The Nation Newspaper

Category: Capital Market

  • Shareholders excited with NAHCO’s 112% dividend increase

    Shareholders excited with NAHCO’s 112% dividend increase

    •Board targets N100b, diversification

    Shareholders of Nigerian Aviation Handling Company (NAHCO) Plc have said the increase in dividend payouts by the leading ground handling company was a proof of strong fundamentals and consideration for shareholders’ interest.

    With 107 per cent growth in net profit in 2023, the board of NAHCO had recommended increase in dividend payout accordingly, from N1.20 per share paid for the 2022 business year to N2.54 for the 2023 business year.

    Shareholders unanimously approved the 111.7 per cent increase in dividend payouts amid commendations for the board and management of the company. Shareholders would receive N4.95 billion in 2023 as against N2.34 billion paid for the 2022 business year.

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    NAHCO’s audited report for the year ended December 31, 2023 showed that turnover rose by 70 per cent from N16.71 billion in 2022 to N28.4 billion in 2023. Profit before tax jumped by 126 per cent from N3.84 billion to N8.68 billion. Profit after tax increased to N5.54 billion in 2023 as against N2.67 billion in 2022. Earnings per share thus increased from N1.36 in 2022 to N2.84 in 2023. Shareholders’ funds grew by 34 per cent from N9.03 billion to N12.13 billion.   

    Shareholders, who spoke at NAHCO’s annual general meeting, said the company has demonstrated resilience with its sustained growths, urging the board and management to continue the growth trajectory. 

    Chairman, Ibadan Zone Shareholders Association (IBZA), Mr Eric Akinduro, said the board and management of NAHCO have proved that despite economic challenges, the company has been positioned to sustain growth.

    “They have taken decisive steps to challenge the situation and come up with a wonderful results that gave us improved return on our investments. The dividend of N2.54 from N1.20 last year is a very rewarding one. Looking at the pedigree and the sustainability steps, there is no doubt that higher dividend payment should be expected in the years to come,” Akinduro said.

    He urged the directors of the company to continue to be responsive to the environment while leveraging innovations and automation of services to manage operational expenses.

    National Coordinator, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, said the company’s financial results were delightful to shareholders.

    According to him, against the background of the macroeconomic headwinds, the company has continued to post impressive growths.

    He said the dividend increase was a thoughtful one by the directors given the prevailing economic situation.

    Another shareholder, Mrs Juliet Uzuakpundu, commended the company for its many innovations and customer-friendly initiatives.

    She noted that recent investments in facilities upgrades have endeared NAHCO to clients, urging the company to continue to improve on its facilities in line with global standards.   

    Addressing the shareholders, Chairman, Nigerian Aviation Handling Company (NAHCO) Plc, Dr Seinde Fadeni said the company has concluded plans to diversify its investment portfolio in order to create new jobs and contribute significantly to resolving the country’s foreign exchange crisis.

    He said the company was exploring new areas of investment in order to trigger positive economic impact and build its portfolio size to some N100 billion over the next five years.

    According to him, the company is convinced that the food export holds significant potential for foreign exchange earnings because of its impact on the livelihoods and prosperity of many Nigerians.

    He said though the company is navigating safely around the myriads of challenges confronting the air transport space , but urged the government to look at ways to improve airport infrastructure to keep pace with the future growth plan.

    He said industry stakeholders have an obligation to look at implementing policies that support sustainable aviation fuel .

    Fadeni said concrete targets should be set and steps taken to execute innovations that support the industry and the world’s net zero CO2 emission goals.

     “NAHCO believes that the government at the centre should work towards reducing the financial burden for airlines and passengers by reviewing applicable taxes . This way, more payees would be brought into the tax net. Not too long, the international Air Transport Association declared that Nigerian airports charge foreign airlines about 27 levies.

