The Nation Newspaper

Category: Equities

  • MTN places caution on shares over $10.1b Nigerian claims

    MTN Group yesterday advised investors to exercise caution in dealings on its shares as the telecommunication group faces uncertainties over a $10.1 billion controversy involving its Nigerian subsidiary-MTN Nigeria Communications Limited (MTN Nigeria).

    In a statutory cautionary notice issued to investors yesterday, MTN Group-the parent company of MTN Nigeria, stated that while it continues to engage the Nigerian government on the request from MTN Nigeria to refund $8.1 billion in alleged inappropriate capital repatriation and another $2 billion tax claim, shareholders should trade cautiously on the shares of the company.

    “Shareholders are accordingly advised to continue to exercise caution when dealing in the company’s securities until a further announcement is made,” MTN stated.

    The Central Bank of Nigeria (CBN) had indicted MTN Nigeria over inappropriate Certificates of Capital Importation (CCI) and dividend repatriation, demanding a refund of the historic dividends between 2007 and 2015, which amounted to $8.1 billion.

    The Attorney General of the Federation, which has been investigating corporate tax compliance, had also indicted MTN Nigeria for underpayment of taxes, demanding payment of $2.0 billion in allegedly unpaid taxes on importation of foreign equipment and payments to foreign suppliers over the last 10 years.

    MTN has denied all the allegations, insisting that it complied fully with the provisions of the law in the issuance of the CCI and the tax payments.

    “MTN Nigeria will continue to engage with the relevant authorities on all these matters and we remain resolute that MTN Nigeria has not committed any offences and will vigorously defend its position. We will provide further information as and when available,” MTN stated.

     

  • Equities recover with N35b gain

    Nigerian equities snapped a five-day losing streak yesterday as bargain-hunting in the banking and oil and gas sectors rallied the market to a net capital gain of N35 billion.

    Benchmark indices at the Nigerian Stock Exchange (NSE) showed average gain of 0.28 per cent, equivalent to net capital gain of N35 billion. The modest gain improved the negative average year-to-date return to -8.65 per cent.

    The All Share Index (ASI)- the main value-based index that tracks share prices at the Exchange, rose from its opening index of 34,837.50 points to close at 34,933.68 points. Aggregate market value of all quoted equities also increased from its opening value of N12.718 trillion to close at N12.753 trillion.

    The recovery was largely driven by gains recorded by large-cap banking stocks. The NSE Banking Index appreciated by 1.4 per cent. The NSE Oil and Gas Index inched up by 0.3 per cent while the NSE Industrial Goods Index closed flat. However, the NSE Consumer Goods Index dropped by 0.7 per cent while the NSE Insurance Index dipped by 0.3 per cent.

    There were 23 gainers to 18 losers. Okomu Oil Palm led the gainers with a gain of N2.40 to close at N79.90. Guaranty Trust Bank followed with a gain of 55 kobo to close at N37.05. FBN Holdings rose by 30 kobo to close at N9.15. Custodian Investment added 24 kobo to close at N5.41. C & I Leasing rose by 22 kobo to close at N2.72 while Nigerian Aviation Handling Company and Oando chalked up 20 kobo each to close at N4 and N5.20 respectively.

    On the downside, Nigerian Breweries led the losers with a drop of N2 to close at N93. PZ Cussons Nigeria followed with a loss of N1.50 to close at N13.50. UAC of Nigeria declined by 90 kobo to close at N11.20. Forte Oil lost 85 kobo to close at N19 while Fidson Healthcare declined by 60 kobo to close at N5.40 per share.

    Total turnover stood at 240.46 million shares valued at N3.61 billion in 3,400 deals. United Bank for Africa was the most active stock with a turnover of 54.44 million shares worth N436.03 million. Access Bank followed with 38.45 million shares worth N359.44 million while Stanbic IBTC Holdings placed third with 35.23 million shares worth N1.68 billion.

