The Nation Newspaper

Category: Equities

  • CIS moves to attract young professionals

    The Chartered Institute of Stockbrokers (CIS) has taken some strategic initiatives to attract students of higher institutions to the securities and investment profession in Nigeria.

    The institute has also urged stockbrokers to deploy their diversified talents to boost its activities for enhanced global competitiveness.

    Addressing stockbrokers at the Institute’s 26th annual general meeting in Lagos, President, Chartered Institute of Stockbrokers (CIS), Mr Adedapo Adekoje explained that the CIS had taken some strategic decisions to boost investor education, especially, among the students in the higher institutions.

    According to him, today’s youths are the future investors and should be exposed to the culture of savings and investment He noted that activities such as career talks, debate competition, use of promotional videos organising weekend revision classes and provision of study packs to assist them in preparation for examination.

    The institute implemented some key strategic initiatives to attract students of Nigerian higher institutions to the securities and investment profession during the year. Career talks were delivered in several universities including Obafemi Awolowo University, Ile Ife, Augustine University, Covenant University, University of Lagos, Kogi State University, University of Abuja, University of Nigeria, Nsukka and Nasarawa State University, Keffi to sensitize students to opportunities in the profession.

    In addition, a test run of the CIS Inter-Tertiary Institutions Debate Competition was held at Obafemi Awolowo University. It recorded immense acceptance and success. The institute also organized a one-day students’ forum in Lagos with the objective of creating a platform for interaction between the Institute, examiners, tuition providers and students, and provide an avenue for exchange of ideas for the advancement of the Institute.

    Adekoje also explained that a temporary special window had been created for experienced academics, holders of CFA and CIIA qualifications and senior executives of regulatory agencies in the financial sector, including the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), The Nigerian Stock Exchange, Assets Management Corporation of Nigeria (AMCON) and the National Pension Commission among others.

    According to him, the institute has secured direct membership status of the Chartered Institute of Securities and Investment, United Kingdom for stockbrokers in order to expand their professional horizon in the global capital market.

    He urged stockbrokers to deploy their talents to support the Institute in its efforts to implement an array of strategic plans to move the market to the next level.

    Stockbrokers commended the institute for its landmark achievements and approved all the motions, including amendments to the requirements for aspiring to become President and Vice President.

     

  • CSCS assures on long-term value creation

    Central Securities Clearing System (CSCS) Plc will continue to implement policies that will lead to long-term value creation for shareholders and other stakeholders.

    At the annual general meeting yesterday in Lagos, Chairman, Central Securities Clearing System (CSCS) Plc, Mr Oscar Onyema, assured shareholders that the board and management will continue to work to achieve the company’s strategic objectives in order to achieve long-term value creation for shareholders and stakeholders.

    He said strong corporate governance standards and strategy execution shall remain priority for the board and management in the years ahead.

    “We will continue to ensure discipline in the management of our human and fiscal assets that help in sustaining business continuity and growth of our company,” Onyema said.

    He said the company will continue to improve on conditions for employment to ensure that it attracts the best professionals to help support management in strategy execution and ensure that the company has a robust succession plan.

    Chief Executive Officer, Central Securities Clearing System (CSCS) Plc, Mr Haruna Jalo-Waziri said the company has continued to record positive revenue growth despite the many challenges in the operating environment.

    According to him, the company continues to see exciting growth potential in its businesses while optimizing the capability of its technologies.

    “Overall, our capability to process trades has now significantly increased from hundreds of thousands of trades to millions of trades daily. This development ensures that we stay well positioned to deliver clearing and settlement services across current and future product offerings of the stock exchanges we render services to,” Jalo-Waziri said.

    He added that the company has also continued to automate its processes to eliminate manual interventions and improve turnaround time.

    He pointed out that with the rapid digital transformation across industries, the company shall be exploring opportunities from emerging innovations with the potential of disrupting various aspects of the financial ecosystem.

