.

    He assured that the company is committed to improving value to shareholders while putting measures in place to sustain long-term business growth, despite the economic challenges.

    Company Secretary and Legal Director, Nigerian Breweries (NB) Plc, Uaboi Agbebaku noted that the 2020 financial year recorded a significant boost in sales volume even though the cost of sales rose from N191.76 billion to N218.36 billion.

    Agbebaku who was optimistic about the growth of the company going forward, said the company would continue to give utmost priority to the welfare of its shareholders in its decision making.

    A breakdown of the company’s audited results shows that its profit after tax in 2020 financial year stood at N7.52 billion while net revenue increased from N323 billion to N337.01 billion, representing a modest increase of 4.3 per cent. Marketing and distribution expenses reduced from N77.70 billion in 2019 to N70.7 billion in 2020, while administrative expenses also dipped by 1.79 per cent from N19.30 billion to N18.96 billion, largely due to elimination of bad costs.

    Shareholders commended the total dividend payout as a highlight of the exceptional performance recorded by the company in the 2020 financial year.

    They noted that the 2020 report was a strong reflection of the company’s stability as well as its resilience in the face of the global pandemic and operating challenges in the economy.

    Shareholders expressed appreciation to the board and management of the company for exhibiting the great capacity to keep the company going and stable amid the global pandemic and other operating challenges confronting it.

    They gave kudos to the company for making a total dividend payment at a time when most listed companies find it hard to pay dividends to their shareholders.

    One of the shareholders, Mr. Boniface Okezie commended the board and management of the company for helping to maintain a strong and healthy balance sheet amidst recession and inflation that had affected businesses and the Nigerian economy in general.

    According to him, the fact that the company remains competitive despite the huge impact of the COVID-19 pandemic on businesses demonstrates the uniqueness of the cost-saving measures deployed.

    “Despite the impact of the recession and COVID-19 pandemic, the company was still able to maintain stability. This goes to show the quality of leadership at the company. I must confess that the board and management have done well to keep to its promise of paying dividends. We can only hope that they keep up the tempo so that we can receive higher dividends in the next financial year,” Okezie said.

  • Custodian Investment gets shareholders’ nod to raise $15m new capital

    Custodian Investment gets shareholders’ nod to raise $15m new capital

    By Taofik Salako, Deputy Group Business Editor

     

    Shareholders of Custodian Investment Plc have authorised the board of directors of the company to raise the naira equivalent of up to $15 million as additional capital through a convertible loan instrument.

    Shareholders gave the approval at the 26th annual general meeting (AGM) of the group in Lagos. Shareholders also approved the payment of 55 kobo dividend per share recommended by the directors. The company had paid an interim dividend of 10 kobo earlier during the year.

    At the meeting, shareholders also authorised the board to convert the loan into shares in the company at a conversion price higher than N6 per share or the 12-month historical daily share price of the company derived from the Daily Official List of the Nigerian Stock Exchange (NSE) for the period ended March 23, 2021.

    Shareholders commended the board and management of the company for reporting improved financial performance and returns on investment despite the adverse effect of the Covid-19 pandemic which disrupted global and local economies in 2020.

    A shareholders’ leader, Mr. Matthew Akinlade, said the performance by the board and management of the company is a very good one based on the financial indices.

    “You have done very well and I wish you better days ahead,” Akinlade said.

    Founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, also lauded the company’s performance and returns on investment.

    He advised that the company should consider a bonus issue to shareholders because of the robust statutory reserves and regulatory requirement.

    Another shareholder, Mr. Adeleke Adebayo, commended the company for weathering the storm of 2020 and its challenging operating environment. He praised the company for the foresight of having a holding company which now enables it to make investment decisions easily.

    Addressing the shareholders, Chairman, Custodian Investments Plc, Dr. Omobola Johnson said it was delightful that the company recorded significant successes during the 2020 financial year despite the challenging operating environment, a fallout of the global Covid-19 pandemic and the resulting weak oil earnings, naira devaluation and high inflation.