    Market pundits remained cautious on the outlook for the equities market. “Due to market sentiments today (Tuesday), we expect bargain hunting to be sustained in tomorrow (Wednesday)’s trading session. Nonetheless, we maintain a bearish outlook for the market in the near term,” Afrinvest Securities stated.

    SCM Capital stated that it maintains its conservative outlook for the market, due to the absence of a positive catalyst amidst political uncertainty as the 2019 electoral cycle draws nearer.

  • New investor eyes 10% equity stake in NEM Insurance

    A new strategic investor, Eaton Acquisitions Limited, is seeking to acquire 10 per cent equity stake in NEM Insurance Plc, a major stake that will enable the new investor to take up board position at the insurance firm.

    Eaton Acquisitions Limited has confirmed that it had acquired up to nine per cent equity stake in NEM Insurance, one percentage point below its target.

    The Nation had two weeks ago reported exclusively that the new investor struck a cross deal to acquire additional 2.46 per cent equity stake in NEM Insurance. A total of 130 million shares of NEM Insurance were transferred in an off-market trade at N4 per share, representing a premium of 40.35 per cent against the closing share price of N2.85.

    As off-market, negotiated cross deals, it means that the deals were not subjected to the dynamics of price discovery for the particular period. Off-market trade implied that the deal was sealed outside the floor of the NSE.

    The negotiated cross deal platform of the Exchange is a special-purpose trading platform that is meant for voluminous transaction. By the cross deal, it implies that the buyer and the seller had been prearranged and the transfer at the stock market was a mere perfection of the agreement between the two. The negotiated cross deal allows the parties to the deal to close the deal at reduced cost.

    Eaton has also acquired additional shares at lower value.

    Managing Director, Eaton Acquisitions Limited, Mr. Olaleye Adeyinka, said the company increased its stakes in NEM Insurance because it offers strategic opportunities and growth.

    He said the investment firm intends to acquire more shares until it meets the mandate of its board to acquire 10 per cent of the company’s shares.

    “There is no better option in the market from the perspective of effective leadership, strategic opportunities and reforms for growth in the industry, broad sharing holding base that engenders good corporate governance, and a network of current and potential shareholders for enhanced business development,” Adeyinka said.

    He noted that though the investment firm cannot say much about the strategic vision of NEM Insurance yet as it is in the purview of management and the board, but it has unalloyed confidence in both organs of the company’s governance.

    Adeyinka expressed confidence in the ability of current NEM’s leadership, noting that the investment firm is desirous of gaining board representation in view of its dominant shareholding stake in the company.

  • CWG, Global Spectrum, PPPN fail NSE’s listing requirement

    CWG Plc, Global Spectrum Energy Services Plc and Portland Paints & Product Nigeria (PPPN) Plc have less-than-required minimum volume of shares for public trading in the stock market, a major infraction that may adversely affect liquidity and efficient price discovery on the companies.

    A report by the Nigerian Stock Exchange (NSE) indicated that the three companies have free float deficiencies, a reference to over concentration of the shareholdings of the companies in the hands of directors, other insiders and related persons.

    Under the rules at the Exchange, companies listed on the main board are required to have a minimum free float of 20 per cent of their market capitalisation, implying that 20 per cent of the companies’ shareholdings must be available for minority retail shareholders. CWG, Global Spectrum Energy Services and PPPN are listed on the main board of the Exchange.

    PPPN, a subsidiary of UAC of Nigeria (UACN) Plc, slipped into deficiency after a 2017 rights issue, which was undersubscribed by 34 per cent.

    CWG has been unable to undertake proposed capital issue as it struggles with declining performance. CWG recorded a net loss of N1.58 billion in 2017, relapsing into a losing streak that had seen the technological company with a pre-tax loss of N1.75 billion in 2015. Key extracts of audited report and accounts of CWG for the year ended December 31, 2017 showed that turnover dropped from N10.166 billion in 2016 to N8.827 billion in 2017. The company recorded pre and post tax losses of N1.511 billion and N1.576 billion respectively in 2017 compared with profit before tax of N142.04 million and profit after tax of N127.68 million in 2016.