    “I undertake that your collective confidence in the management of our company shall always be upheld and we shall continue to do our best to sustain financial growth and shall not stop offering our contributions to the improvement of our capital market,” Jalo-Waziri said.

    Shareholders approved the payment of a dividend per share of 70 kobo. Key extracts of the audited report and accounts of the company for the year ended December 31, 2018 showed that profit before tax rose by seven per cent to N6.09 billion while gross earnings increased by four per cent to N9.08 billion. Total assets rose by 12 per cent to N35.9 billion. The company’s pre-tax profit margin improved from 65 per cent in 2017 to 67 per cent in 2018.

  • ‘Buhari to sign new companies’ law soon’

    President Muhammadu Buhari will soon sign the new companies and allied matters bill into law in a bold step aimed at addressing corporate challenges and enhancing business operating environment.

    Secretary of the Presidential Enabling Business Environment Council (PEBEC) and Senior Special Assistant to the President on Industry, Trade and Investment, Dr. Jumoke Oduwole, yesterday said the President will soon sign the new Companies and Allied Matters Act into law.

    The new Companies and Allied Matters Bill is regarded as the largest corporate reform in nearly 30 years and represents a comprehensive re-enactment of the current Companies and Allied Matters Act (CAMA) 1990. The new bill reviews several impediments in the 1990 Act and comprehensively addresses several issues affecting a company from incorporation to winding up and insolvency in line with current global standards.

    The new CAMA is expected to make doing business in Nigeria easier and it is expected to serve as impetus for foreign investments. Part of the amendments includes simplification of the process of starting and growing business and alignment of corporate structures and practices with business size, orientation and financial capability.

    Oduwole spoke at the Nigerian Stock Exchange (NSE) in Lagos when the Minister of Industry, Trade and Investment, Dr Okechukwu Enelamah led the Presidential Enabling Business Environment Council (PEBEC) to the Exchange in commemoration of the successful completion of the reforms under National Action Plan (NAP) 4.0.

    She said the PEBEC has been working to make Nigeria a progressive and easier place to do business.

    “It is a journey, though we are not there yet but we are thankful for the support we received from the Nigerian Stock Exchange (NSE), particularly, on the legislative aspect of the new Companies and Allied Matters Act that will be signed into law by the President very soon,” Oduwole said.

    She emphasised the need for the private sector to partner with the Council to grow the economy, pointing out that the government, through the ease of doing business initiatives, has been working on various reforms towards making the country attractive for businesses to thrive.

    Enelamah  said the Federal Government and the NSE are committed to stronger collaboration to deepen the Nigerian capital market and boost the national economic development.

    He said the partnership between government and the Exchange will make the capital market to be better and stronger.

    “We look at this partnership as extremely important and therefore what we are doing today is not only symbolic, but significant. We hope it will lead to a better cooperation and relationship between the stock market and the government and within the private sector and the government,” Enelamah said.

    According to him, government is committed to deliver reforms aimed at improving the enabling environment for doing business in Nigeria through systemic interventions.

    “We want businesses in the country to do well and this is the role of the Presidential Enabling Business Environment Council, which is primarily to support businesses to prosper,” Enelamah said.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema commended the improvement in ease of doing business in Nigeria noting that Nigeria has moved from 169 position in ease of doing business ranking to about 126.

    Doyen of Stockbrokers and Managing Director, Trust Yield Securities, Alhaji Rasheed Yusuf, commended the call for robust collaboration between government and the capital market operators.

    He urged the government to further use the capital market in the implementation of national economic plan in order to achieve accelerated economic growth and development noting that the deficits in government’s budget could be financed through the capital market.

  • Oando nets N4.6b in three months

    Oando Plc started the 2019 business year on a strong footing as the indigenous energy group recorded double-digit growths in top-line and bottom-line earnings in the first quarter. Net profit rose by 11 per cent to N4.6 billion in the three-month period, raising prospects that the company will sustain its consecutive growth in recent years. Oando recently released its full-year results for 2018, its third consecutive year of net profitability.

