The Nation Newspaper

Category: Equities

  • Afreximbank grows net profit by 25% to $275.9m

    African Export-Import Bank (Afreximbank) grew its net profit by 25 per cent to $275.9 million in 2018 as the bank showed steady growths in key performance indicators.

    The audited report and accounts for the year ended December 31, 2018 showed that Afreximbank’s net profit rose from $220.5 million in 2017 to $275.9 million in 2018.

    The results showed that the bank’s total assets grew by 13 per cent from $11.91 billion 2017 to $13.42 billion in 2018, due mainly to growth in net loans and advances, which went up 30.3 per cent.

    President, African Export-Import Bank (Afreximbank), Prof. Benedict Oramah said that the performance in 2018 was a reflection of the strength of Afreximbank’s underlying business and restated commitment to driving its strategic objectives, to strong orderly growth in assets and earnings.

    He noted that Afreximbank, which implements its programmes and facilities through five-year strategic plans, began implementing its fifth strategic plan, dubbed “Impact 2021, Africa Transformed”, in 2018.

    The five-year strategy is anchored on four pillars including improving intra- Africa trade; facilitating industrialisation and export development; strengthening trade finance leadership; and improving financial soundness and performance.

     

     

  • Equities hit one year’s low with N170b loss

    Nigerian equities hit their lowest value in the past 12 months yesterday as sell pressure continued to depress quoted shares to their lowest prices, despite subsisting dividend recommendations. After losing N548 billion last week, equities lost N170 billion yesterday, depressing the average year-to-date return to -7.22 per cent.

    The All Share Index (ASI)- the benchmark index that tracks share prices at the Nigerian Stock Exchange (NSE) dropped from its opening index of 29,616.38 points to close at 29,162.24 points, its lowest index point in 52 weeks. Aggregate market value of all quoted equities declined from its opening value of N11.124 trillion to close at N10.954 trillion.

    With average decline of 1.5 per cent on Monday, quoted equities have so far this month lost an average of 6.05 per cent. Most sectoral indices closed on the negative with the NSE Banking Index leading the decline with a drop of 2.51 per cent. The NSE Industrial Goods Index dropped by 0.88 per cent while the NSE Consumer Goods Index dipped by 0.37 per cent. On the upside, the NSE Insurance Index appreciated by 0.20 per cent while the NSE Oil & Gas Index inched up by 0.09 per cent.

    There were 30 losers against 13 gainers. Nigeria’s most capitalised company, Dangote Cement led the losers with a drop of N3.50 to close at N185.50. Stanbic IBTC Holdings followed with a loss of N3.05 to close at N43.20. Guinness Nigeria lost N2.45 to close at N60. Guaranty Trust Bank declined by N1 to close at N34 while Union Bank of Nigeria dropped by 50 kobo to close at N6.50 per share.

    On the positive side, 11 led the gainers with a gain of N1 to close at N171. Eterna rose by 25 kobo to close at N4.25. Learn Africa added 11 kobo to close at N1.34. Caverton Offshore Support Group rose by 8.0 kobo to close at N2.60 while Neimeth International Pharmaceuticals and Oando inched up by 5.0 kobo to close at 56 kobo and N5 per share.

    Total turnover stood at 455.88 million shares valued at N5.26 billion in 3,993 deals. Sterling Bank led the activities chart with a turnover of 93.42 million shares valued at N242.19 million. Guaranty Trust Bank followed with 78.33 million shares worth N2.66 billion while Tripple Gee placed third with 60 million shares valued at N42 million.

    “In the absence of a positive catalyst, we guide investors to trade cautiously in the short term. However, stable macroeconomic fundamentals and compelling valuation remains supportive of recovery in the mid-to-long term,” Cordros Securities stated.

    Analysts at Afrinvest Securities said they expected to see bargain hunting activities due to the attractive entry prices of several fundamentally sound stocks in the market. Analysts however were cautious that in the absence of the much needed economic reforms to attract investors, there may not be any sustained price rally.