    She noted that the successes recorded by the company in 2020 is an affirmation of the robustness of the group’s  business model, which allowed it to quickly adapt to the fast-changing environment,  the astute leadership of the company supported by energetic employees using technology to efficiently provide prompt services to clients.

    She said in spite of the challenges faced during the year under review, the group more than doubled its profits by posting a profit after tax of N12.69 billion as against N6.01 achieved in 2019. He said revenue grew by 22 percent to a new high of N75.06 billion compared with N61.42 billion in 2019.

    Total asset base also increased from N118.02 billion in 2019 to N176.16 billion in 2020, representing a growth of 49.26 percent while the shareholders’ fund grew by nine percent to N47.65 billion from N43.7 billion in the 2019.

    Johnson noted that the company acquired a controlling interest in UAC Property Development Company Plc, remarking that the acquisition is in line with its strategy to diversify into property development and management.

    She explained that the acquisition provided a safe, profitable and long-term investment opportunity to deploy the group’s long-term funds.

     

  • Lagos Commodities Exchange to list Nigeria’s maiden exchange traded notes

    Lagos Commodities Exchange to list Nigeria’s maiden exchange traded notes

    Lagos Commodities and Futures Exchange (LCFE) is set to list Nigeria’s first Exchange Traded Notes (ETNs) in a major boost for the national agricultural development plan.

    Voriancorelli (VC) – a commodities aggregating company, plans to float a N20 billion ETNs on the LCFE, blazing the trail as the first company screened for listing on Exchange.

    VC, which has strong background in digitisation of commodities assets such as paddy rice, sorghum, soyabeans and maize, has secured approval for listing on the LCFE. Leading investment banking group, GTI Capital Limited introduced VC to LCFE.

    Chairman, Voriancorelli (VC), Mr Bolaji Akinboro explained that listing of Voriancorelli  would enable the company to access liquidity, operate under the Exchange’s rules and regulations as evidence of transparency and provide opportunities to create new forms of fungible and tradeable assets.

    According to him, Voriancorelli is the enabling connector that bridges the gap between businesses within the agricultural ecosystem, delivering sustainable value.

    “We are called the ‘matching company’’ because we primarily solve the problem of market linkage to make trading within the sector simple and scalable.

    “Underpinning the problem of market linkage is liquidity: whether in form of capital financing, credit, or grant. The cost and availability of this liquidity undercuts profitability for agribusinesses. Therefore, in collaboration with the LCFE, the strength of the capital markets will be brought to bear in agriculture for the first time.

    “We are thus making the market for commodities work in Nigeria. Beyond this, we are also supporting the commodities exchange as a stakeholder in its critical role to be an arbiter of transparency, integrity and supervision that provides an independent view of the ecosystem and all other market participants for healthy collaboration,” Akinboro said.

    Managing Director, Voriancorelli (VC), Mr Rufus Udechukwu explained that the firm offers commodities aggregation solution for agricultural commodities to key players by connecting them together via technology driven solutions to facilitate seamless transactions.

    Managing Director, Lagos Commodities and Futures Exchange (LCFE), Mr Akin Akeredolu-Ale expressed optimism about the impact of the various infrastructure being deployed by the Exchange under the supervision of the Securities and Exchange Commission (SEC).

    He said the company’s structured legal framework, operational framework and surveillance mechanism would create jobs, enhance operations of all stakeholders in the commodities value chain and grow the Gross Domestic Product GDP) of the Nigerian economy.

    According to him, the commodities sectors  are the primary sectors of an economy and once properly harnessed, they will have multiplier effects on production, manufacturing and by default the service and other sectors.

    “We started with a vision to create an enabling environment for all the commodity stakeholders to participate effectively for the development of the commodities value chain, ecosystem and the economy of the country. The Exchange is poised to deal in Exchange Traded Notes and not equities of listed companies,” Akeredolu-Ale said.

    He noted that the commodity sector did not suffer setback under COVID-19 pandemic period as people must always consume commodities, pointing out that the commodities ecosystem is a combined $1 trillion economy in the various asset classes comprising oil and gas, solid minerals and agriculture, which remain largely untapped.