    Global Spectrum Energy Services, which was listed in November 2017, has neither been able to float new issue nor actively trade existing shares to dilute pre-listing concentration of shareholdings.

    Free float, otherwise known as public float, refers to the number of shares of a quoted company held by ordinary shareholders other than those directly or indirectly held by its parent, subsidiary or associate companies or any subsidiaries or associates of its parent company; its directors who are holding office as directors of the entity and their close family members and any single individual or institutional shareholder holding a statutorily significant stake, which is 5.0 per cent and above in Nigeria.

    Thus, free float’s shares do not include shares held directly or indirectly by any officer, director, controlling shareholder or other concentrated, affiliated or family holdings.

    Stock markets maintain minimum public float to prevent undue concentration of securities in the hands of the core investors and related interests, a situation that can make the stock to be susceptible to price manipulation. Besides, it provides the general investing public with opportunity to reasonably partake in the wealth creation by private enterprises.

    According to the report, PPNN has a free float of 14.57 per cent, 5.43 percentage points below minimum requirement; CWG has 15.97 per cent, 4.03 percentage points below minimum requirement while Global Spectrum Energy Services has free float of 7.01 per cent, 12.99 percentage points below the required minimum limit.

    Under the extant rules, the deficient companies would have to undertake capital restructuring to reduce the overconcentration and free more shares for the general retail investing public. However, the NSE has not indicated the timeline for the expected capital dilution.

    With the three new deficient companies, there are now 15 companies with free float deficiencies at the NSE. These include Union Bank of Nigeria, which has a free float of 14.94 per cent; Capital Hotel, 2.62 per cent; Great Nigerian Insurance, 16.0 per cent; Chellarams, 15.0 per cent; AG Leventis, 11.64 per cent; Interlinked Technology, 14.50 per cent; Infinity Trust Mortgage, 3.50 per cent; Transcorp Hotels, 6.0 per cent; Ekocorp, 11.84 per cent; Champion Breweries, 17.30 per cent; Caverton Offshore Support Group, 17.40 per cent; The Tourist Company of Nigeria Plc, 3.58 per cent and E-Tranzact International Plc, which has a free float of 10.06 per cent.

    Failure by deficient companies to restructure their share capital at the expiration of the deadline or secure extension of the deadline may lead to delisting of their shares from the NSE. Free float deadline is usually in deference to application by the management of a company for some period to comply with the free float. However, the company is required to provide quarterly disclosure report to the NSE on the efforts being made to fully comply by the deadline.

    By the expiration of the deadline, a company is mandatorily required to have completed partial divestments or dilution of the ‘non-public’ shareholdings to free  the required percentage of equity stake for public holding, unless the management of the NSE grants fresh waivers and extensions for the companies. In the extreme instance, a company with deficient public float may opt to delist its shares.

    The seven companies in default of the earlier deadline include Capital Hotel Plc, Chellarams Plc, The Tourist Company of Nigeria Plc, Interlinked Technology Plc, Caverton Offshore Support Group Plc, Ekocorp Plc and Champion Breweries.

    The trio of UBN, Transcorp Hotels and Great Nigeria Insurance were given extended deadline of May 18, 2020 while AG Leventis, E-Tranzact International and Infinity Trust Mortgage were given up till October 19, 2020, May 17, 2019 and May 17, 2021 respectively.

    A source in the know of the approval process said the extension of the deadline was sequel to applications by the directors of the affected companies, seeking waiver and further extension of the timeline for the dilution of the share structure.

    The source said the companies had cited prevailing market conditions and corporate procedures for their inabilities to meet the previous deadlines.

     

     

  • Insurance firms brace for emergency capital raising

    Insurance companies have launched plans for emergency fund raising at the capital market as consolidation looms in Nigeria’s most populous quoted industry. There are 27 insurance companies quoted on the Nigerian Stock Exchange (NSE).