     

  • Afreximbank grows net profit by 25% to $275.9m

    African Export-Import Bank (Afreximbank) grew its net profit by 25 per cent to $275.9 million in 2018 as the bank showed steady growths in key performance indicators.

    The audited report and accounts for the year ended December 31, 2018 showed that Afreximbank’s net profit rose from $220.5 million in 2017 to $275.9 million in 2018.

    The results showed that the bank’s total assets grew by 13 per cent from $11.91 billion 2017 to $13.42 billion in 2018, due mainly to growth in net loans and advances, which went up 30.3 per cent.

    Read also: Afreximbank president urges Fed Govt to sign AfCFTA

    President, African Export-Import Bank (Afreximbank), Prof. Benedict Oramah said that the performance in 2018 was a reflection of the strength of Afreximbank’s underlying business and restated commitment to driving its strategic objectives, to strong orderly growth in assets and earnings.

    He noted that Afreximbank, which implements its programmes and facilities through five-year strategic plans, began implementing its fifth strategic plan, dubbed “Impact 2021, Africa Transformed”, in 2018.

    The five-year strategy is anchored on four pillars including improving intra- Africa trade; facilitating industrialisation and export development; strengthening trade finance leadership; and improving financial soundness and performance.

  • Retail investors are influenced by media, says report

    A report on behavioural insights by the International Organisation of Securities Commissions (IOSCO) found that  retail investors tend to make different decisions when interacting with an online interface as opposed to interacting with a human or relying on print materials.

    The report entiled: ‘The Application of Behavioural Insights to Retail Investor Protection’, provides guidance to help securities regulators better understand the behaviour of retail investors in making financial investment decisions.

    The report describes behavioural biases and how they affect retail financial markets. The examples given in the report show how emotions and psychological experiences can influence investment decisions; how a rule of thumb can lead to incorrect beliefs; and how a partial assessment of information can lead to a different decision than a complete assessment.

    The report also refers to quantitative and qualitative testing methodologies that regulators use to gather information about the ways in which retail investors may suffer harm. These same methodologies can be used to design and measure the effectiveness of the regulatory response to protect investors and to assess the effectiveness of existing disclosure and other measures.

    The report acknowledges that while measures using behavioural insights have the potential to promote informed decision-making, they may not be sufficient to protect retail investors adequately.

  • Jaiz Bank grosses N8.74b as net profit rises by 55%

    Jaiz Bank Plc grew its top-line to N8.74 billion in 2018 as the Nigeria’s first non-interest bank sustained steady growths in operations and profitability. On the back of significant growths in deposits and financing and investment, net profit rose by 55 per cent to N834.37 million.

    Key extracts of the audited report and accounts of the bank for the year ended December 31, 2018 showed that gross earnings rose by 11 per cent from N7.86 billion in 2017 to N8.74 billion in 2018. Profit before tax increased from N894.01 million to N897.70 million. After taxes, net profit rose from N537.12 million to N834.37 million.

    The balance sheet showed stronger underlying strength during the period. Total assets rose by 24 per cent from N87.31 billion to N108.46 billion. Deposits also grew by 25 per cent from N68.12 billion in 2017 to N85.03 billion in 2018. The non-interest bank expanded its financing and investment activities by 37 per cent to N69.36 billion in 2018 as against N50.79 billion in 2017. Jaiz Bank, as a non-interest bank, makes profit basically from profit-sharing on investments and gains on trading.

    Key underlying ratios showed improvements in returns and operational strength of the bank. Return on assets rose by a quarter from 0.6 per cent in 2017 to 0.8 per cent in 2018. While cost-to-income inched up from 85.84 per cent to 87.28 per cent, return on equity improved from 6.54 per cent to 6.85 per cent. Capital adequacy remains considerably above regulatory threshold at 21.13 per cent while liquidity ratio increased by 50 per cent from 18.64 per cent to 27.94 per cent. Staff strength and number of branches also increased by 6.0 per cent and 16 per cent respectively.