    “The Exchange is working hard with all the dealing member firms, central securities depository, storage facility owners, capital market operators, rating companies, certification agents and many other institutions for the listing of transparent, structured, contracts for trading, capital raising and the development of the Nigerian commodities ecosystem,”  Akeredolu-Ale said.

     

     

     

  • U.K., Stock Exchange to deepen partnership for growth

    U.K., Stock Exchange to deepen partnership for growth

    By Taofik Salako, Deputy Group Business Editor

    The United Kingdom (UK) and the Nigerian Stock Exchange (NSE) have reiterated their commitment to improved partnership towards the development of the Nigerian capital market and the economy.

    Nigeria is the second largest destination for investments and U.K. businesses in Sub-Saharan Africa.

    Deputy British High Commissioner, Lagos, Mr. Ben Llewellyn-Jones was at the NSE, now known as Nigerian Exchange (NGX) Limited, at the weekend, as part of the efforts to deepen relationship between the U.K. and NGX. Llewellyn-Jones was given the privilege to ring the closing bell for the market.

    Llewellyn-Jones said his priority was to continue to create enabling environment for the growth of business relations between U.K. and Nigeria, especially through the Nigerian capital market.

    He noted that U.K. and NSE have historically been partners, pointing out that the U.K. has continued to build on the shared history between the U.K. and the Exchange, with the U.K. still very active in the Nigerian market.

    “My role is to not only celebrate that but also to grow, encourage and sustain this level of participation. Although it has been a difficult year economically and financially, I am encouraged by the resilience, creativity and positive performance of British businesses and investments here in Nigeria and I am grateful for this opportunity to talk about how much the U.K. will continue to do to support Nigeria and British businesses in Nigeria,” Llewellyn-Jones said.

    Chief Executive Officer, Nigerian Exchange (NGX) Limited, Mr Temi Popoola said it was historic that the British Deputy High Commissioner was the first person to beat the closing gong since the unbundling of the NSE and the renaming of its securities trading business as NGX.

    According to him, since the birth of the Lagos Stock Exchange, the British High Commission has remained a partner and supporting institution throughout its journey.

    “In the spirit of continued partnership, I welcome Mr. Llewellyn-Jones to the NGX as I look forward to deepening the partnerships between both organisations to further drive sustainable economic development for Nigeria and Africa as a whole,” Popoola said.

    He noted that partnerships are a critical element of the NGX’s strategy as it will continue to engage stakeholders whose support is essential to the achievement of its aspirations in the post-demutualisation period.

     

  • Access Bank: Expansive growth

    Access Bank: Expansive growth

    Nigeria’s leading retail bank, Access Bank Plc is combining organic and inorganic growth strategies to drive its vision of Africa’s financial hub. Amid the disruptions caused by COVID-19 pandemic, Access Bank grew its financials as well as footprints across Africa. Deputy Group Business Editor, Taofik Salako, examines underlying fundamentals behind the latest operational reports

     

    The board of Access Bank Plc has announced a 23.1 per cent increase in dividend payout to shareholders. The double-digit increase in cash dividend reflected the performance of the bank in 2020.

    Amid the disruptions caused by COVID-19 global pandemic, key performance indicators remained on the upward with double-digit growths in the top-line, bottom-line and market share.

    The bank also demonstrated resilience and stability, combining its organic growth with keen focus on its complementary strategy of value-based mergers and acquisitions. Access Bank capped its latest pan-African expansion drive with the milestone of being the first Nigerian bank to venture into South Africa with the recent approval of its acquisition of South Africa’s Grobank Limited.

    In 2020 alone, Access Bank opened for business in Kenya and Mozambique while growing its market share in Zambia with the acquisition of Cavmont Bank Limited by Access Bank Zambia, a deal that was concluded in January 2021. The Grobank Limited deal is expected to be concluded this quarter, after receiving the much-awaited regulatory approval.

