The Nation Newspaper

Category: Equities

  • Shareholders approve N100b new capital raising for Lafarge Africa

    Shareholders of Lafarge Africa Plc have approved a resolution authorising the company to raise additional capital of up to N100 billion as the cement group continues to optimise its balance sheet.

    At the annual general meeting in Lagos, shareholders mandated the board of directors of Lafarge Cement to raise additional capital through an offer of debt or equity or a combination of the two means from the Nigerian or international capital market.

    Lafarge Africa recently successfully raised N131.6 billion through a rights issue, which was oversubscribed.

    Shareholders also approved the payment of N13 billion as cash dividend for the 2017 business year, representing a dividend per share of N1.50.The approved dividend represents a 45 kobo increase per share on the payout for the 2016 business year.

    Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun said the dividend payout was in appreciation of the support shown by the shareholders for the growth of the company.

    According to him, the board is mindful of the support of all shareholders through the difficult but necessary journey to transform the company into a more agile and correctly financed business ready to benefit from the potential opportunities in Nigerian building materials market.

    He assured shareholders that restructuring of the capital structure of the company largely completed through the past year would help to significantly reduce the cost of financing and currency translation risk.

    He said the recent N131.6 billion rights issue has helped to significantly reduce the foreign exchange debt exposure by 50 per cent, noting that the board is already reviewing options to deal with the remaining foreign exchange debt.

    Balogun pointed out that Lafarge Africa has been implementing a new route-to-market initiative aimed at supporting the anticipated growth in demand as the country gradually recovers from recession and as foreign exchange rates stabilise.

    Country Chief Executive Officer, Lafarge Africa Plc, Michel Puchercos expressed optimism about the performance of the company in the current business year.

     

  • Stakeholders advise Oando against undue reconciliation

    Some shareholders of Oando Plc have advised the board and management of the indigenous oil and gas group against purported moves to reconcile Oando and Ansbury Investments Inc. Ansbury Investments’ petition was one of the two petitions that triggered the ongoing investigation of Oando by the Securities and Exchange Commission (SEC). Ansbury Investments is owned by popular Nigerian-Italian billionaire, Mr. Gabriele Volpi.

    Shareholders under various associations including Distinct Shareholders Association, Pacesetters Shareholders Association and Sage Shareholders amongst others said Oando should be wary of going against the course of law by entering into negotiation with Ansbury Investment.

    Shareholders said their objection to the reconciliatory moves was on the basis of an alleged investigation by Italian authorities of some related parties to the purported reconciliation, warning that such entanglement may negatively affect the good corporate image of Oando.

    Shareholders who spoke on condition of anonymity because of the sensitivity of the issue said reconciliation at this point may not be in the best interest of Oando and its shareholders.

    A senior official at the Convention on Business Integrity (CBi), who pleaded not to be named, said reconciling Ansbury and Oando may raise fundamental ethical questions on Oando.

    “This alone may affect not just the reputation of Oando but its share value,” the official stated.

    A member of the Pacesetter Shareholders Association, who pleaded anonymity, also expressed reservation at the reconciliation move, saying it was capable of eroding the company’s stock and reputation.

    “One of those two brands will kill the other, and it will not profit shareholders like me,” the shareholder said.

    Oando had earlier reached a truce with one of the two petitioners-Alhaji Dahiru Mangal with affirmation of Mangal’s substantial shareholding and an offer that allowed him to appoint a director unto the board of Oando. The truce was brokered by the Emir of Kano, Emir Muhammadu Sanusi II under a peace accord concluded on January 7, 2018.

     

  • Equities lose N125b in opening trades

    Nigerian equities opened this week to a massive selloff as investors sought to resize their portfolios in consideration for current corporate earnings and prospective risk-return values. With nearly three losers for every gainer, a widespread sell pressure shaved off N125 billion from the market value of quoted equities at the Nigerian stock market.