    Key extracts of the interim report and accounts of Oando for the three-month period ended March 31, 2019 released at the weekend at the Nigerian Stock Exchange (NSE) showed that turnover rose by 12 per cent to N168 billion in first quarter 2019 as against N150.6 billion in first quarter 2018. The company’s production had increased by 11 per cent from 39,556 boe per day in first quarter 2018 to 43,745 boe per day in March 2019. Operating profit rose by 15 per cent from N14.9 billion to N17.1 billion while profit after tax increased by 11 per cent from N4.2 billion to N4.6 billion. The balance sheet also showed continuing decline in total group borrowings, which declined by five per cent to N200.9 billion

    Chief Executive Officer, Oando Plc, Mr Wale Tinubu said the first quarter results reflected the progress made over the last few quarters and provided an indication of expectation for the year.

    “Now that our debt profile is down by 78 per cent from $2.5 billion as of December 2014 to $558 million currently, and our de-leverage program is 90 per cent complete with most of our non-core operations divested for good value, we can now focus on steady growth in our upstream entity,” Tinubu said.

    He noted that with ICE Brent Crude Oil price currently at a decent level of $74.48 per barrel, the company’s efforts will be geared towards increasing its production to sustain profitability and position itself on the path to resumption of dividend payment to shareholders.

    Oil prices have recovered to over $74 per barrel as at the end of April 2019 after reaching a low of just over $50 per barrel at the end of 2018.

    “We expect prices to remain at their current levels in the near term. As a business, our focus will be largely on driving profitability via growth in our upstream business and achieving further reduction of borrowings,” the company stated.

    In the upstream, Oando said it will pursue production growth initiatives through strategic alliances, whilst ensuring operational efficiency and fiscal prudence.

    According to the company, it will also continue to work with its partners to achieve cost optimization on Joint Venture operations, ensuring the gains from higher revenues are not lost to increasing operating costs.

    Oando added that its trading business’s primary focus will be geared towards growing existing market share in Nigeria while leveraging on its relationships with international financiers.

  • Shareholders laud FCMB over N2.77b dividend

    Shareholders of FCMB Group Plc at the weekend approved the payment of N2.77 billion as cash dividend for the 2018 business year amid commendations for the board and management of the financial services group.

    At the Annual General Meeting (AGM) in Lagos, shareholders approved the 2018 financial results and payment of a cash dividend of 14 kobo per ordinary share, totaling N2.77 billion.

    Key extracts of the audited report and accounts of FCMB Group for the year ended December 31, 2018 showed that profit before tax rose by 73 per cent to N18.4 billion in 2018 as against N11.5 billion in 2017. Gross revenue grew to N177.4 billion, an increase of 4.3 per cent compared with N169.9 billion in 2017. Net interest income rose by three per cent to N72.6 billion while deposits also increased by 19 per cent to N821.7 billion. Loans and advances stood at N633 billion while total assets grew by 21 per cent to N1.43 trillion. Capital adequacy ratio stood at 15.9 per cent.

    Speaking at the meeting, shareholders commended the group for its impressive performance in spite of the challenging macroeconomic and regulatory environment.

    Chairman, Trusted Shareholders Association of Nigeria, Alhaji Mukhtar Mukhtar, said the increased dividend payment was a delight to shareholders given the low economic activities in the country.

    “I am highly impressed with the group’s balance sheet quality which witnessed a high growth. This shows vigorous policies that have positively impacted on and optimised the balance sheet. Another significant aspect of the performance of FCMB is the growing contributions of the subsidiaries in the profit margin.  The 14 kobo dividend declaration signals FCMB’s commitment to improving the lots of shareholders,’’ Mukhtar said.

    Progressive Shareholders Association of Nigeria (PSAN) Chairman, Mr. Boniface Okezie, said FCMB and its subsidiaries have done very well in terms of dividend payment and the overall performance.

    According to him, the loans portfolio of the bank is also encouraging while the fact that it has been able to increase its branch network is an indication that it is expanding.