    “This makes Nigerian airports the most expensive in the world discouraging airlines from flying into the country. This is not the kind of laurel Nigeria should be proud of. It is a disincentive to investment to both active and prospective investors. Government should address this situation. Government should also heed the industry’s calls for the harmonisation of the regulatory environment, particularly at the ports in a way that aligns with global best practices. The nation’s Ease of Doing Business mantra should be in practice and not in theory only,” Fadeni said.

    Fadeni said as much as the company supports the Federal Government’s Renewed Hope Infrastructure Development Fund especially as it relates to the aviation industry and its plan to upgrade infrastructure at the airports, such declaration should have overall industry impact.”

    He said though the year 2023 was characterised with multiple cost related challenges, the increased cost of handling an aircraft cannot be easily passed on the airline by ground handling companies because any proposed hike in rates would require the approval of the industry regulator – Nigerian Civil Aviation Authority (NCAA).

    He said :” The very act of getting new rates approved has its challenges as well. It is therefore not uncommon to see ticket prices rising geometrically while ground handling rates charged by service providers to airlines remain solidly stagnant.”

    He spoke of plans by NAHCO to re – invest in it’s facilities to enable it retain its position in the  ground handling and warehousing business.

    “Our push towards birthing a global integrated logistic giant is taking good shape with the coming into operations of new subsidiaries,” Fadeni said.

    Group Managing Director, Nigerian Aviation Handling Company (NAHCO) Plc, Mr. Indranil Gupta said the company intends to diversify investment into other sectors of the economy to grow.

    He said NAHCO will continue to bless invest in operational equipment to drive sustainable growth .

     “We will continue to leverage our strength and market insights to pursue organic and strategic growth initiatives to expand our market presence and revenue streams

    “We plan to comprehensively refresh our fleet of ground support equipment to replace aging equipment and increase the numbers in our fleet to meet the ever increasing customer needs and expectations.

    “We are already embracing digitalization and innovation, investing in cutting edge technologies and solutions to enhance our service offerings, operational efficiency and competitiveness. By harnessing the power of data analytics, automation and predictive maintenance, we aim to stay ahead of the industry trends and deliver superior value to our clients,” Gupta said.

  • ‘Access Bank is Nigeria’s most valuable brand’

    ‘Access Bank is Nigeria’s most valuable brand’

    Access Bank has been adjudged as Nigeria’s most valuable brand.

    According to the latest data from Brand Finance, there has been a remarkable 73 per cent increase in Access Bank’s brand value, solidifying its position as the most valuable banking brand in Nigeria.

    This marks the third consecutive year that Access Bank has held the top spot in Brand Finance’s annual ranking of the world’s Top 500 Banking Brands.

    Brand Finance, the world’s leading brand valuation consultancy, reported that banking brands contributed a substantial 50 per cent of the overall brand value among Nigeria’s top 25 brands.

    Access Bank’s brand value soared to N355.3 billion, making it the 31st most valuable brand in Africa according to the Brand Finance Africa 200 2024.

    The report noted that the impressive growth was primarily driven by significant increases in interest-based income, reflecting improved revenues and robust financial performance.

    Managing Director, Access Bank, Roosevelt Ogbonna said the bank was proud to once again be recognised as Nigeria’s most valuable brand.

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    “This accolade is a testament to our commitment to excellence, innovation, and sustainable growth. We will continue to focus on delivering exceptional value to our customers and stakeholders, driving positive impact across the communities we serve,” Ogbonna said.

    Group Head, Group Marketing & Retail Analytics, Access Bank, Toyin Henry-Ajayi,

    who spoke on the brand’s journey at the announcement event, said Access Bank’s consistent performance and brand value growth reflects its ability to stay true to its excellence through every strategic five-year cycle.

    “Our journey has been one of continuous improvement and adaptation, and we remain dedicated to setting new standards in the banking industry and contributing to the economic development of Africa,” Henry-Ajayi said.

    Access Bank also distinguished itself as the top brand in terms of Sustainability perceptions value, surpassing Flour Mills of Nigeria which ranked second. This underscores the Bank’s dedication to sustainable practices and its leadership in corporate responsibility.