    Benchmark indices at the Nigerian Stock Exchange (NSE) indicated average decline of 0.84 per cent for the five-hour trading session yesterday, representing net capital depreciation of N125 billion. The decline cut the average return by investors in Nigerian equities so far this year to 6.37 per cent.

    Aggregate market value of all quoted equities at the NSE dropped from the opening value of N14.860 trillion to close at N14.735 trillion. The All Share Index (ASI)-the value-based index that tracks share prices at the Exchange, also declined correspondingly from 41,022.31 points to close at 40,677.61 points.

    The momentum of activities also slowed down below average with the exchange of 218.77 million shares valued at N2.23 billion in 4,109 deals.

    With 31 losers to 11 gainers, all sectoral indices closed negative with the exception of the NSE Oil and Gas Index, which rose marginally by 0.01 per cent. The NSE Insurance Index declined by 1.7 per cent. The NSE Consumer Goods Index dropped by 1.6 per cent. The NSE Banking Index declined by 0.4 per cent while the NSE Industrial Goods Index dipped by 0.2 per cent.

    Nigeria’s highest-priced stock-Nestle Nigeria, led the losers with a drop of N50 to close at N1,530. Okomu Oil Palm followed with a loss of N4.50 to close at N85.50. Nigerian Breweries declined by N2.50 to close at N122. Dangote Cement dropped by N1.50 to close at N243.50. Oando declined by 40 kobo to close at N7.75. Ecobank Transnational Incorporated dropped by 35 kobo to close at N20.70 while UAC of Nigeria lost 30 kobo to close at N16.70 per share.

    On the positive side, Caverton Offshore Support Group led the gainers with a gain of 13 kobo to close at N2.74. Fidson Healthcare followed with a gain of 11 kobo to close at N5.49. Cutix rose by 10 kobo to close at N3.15. FCMB Group added 9.0 kobo to close at N2.63 while Eterna chalked up 7.0 kobo to close at N7 per share.

    United Bank for Africa was the most active stock with a turnover of 60.44 million shares valued at N706.64 million. FCMB Group followed with a turnover of 17.51 million shares worth N45.73 million while Sovereign Insurance placed third with a turnover of 12.44 million shares worth N2.49 million.

    Most analysts said the steep decline has further opened up bargain opportunities for discerning investors.

    “Despite today (Monday)’s bearish performance, we maintain our bullish outlook for the market hinged on the existence of bargain hunting opportunities in large and mid-cap stocks,” Afrinvest Securities stated.

    Analysts at Cordros Capital stated that the “outlook for the equities market remains positive”, citing strengthening macroeconomic fundamentals.

    “In the interim, we see a mixed sentiment albeit with a bearish bias. However, we maintain that the current valuation provides attractive entry opportunity,” SCM Capital stated.

  • Wema Bank to resume dividend payment

    Shareholders of Wema Bank Plc will soon begin to reap benefit of the bank’s turnaround as the first generation bank continues to improve its profitability.

    Addressing shareholders at the Annual General Meeting of the bank in Lagos, its Managing Director, Mr Olusegun Oloketuyi, said the bank has entered the final stage of the restructuring process that started in 2009 and would soon be in a position to pay dividends to shareholders.

    He noted that the bank had witnessed a remarkable turnaround over the years with consistent improvement in all key indicators.

    He pointed out that despite the slow start to 2017, the bank recorded significant progress and was able to conclude its capital reorganisation scheme.

    According to him, with all relevant regulatory approvals in place and duly passed and reflected in the 2017 financial year accounts, the conclusion of the exercise would now lead to an efficient balance sheet, as ploughed back profit can be capitalised to grow the business while positioning the bank for dividend payment in the near term.

    He noted that given the relative decline in interest rates and possible growth within the economy, the bank will be re-opening the 2nd series of its N50 billion debt issuance programme within the next few months.

    Chairman, Wema Bank Plc, Mr. Babatunde Kasali said the bank delivered on a substantial proportion of its strategic goal for 2017 while undertaking bold steps to ensure that it consolidated on earlier gains.

