The Nation Newspaper

Category: Equities

  • Meristem Securities wins NSE award

    Meristem Securities Limited has emerged the winner of the Nigerian Stock Exchange (NSE) maiden Bull Award.

    The NSE Bull Award is reserved for any stockbrokage firm that leads in the ideas and ideals of transparency in the capital market, technology compliance and convergence, steady growth trajectory,  excellent track record to mention just a few.

    Announcing the award at a forum organised by the NSE in Lagos, Acting Head, Trading Business Division, Nigerian Stock Exchange (NSE), Oluwafemi Onifade said there were five clear criteria considered for the winner which include but not limited to the strength and position of the stockbroking firm in terms of volume and value traded shares overtime, efforts at encouraging financial inclusion and security of depositors.

    “Following the selection process, we selected Meristem Securities Limited as the winner for the maiden NSE Bull Award because they were the earliest adopters of technology and they have also generated incremental growth both in terms of fixed volume of shares they have traded over the years. They have also remained among the top five brokers on the Exchange consistently through the years,” Onifade said.

    While further justifying the selection of Meristem Securities as the deserved winner, Onifade said the broker has recorded many firsts in the sector including being the first to commence online trading platform through its now popular offering known as Meritrade as well as through its tireless efforts towards developing basic infrastructure to support trading activities across the nation’s capital market.

    Managing Director, Meristem Securities Limited, Mr. Saheed Bashir said the award was a recognition of the modest efforts of the company, which in the last few years has been bringing a lot of innovation into the market.

    According to him, there is no better way to cap the success of Meristem Securities than to be singled out for recognition by the industry regulator.

    “The award is a confirmation of our efforts and reward for what we have put into the market.  This is definitely going to spur us to do something much better going forward,” Bashir said.

     

     

  • Meristem Securities wins NSE award

    Meristem Securities Limited has emerged the winner of the Nigerian Stock Exchange (NSE) maiden Bull Award.

    The NSE Bull Award is reserved for any stockbrokage firm that leads in the ideas and ideals of transparency in the capital market, technology compliance and convergence, steady growth trajectory,  excellent track record to mention just a few.

    Announcing the award at a forum organised by the NSE in Lagos, Acting Head, Trading Business Division, Nigerian Stock Exchange (NSE), Oluwafemi Onifade said there were five clear criteria considered for the winner which include but not limited to the strength and position of the stockbroking firm in terms of volume and value traded shares overtime, efforts at encouraging financial inclusion and security of depositors.

    “Following the selection process, we selected Meristem Securities Limited as the winner for the maiden NSE Bull Award because they were the earliest adopters of technology and they have also generated incremental growth both in terms of fixed volume of shares they have traded over the years. They have also remained among the top five brokers on the Exchange consistently through the years,” Onifade said.

    While further justifying the selection of Meristem Securities as the deserved winner, Onifade said the broker has recorded many firsts in the sector including being the first to commence online trading platform through its now popular offering known as Meritrade as well as through its tireless efforts towards developing basic infrastructure to support trading activities across the nation’s capital market.

    Managing Director, Meristem Securities Limited, Mr. Saheed Bashir said the award was a recognition of the modest efforts of the company, which in the last few years has been bringing a lot of innovation into the market.

    According to him, there is no better way to cap the success of Meristem Securities than to be singled out for recognition by the industry regulator.

    “The award is a confirmation of our efforts and reward for what we have put into the market.  This is definitely going to spur us to do something much better going forward,” Bashir said.

     

  • Sterling Bank grows net profit by 39% in Q3

    Sterling Bank Plc sustained an impressive performance in the third quarter as strong top-line growth and efficient credit risks and cost management led to 39 per cent growth in net profit during the nine-month period.

    Key extracts for the nine-month period ended September 30, 2018 released yesterday at the Nigerian Stock Exchange (NSE) showed that Sterling Bank grew gross earnings by 21 per cent and profit after tax by 39 per cent. All major performance indices recorded double-digit growth, bucking the generally low trend in the banking sector.

    Gross earnings rose by 21.1 per cent to N114.6 billion in third quarter 2018 compared with N94.6 billion recorded in comparable period of 2017. The top-line performance was driven by growths in both interest and non-interest incomes. Non-interest income rose by 31.2 per cent from N16 billion to N21 billion. Net interest income increased by 7.8 per cent from N36.9 billion to N39.8 billion. Net operating income thus improved by 26.3 per cent to N57.2 billion in third quarter 2018 as against N45.3 billion in third quarter 2017.