    Managing Director, Brand Finance Nigeria, Babatunde Odumeru,  commented on the resilience of Nigeria’s leading brands: “Despite a tumultuous financial year marked by the Naira plummeting over 30 per cent against the US dollar and soaring inflation, Nigeria’s leading brands have displayed remarkable resilience. These top-tier brands have not only withstood economic pressures, but many have continued to flourish, with 23 of Nigeria’s top 25 most valuable brands achieving brand value growth. We are also increasingly seeing top brands continuing to expand beyond their domestic borders and grow their influence across the continent.”

    The values of brands in the rankings are calculated using the Royalty Relief approach, a method compliant with ISO 10668 standards. This approach estimates future revenues attributable to a brand by calculating a royalty rate that would be charged for its use, arriving at a ‘brand value’ that reflects the net economic benefit achievable by licensing the brand in the open market.

  • Fed Govt calls for strategies to deepen youth participation in capital market

    Fed Govt calls for strategies to deepen youth participation in capital market

    The Federal Government has called on stakeholders in the Nigerian capital market to collectively work out strategies to attract youths into the market.

    Vice President Alhaji Kashim Shettima said the capital market needs to restrategise with a view to attracting more youths to invest in the market.

    Shettima spoke when the leadership of Chartered Institute of Stockbrokers (CIS) paid him a courtesy at the Presidential Villa, Abuja. 

    According to him, leaders in the Nigerian capital market should restructure the system with a view to deploying strategies that would attract more youths to leverage opportunities in the sector.

    “There is a need to think outside the box to get more people to participate in the stock market.  You need to develop and put in place strategies to engage more youths to take advantage of the opportunities in the capital market. A vibrant stock market can lead to positive growth in the economy, hence the need for all stakeholders to develop a keen interest in happenings in the market,” Shettima said.

    He praised CIS on its efforts aimed at attracting investors into the capital market through its advocacy.

    He said the CIS plays critical role in the development of the economy and the government would support its activities.

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    President, Chartered Institute of Stockbrokers (CIS), Mr Oluropo Dada, reiterated that the institute was committed to the growth and development of the market as its members continue to adhere to highest standard of professionalism.

    Dada, 13th president of CIS, explained that despite the challenges in the operating environment, the capital market had contributed immensely to the growth and development of the economy.

    He pointed out the need for the government to privatise the moribund public enterprises and secure them for listing on the securities exchanges.

    “Despite its relatively low patronage, the Nigerian capital market has shown several glimpses of what it can do, in terms of contribution to economic growth and development in the country. A few significant examples are: serving as a tool for the success of the Indigenisation Policy of 1972 -77; enabling the massive success of the Central Bank of Nigeria’s banking recapitalisation exercise of 2004; Sukuk financing of various infrastructural projects in the country, and several others.

    “We wish to reiterate the position held worldwide, that privatising public enterprises through the capital market is the most effective way to democratise the exercise and make the process transparent. A well-developed capital market serves as the major tool for infrastructure financing and a successful Public-Private Partnership regime in the country. We call for frontal action to develop the Nigerian capital market, which in turn will accelerate GDP growth to meet the Federal Government’s target of $1trillion in GDP,” Dada said .

    Other members of the CIS delegation included the first Vice President, Mrs Fiona Ahimie; Registrar and Chief Executive, Mr. Josiah Akerewusi; past presidents of the council, Mr Oluwole Adeosun, Mr Olatunde Amolegbe and Mr Dapo Adejoke, and Council members, Mr Garba Kurfi and Mrs Nkoli Edoka.

  • CSCS pays N7.5b dividends

    CSCS pays N7.5b dividends

    Shareholders of Central Securities Clearing System (CSCS) Plc have approved payment of N7.5 billion as cash dividends for the 2023 business year.

    Shareholders will receive a dividend per share of N1.50 for the 2023 business year, totaling N7.5 billion, as against N6.85 billion paid for the 2022 business year.