    He pointed out that year-on-year, the bank continues to record significant achievements in various areas, which include the launch of ALAT, Nigeria’s first fully digital bank, as it also develops new capacities for sustainable competitive advantages.

    He outlined that the bank’s business is focused on four areas including innovation and technology; relationships; risk management and national footprint to achieve its set targets.

    “In our continued bid to continuously position the bank for sustainable competitive advantages, the bank invested in building new capabilities with the launch of ALAT, Africa’s first fully digital bank, in 2017, ALAT has recorded significant milestones especially around customer acquisition. Furthermore, we will continue to improve on our people through requisite trainings while driving and gaining efficiencies within our processes,” Kasali said.

    He assured that the bank will continue to reinforce its commitment towards balance sheet optimization and income generation, efficiency and value creation for the customers and shareholders.

    “As a bank, we look forward to 2018 with renewed confidence. Internally, significant steps will be taken in 2018 that will deliver value for our shareholders,” Kasali said.

     

  • Neimeth appoints independent director

    Neimeth International Pharmaceuticals Plc has appointed the Group Executive for International Banking at First Bank Nigeria Limited, Mrs. Bashirat Odunewu as an independent director in compliance with the statutory requirement for good corporate governance.

    Odunewu, a chemistry graduate of the University of Manchester Institute of Science and Technology, also holds a Master of Science degree from the University of London. She is a fellow of the Institute of Chartered Accountants of Nigeria (ICAN), and a member Chartered Institute of Arbitrators (MCIArb). She has over 20 years experience in the financial services sector.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • Diamond Bank records mixed performance in 2017

    Diamond Bank Plc recorded mixed performance last year with modest growth in the top-line and significant depression in the bottom-line.

    Key extracts of the audited report and accounts of the bank for the year ended December 31, 2017 released at the weekend indicated that gross earnings rose by 2.99 per cent from N184.1 billion in 2016 to N189.6 billion in 2017. However, the bank recorded group loss before tax of N11.5 billion in 2017 as against profit before tax of N3.3 billion in 2016. After taxes, net loss stood at N12.8 billion in 2017 compared with net profit of N2 billion in 2016. Total assets declined from N2.05 trillion in 2016 to N1.71 trillion in 2017. Total liabilities also dropped from N1.82 billion in 2016 to N1.49 billion. Total equity declined to N223.3 billion in 2017 as against N226.7 billion in 2016.

    Diamond Bank Chief Executive Officer, Mr. Uzoma Dozie said the bank recorded a decrease in profit before tax because of higher operating expenses, although investments in technology are starting to drive operational efficiencies.

    According to him, the bank made good progress in executing its technology-led retail banking strategy in 2017 as it increased its market share and drove scale through a combination of technology and expansion of its services across additional platforms.

    He noted that the bank made additional inroads to the unbanked and underbanked populations with the support of its international partners while rapid rollout of products and services for entrepreneurs, and small and medium business owners gained significant traction.

    “At a macro level, the economic environment improved, albeit marginally. Against this backdrop and Nigeria’s broader positive fundamentals, we disposed of some non-core assets to optimise the use of our resources and focus on the significant potential of our domestic market. By taking this action, Diamond Bank is better positioned to accelerate its growth, productivity and profitability in the short to medium term,” Dozie said.

    He explained that Diamond Bank reviewed ownership of non-core assets to focus on the significant opportunities in Nigeria, particularly in retail banking, which led to the divestment from the bank business in West Africa, with that in United Kingdom set to follow.

    He pointed out that in order to restore its technology-led retail banking strategy, the bank successfully delivered new initiatives, by building additional ecosystems and the expansion of customer services across different platforms, including DreamVille platform – the first Nigerian gamification portal for banking aimed at improving financial literacy and participation among youths.

    “Although more work is to be done, particularly in relation to our oil and gas exposure, overall the quality of the loan book has improved. This will remain a key area of focus over the next 12 months. Looking ahead, I am optimistic that due to the actions we have taken as well as an improving economy, Diamond Bank will continue to make good progress and achieve greater profitability,” Dozie said.