     

    Illustrative facts

    Latest audited report and accounts of Access Bank showed stronger financials, despite the moderating effect of the lockdowns and disruptions during the year. Key extracts of the 12-month report for the period ended December 31, 2020 showed that gross earnings rose by 15 per cent to N764.7 billion in 2020 as against N666.8 billion in 2019. Top-line analysis indicated that interest and non-interest income contributed 64 per cent and 36 per cent. Non-interest income doubled by 112 per cent from N129.91 billion in 2019 to N275.50 billion in 2020. Net interest income stood at N262.95 billion in 2020 as against N277.23 billion in 2019. Segmental analysis showed growths across business groups and locations. Nigerian, home-market business, recorded 11.1 per cent increase in turnover to close 2020 at N635.7 billion. The ‘Rest of Africa’ business group grew its top-line by 44.2 per cent to N89.0 billion while Europe business turnover increased by 17 per cent to N49.3 billion in 2020. Profit before tax rose by 13 per cent from N111.9 billion in 2019 to N125.9 billion in 2020. After taxes, net profit grew by 13 per cent to N106 billion from N94.1 billion posted in 2019. The bottom-line was boosted by 32 per cent growth in operating income which offset the rise in Impairment charges and operating expenses.

    The assets base of the group remained strong and resilient with total assets of N8.68 trillion in 2020, a growth of 22 per cent from N7.14 trillion recorded in 2019. The bank’s customer deposits grew by 31 per cent to N5.59 trillion in 2020 compared with N4.26 trillion in 2019, with savings account deposits of N1.31 trillion. Net loans and advances totaled N3.61 trillion in 2020 as against N3.06 trillion in 2019. Non-performing loans (NPL) ratio improved to 4.3 per cent in 2020 compared with 5.8 per cent in 2019, riding on the back of N105 billion write-off and recoveries in the period. Shareholders’ funds closed 2020 at N751 billion, an increase of 24 per cent on N607 billion recorded in 2019. Capital adequacy ratio (CAR) improved from 20 per cent in 2019 to 21 per cent in 2020 while liquidity ratio (LR) stood at 46 per cent in 2020 as against 47 per cent in 2019, still substantially above regulatory thresholds.

     

    Positive trend

    Altogether, the report showed resilient strategy and capacity to generate sustainable revenue and profitability, despite the high cost of operating the enlarged franchise and the increase in net impairment charge of near N43 billion arising principally from a structured trade finance portfolio in the Access Bank UK.

    Five-year financial analysis showed steady growths in the bank’s balance sheet and earnings over five years. Total assets rose from N3.48 trillion in 2016 to N4.10 trillion in 2017 and subsequently to N4.95 trillion, N7.14 trillion and N8.68 trillion in 2018, 2019 and 2020. Also, shareholders’ funds rose steadily from N452.15 billion in 2016 to N606.79 billion in 2019, closing 2020 at N751.04 billion. The bank’s top-line rose consecutively from N381.32 billion in 2016 to N459.08 billion in 2017 and further improved to N528.74 billion in 2018. Gross earnings grew to N610.92 billion in 2019 and topped 2020 at N764.72 billion. While pre-tax profit dropped from N87.99 billion in 2016 to N78.17 billion in 2017, it rose consecutively to N103.19 billion, N115.38 billion and N125.92 billion in 2018, 2019 and 2020. The net profit after tax also showed the same trend, dropping from N69.09 billion in 2016 to N60.09 billion in 2017, and subsequently grew consecutively to N94.98 billion, N97.51 billion and N106.01 billion in 2018, 2019 and 2020.

     

    New opportunities

    Access Bank has already launched a process to realign its operating structure along a holding company (holdco) structure. The holdco, which has received the approval-in-principle from the Central Bank of Nigeri (CBN), will operate four subsidiaries in order to explore opportunities in key areas of consumer lending market, electronic payments industry and retail insurance market.

    According to the bank, the proposed holdco structure would enable it to further accelerate its objectives around business diversification, improved operational efficiencies, talent retention as well as robust governance.

    Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe, said the bank’s continuing expansion as signified by the recent South African transaction, underlined its commitment to its strategic intent of becoming Africa’s gateway to the world, in pursuit of its vision to be the world’s most respected African bank.

    He outlined that Access Bank’s presence in South Africa will accelerate the bank’s corporate goal of delivering its ‘more than banking’ value proposition to 100 million unique customers across the continents.

    He said the restructuring and strategic acquisitions across the continent will result in a more connected African banking network that builds on Access Bank’s existing foundation and enhances its value proposition to stakeholders, including customers and employees.

    According to him, shareholders will benefit from the economies of scale of a larger banking network, including the associated cost efficiencies arising from the bank’s federated information technology system and replication of investments in innovative products across a wider range of markets.

    He outlined that a broader and connected Africa network remains a core strategic focus for geographic earnings growth and diversification, which will further enhance profitability and risk metrics.

    He added that with these expansionary transactions, Access Bank will be well placed to promote regional trade finance and other cross-border banking services, further leveraging its presence in key global trade corridors in the United Arab Emirates (UAE), United Kingdom (UK), China, Lebanon and India.

    “We have consistently said that we are focused on building the scale needed to become a leading African bank; one that leverages our experienced and growing talent base and key stakeholder partnerships towards driving sustainable impact and profitability,” Wigwe said.

    He said with a broader presence across the continent, Access Bank will be better placed to support its customers who are increasingly looking towards intra Africa growth. This will further accelerate the bank’s momentum towards delivering world class banking services to an expanded customer base across Africa.

    He noted that the bank last year continued its consistent growth in its retail banking business, leading to a 5.8 million growth in customer sign-on during the year through the bank’s financial inclusion drive and retail revenue of N177.2 billion in 2020 as against N107.8 billion in 2019.

    According to him, the bank intensified recovery efforts and undertook significant write off and leveraged its robust risk management practices, with the improvement in assets quality expected to continue as the bank strives to surpass the standard it had built in the industry prior to the merger with Diamond Bank.

    “The strategic actions that the bank has taken over the past 12 months evidence a strong focus on retail banking and financial inclusion, an African expansion strategy and a drive for scale for sustainable value creation,” Wigwe said.

    He assured that as the bank enters the fourth year of its five-year cyclical strategy, its focus remains on consolidating its retail momentum and expanding its African footprint in a sustainable manner.

    Wigwe commended the dedication, commitment and support of board, management and staff of the bank, shareholders and other stakeholders who made contributions to the success of the bank.

    With its holdco restructuring, continuing pan-African expansion and quick eyes for value-added inorganic opportunities, Access Bank is a bank to watch in the years ahead. Investors might as well be taking positions in the long-term with the focus on the bank’s shares since the latest audit. Access Bank closed weekend as the second most active stock at the stock market, driving by bargain opportunities.

     

  • Stakeholders lament slow take-off of commodities exchanges

    Stakeholders lament slow take-off of commodities exchanges

    Stakeholders have attributed the slow take-off of commodities exchanges in Nigeria to the government’s lack of understanding of the workings of these specialised exchanges.

    Commodities exchanges thrive on trading electronic receipts as against storage and sale of agricultural products in warehouses.

    They explained that an organised commodities exchange with clearing and settlement system, dealing member firms and other registered operators had potentials to grow the nation’s Gross Domestic Product (GDP) by revamping the ailing economy through employment generation, digital transaction of  agricultural and mineral products and foreign exchange earnings.

    Chief Executive Officer, Wyoming Capital and Partners, Mr Tajudeen Olayinka said commodities exchanges provide numerous benefits to an economy, especially, a developing economy like Nigeria if the relevant authorities provide appropriate support for their orderly functioning.

    According to him, price discovery is a major driving force in the organised market, the mechanism through which prices come to reflect known information about the market.

    “The fact that farmers, merchants, commodity brokers, government and other stakeholders can reasonably gauge the mood of the market from publicly available information around demand and supply, makes planning, organising, and forecasting, integral part of the market easy.