    CSCS had reported impressive revenue growth in 2023, reflecting its strong performance and strategic initiatives throughout the year. The company achieved gross earnings of N19 billion, representing a remarkable 65.2 per cent increase compared to N11.5 billion recorded in 2022. Additionally, the company realised a profit before tax of N11.2 billion in 2023, marking an impressive 84.2 per cent increase from N6.1 billion in the previous year.

    Chairman, Central Securities Clearing System (CSCS) Plc, Mr Temi Popoola, who spoke at the annual general meeting in Lagos, said the board’s unwavering commitment to steering the strategic direction of the company and providing diligent oversight to management has been pivotal in achieving organisational goals.

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    “I am particularly proud to note the board’s role in challenging the management team, which has undoubtedly contributed to our company’s stellar performance in 2023. Despite navigating a challenging business environment and socio-economic challenges in Nigeria, the board and management’s collective efforts have yielded commendable results,” Popoola said.

    While expressing gratitude for his appointment as chairman, Popoola acknowledged the dedication of other board members and exceptional management team.

    He also extended appreciation to his predecessor, Mr. Oscar Onyema, for his distinguished leadership, which significantly contributed to CSCS’s growth and solidified its position as a reputable market infrastructure in Nigeria and West Africa.

    Managing Director, Central Securities Clearing System (CSCS) Plc, Mr. Haruna Jalo-Waziri said the strong growth in earnings reflected efficiency gains from both asset utilisation and service enhancement.

    He said the company has continue to grow both top and bottom lines, despite dividend payments.

    “We are laser-focused on supporting investors’ capability to extract value from ensuing market volatility, which presents opportunities and risks. We would work with market intermediaries to cut through the chase of market complexities, lower costs, and mitigate risks for investors,” Jalo-Waziri said.

  • Stanbic IBTC gets approval for N550b capital raising

    Stanbic IBTC gets approval for N550b capital raising

    • N150b equity issue to drive recapitalisation

    Shareholders of Stanbic IBTC Holdings Plc have approved plans by the holding company to raise a total of N550 billion in new debt and equity capital, as the company seeks to meet the new minimum capital base prescribed by the Central Bank of Nigeria (CBN).

    Regulatory filings at the weekend indicated that shareholders mandated the company to raise N150 billion through a rights issue or public offering and to set up a N400 billion debt issuance programme. 

    Stanbic IBTC Holdings’ flagship subsidiary, Stanbic IBTC Bank Limited needs about N91 billion new equity fund to meet the new minimum capital base of N200 billion required for its national banking licence. Stanbic IBTC currently has share capital and share premium of N109.25 billion. It however has shareholders’ funds of N506.924 billion.

    The N150 billion new equity capital raising is expected to increase the share capital and share premium of the company to about N260 billion, above the new minimum capital requirement of N200 billion share capital and share premium for national bank.

    Shareholders authorized the company “to raise additional equity capital of up to N150 billion by way of a rights issue or offer for subscription on such terms, tranches, conditions and dates as may be determined by the directors”.

    Shareholders also granted waivers allowing the board to offer unsubscribed shares first to interested existing shareholders and later, if remaining, to interested investors on similar terms to the rights issue or offer for subscription.

    The company also received shareholders’ approval to reaffirm a dividend conversion scheme under which shareholders may be permitted to elect to receive new ordinary shares in the company, credited as fully paid, instead of the whole or any part of any cash dividends declared by the company. Such authorisation for dividend conversion shall subsist until the earlier of five years from the date of the passing of the resolution and the date on which the annual general meeting of the company to be held in 2029 occurs.

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    Under the resolutions, directors were authorised to issue such new ordinary shares and make such allotments of shares or approve any allotment proposals as may be deemed necessary and expedient to give effect to the dividend conversion scheme, subject to obtaining the approvals of the relevant regulatory authorities.

    Following the completion of the additional equity capital raise, the issued and paid up share capital of the company would be increased from N6.478 billion divided into 12.957 billion ordinary shares of 50 Kobo each to a maximum of up to N8.25 billion by the creation of up to 3.54 billion ordinary shares of 50 Kobo each.