     

  • Jaiz Bank assures on sustainable growth

    Jaiz Bank Plc board of directors has assured that the bank would continue to improve on its performance as the pioneer non-interest bank expands its operations.

    At the Annual General Meeting (AGM) at the weekend in Abuja, its Chairman, Dr. Umaru Abdul Mutallab said the bank was able to attain the feat last year because of its unique business model, particularly the strength of its organic retail growth.

    Key extracts of the audited report and accounts of Jaiz Bank for the year ended December 31, 2017 showed that pre-tax profit-margin-which measures the underlining profitability of the company- doubled from 5.5 per cent in 2016 to 11 per cent in 2017. The pre-tax profit margin denotes the efficiency of the core operational and administrative cost management, and it is usually taken as a more definitive index of performance than top-line margins.

    The report indicated a well-rounded performance as gross earnings rose by 40 per cent from N6.18 billion in 2016 to N8.10 billion last year. Gross profit grew by 34 per cent to N6.705 billion in 2017 as against N5.003 billion in 2016. Profit before tax jumped by 160.6 per cent from N343.02 million in 2016 to N894.01 million in 2017. However, the bank’s tax provision leapt by 1,024 per cent from N31.75 million in 2016 to N356.89 million in 2017. This moderated the net profit growth to 14.7 per cent from N311.27 million in 2016 to N356.89 million in 2017.

    The 2017 report is the first audited report to be submitted by Jaiz Bank as a publicly quoted company. It had recorded another milestone on February 9, last year 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.

    The bank’s Managing Director, Mr. Hassan Usman, said it would this year again demonstrate that it has the capacity to grow safely and sustainably.

    “We are using a number of measures to spark progress in that regard, some of which include the automation of our retail financing business, focus on underserved markets and the financially excluded, institutional alliances, nimble workforce and effective performance tracking amongst others,” Usman said.

    He noted that the bank has gradually been surpassing its challenges and waxing stronger.

    “Looking at what we have achieved over the short existence as a bank, I have a strong faith that Islamic banking is going to command a lot of respect and a force to reckon with in this country in the nearest future,” Usman added.

     

  • AXA Mansard’s shareholders get N630m dividend

    Shareholders of AXA Mansard Insurance Plc  have approved the payment of N630 million for the 2017 business year. This represented a dividend per share of six kobo.

    Addressing shareholders at the Annual General Meeting (AGM) in Lagos, its Chairman, Mr. Olusola Adeeyo said the company was able to close the last business year with positive results despite the slow recovery of the economy.

    He noted that although profitability was affected by claims and interest rate impacted on life reserves, the company was still able to grow profit before tax to N3.2 billion in 2017 from N3.1 billion in 2016 and profit after tax to N2.7 billion from N2.6 billion.

    “We grew gross premium by 30 per cent to N26.8 billion, from N20.7 billion in 2016, driven by the sustained growth of our health business as well as large ticket property and causality transactions. Net premium income also grew by 26 per cent to N13.8 billion from N10.9 billion in 2016. While we experienced some large claims on our portfolios during the year, we were able to make significant recoveries aided by our strong risk focused reinsurance strategy,” Adeeyo said.

    He pointed out that the company’s balance sheet remained strong in 2017, with total assets amounting to N66.5 billion by year end and the shareholders’ funds growing by 17 per cent to N20.3 billion, remaining well in excess of regulatory requirements.

    In his remarks, Chief Executive Officer, AXA Mansard Insurance, Mr. Kunle Ahmed said the company took decisive steps in 2017 towards improving its business effectiveness and ability to serve customers better which has resulted in the impressive performance recorded in the year.

    He said the company would continue to learn and improve on understanding of its customers’ evolving needs, and how they wish to be served, in order to continually add value to their lives and businesses.