    See tickmill review

    “Nigerian economy will surely benefit from having functional commodity exchanges in the country, and government must therefore align its economic diversification programme to commodity exchanges’ value chains to facilitate global trade and investments,” Olayinka said.

    Chief Executive Officer, Sofunix Investment and Communications, Mr Sola Oni explained that the Federal Government should remove any bureaucratic bottlenecks that might affect smooth functioning of commodities exchanges to enable them enhance  economic growth and development.

    According to him, the recent announcement of N50 billion lifeline for the Nigeria Commodity Exchange (NCX) by the Central Bank of Nigeria (CBN) may have sent a wrong signal to the global  community as creating a conflicting the role between the Securities and Exchange Commission (SEC) and the apex bank on  the institution that regulates commodities exchanges.

    He said the Investment and Securities Act of 2007, among others, empowers SEC to not only regulate commodities exchanges but also ensure that  commodity exchanges compete effectively on an even playing field.

    “There should be clarification of roles on the regulator of commodities exchanges to enable the investing public determine where to haul blame on the delay in effective takeoff the exchanges in Nigeria. The commodities exchange’s ecosystem is a $1 trillion  economy that is untapped. The commission has  taken some bold steps towards the implementation of this ecosystem’s structure. For instance, it has issued regulations guiding the involvement of collateral managers, accreditation of warehouses and  approval of rules and regulations of structures of commodities exchanges.

    “Unfortunately, it seems the role of Commodities Exchanges in Nigeria is still largely misunderstood and often mistaken for commodity traders who buy commodities, store in owned or leased warehouses and decide when to sell. Business of a commodities exchange cuts across agriculture solid mineral and oil and gas sectors.  Fungible instruments can be generated from them and listed on a structured commodities Exchange to inject liquidity into the system. The Exchanges provide opportunities for trading of commodity-based contracts and instruments including spots, forwards, futures and capital raising instruments. Commodity Exchanges as regulated platforms do not get involved in commodities till they have been dematerialised to digital contracts that are tradable electronically. This eliminates the possibility of hoarding products and the capital market is yearning for investment opportunities, ” Oni said.

    See pwrtrade review

    Vice Chairman, Highcap Securities,  Mr David Adonri noted that commodities exchanges could promote financial inclusion.

    He said a commodities exchange’s value chain is a mechanism for formalisation of trading in commodities. It brings informal participants to a structured system, for financial inclusion and derisking.

    He said the Exchange provides transparent pricing mechanism that enhances volume of transactions.This attracts more investment into commodities, leading to multiplier effect on the economy.

    “The standardizes contract terms, guarantee performance by all parties thus serve as a safe and profitable investment outlet in the economy. This can engender increased inflow of export proceeds. As a formal and regulated market, Commodity Exchange offers great opportunity to unlocking the potentials in mining and agribusiness from production, to storage, logistics and trading. This enhances the diversification capacity of the economy, ” Adonri said.

    A Professor of Capital Market and President, Association of Capital Market Academic of Nigeria (ACMAN), Professor Uche Uwaleke explained that commodities exchanges had multiplier effects on the economy.

    “It will help support the non-oil sector, diversify the country’s export base and make the economy less vulnerable to external shocks. Through the provision of price transparency including better access to market, the income of farmers and their living standards will be enhanced. Agribusiness will become more attractive creating investment and employment opportunities in the commodities value chain with positive multiplier effect on the nation’s economy,” Uwaleke said.

    At the moment, SEC has registered four commodities exchanges in Nigeria. They are Nigeria Commodity  Exchange, (NCX) AFEX , Lagos Commodities and Futures Exchange (LCFE) and the latest entrant, Kano-based Gazawa Commodity Market . But the government has not fully aligned its economic diversification programme to the commodities exchanges’ ecosystem. See Imfx review

     

  • NB boosts operations with N36b

    NB boosts operations with N36b

    By Chikodi Okereocha

     

    Nigerian Breweries (NB) Plc  injected over N36 billion into capital investment of its operations in the 2020 financial year.

    Its Managing Director, Jordi Borrut Bel made this known during the Pre-Annual General Meeting (AGM) Media Briefing of the company in Lagos.