    “I believe that FCMB will build on this performance,’’ Okezie said.

    Addressing the shareholders, FCMB Group Plc Chairman, Mr. Oladipupo Jadesimi, said the group has continued to move forward on the path of good governance, strengthening and improving its corporate governance structure and bringing it into line with its long-term strategy and the highest international standards.

    He said the group has taken initiatives to increase the confidence of its shareholders, investors and other stakeholders in an environment that is demanding even more transparency.

    ‘’The board of directors, fully engaged and committed to the group’s corporate culture and strategy, has the experience, knowledge, dedication and diversity needed to accomplish our objective of making FCMB one of the leading financial services groups of African origin, helping people and businesses prosper and upholding our adopted of execution, professionalism, innovation and customer focus,’’ Jadesimi said.

    FCMB Group Chief Executive Mr. Ladi Balogun, outlined that the commercial and retail banking group, which includes First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited, grew its profit by 61 per cent, driven by improved performance in consumer finance business and increase in fees and commissions.

    He added that commercial and retail banking remains the largest group, contributing 83 per cent of profit while the group’s banking franchise continued to grow as reflected by a 20 per cent increase each  in deposits and customer base, which rose to 4.9 million customers.

    He pointed out that the pre-tax profit of investment banking group, which includes FCMB Capital Markets Limited and CSL Stockbrokers Limited, increased by 24 per cent in 2018, a performance driven by higher conversion of investment banking deal pipeline as well as cost efficiencies.

    He said the asset and wealth management franchise, which includes FCMB Pensions Limited, First City Asset Management Limited and CSL Trustees Limited, increased combined assets under management to over N310 billion, an increase of 24 per cent.

    According to him, in spite of the reduction in fees charged by pension fund administrators by the primary regulator, asset management businesses increased pre-tax profits by 15 per cent while the group also acquired additional shares in FCMB Pensions Limited to increase its stake from 88.2 per cent to 91.6 per cent in 2018.

    He assured shareholders and other stakeholder that 2019 would see continued growth along all key indices for the Group, especially those around profitability, deposits, customer numbers and assets under management.

  • Meristem launches healthy living campaign

    Meristem Group, a capital market group, has concluded arrangements to hold its maiden organic and healthy living festival as part of efforts to create additional values for its stakeholders and inculcate healthy living among Nigerians.

    The festival, titled: ‘Green Fest’, scheduled to hold in Lagos in June,  will focus on organic nutrition, fitness activities, and overall health consciousness in order to foster personal growth and increased productivity.

    Group Managing Director, Meristem Group Mr. Oluwole Abegunde said participants at the event would not only gain further insights into benefits of an organic lifestyle, they will also benefit from Meristem Group’s wealth of experience in the financial service sector in the areas of accounting, financial literacy and financial growth.

    He said part of the programmes include a forum that will strengthen and equip small and medium scale enterprises in the organic nutrition sector with the skills to make informed financial decisions for their businesses to thrive in a dynamic economy.

    He noted that Meristem Green Fest will be the largest and foremost convergence of health, fitness, and wellness experts, practitioners, and enthusiasts of all ages in Nigeria.

    “At Meristem, we are constantly seeking distinct ways to create value for our clients, and Green Fest is a strong anchor. The Meristem Green Fest was born on the singular truth that health is wealth and if we are committed to growing wealth for people, we must be committed to sustaining health that will allow them to enjoy their wealth,” Abegunde said.

    He pointed out that the Meristem Green Fest sets out to actively promote the gradual disposal of artificial and unhealthy living habits and motivates people to adopt healthier lifestyle alternatives to enjoy a longer and happier life.

    According to him, the goal of the festival is to inspire people to take the necessary steps as individuals and as a community towards a healthy and wellness centric lifestyle.

    Head, Brand Management, Meristem Group, Solape Akinpelu, said Meristem Green Fest will be a convergence point for businesses in the healthy-living space and the increasing participants who consume their offerings through different means; consumables, natural skin and hair care, physical and mental fitness coaching and more.