    The Nation’s check at the weekend indicated that not less than five insurance companies have started fund raising, in what may become an industry-wide rush as the National Insurance Commission (NAICOM) moves to implement new capital requirements for the industry.

    Regulatory filing at the NSE indicated that directors of Royal Exchange Plc have scheduled an emergency board meeting next week to consider capital raising proposals and restructuring of the insurance-led investment group, especially with the impending implementation of the new capital requirements for the industry.

    The board of Royal Exchange would review proposed investment in the company and other restructuring issues as well as the NAICOM’s tier-based minimum solvency capital policy for the insurance industry.

    Already, directors and other insiders in Royal Exchange have been notified of the emergency meeting and the fact that members of the board and other insiders must not trade on their shareholdings until after the announcement of the decision at the board meeting.

    Shareholders of Sovereign Trust Insurance Plc are expected to ratify capital raising plans by the board of the company later this month at the annual general meeting in Lagos. In preparatory steps to capital raising, Sovereign Trust Insurance plans to create 5.0 billion new ordinary shares of 50 kobo each to increase its authorised share capital to N10 billion of 20.0 billion ordinary shares of 50 kobo each.

    Shareholders would also consider a proposal to raise “additional equity capital for the company up to the maximum of the authorised share capital” with additional mandate to the board to absorb excess money in the event of oversubscription of the initial offer. Sovereign Trust Insurance may be raising funds by issuing new shares to existing shareholders, new general retail investors, existing and new strategic investors or a combination of many means of capital raising.

    Mutual Benefits Assurance is already raising N2 billion in new equity funds through a rights issue to existing shareholders. Mutual Benefits Assurance is offering 4.0 billion ordinary shares of 50 kobo each to existing shareholders at 50 kobo per share. The rights issue was provisionally allotted on the basis of one new ordinary share of 50 kobo each for every two ordinary shares held as at the close of business on November 1, 2017.

    Application list for the rights issue, which opened on Monday August 6, 2018, will close on Friday, September 14, 2018.

    Under the new NAICOM’s tier-based minimum solvency capital policy, insurers will be classified into three tiers according to the minimum capital base and risk-bearing capacity. Tier 1 insurance companies are required to have minimum capital base of N9 billion for general insurance and N6 billion for life insurance, implying a composite capital base of N15 billion. Tier 2 companies are divided into two categories, with N4.5 billion minimum capital base for general insurance and N3 billion for life assurance. Thus a composite insurance-general and life insurance, will be required to have minimum capital base of N7.5 billion. Tier 3 companies will continue to operate on the existing minimum capital base of N3 billion for general insurance and N2 billion for life insurance, implying a composite capital base of N5 billion for a composite tier 3 insurance company.

    Under the risk-based capitalisation approach, tier 1 companies will be able to undertake all risks including annuity and high-level special risks such as energy and aviation risks. Tier 2 companies will undertake retail insurance as prescribed under Tier 1, including commercial and industrial risks and group life assurance while tier 3 companies will only be able to write retail insurance only including micro insurance, motor, fire, agriculture, compulsory liability insurances, individual life, health and miscellaneous insurance.

    The industry consolidation is expected to heighten balance sheet restructurings in the industry as insurers take bold measures to address bubble shares and negative hangover. Prestige Assurance had recently cancelled about 1.6 billion ordinary shares of 50 kobo each under a capital restructuring programme aimed at removing bubble assets.

    Goldlink Insurance Plc plans to cancel about 743.18 million ordinary shares of 50 kobo each allegedly issued inappropriately to some selected shareholders without due consideration. The resolutions for the cancellation have been approved by shareholders of the company and the shares from the cancelled allotment will be returned to the unissued shares of the insurance company.