    Under the debt capital raising, shareholders authorized the board “to establish a debt issuance programme in an amount of up to N400 billion or such foreign currency equivalent thereof as the directors may consider appropriate, for the purpose of issuing debt securities-to include senior unsecured or secured, subordinated, convertible, preferred, equity linked or such other forms of debt obligations, by way of public offering, private placement, additional tier one or tier two capital raising, investments, book building process or any other method, in tranches of such amounts and at such dates, coupon or interest rates and upon such terms and conditions as may be determined by the directors, subject to the grant of all required approvals from the relevant regulatory authorities”.

  • Capital Hotels lay out strategic growth plans

    Capital Hotels lay out strategic growth plans

    • Total assets rise to N31.9 billion

    The management of Capital Hotels at the weekend laid out the company’s strategic growth plans with assurance to improve shareholders’ returns over the years.

    Managing Director, Capital Hotels Plc, Ravi Bachu, said the company has made significant strides in enhancing the overall guest experience, including refurbishing rooms, renovating conference rooms, and improving infrastructure.

    According to him, new investments were aimed at providing a luxurious and sophisticated environment for guests while restoring the company to profitability.

    He outlined that the company’s priorities for 2024 include new strategies to strengthen its market position and emerge stronger from economic challenges, leveraging technology to streamline operations, implementing cost-saving measures, and developing staycation packages to cater to local events and conferences.

    He added that the company, the owners of Abuja Continental Hotel, formerly Sheraton Hotel Abuja, would also partner with local businesses to create value packages that showcase the hotel as a community hub.

    “Despite ongoing projects, Capital Hotels Plc is working tirelessly to ensure the hotel remains functional during this transformational period. The company aims to provide personalised services that foster customer loyalty and enhance guest satisfaction.

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    “Capital Hotels Plc remains optimistic about its future growth and development, despite the challenges faced in 2023. The company’s commitment to customer satisfaction, strategic investments, and operational efficiency positions it for success in the coming years,” Bachu said.

    Speaking at the company’s annual general meeting in Abuja, Bachu said that the company made remarkable progress in 2023 compared to the previous year, with revenue increasing by 48 per cent to N7.9 billion.

    He said the company’s profit before taxation also increased considerably from a loss of N0.8 billion in 2022 to a profit of N1.1 billion in 2023, which indicated a positive direction for the company’s business.

    He noted that although the company incurred a net loss of N0.5 billion in 2023 due to accumulated deferred tax expenses, the overall trend is still promising, as the company’s total assets increased to N31.9 billion in 2023 from N29.5 billion in 2022, indicating positive growth.

  • Afreximbank grows net interest income by 32% in Q1

    Afreximbank grows net interest income by 32% in Q1

    African Export-Import Bank (Afreximbank) grew its net interest income by 31.73 per cent to $393.4 million in first quarter 2024 compared with $298.6 million recorded in first quarter 2023.

    The three-month report released at the weekend showed that the top-line growth was largely driven by a 40 per cent increase in interest income to $721.8 million, on the back of the growth in the bank’s portfolio of loans and advances.

    Net interest margin improved to 4.82 per cent compared with 4.40 per cent in the corresponding period due to a combination of higher benchmark rates and effective management of borrowing costs.

    The group demonstrated an improvement in operating efficiency with a lower cost to income ratio of 14.50 per cent in first quarter 2024 compared with 16.82 per cent in first quarter 2023. This was achieved despite a 10.63 per cent increase in operating expenses to $61.4 million from $55.5 million.

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    Staff costs however rose by 28.55 per cent following an increase in staff headcount to support the growth of group business and other initiatives, in line with the bank’s sixth strategic plan, constituting 52.93 per cent of group’s expenses.

    Group total assets closed March 2024 at $ 32.8 billion compared with $33.5 billion recorded as at December 2023. Cash and cash equivalents closed the period at $4.9 billion as against $5.6 billion in December 2023, with the liquidity ratio at 14.9 per cent.