    Jaiz Bank Managing Director Mr. Hassan Usman said the results further demonstrated that the bank can grow sustainably in line with its strategic vision of becoming the leading non-interest bank in Sub-Saharan Africa by 2022.

    He noted that the bank had in 2017 crafted a strategic plan to build on its pioneer status in the country into becoming the leading non-interest bank in Sub-Saharan Africa over the next five years.

    According to him, the bank has since been working hard across its business towards the strategic milestones set out for the years while maintaining steady focusing on its business growth.

    “The commitment and dedication of our people make me confident that the attainment of this goal is assured. 2018 is the year we demonstrated we have the capacity to grow safely and sustainably. We used a number of measures to spark progress in this regard, some of which include our commitment to the development of micro, small and medium enterprises, focus on unserved markets and the financially excluded, institutional alliances, nimble workforce as well as effective performance tracking amongst others,” Usman said.

    He assured that while maintaining steady focus on elements that contributed to improved performance in 2018, the bank shall work harder to optimise its potential in order to deliver better returns in 2019.

    He added that Jaiz Bank, as the leader in alternative financing, is committed to ensuring that its engagement with the financially excluded remains boldly innovative as well as transformative.

    Jaiz Bank was created out of the former Jaiz International Plc, which was set up in 2003 as a Special Purpose Vehicle (SPV), to establish the country’s first full-fledged non-interest bank. The bank is owned by some 27,000 shareholders including the Islamic Development Bank (IDB). It obtained a regional operating license to operate as a non-interest bank from the Central Bank of Nigeria (CBN) on November 11, 2011 and began full operations as the first non-interest bank in the country on January 6, 2012. In 2016, it obtained the national banking licence from the CBN and started to rapidly spread its network across the country.

    Jaiz Bank recorded another milestone on February 9, 2017 as the first non-interest financial institution to be listed on the Nigerian Stock Exchange (NSE) with the admission of the entire issued share capital of the bank to the main board of the Exchange.

    Under its five-year growth plan, Jaiz Bank projects to grow its income and profitability consecutively. According to the five-year financial forecast, total income is expected to be about N81.17 billion while profit after tax is projected at N11.09 billion for the five-year period.

  • Equities lose N548b in 19,130 deals

    Nigerian equities lost N548 billion in capital depreciation last week as regulatory deadline for the submission of audited yearly report for the 2018 calendar year elapsed. The decline at the market was contrary to largely positive trends in the global equities markets.

    The 90-day period for the submission of yearly reports and accounts for the year ended December 31, 2018 ended on March 31, 2019. Companies quoted on the Nigerian Stock Exchange (NSE) are required to submit their audited yearly reports and financial statements not later than 90 days after the end of the business year.

    The stock market witnessed a strong selloff as investors appeared to ignore relatively steady corporate earnings and dividend recommendations. With nearly four decliners for every advancer, most transactions were closed at discount, turning the market into a buyer’s market.

    Benchmark indices at the Exchange indicated average decline of 4.59 per cent for the week, equivalent to net capital loss of N548 billion. With the decline during the week, the negative average year-to-date return worsened to -5.77 per cent.

    The All Share Index (ASI), the value-based common index that tracks share prices at the Exchange, declined from the week’s opening index of 31,041.42 points to close weekend at 29,616.38 points. Aggregate market value of all quoted equities dropped from the week’s value-on-board of N11.672 trillion to close the week at N11.124 trillion.

    Sectoral indices showed a market-wide depression with selloffs more pronounced in the consumer goods sector. The NSE 30 Index, which tracks the 30 largest stocks at the Exchange, recorded average decline of 4.92 per cent during the week. The NSE Consumer Goods Index recorded the highest drop of 7.73 per cent. The NSE Industrial Goods Index followed with -6.48 per cent. The NSE Banking Index trailed with a drop of 6.09 per cent while the NSE Insurance Index depreciated by 3.86 per cent.