    “All of these will take place in a festive ambience accompanied with live music and funfair. For us as a brand, the Meristem Green Fest is also an organizational effort to re-affirm that health is wealth, and the ability to grow and enjoy wealth in real-time is dependent on a healthy body and sound mind,” Akinpelu said.

    She added that the festival will also feature a diverse range of organic food and drinks vendors, unique exhibitions, master classes from experts in the health and fitness field and captivating musical performances.

  • Cadbury grosses N9.3b in Q1

    Cadbury Nigeria Plc recorded well-rounded performance between January and last month, growing net profit by 2,195 per cent during the quarter.

    Key extracts of the interim report and accounts of Cadbury Nigeria for the period ended March 31, 2019 showed that gross revenue rose by 12.7 per cent from N8.24 billion in first quarter 2018 to N9.28 billion in first quarter 2019. Gross profit increased by 32 per cent from N1.8 billion to N2.38 billion. Profit before tax leapt by 2,232 per cent from N31 million in first quarter 2018 to N723 million in first quarter 2019. After taxes, net profit rose from N22 million in first quarter 2018 to N505 million in first quarter of this year.

    Cadbury Nigeria’s first quarter result reflects a sustained positive trend in the company’s performance. In the audited report for 2018, the company’s full-year profit before tax surged by 242.9 per cent to N1.2 billion in 2018 as against N350 million in 2017. Net profit rose by 174 per cent from N299.9 million in 2017 to N823 million in 2018.

    Cadbury Nigeria recently announced the appointment of Mrs. Oyeyimika Adeboye as Managing Director with effect from April 1, 2019. Mrs Adeboye, the first woman to be appointed Managing Director since the establishment of Cadbury Nigeria over five decades ago, is expected to build on the legacies of Mr. Amir Shamsi, who has been credited with the turnaround of the Nigerian subsidiary. With the Nigerian business in recovery mode, Shamsi was recently reassigned to a new role within Mondelçz International, the parent company of Cadbury Nigeria. Mondelçz International holds 74.99 per cent majority equity stake in Cadbury Nigeria.

    During his tenure, Shamsi made invaluable contribution to the turnaround of the business, and drove Cadbury’s growth agenda, including top-line, bottom-line

  • May & Baker to pay N345m dividend

    The board of directors of May & Baker Nigeria Plc has recommended the payment of N345.05 million as cash dividend for the 2018 business year as the healthcare company grew its profit after tax by 73.85 per cent to N585.20 million during the year.

    The total dividend payout represents 76.05 per cent increase on N196 million paid for the 2017 business year. Shareholders will receive a dividend per share of 20 kobo for the 2018 business year. The company had increased total dividend payout from N58.8 million for 2016 business year to N196 million for 2017 and N345 million for 2018 business years.

    According to the regulatory filing at the Nigerian Stock Exchange (NSE), the dividend will be paid to  shareholders on the register of the company as at April 18, 2019, including shares from the company’s recent rights issue.

    The inclusion of the rights shares was a fulfilment of the promise of the directors of the company. While the net proceeds of the rights issue were received in the first month of the 2019 business year, the board had assured that subscribers to the rights issue will benefit from the 2018 business year dividend. The dividend payout of 20 kobo represents a dividend yield of 8.0 per cent on the rights issue’s offer price of N2.50, and ranks among the top bracket of dividend yields so far this earning season.

    Key extracts of the audited report and accounts of May & Baker Nigeria for the year ended December 31, 2018 released at the NSE showed a steady growth of 6.08 per cent in total turnover from N8.06 billion in 2017 to N8.55 billion in 2018. Profit before tax stood at N817.91 million while profit after tax from continuing operations was N342.7 million.