     

  • Investors stake N23.03b on equities

    Investors staked about N23.03 billion on quoted shares on the Nigerian Stock Exchange (NSE) last week. Total turnover at the Exchange stood at 1.53 billion shares worth N23.026 billion in 17,009 deals last week compared with a total of 968.947 million shares valued at N10.246 billion traded in 9,654 deals in the previous week. There were five tradings last week as against three  two weeks ago due to public holiday for the Muslim’s Eid-ul-Kabir.

    Financial services stocks were the most-traded stocks, in terms of volume, with a turnover of 1.218 billion shares valued at N12.634 billion in 10,132 deals, representing 79.42 per cent and 54.87 per cent of the total equity turnover volume and value respectively.

    Conglomerates sector ranked second on the activity chart with 70.807 million shares worth N120.611 million in 803 deals. Consumer goods sector placed third with a turnover of 58.505 million shares worth N3.422 billion in 2,624 deals.

    The three most active stocks were NEM Insurance Plc, Diamond Bank Plc and United Bank for Africa Plc, which altogether accounted for 512.615 million shares worth N1.928 billion in 1,818 deals, representing 33.44 per cent and 8.38 per cent of the total equity turnover volume and value respectively.

    Also traded during the week were a total of 2,422 units of Exchange Traded Products (ETPs) valued at N3.752 million in 15 deals as against a total of 9,205 units valued at N201,119 traded in four deals two weeks ago.

    In the sovereign debt segment, a total of 42,158 units of Federal and State Government bonds valued at N42.397 million were traded last week in 25 deals compared with a total of 152,741 units valued at N179.381 million traded in 13 deals penultimate week.

     

  • Guinness Nigeria increases dividend up by 187.5%

    The board of directors of Guinness Nigeria Plc yesterday recommended a 187.5 per cent increase in dividend payout to shareholders as the brewer grew sales and profit to their best records in recent period.

    Shareholders will receive a dividend per share of N1.84 for the 2018 business year as against 64 kobo paid for the 2017 business year.

    Key extracts of the audited report and accounts of Guinness Nigeria for the year ended June 30, 2018 showed that turnover rose from N125.92 billion in 2017 to N142.98 billion in 2018, representing an increase of 14 per cent. Profit before tax jumped from N2.66 billion to N9.94 billion while profit after tax leapt from N1.92 billion to N6.72 billion. Earnings per portfolio, as well as the execution of the commercial footprint initiatives to drive the business forward,” Magunda said.

    He added that improved operating performance combined with lower finance charges helped the company to deliver an overall net profit increase of 249 per cent in 2018, noting that despite the continued challenges in the operating environment, the company remains optimistic about the execution of its strategy.

    Chairman, Guinness Nigeria Plc, Mr. Babatunde Savage, reiterated that Guinness Nigeria has confidence in the Nigerian economy and will remain a major player in the country by continually investing, developing capacity and growing a portfolio that most suit the consumers’ needs for celebration and relaxation.

    “Our aim is to continue to add value to Nigeria not only through continued investments in local manufacturing and backward integration, but also through various Sustainable Development projects, enabling job opportunities and economic inclusion,” Savage said.

    According to him, it is heartening to see the impact of the rights issue coming through in the profitability of the company.

    He said directors of the company were confident that it is making the right investments to ensure long term competitiveness, assuring that the board will continue to support the management in its efforts to build a business that aims to consistently deliver growth for all stakeholders.

     

  • Access Bank to pay N7.23b interim dividend

    •Lender records N39.6b net profit

    Access Bank Plc will distribute N7.23 billion to its shareholders as interim dividend for the first half of this year as the commercial bank sustained modest growths in earnings. Shareholders will receive interim dividend per share of 25 kobo.

    Access Bank had distributed N18.8 billion as cash dividend for the 2017 business year. Shareholders received a final dividend of 40 kobo, in addition to interim dividend of 25 kobo, bringing the total dividend per share for 2017 to 65 kobo.