    The bank sustained steady growth in profitability as profit before tax grew by 29.5 per cent N8.5 billion as against N6.5 billion in corresponding period of 2017. After taxes, net profit rose by 39 per cent from N5.9 billion to N8.2 billion. Earnings per share thus improved from 21 kobo to 28 kobo.

    Underlying ratios also showed improvement in the intrinsic value of the bank. Pre-tax return on average equity improved from 9.6 per cent in third quarter 2017 to 10.8 per cent in third quarter 2018. Post-tax return on average equity also increased from 8.6 per cent to 10.4 per cent. Return on average assets was steady at 1.0 per cent while cost of risk improved from 1.8 per cent to 0.8 per cent.

    The balance sheet spread also showed increasing acceptance of the bank’s brand and continuing supports of the bank to the growth of the national economy. Customer deposits increased to N723.2 billion by September 2018 from N685.0 billion in December 2017. The bank’s net loans and advances increased by 10.7 per cent to N662.0 billion from N598.0 billion in December 2017. Total assets improved to N1.08 trillion as against N1.07 trillion recorded at the beginning of the year while shareholders’ funds increased from N102.9 billion in December 2017 to N106.2 billion in September 2018.

    The bank’s Liquidity Ratio (LR) improved from 30.5 per cent in December 2017 to 34.4 per cent in September 2018 while Capital Adequacy Ratio (CAR) stood at 11.4 per cent. Non-Performing Loan Ratio (NPLR) improved considerably from 6.2 per cent to 5.4 per cent.

    Chief Executive Officer, Sterling Bank Plc, Mr. Abubakar Suleiman said the bank has been able to sustain its steady growth due to focused implementation of its strategic intent of exceeding customers’ expectations.

    He noted that the robust growth of 31.2 per cent in non-interest income was driven by a growth in trading and transaction banking revenues, as the bank continues to prioritize efficiency of its digital banking platforms to support its retail drive.

    “Our strategic intent to be more customer-focused has continued to yield results; one of such recorded in the last quarter is the increase in the volume of transactions processed through our various electronic platforms since the start of the year. We achieved over one million monthly NIBBS Instant Payment transactions as at July 2018, a 73 per cent increase from the start of the year and expect to see continuing traction in this regard,” Suleiman said.

    He pointed out that the bank’s Series 2 Notes issuance of N19.7 billion under its N39 billion debt issuance program was oversubscribed, adding that the net proceeds of the issuance would be recognized as Tier II capital after the regulatory approval.

    He said the buffer provided by the additional capital would give room for business expansion across the bank’s focus growth areas including health, education, agriculture, renewable energy and transportation sectors.

    “Going into the final quarter of the year, we aim to complete the ongoing implementation of a number of digital-led initiatives in line with our digitization drive. This is expected to further intensify the bank’s retail drive,” Suleiman assured.

     

     

  • PZ Cussons assures on growth as shareholders get N595m dividend

    PZ Cussons Nigeria Plc has started implementing strategic growth initiatives aimed at improving the company’s performance and ensure better returns to shareholders.

    Addressing shareholders at the company’s annual general meeting in Abuja, Chairman, PZ Cusons Nigeria Plc, Chief Kola Jamodu, said a number of measures have been taken to guarantee a more sterling performance in the next financial year.

    He outlined that the company has further streamlined and optimised its products to improve on key brands and consolidation of existing infrastructure and facilities towards improving supply chain efficiencies.

    He added that the company has optimised its operating model to reduce overheads and speed to market new products.

    According to him, while the competition in the Fast Moving Consumer Goods (FCMG) remains strong, PZ Cussons Nigeria’s balance sheet remains strong with total assets of N88.1 billion as the company continues to maintain a strong cash position that gives it the flexibility and agility in financing its operations.

    The assurance came as shareholders approved the payment of N595 million as cash dividend for the 2018 business year, representing a dividend per share of 15 kobo.

    Jamodu explained that the consolidated turnover of the group grew by three per cent to N80.6 billion in 2018 from N78.2 billion in 2017. However, operating profit and profit after tax dropped by 37.7 per cent and 47.7 per cent respectively.

    He noted that the performance was largely reflective of the performance of the economy with a Gross Domestic Products (GDP) growth of 2.0 per cent.

    He said improvement, stability and access to foreign exchange earnings have, however, helped in the importation of critical raw materials.

  • May & Baker Nigeria’s N2.45b rights issue opens

    The application list for the N2.45 billion new capital raising by May & Baker Nigeria Plc opens today. May & Baker Nigeria is seeking to raise N2.45 billion in new equity funds from the existing shareholders.