    Bel stated that the investments include the construction of a PET line at Ijebu Ode Plant, and the Ibadan Brewery Solar Power project, among others.

    He affirmed that the company remains a great believer in the economy and would continue to play its part by investing to create more employment opportunities and contribute to the nation’s economic growth.

    “The 2020 financial year was a remarkable one for us as it afforded us the opportunity to invest heavily and position for growth. It was a year we invested in a new PET Line for non-alcoholic drinks at our Ijebu Ode Plant. In the same year, we embarked on some other important projects which boosted the capacities of our business”, he said.

    He further explained that the huge investment on its business operations amidst the impact of COVID-19 pandemic clearly demonstrates the company’s determination to stay afloat and remain strong in the interest of its stakeholders.

    “Though the outbreak of COVID-19 adversely affected the global economy and impacted businesses negatively, our company was able to weather the storm and stay afloat in the face of the challenge. This could not have been possible without our resolve as a business to invest in our operations which contributed to the improved performance witnessed across our products portfolio,” he added.

    In Corporate Social Responsibility (CSR), Bel said the company contributed to communities and the country at large – donating N600 million to the Federal and some state governments, as part of efforts to support the fight against the pandemic, while also continuing its social investments in education, health, access to potable water, environment, youth and women empowerment in various parts of the country.

     

    He assured stakeholders that the company remains committed to not only keeping its balance sheet strong but ensuring that the health, safety and welfare of its workers is not compromised.

     

  • Wema Bank assures on financial fundamentals

    Wema Bank assures on financial fundamentals

    Wema Bank has reassured that it remains on strong financial fundamentals and reliable performance metrics.

    Managing Director, Wema Bank Plc,  Ademola Adebise, while reacting to a recent publication in the media purportedly alleging a dip in its liquidity status following the unaudited report for 2020, said the report was only a deliberate campaign to create panic among its stakeholders using false news, and therefore should be discountenanced,

    According to him, the strength and viability of financial institutions are not measured on the solo performance of one outlier year 2020, a year when COVID-19 induced a lockdown and a disruption of such magnitude that negatively impacted businesses, industries and economies the world over.

    He noted that Wema Bank has continually exhibited not just resilience, but admirable viability over the years with a 30.95 per cent increase in earnings recorded in just 2019.

    He added that despite the difficulties in 2020, the bank succeeded in achieving impressive results in key areas such as net earnings from fees and commissions while growing the bank’s asset base significantly.

    “That’s not all, customer credibility in the Bank was also accentuated with a massive increase in customer deposits over the previous year. This is an audacious show of confidence from the customers of Wema Bank

    “These performance metrics, amongst others, are testament to our smart balance sheet optimisation approach which will be affirmed by the time the audited and official 2020 Financial Report is released in the coming weeks, ” Adebise said.

    He also referenced how well the bank’s performance in the said 2020 makes it one of the best performing financial institutions in the land.

    “We won the BusinessDay award for the Best SME Bank of the Year for 2020. A recognition of our unrivalled support for small and medium scale businesses through loans, business advisory, and ease of payments and transactions.

    “Also, the recently published 2020 KPMG Customer Experience Survey showed Wema Bank making significant growth in the retail category, climbing up ten (10) places from the previous year to 2nd position, with an above industry average of 74.6 per cent Customer Experience score. This achievement is a mark of dedication to excellent customer service and refreshing support for all our customer categories,” Adebise said.

    He explained that the KPMG Customer Experience Survey grades banks over six universal pillars of personalisation, integrity, expectations, resolution, time and effort and empathy, and Wema Bank has showed a mastery of these pillars and have been outstanding at all of them.

    He added that in line with the bank’s sustainability goal of developing digital solutions for societal impact, it successfully organised the second Hackaholics, a radical gathering of developers, web designers and creative thinkers to develop solutions around key themes of education, health, agriculture, Fintech, gaming & betting.