    Key extracts of the audited report and accounts for the six-month period ended June 30, 2018 showed that gross earnings rose from N246.58 billion in first half 2017 to N253.02 billion in first half 2018. Profit before tax stood at N45.84 billion in 2018 as against N52.05 billion in 2017. After taxes, net profit increased from N39.46 billion in first half 2017 compared with N39.63 billion in first half 2018. Earnings per share remained steady at N1.38.

    The half-year report showed modest improvement on the first quarter performance of the commercial bank. In the first quarter ended March 31, 2018, Access Bank grew gross earnings by 19 per cent to N137.5 billion in first quarter 2018 compared with N116 billion recorded in first quarter 2017. Interest income and non-interest income contributed 70 per cent and 30 per cent respectively to the top-line in first quarter 2018. The report showed a steady bottom-line performance. Pre and post tax profits stood at N27.44 billion and N22.12 billion respectively in first quarter 2018 compared with N27.6 billion and N22.41 billion posted respectively in corresponding period of 2017. Earnings per share stood at 77 kobo in first quarter 2018 as against 79 kobo in first quarter 2017.

    Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe said the bank has started mplementation of key elements of its strategy that will drive growths in the months ahead.

    “A vital part of this is the continued execution of our retail market penetration initiatives, as it remains a strong catalyst to the sustainability of non-funded income growth. In addition we remain focused on consolidating our market position in the corporate and commercial banking segment,” Wigwe said.

    He outlined that the priority of the bank for the rest of the year will be to focus on its retail offerings as it continues to see the benefits of the initiatives intensify over the next few months.

    The Nigerian Stock Exchange (NSE) recently upgraded Access Bank to its premium board.

    Shareholders of the bank recently authorised the board of directors of the bank to raise up to $1.5 billion or N459 billion in new debt issue. Shareholders passed a resolution increasing the size of the bank’s existing $1 billion debt issuance programme to $1.5 billion by the addition of $500 million.

    The debt issuance programme will enable Access Bank to raise capital through the issuance of non-convertible loans, notes, bonds and any other instruments whether by wa of public offering, private placement, book building process reverse call inquiry or any other method or combination of methods.

     

  • UK, Nigeria to foster capital market devt

    United Kingdom and Nigeria would continue to explore opportunities for collaboration on capital market development.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Oscar Onyema said that the United Kingdom remains a key partner to Nigeria, particularly for its capital market development.

    Onyema spoke  on the sidelines of the business networking event hosted by the British High Commission and headlined by Theresa May, the Prime Minister of Great Britain.

    He said Nigeria and the UK have a long history of trade and collaboration which is evident in various aspects of our socio-economic sectors.

    He noted that the NSE has a capital market agreement with the London Stock Exchange aimed at promoting seamless cross-border access between Lagos and London markets to ultimately develop larger capital markets that enable capital formation for businesses and governments.

    Onyema said the partnership would create deeper liquidity pools and greater competitiveness for investors; as well as enhance capacity and promote diversity of investment products to meet the needs of a wide range of investors and issuers.

    On the significance of the visit by the UK Prime Minister, Onyema pointed out that the capital market is a major barometer of any economy, adding that it was therefore not surprising that Prime Minister May allotted some time from her schedule to meet with capital market operators.

    “The networking event has also in attendance some UK companies that might be interested in our market. The visit was positive and a good recognition for the Nigerian capital market,” Onyema said.

    He said that as the world is preparing for the fourth industrial revolution, the Nigerian capital market must ready itself to compete globally.

    “The capital market like many sectors is being impacted by technology. The World Bank has just issued bond-i its first blockchain operated bond. We have seen the growth of crypto currencies amongst innovations.

    On our part at the Exchange, we have deployed Artificial Intelligence to monitor activities in our market. This has even become imperative as we look set to demutualize and introduce more sophisticated products such as derivatives,” Onyema said.

     

  • UBA declares N6.84b interim dividend

    •Lender grosses N258b in six months

    The board of directors of United Bank for Africa (UBA) Plc yesterday announced the payment of N6.84 billion to shareholders as interim dividend for the first half of this year as the pan-African commercial banking group grew top-line by 16 per cent to N258 billion within the six-month period.