    May & Baker Nigeria is offering 980 million ordinary shares of 50 kobo each at N2.50 per share to existing shareholders. The rights issue has been provisionally pre-allotted on the basis of one new ordinary share for every one ordinary share held as at the close of business on Tuesday, September 4, 2018.

    Application list for the rights issue, which opens today, will close on Wednesday, November 28, 2018.

    The opening of the application followed the approval of the rights issue by the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE). Shareholders had in 2014 empowered the company to raise up to N3.2 billion new equity capital.

    Capital Assets Limited and Compass Investments &Securities Limited are the stockbrokers to the rights issue, while Cordros Capital Limited and Afrinvest (West Africa) Limited are the issuing houses.

    Chairman, May & Baker Nigeria Plc, Lt. Gen Theophilus Danjuma (rtd), said the new equity funds would allow the company to harness new opportunities.

    He outlined that the company has envisioned a new vision that will see it dominating the sub-Saharan Africa (SSA) markets in line with its new vision of being the leading healthcare brand in SSA.

    According to him, the new five-year strategic plan of the company entails focus and expansion along the company’s competitive advantage of healthcare and will soon begin to establish footprints and seek dominance in this area in the SSA region.

    “Your company has turned the corner and is now solidly on the path of growth and strong profitability. Our plan in the next few years is to focus on driving our new vision, strategic goals and establishing our footprint as a leading healthcare brand in sub-Saharan Africa. The company will strive to acquire required competencies in related business areas, expand its regional reach to explore new markets, improve capacity utilisation at our WHO GMP pharmaceutical facility in Ota and continue to deliver value and returns on investments to our loyal shareholders,” Danjuma said.

    He urged shareholders to support the realisation of the company’s vision by picking their rights issue, assuring that shareholders will reap the rewards in the immediate future and beyond.

  • New technologies will drive business growth, says Oracle

    Nigerian businesses and entrepreneurs must brace up and embrace emerging technologies that could help to increase the scale, efficiency and reliability of their business processes and operations.

    Speaking at the Oracle Impact Technology Summit in Lagos, Managing Director, Oracle Nigeria, Adebayo Sanni said emerging technologies have great influence on business innovation and could help to accelerate business transformation.

    According to him, the world of business is changing at an unimaginable rate; emerging technologies, including Artificial Intelligence (AI), the Internet of Things (IoT) and Blockchain are changing the way companies do business at every level, across every function.

    “It’s time to stop thinking about emerging technologies as scary or disruptive challenges business needs to overcome. Business leaders must move beyond the vision they have for technology in their organisation and start to explore the practical steps they can take to make innovation something they do every day. Most businesses, if not all, should be excited about these new technologies,” Sanni said.

    Oracle Impact Technology Summit brought together domain experts and business leaders to discuss the influence emerging technologies have on business innovation. The summit explored how the right technologies, when used in the right combination, can make innovation something businesses do every single day.

    Sanni noted that the Nigerian economy has a thriving small and medium enterprises (SMEs) sector, with many engaging in business that can only be made possible through cloud technology, the adoption of which is instrumental if businesses and government want to remain relevant and competitive.

    “With the availability of Blockchain, machine learning, AI and IoT, businesses have the opportunity to focus on driving revenue streams as these solutions remove the risk of human error and are self-learning. These technologies provide transparent and simple data validation to drive efficiency and predictable results, so that the businesses can focus on driving results and increasing revenue,” Sanni said.

    He noted that a recent example of blockchain’s impact was Nigeria Customs Service (NCS) that piloted Oracle Blockchain Cloud Service to provide it with a trusted platform for the full automation of Customs Excise Trade business processes and procedures. The technology allows NCS to document and track products that are manufactured locally, right from the source of licensing and permits for manufacturing, to distribution and point of sale. The proof of concept shows that the entire business environment of NCS can be migrated to blockchain to automate as many customs processes as possible, creating transparency and predictability.

  • Custodian Investment rises to medium-price stock

    The Nigerian Stock Exchange (NSE) has reclassified Custodian Investment Plc from a low-priced stock to medium-priced, providing additional impetus for price discovery and trading liquidity for the investment group.

    As a medium-priced stock, stockbrokers could move the share price of Custodian Investment with a minimum volume of 50,000 shares as against 100,000 minimum shares required for low-priced stocks. Also, the tick size for Custodian Investment will change from one kobo to five kobo, enabling the share price of the company to rise faster.