    There were 55 decliners against 14 advancers during the week compared with 36 losers and 21 gainers recorded in the previous week. Eterna recorded the highest loss, in percentage terms, of 24.53 per cent to close at N4. Union Diagnostic & Clinical Services followed with a drop of 23.33 per cent to close at 23 kobo. United Bank for Africa dropped by 19.48 per cent to close at N6.20. Beta Glass lost 18.9 per cent to close at N58.35. Neimeth International Pharmaceuticals dropped by 17.7 per cent to close at 51 kobo while Dangote Flour Mills declined by 16.18 per cent to close at N8.55 per share.

    On the positive side, Ikeja Hotel led the advancers with a gain of 20.2 per cent to close at N2.26. Chams followed with a gain of 20 per cent to close at 24 kobo. Sovereign Trust Insurance rose by 15 per cent to close at 23 kobo. First Aluminium added 10 per cent to close at 33 kobo and Berger Paints rose by 9.7 per cent to close at N9.05 per share.

    The momentum of activities increased significantly, although most trades closed on the negative. Total turnover rose to 3.54 billion shares worth N20.26 billion in 19,130 deals last week compared with a total of 2.63 billion shares valued at N12.79 billion traded in 15,558 deals two weeks ago.

    Sectoral breakdown showed that the financial services industry remained atop activity chart with 3.06 billion shares valued at N14.47 billion in 11,738 deals; representing 86.35 per cent and 71.40 per cent of the total equity turnover volume and value. The Information and Communication Technology (ICT) staged a rare second on the chart with 253.63 million shares worth N53.71 million in 277 deals. The consumer goods industry ranked third with a turnover of 65.5 million shares worth N4.36 billion in 2,732 deals.

    Investors also appeared to be ignoring liquidity constraint and increasingly shifting towards low-priced stocks, otherwise known as penny stocks, which tend to have higher dividend yield. The trio of Wema Bank Plc, Sterling Bank Plc and Chams Plc were the most active stocks last week, accounting for 2.10 billion shares worth N2.03 billion in 965 deals, contributing 59.38 per cent and 10 per cent of the total equity turnover volume and value.

    There were no trading in Exchange Traded Products (ETPs) during the week while a total of 18,042 units of Federal Government Bonds valued at N19.685 million were traded in 24 deals last week as against a total of 3,453 units valued at N3.565 million traded in 24 deals penultimate week.

    The week opened with the listing of the N15 billion green bond by Access Bank and the listing of additional shares of 6.62 billion ordinary shares of 50 kobo each in the name of Access Bank following the conclusion of the merger between Access Bank and Diamond Bank. Diamond Bank was subsequently delisted.

    The equities market counteracted the bullish trading in most advanced and emerging markets. In the United States, the Dow Jones Industrial Average (DJIA) rose by two per cent and the S & P 500 and NASDAQ grew by 1.9 per cent and 2.7 per cent respectively. In the United Kingdom, the UK FTSE appreciated by 2.2 per cent. France’s CAC 40 Index posted a gain of 2.3 per cent. Germany’s XETRA DAX Index rose by 4.1 per cent. Japan’s Nikkei 225 Index posted a gain of 2.8 per cent while the Hong Kong’s Hang Seng Index rallied three per cent.

    In the emerging markets bloc of Brazil, Russia, India, China and South Africa (BRICS), investors were overtly bullish on emerging stocks. As optimism grew on the USA-China relationship, the China Shanghai Composite Index rallied by 5.0 per cent. Russia’s RTS Index rose by 2.5 per cent. India’s BSE Sens appreciated by 0.5 per cent. South Africa’s FTSE/JSE All Share Index rose by 2.5 per cent while Brazil Ibovespa Index rallied by 1.1 per cent.

    Across the regions, Europe’s Euro Stoxx 50 rose by 2.8 per cent. The MSCI EM Index, which tracks emerging stocks, appreciated by 2.1 per cent while the MSCI FM Index, which tracks frontier markets, inched up by 0.4 per cent.