    Audited report and accounts of UBA for the half year ended June 30, 2018 released yesterday at the Nigerian Stock Exchange (NSE) showed strong growth across key performance indicators with significant contribution from its African subsidiaries.

    A breakdown of the dividend recommendation indicates that shareholders will receive an interim dividend per share of 20 kobo, sustaining a trend of rewarding shareholders twice in a financial year.

    Key extracts of the audited report and accounts showed that gross earnings rose from N223 billion in first half 2017 to N258 billion in first half 2018. Operating income stood at N168.5 billion compared with N161.8 billion in the first half of 2017. Notwithstanding the inflation-induced cost pressure in the period, UBA finished the first half of the year with profit before tax of N58.1 billion.

    After taxes, net profit rose by 3.4 per cent to N43.8 billion in 2018 as against N42.3 billion recorded in comparable period of 2017. These implied pre-tax and post-tax return on average equity of 23 per cent and 17 per cent respectively.

    Also, the bank’s total assets grew by 4.9 per cent to N4.27 trillion while customer deposits rose by 6.1 per cent to N2.90 trillion. This growth trajectory underlines UBA’s market share gain, as it increasingly wins customers through its re-engineered customer service and innovative digital offerings.  The group’s shareholders’ funds remained strong at N496.3 billion, even as implementation of IFRS 9 impacted the total equity of the bank and its peers.

    Analysts noted that the double-digit growth in top-line despite declining yield environment in two core markets, Nigeria and Ghana, underscored the capacity of the group to deliver strong performance through economic cycles, even in a challenging business environment.

    UBA’s foreign operations continue to grow in importance, contributing 40 per cent of the group’s profit, which according to analysts attests to the benefit of UBA’s pan-African strategy and reinforces the bank’s objective of achieving 50 percent earnings contribution from offshore subsidiaries.

    Group Managing Director, United Bank for Africa (UBA) Plc, Mr. Kennedy Uzoka said the first half performance reflects the resilience of the group’s business model and strategies.

    “Despite declining yields in two core markets, Nigeria and Ghana, we delivered double digit growth in gross earnings. Our performance demonstrates the success of our digital banking initiatives and broader customer-first strategies,” Uzoka.

    He noted that the group is integrating banking to its customers’ lifestyle, simplifying processes for routine transactions and driving financial inclusion by making banking services accessible and affordable.

    “We are creating opportunities for wealth creation and economic progress, as we empower our customers through innovative platforms and solutions that support their personal and business growth. Our commitment to delivering excellent service is paying-off, as we increasingly win a bigger share of customers’ wallet across our chosen markets,” Uzoka said.

    He added that the group’s enhanced asset-liability management strategies improved asset yield and grew interest income by 21 per cent despite prevailing yield environment.

    According to him, the group re-engineered sales structure provided the impetus for renewed retail deposit growth.

    Group Chief Financial Officer, United Bank for Africa (UBA) Plc, Ugo Nwaghodoh said the group finished the first half of the year in a stronger position and optimistic on the future of its business.

    “Amidst economic recovery and uncertainties in Nigeria, our largest market, we grew net interest income and operating income by 9.6 per cent and 4.1 per cent respectively. We doubled revenue from trade services and grew e-banking income by 24 per cent, a testament to our market share gain, which is driven by innovative offerings,” Nwaghodoh said.

    He added that the group sustained its asset quality, with cost of risk at 0.8 per cent while the loan book declined by 6.5 per cent due to prepayments from some customers in Nigeria and Ghana.

    “We grew the overall balance sheet by 5.0 per cent in the first half of the year. The group’s capital adequacy ratio of 23 per cent, bank’s liquidity ratio of 48 per cent and loan-to-deposit ratio of 57 per cent all reinforce our capacity to grow, with ample headroom for risk asset creation,” Nwaghodoh said.