    With N242.5 million extra ordinary income from discontinued operations, the company made a comprehensive income of N585.20 million in 2018 compared to N336.62 million in 2017. Shareholders’ funds also rose by about 10 per cent from N3.29 billion in 2017 to N3.617 billion in 2018. At the same time, finance costs reduced by 33.67 per cent from N512.13 million in 2017 to N339.72 million in 2018.

    The company recently floated a rights issue from which the sum of N1. 86 billion was realised. The company had indicated it would invest part of this to finance part of its equity in Biovaccines Nigeria Limited, the joint venture company for local vaccine production while part would be used for capacity expansion, marketing and brand building and to offset part of its short term debts.

    Citing the growth outlook of the healthcare company,  May & Baker Nigeria Plc. Managing Director Mr. Nnamdi Okafor said the recent strategic investments and new growth initiatives being undertaken by the company would boost returns in the years ahead.

    “We derive our confidence mainly from the pedigree, performance track records and strategic plans of the company” Okafor said.

    Some of the strategic investments include a recent memorandum of understanding with the Federal Ministry of Health for the commercial production of an anti-sickle cell drug discovered by the National Institute for Pharmaceutical Research and Development. This drug holds a large potential because of the enormity of the sickle cell challenge in the country. Similarly, the company is also working with the Federal Institute of Industrial Research in Oshodi to develop and commercialise a nutraceutical product. Okafor said the company plans to become a regional healthcare hub with strong and wide footprints in the sub Saharan market.

  • Access Bank reassures investors, pays N14.5b dividend

    Access Bank Plc yesterday reassured its shareholders that its five-year strategic growth plan and benefits from its recent business combination will create higher returns in the years ahead.

    The reassurance came as shareholders at the annual general meeting yesterday in Lagos approved the payment of N14.46 billion as cash dividends for the 2018 business year. Shareholders will receive a final dividend of 25 kobo per share, in addition to an interim dividend of 25 kobo per share paid earlier, bringing total dividend for the 2018 business year to 50 kobo per share.

    Shareholders who spoke at the meeting commended the board and management of the bank for sustaining a good dividend payout policy, noting that its merger with Diamond Bank brought smiles on the faces of shareholders of both banks.

    Founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu who spoke on behalf of other shareholders at the meeting applauded the board for the successful merger with Diamond Bank.

    He however frowned at charges imposed on banks by Assets Management Corporation of Nigeria (AMCON) and other regulators, saying these have become major concerns to investors.

    He urged shareholders to organise themselves in such a way that they can direct their complaints to the government and regulators on the issues affecting banking business in the country.

    Addressing the shareholders, Chairman, Access Bank Plc, Mrs Mosun Belo-Olusoga said that despite unfavourable market condition, Access Bank delivered a strong performance, demonstrating an effective strategy backed by strong governance.

    She noted that in January 2018, the bank began the implementation of another five-year strategy which should translate to better returns in the years ahead.

    “A key aspect of our intent over the next five years is to build a large diversified bank, by consolidating our wholesale franchise and embedding ourselves firmly in the retail market,” Belo-Olusoga said.

    She also noted that the bank’s merger with Diamond Bank would create the required scale, customer base and support our desire to achieve a wider reach across the continent.

    According to her, the combination will provide us with an increased physical presence and payment capabilities in relevant countries.

    “The combination will significantly fast track the achievement of a number of our strategic intents in the short term. It provides us with a competitive advantage that will withstand the realities of market uncertainties, while ensuring sustainable revenue in the years ahead,” Belo-Olusoga said.

    Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe said the implementation of the five-year strategy will focus on retail banking growth, adding that the quarterly contribution of the segment to group profits during the year assured that the strategies and investments were prudent.

    “Our ongoing collective efforts to deliver exemplary value will be paramount in guaranteeing our profitability and the long-term sustainability of our business,” Wigwe said.

    Key extracts of the audited report and accounts of Access Bank for the year ended December 31, 2018 showed that the bank grew pre and post tax profits by 32 per cent and 58 per cent respectively. Gross earnings had risen by 15 per cent. Total assets increased by 21 per cent while customers’ deposit grew by 14 per cent.