    In Africa, most markets traded on the positive side. Egypt’s EGX30 Index showed average gain of 4.0 per cent. Morocco’s Casablanca MASI appreciated by 0.7 per cent. Mauritius’ SEMDEX Index rose by 0.6 per cent and Kenya’s NSE 20 Index was flat. However, Ghana’s GSE Composite Index indicated average decline of 0.4 per cent.

    Analysts’ consensus indicated cautious optimism with most analysts urging investors to be cautious and invest on fundamentally sound stocks.

    Analysts at Cordros Capital noted that in the absence of a positive catalyst, investors need to trade cautiously in the short term.

    “However, stable macroeconomic fundamentals and compelling valuation remains supportive of recovery in the mid-to-long-term,” Cordros Capital stated.

    Afrinvest Securities pointed out that despite the overall negative performance last week, there were observed increase in buying activity on bellwether stocks, noting that this trend may be sustained this week as investors seek to take position in attractively priced stocks.

    “However, in the absence of major triggers that could drive positive sentiments, we maintain a bearish near-term outlook,” Afrinvest Securities stated.

  • Oando finalises N14b Axxela divestment

    •focuses on Dollar businesses

    Oando Plc yesterday announced completion of divestment from its midstream affiliate, Axxela Limited to Helios Investment Partners in a deal valued at $41.5 million, about N14 billion. Oando sold Axxela, formerly known as Oando Gas and Power, to enable it concentrate on its upstream Dollar-based business. Helios Investment Partners is a leading private equity firm with a focus on investments in Africa.

    The sale of Oando’s 25 per cent residual interest in Axxela is the completion of a divestment initiative that began in 2016.  In December 2016, Oando completed the $115.8 million 75 per cent partial divestment of the then Oando Gas & Power to Helios.

    Oando has said that net proceeds from the divestment will be used to partially prepay its Medium Term Loan (MTL) which it took in June 2016 following the global oil downturn. The oil downturn had sparked a debt crisis with companies barely breaking even and struggling to survive. Surviving players had to evolve their business model, diversify their portfolios and imbibe more financial prudence and discipline to ensure survival in a high or low price era.

    Oando’s divestment of its 25 per cent residual interest in Axxela to Helios was part of strategic initiatives aimed at maintaining the trajectory of aggressive debt reduction, portfolio optimization and ensuring that the business remains viable.

    The company had in 2016 commenced the implementation of a three-pronged restructuring plan of growth through its upstream business; deleverage through disposal of $350 million in assets value and a return to profitability. Through open dialogue with ten leading financial institutions in Nigeria, the company agreed to a medium term restructuring loan facility of N94.6 billion, about $311 million as part of the strategic initiatives.

    Oando also in 2016 successfully completed a $210 million recapitalization of its downstream business, with a consortium of Helios and the Vitol Group, the world’s largest independent trader of energy commodities.

    Group Chief Executive, Oando Plc, Mr. Wale Tinubu said the completion of the Axxela divestment signifies another win for the company as it reinforces Oando’s ability to create value that can be monetized and the company’s status as the indigenous partner of choice for international companies looking to invest in Nigeria.

    According to him, Oando’s exit from Axxela signifies the company’s ability to optimise value from a non-core business activity and reinforces its capability in building strong businesses that attract international investors and create real value.          “This transaction favourably positions us to significantly reduce our debt profile and remain focused on growth through our dollar denominated businesses,” Tinubu said.

    He noted that Oando pioneered the development of Nigeria’s foremost natural gas distribution network which has grown to become the largest private sector gas distributor in Nigeria, creating a lasting impact on both the sector and the Nigerian economy.

    He pointed out that the company’s exit from Axxela was not a departure from the gas business adding that the company will continue to maintain significant presence in the midstream as well as grow its gas aspirations through its upstream gas assets in its NAOC Joint Venture wherein it has four gas projects within the NNPC’s Seven Critical Gas Development Projects (7CGDPs).  The four gas projects are responsible for almost 50 per cent of the 42 TCF that will be delivered by the seven 7CGDPs by 2020.

    The NAOC Joint Venture is made up of NNPC, Nigerian Agip Oil Company and Oando and it is the biggest upstream contributor to the domestic gas market through a current daily production of circa 1 billion scf of gas.