    Group’s shareholders’ funds rose by 2.89 per cent to $6.3 billion by March 2024 as against $6.1 billion in December 2023, on the back of growth in group net income of $178.7 million. Callable capital, a significant proportion of which was credit enhanced as part of the bank’s capital management strategy was maintained at $3.7 billion by March 2024 compared with $3.7 billion in December 2023.

    Underlying ratios however showed a drop in Return on Average Equity (ROAE) from 12.89 per cent in first quarter of 2023 to 11.51 per cent in first quarter of 2024.  This also contributed to a drop in return on average assets from 2.54 per cent to 2.19 per cent during the coverage period.

  • My plans for the banking industry, CIBN new president

    My plans for the banking industry, CIBN new president

    The 23rd President and Chairman of the Council of the Chartered Institute of Bankers of Nigeria (CIBN), Prof. Pius Olanrewaju has said he would lay emphasis on commitment to excellence and professionalism within Nigerian banking industry.

    Speaking at his inauguration at the weekend in Lagos, Olanrewaju outlined a strategic vision for his tenure, encapsulated in the acronym LEGACY.

    According to him, his priorities would include leading an innovative financial system, entrenching ethics, professionalism, and integrity, gender, generational, and geographical diversity, accelerating the institute’s vision and values, competence in banking to aid national development, and youth and entrepreneurial engagement.

    He highlighted the resilience of Nigeria’s banking sector amid recent economic challenges and underscored the importance of digital transformation, regulatory collaboration, and membership growth.

    He advocated for increased engagement with regulators, operators, and government agencies to support economic stability and growth.

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    He noted that a key aspect of his strategy involves promoting ethics and professionalism, crucial pillars for sustaining trust and credibility in the financial sector.

    He also emphasized inclusivity, aiming to engage a diverse demographic and foster financial literacy and entrepreneurship among Nigeria’s youth.

    Wile also acknowledging the significant contributions of past leaders and stakeholders, Olanrewaju called for collective effort in advancing CIBN’s mission, pledging to lead with integrity and innovation to ensure the institute remains a global reference point for banking skills and conduct.

    Olanrewaju, who previously served as the Provost and Dean of Law at Babcock University, expressed gratitude for the seamless election process that brought him to office.

  • ‘Make priority funding for agric startups’

    ‘Make priority funding for agric startups’

    Africa urgently needs to bolster investment in its agriculture sector as a strategic move to enhance its Gross Domestic Product (GDP).

    A social entrepreneur and co-founder of Agriarche, Deina Mayaki, has highlighted the glaring insufficiency of funding directed towards the agriculture sector, despite its role in employing over 60 percent of the continent’s population.

    She noted that in the first quarter of 2024, a mere $50 million (11 per cent) was attracted to agriculture, in stark contrast to the $151 million (32 per cent) directed towards Transport/Logistics and $105 million (23 per cent) towards FinTech.

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    She lamented the lack of prioritisation for agricultural funding, citing a PwC report that showed less than 3.8 per cent of commercial bank funding went into agriculture.

    Despite agriculture’s immense potential, access to finance remained a major hurdle, particularly for smallholder farmers. “Agriculture claims to have about 60 to 70 per cent of the African population employed by it.”

  • SEC, CIMA partner on compliance

    SEC, CIMA partner on compliance

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) is set to partner with the Chartered Institute of Management Accounting (CIMA) to ensure compliance with reporting on financial statements by public institutions.

    Acting Director General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama said during a meeting with a team from CIMA led by its President and Vice Chair, Board of the Association, Sarah Ghosh, at the weekend in Abuja.

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    He said SEC is saddled with the responsibility of making the initial decision of ensuring that what is right is done and transparency in reporting financial statements by public companies is ensured.

    “It is now law to do so and there are consequences for breaking the law,” Agama said.

    He said that the Commission would continue to emphasise that public institutions do what is right using the opportunity of being members of the association to bring innovation to the capital market in Nigeria.