    Under the extant rules at the NSE, quoted companies are classified into three categories-high-priced, medium-priced and low-priced stocks, based on their market price.

    The high-priced stocks consist large-cap equities that are priced at N100 per share or above for at least, four of the last six trading months, or new security listings that are priced at N100 or above at the time of listing on the Exchange.

    The medium-priced stocks  consist of medium-priced equities that are priced at N5 per share or above but less than N100 per share for at least, four of the last six months, or new security listings that are priced at N5 per share or above but less than N100 per share at the time of listing on the Exchange.

    The low-priced stocks, where majority of listed companies fall, consist of equities that are priced at one kobo per share or above, but below N5 per share for at least, four of the last six months, or new security listings that are priced at one kobo per share or above but below N5 per share at the time of listing on the Exchange.

    Stocks under high-priced group shall have price change with minimum of 10,000 units; stocks under medium-priced group shall have price movement with a minimum of 50,000 units, while stocks under low-priced group shall have price change with minimum volume of 100,000 units.

    According to the Exchange, Custodian Investment’s stock price trade activity over the most recent six month period provides the basis for reclassifying the security from the low priced stock group to the medium priced stock group.

    “Custodian Investment’s stock price rose above the N5 price level on April 19, 2018 and traded above N5 up till close of business on October 4, 2018. This indicates that Custodian Investment’s stock price has traded above N5 in the last six months. Resultantly, Custodian Investment will be reclassified from the low priced stock group to the medium priced stock group with effect from October 17, 2018,” the Exchange stated.

  • Zenith Bank records mixed performance in Q3

    Zenith Bank Plc recorded mixed performance in the third quarter as a considerable profit growth contrasted with similar decline in the top-line.

    Key extracts of the interim report and accounts of Zenith Bank for the period ended September 30, 2018 released yesterday at the Nigerian Stock Exchange (NSE) showed that gross earnings declined by 10.64 per cent while profit after tax grew by 11.6 per cent.

    Zenith Bank’s share price rose marginally by 10 kobo to close at N22.55 per share yesterday at the NSE. Many analysts commended the results, despite the decline in top-line earnings.

    The nine-month report showed that gross earnings declined to N474.61 billion in third quarter 2018 compared with N531.27 billion in third quarter 2017. Profit before tax meanwhile increased by 9.7 per cent from N152.55 billion to N167.31 billion. Profit after tax also improved from N129.24 billion in third quarter 2017 to N144.18 billion in third quarter 2018. Earnings per share followed the net profit growth, rising from N4.11 in third quarter 2017 to N4.58 in third quarter 2018.

    Zenith Bank had distributed N9.42 billion to shareholders as interim dividend for the half-year ended June 30, 2018.  The breakdown of the interim dividend indicated a dividend per share of 30 kobo, 20 per cent above 25 kobo paid as interim dividend for the first half of 2017. The bank had distributed N7.5 billion as interim dividend for the first half of 2017.

    Zenith Bank had distributed N84.8 billion to shareholders as cash dividend for the 2017 business year, representing 33.7 per cent increase on N63.42 billion paid for the 2016 business year. Shareholders received a final dividend per share of N2.45, in addition to an interim dividend of 25 kobo, bringing total dividend per share to N2.70 for the 2017 business year. The bank had distributed N63.42 billion to shareholders for the 2016 business year, representing a dividend per share of N2.02. The increase in dividend payout underlined the improvement in the performance of the bank in 2017.

    Key extracts of the audited report and accounts of Zenith Bank for the year ended December 31, 2017 showed that gross earnings rose by 46.7 per cent from N508 billion in 2016 to N745.19 billion in 2017. Profit before tax increased from N156.75 billion to N203.46 billion. After taxes, net profit rose by 37 per cent to N177.93 billion in 2017 as against N129.65 billion recorded in 2016. Earnings per share thus improved from N4.12 in 2016 to N5.66 in 2017.

     

     

  • Diamond Bank launches new exquisite Naira debit card

    Diamond Bank has launched its Diamond Visa Signature Debit Card, a unique Naira debit card designed to provide customers exceptional spending power and exclusive privileges.

    The new debit card gives customers the opportunity to have wider and richer experiences when they relax or travel, home and abroad.

    Head, Consumer Banking, Diamond Bank Plc, Kari Tukur, said the premium debit card that was not only custom-tailored to reward customers’ everyday lifestyle but also fully integrated into the Xclusiveplus experience.

    According to him, the bank has seen a rise in customer spend in the past few years for luxury travel, luxury experiences and luxury products among the emerging affluent client segment.