    Tinubu noted that the African business environment is dynamic and the only way to remain ahead of the curve is by breaking new terrain, being innovative and ultimately looking for opportunities to leapfrog.

    “At Oando, we try to emulate this, we believe we are energy pioneers with an ambition to consistently tackle risks and evolve opportunities to positive commercial outcome while maintaining global standards. The good news is, there are still many parts of the energy ecosystem especially Nigeria that have been left unexplored and we will continue to set the tone in transforming Nigeria and ultimately Africa’s energy future,” Tinubu said.

    Chief Executive Officer, Axxela Limited, Bolaji Osunsanya said the company remains proud of its pedigree as an Oando portfolio company even as continues to position itself as the preferred and fast-growing gas and power portfolio across sub-Saharan Africa.

    “As we commence a new journey, our audacious growth initiatives across Nigeria and the sub-region will leverage our industry expertise, experience, and longevity; while our affiliation as a full-fledged Helios company will improve our access to capital,” Osunsanya said.

     

     

  • NSE launches multi-asset brand campaign

    As part of efforts to boost investor education and increase investor participation in the Nigerian capital market, the Nigerian Stock Exchange (NSE) has launched an above-the-line marketing campaign that amplifies the Exchange’s credential as a leading securities exchange that provides investors with varied investment options.

    Besides quoted equities, the NSE is showcasing other investment options such as fixed income, Exchanged Traded Products (ETPs), derivatives and others. Themed “The Multi-Asset Sustainable Exchange”, the campaign will be featured across print, broadcast, outdoor and digital media.

    Head, Corporate Communications, Nigerian Stock Exchange (NSE), Mr. Olumide Orojimi, said the campaign was coming against the backdrop of the innovative offerings NSE has birthed since its intentional transformation that commenced in 2011.

    He noted that during this period, the Exchange has achieved phenomenal milestones including the deployment of cutting edge technology for trading and the use of artificial intelligence to monitor its market.

    He added that the Exchange had also upscale securities in its market with the flagship listing of the first sovereign green bond in an emerging market; establishment of an investors protection fund; launch of a corporate governance rating system and more recently the unveiling of the NSE Sustainability Disclosure Guidelines for quoted companies.

    “As the Exchange transits to a demutualized Exchange, its credential as multi-asset securities Exchange will be adequately communicated through series of creative messaging in this campaign. While investors’ appetite for capital market products continues to evolve, this campaign highlights NSE’s offering which transcends stocks,” Orojimi said.

    He reiterated the commitment of the Exchange to driving sustainable products, responsible investment in a market that is orderly and transparent whilst leveraging cutting edge technology.

     

  • Access Bank hits new ranking as NSE lists merger shares

    Access Bank leapt by two steps to become one of the six most capitalised financial institutions in Nigeria as the first-tier commercial bank fully consummated its business combination with Diamond Bank Plc with the listing of the merger shares and the delisting of Diamond Bank.

    The Nigerian Stock Exchange (NSE) listed 6.617 billion ordinary shares of 50 kobo each issued as consideration to shareholders of the defunct Diamond Bank in the name of Access Bank Plc. The additional listing of scheme shares increased Access Bank’s total outstanding shares from 28.93 billion ordinary shares of 50 kobo each to 35.545 billion ordinary shares of 50 kobo each.

    With the listing of the new merger shares allocated to shareholders of the defunct Diamond Bank, the NSE also simultaneously delisted the entire paid up shares of Diamond Bank totaling 23.16 billion ordinary shares of 50 kobo each.

    The listing and delisting followed the approval of the National Council of the NSE, after the banks had completed the due diligence and merger process including approvals of their shareholders, approvals of the regulators, sanctions of the Federal High Court, payments of considerations and allocation of the relevant scheme shares.

    However, the NSE was unable to commence trading on the listed scheme shares yesterday citing “certain operational reasons”.