    The report indicated that gross earnings rose to N528.7 billion in 2018 compared with N459.1billion in 2017. Interest and non-interest incomes contributed 72 per cent and 26 per cent respectively to the top-line. Profit before tax rose from N78.2 billion to N103.2 billion while profit after tax increased to N95.0 billion in 2018 as against N60.1 billion in 2017. With these, earnings per share rose from N2.11 in 2017 to N3.31 in 2018. Return on average equity (ROAE) stood at 19.0 per cent while return on asset closed 2018 at 2.1 per cent.

    The bank’s balance sheet remained strong and diversified with total assets rising to N4.95 trillion in 2018 as against N4.10 trillion in 2017. Loans and advances increased from N2.06 trillion to N2.14 trillion. Customer’s deposits improved to N2.57 trillion from N2.25 trillion. Capital adequacy ratio (CAR) remained adequate at 20.8 per cent, taking into consideration the regulatory transitional arrangement of IFRS 9 implementation. On a full impact basis, CAR stood at 19.9 per cent. Also, Liquidity ratios improved from 47.2 per cent to 50.9 per cent, well above regulatory requirements.

  • Shareholders commend Sterling Bank’s sustained growth

    Shareholders of Sterling Bank Plc have commended the board and management of the bank for sustaining improved performance over the years.

    At the annual general meeting yesterday in Lagos, shareholders said the improvements across the businesses of the bank have further reinforced their confidence in the board and management and the future of the bank.

    National Coordinator, Shareholders United Front (SUF), Mr. Gbenga Idowu, said the results of the bank in 2018 reflected successful and seamless management transition.

    According to him, the results clearly showed that the new Chief Executive Officer, Mr. Abubakar Suleiman has the ability to provide good leadership for the executive management of the bank since April 2018 when he took over from Mr. Yemi Adeola.

    Key extracts of the audited report and accounts of the bank for the year ended December 31, 2018 showed that profit after tax rose to N9.2 billion in 2018 as against N8 billion in 2017. Gross earnings had increased by 14 per cent from N133.4 billion to N152.2 billion.

    The report showed that in line with the bank’s commitment to sectors that will create jobs, improve living standards and bring about economic growth for the country, Sterling Bank increased its financing efforts in the agriculture sector which accounted for about 10 per cent of its loan book. The bank also maintained a healthy capital and liquidity position at 13.3 per cent and 42.2 per cent respectively on account of additional tier 2 capital injection.

    Former President, Nigeria Shareholders’ Solidarity Association (NSSA), Chief Timothy Adesiyan said the performance of the bank is highly commendable in view of the massive improvement in most of the indices, especially in gross earnings, net interest income, liquidity ratio and profit after tax.

    He noted that even though the bank is not paying any dividend to shareholders for the year, shareholders are happy with the appreciation in share price and the prospect of higher dividends in future.

    Adesiyan also commended the board and executive management of the bank, noting that the good results underscored good corporate governance practice which makes the bank a dependable and solid bank.

    Chairman, Sterling Bank Plc, Mr. Asue Ighodalo said the 2018 financial results reflected an even stronger business performance despite the impact of an ailing operating environment.

    He noted that the bank closed the year with an improved balance sheet position as total assets grew steadily by about 2.9 per cent to N1.1 trillion, thereby maintaining the over one trillion Naira mark achieved in the previous year.

    “We continued to sustain operational efficiencies and our focus in growing the bank’s retail franchise. This resulted in an improved deposit base and moderate growth in our loan book, specifically riding on the 108.3 percent growth in retail and consumer loans delivered mainly by SPECTA – Nigeria’s fastest digital lending platform,” Ighodalo said.

    He added that the bank was able to maintain the cost of funds at 7.4 per cent despite high-interest environment which persisted for a significant part of the year.

    On the future prospect of the bank, Ighodalo remarked that the Nigerian business environment for 2019 would remain a story of two halves.