    “These are intentional measures put in place to sustain an institution’s legacy of economic evolution and social inclusion. We are a responsible corporate citizen with empathy as a core pillar of our personality. Thus, we stood by the nation in the trying times of the COVID-19 pandemic with significant support for governments at both the federal and state levels.

    “Particularly to prevent severe food shortages and align with the SDG of Zero Hunger, we supported state governments with food palliatives donation which alleviated the conditions of over 80,000 households of the most vulnerable segments of the population,” Adebise said.

    He pointed out that with its financial and non-financial performance metrics, it is not in doubt that Wema Bank is not only standing firm, it is also among the best performing financial institutions in Nigeria in 2020.

    “I’ll take this opportunity to commend our customers for their sustained trust in us. A support that has remained a critical pillar of our stability and growth over the years, especially as we celebrate our 76th Anniversary.

    “For us as a responsible and visionary organisation, we are staying committed to our corporate purpose of making life easier and better through innovation and digital-driven lifestyle solutions for Nigerians and their businesses.” Adebise said.

     

  • Fed Govt offers 6.5% yearly interest on April savings bonds

    Fed Govt offers 6.5% yearly interest on April savings bonds

    By Taofik Salako, Deputy Group Business Editor

     

    The Federal Government at the weekend closed application lists for its monthly Federal Government of Nigeria Savings Bond (FGNSB).

    The settlement date for the issuance, which becomes the effective calculation date this Wednesday.

    The government offered a two-Year FGN Savings Bond due April 14, 2023 at a coupon of 5.522 per cent yearly. It also simultaneously offered a three-Year FGN Savings Bond due April 14, 2024 at coupon of 6.522 per cent yearly.

    Application list for this months’ bonds, 46th tranche of the FGNSB, opened on Tuesday, April 6, 2021 and closed on Friday, April 9, 2021.

    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.

    The coupon payment dates for the bonds, which pay interest rate quarterly, July 14, October 14, January 14, April 14.

    The FGNSB was introduced in 2017 as a mass instrument for nationwide mobilisation 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.

    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 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 Nigeria Stock Exchange (NSE) 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.

     

  • CAP’s shareholders to get N2.10 dividend

    CAP’s shareholders to get N2.10 dividend

    Chemical and Allied Products (CAP) Plc will distribute a dividend per share of N2.10 to its shareholders as ordinary returns for the 2020 business year as Nigeria’s second largest paints company sustained profitability despite the disruptions caused by COVID-19 pandemic.

    Audited report and accounts of CAP for the year ended December 31, 2020 showed that turnover rose from N8.4 billion in 2019 to N8.7 billion in 2020, driven mainly by strong volume growth despite the disruptions and unrests during the year. However, input cost pressures due to currency devaluation and supply chain disruptions, increased spending on talent to strengthen the workforce, lower investment income yields due to low interest rate environment and combined effects of lost sales during lockdown, devaluation and supply chain disruptions impinged on the bottom-line.

    Gross profit stood at N3.74 billion in 2020 while pre and post tax profits closed the year at N1.81 billion and N1.22 billion respectively. Gross profit had closed 2019 at N3.97 billion while pre and post tax profits were N2.55 billion and N1.74 billion respectively. The company’s free cash flow meanwhile remained very strong at N1.2 billion, implying continued strong cash generating ability of the company in spite of significant headwinds.

    Managing Director, Chemical and Allied Products (CAP) Plc, David Wright said the company was encouraged by the growth in revenue which has been solely driven by underlying volume growth in line with the corporate strategy.

    According to him, the modest top-line growth in 2020 was significant given the COVID-19 lockdown in the second quarter of 2020 and protests in the fourth quarter of 2020, which effectively led to losing of seven weeks of sales.

    He noted that alongside the rest of the world, the company experienced supply chain disruptions which impacted its raw material sourcing and resulted in input costs pressures.

    “We have embarked on initiatives focused on mitigating these disruptions and expect to see positive results in 2021,” Wright said.

    He pointed out that the company has made significant progress and expect to conclude its merger with Portland Paints and Products Nigeria (PPPN) Plc in this quarter, subject to receiving final regulatory approvals.