    “The Exchange regrets any inconvenience caused the holders of the affected shares. The Exchange is working assiduously with Central Securities Clearing System (CSCS) and the Registrar to the company to produce a swift resolution and will be providing further updates as soon as we can,” the NSE stated.

    Meanwhile, Access Bank has also listed its N15 billion green bond on the NSE and FMDQ OTC Securities Exchange. The listing followed approval of the bond by the Securities and Exchange Commission (SEC).

    The green bond is the first of its kind to be issued by an African corporate and represents a major milestone in the development of the local green finance market.

    REad also: Access Bank bridges N800b agric funding gap

    The Five-Year Fixed Rate Senior Unsecured N15 billion Green Bond was awarded an Aa- rating by Agusto & Co, the underlying framework verified by PwC (UK) and the bond was certified by the Climate Bonds Initiative as having met the global climate bonds standard. The offer for the green bonds was achieved by way of a book build which was fully subscribed. The bonds priced at a coupon of 15.5 per cent, with participation from a wide range of asset managers and pension fund administrators.

    The listing of the bond came on the heels of the completion of the bank’s merger with Diamond Bank and the launch of its new brand identity that fuses the bank and Diamond Bank’s visual identities symbolizing their shared philosophy.

    Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe, said the green bond issuance highlights the bank’s commitment to sustainability and its status as a pioneer in green financing in both the domestic and international capital markets.

    He noted that the bond comes amidst a global drive for responsible and sustainable green financing and will allow the financing of new loans and refinancing of existing loans in accordance with the bank’s green bond framework.

    He said the green bond will support projects directed at flood defense, solar generation facilities and agriculture.

    “At Access Bank we are a pioneer in both domestic and international capital markets, leading the way with our commitment to sustainable banking. We hope that this bond issuance inspires other African companies to support the long-term development of the green finance market whilst simultaneously realizing the growth potential of the fast-developing low carbon economy,” Wigwe said.

    Deputy Chief Executive, Climate Bonds, Justine Leigh-Bell, praised Access Bank’s efforts in promoting sustainability in Africa through the financing of green projects.

    Leigh-Bell said Access Bank’s Climate Bond-certified corporate green bond represents a major milestone in the development of the local green finance market.

    “In addition to being an inspiration to other private companies, the leadership demonstrated by Access Bank is critical for the long term development of the green finance market in Nigeria and a great example for other African nations to follow,” Leigh-Bell said.

     

     

     

  • Sterling Bank grows net profit by 14.9% to N9.2b

    Sterling Bank Plc grew its bottom-line by 14.9 per cent to N9.2 billion in 2018, sustaining its upward growth trajectory.

    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.

    Chief Executive Officer, Sterling Bank Plc, Abubakar Suleiman, said the 2018 performance demonstrated the bank’s commitment to the race it set out on at the beginning of the year.

    “We continued to identify more with our strategic pillars – agility, digitisation and specialisation – enabling us to set the stage for positive and sustainable growth across the business. Our investments in people and technology platforms drove significant traction in the retail and consumer segment, in line with our medium to long term goals,” Suleiman said.

    Reflecting on key performance drivers during the financial year, Suleiman said that consumer loans were up 108.3 percent driven by SPECTA – Nigeria’s leading lending digital platform.

    He added that mobile channel usage grew over 80 per cent following the launch of Sterling OnePay, an omni-channel mobile banking platform as transaction volumes doubled on the instant payment platform.

    “We would maintain a more customer-centric approach to achieving growth and strive to scale our digital products. Specifically, we will further diversify our loan book by targeting 20 percent share to Health, Education, Agriculture, Renewable Energy and Transportation – our HEART sectors,” Suleiman said.

    According to him, Sterling Bank would increase access to loans for a wider customer base through other exciting variants of SPECTA and further decentralise the investment market through digital platforms, refocus its corporate and investment banking segment with emphasis on providing innovative solutions to key corporates and banking the value chain.

    Sterling Bank was recently named the most Innovative Bank of the Year by the Central Bank (CBN) and Nigeria Inter-Bank Settlement System (NIBSS), has reported.