    “Our proposition is well positioned to further enhance their lifestyle and provide them with the most satisfying rewards. We are always looking for unique ways to surprise and delight our customers, which is why we introduced the Diamond Visa signature Card,” Tukur said.

    He noted that the bank’s customers want and deserve more adding that with the Diamond Visa Signature card and XclusivePlus, the bank has been able to exceed customer’s expectations.

    “With our XclusivePlus membership which automatically comes with a card upgrade to the Diamond Visa signature debit card, our customer enjoy lots of travel and lifestyle benefits such as free access to over 800 Premium airport lounges globally, great discounts and VIP treatment at luxury hotels around the world, free travel insurance cover for them and their family for medical emergencies, lost luggage, flight cancellation and much more anytime they travel. This insurance is also valid for foreign visa applications,” Tukur said.

    There are also benefits closer to home, including free cinema tickets all year around for the movie lovers, free premium events tickets such as concerts, comedy shows and art exhibitions and lots of great offers and discounts from a wide range of merchants across the country ranging from restaurants, bars, hotels, shopping and much more.

    The Diamond Visa Signature Naira Debit card is the first of its kind in Nigeria and is only available to XclusivePlus subscribers.

     

  • UBA sustains resilience as gross earnings hit N375b

    •Group profit rises to N79 billion

    United Bank for Africa (UBA) Plc sustained steady growths in all key performance indices in the third quarter with gross earnings rising by 12.3 per cent to N374.8 billion within the period.

    Key extracts of the interim report and accounts of UBA for the nine-month period ended September 30, 2018 released yesterday at the Nigerian Stock Exchange (NSE) showed that gross earnings rose from N333.9 billion in third quarter 2017 to N374.8 billion in third quarter 2018. Net operating income improved by 1.7 per cent to N227.7 billion in 2018 compared with N224 billion in corresponding period of 2017.

    Amidst inflationary pressures and uncertainties undermining the business environment in Nigeria and a few other countries in Africa, UBA’s operating expenses only increased by 2.3 per cent to N149.1 billion compared with N145 billion recorded in the same period of last year.  Profit before tax of rose from N78.33 billion to N79.11 billion while profit after tax increased from N60.9 billion to N61.7 billion. With these, the bank’s annualized pre and post tax returns on average equity stood at 16 per cent and 20 per cent respectively.

    Further analysis showed that the bank maintained a very strong balance sheet, with total assets rising by 10.8 per cent to N4.51 trillion in September 2018 as against N4.07 trillion recorded as at December 2017. Customer deposits grew by 16.2 per cent to N3.18trillion in September 2018 compared with N2.73 trillion posted as at December 2017. Shareholders’ fund stood at N509.3 billion.

    Group Managing Director, United Bank for Africa (UBA) Plc, Mr. Kennedy Uzoka, said the group achieved a number of strategic imperatives during the quarter and committed more investments in the future of the business to further build a solid foundation for sustainable and superior return to shareholders.

    He noted that the bank’s franchise is increasingly being renowned for financial solution with the consistent growth in its businesses across the continent.

    He assured that notwithstanding the macro-risk arising from upcoming elections in Nigeria, the group’s single largest market, the group is confident of finishing the year strong.

    He pointed out that the bank’s virtual banking chatbot, Leo, which debuted on Facebook earlier in the year, was successfully launched on WhatsApp during the quarter.

    “This new channel offering, which enables our customers to fulfill their banking transactions through simple chat commands, is another premier initiative in our suite. The early pay-offs are quite compelling – recent customer acquisitions and broader transaction volume growth are exciting leading indicators that reinforce our confidence in these novel channels,” Uzoka said.

    Group Chief Financial Officer, Ugo Nwaghodoh noted that despite the relative volatility in the third quarter of 2018, especially in the face of United States interest rate hikes and concerns over global trade war, which has disrupted the interest and exchange rate environment in many African countries, the bank remains on track to deliver its earnings target for the year.

    “We remain committed to our five-year plan of working down cost-to-income (CIR) to 50 per cent, which we consider to be a normalised medium-term CIR.  Overall, we closed the third quarter with a post-tax RoAE of 16 per cent and the Group remains well capitalized and liquid, as reflected in the Group’s capital adequacy of 21 per cent and bank’s liquidity ratio of 53 per cent,” Nwaghodoh said.

    UBA is one of Africa’s leading banks with operations in 20 African countries. It also has presence in the global financial centres; London, New York and Paris.  UBA provides banking services to more than 15 million customers globally, through diverse channels.