    “As we move forward in 2018, we will continue to drive improvements in our business and in our operations. With the support of our various partners, including brokers and agents, we will serve our clients across our various businesses in a bespoke manner, as a one-stop, non-bank, financial services company,” Ahmed said.

    Shareholders who spoke at the meeting commended the board and management of the insurance company for not incurring any penalty or fine during the year and for prompt settlement of claims.

    They urged the company to embark on expansion and roll out of new products that will boost its revenue and profitability while ensuring that subsidiaries contribute better to the group.

     

  • Union Bank records N5.4bn profit in 3 months

    Union Bank of Nigeria (UBN) Plc, one of Nigeria’s oldest surviving financial institutions, yesterday announced its audited report for the 2017 business year and interim report and accounts for the first quarter of this year, showing considerable growth in key performance indicators.

    Key extracts of the three-month report for the period ended March 31, 2018 showed that the bank recorded double-digit growths in the top-line and the bottom-line, raising hopes for better returns in the 2018 business year. Gross earnings rose by 15 per cent while profits before and after tax grew by 16 per cent and 17 per cent respectively.

    The reports, released to the investing public at the Nigerian Stock Exchange (NSE) yesterday, showed a steady growth trajectory over the 13-month period, with the bank building on its performance in 2017 in the first quarter of 2018.

    The three-month first quarter 2018 report showed gross earnings of N39.5 billion in first quarter 2018 as against N34.3 billion in first quarter 2017. Profit before tax rose from N4.7 billion in first quarter 2017 to N5.4 billion in first quarter 2018. Profit after tax also increased to N5.3 billion in first quarter 2018 compared with N4.5 billion recorded in comparable period of 2017.

    Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Mr. Emeka Emuwa, said the first quarter results reflected the bank’s renewed focus on driving efficiency and productivity with a view to fully leveraging resources including human, technology and new capital to maximize the bottom line.

    “While we are just in the early stages of this drive, we are already starting to see positive results,” Emuwa said.

    Audited report for the year ended December 31, 2017 showed that gross earnings rose by 26 per cent from N126.6 billion in 2016 to N163.8 billion in 2017. Profit before tax was largely flat at N15.5 billion in 2017 as against N15.7 billion in 2016.

    Emuwa noted that the group’s non-performing loan ratio had improved to 14.9 percent by March 2018 from 19.8 percent at the beginning of this year, noting that the bank has continued to maintain aggressive focus on its impaired loans and is expected to resolve some large exposures in the course of the year, which will further drive down the ratio.

    “For the first half of the year, we will continue to hone initiatives around our productivity drive, focusing our people on targeted opportunities across regions and optimising our technology and digital platforms to deliver operational efficiency and improved customer service,” Emuwa said.

    Chief Financial Officer, Union Bank of Nigeria (UBN) Plc, Oyinkan Adewale said while the first quarter results reflected the adoption of International Financial Reporting Standards (IFRS) 9, which came into effect at the start of 2018, the bank’s regulatory risk reserve was adequate to absorb the impact of the new accounting rules.

    “Our capital adequacy ratio (CAR) remains robust at 17.9 per cent in spite of the impact of IFRS 9 on impairments. Liquidity ratio is at 39.4 per cent, well above the minimum requirement, while net interest margin improved to 8.73 per cent in first quarter 2018 from 7.14 per cent in first quarter 2017,” Adewale said.

  • Jaiz Bank targets N15.9b profit in five years

    •Assures on sustainable growth

    Jaiz Bank Plc will grow its income and profitability consecutively over the next five years, with pre-tax profit for the period expected to be about N15.86 billion.

    Presenting the underlying facts behind the operations of the bank to the investing public at the Nigerian Stock Exchange (NSE), management of the bank outlined the five-year growth plan of the pioneer non-interest bank, with an assurance that it will sustain year-on-year growth over the next five years.

    Managing Director, Jaiz Bank Plc, Mr. Hassan Usman, said overall vision of the bank is to become the leading non-interest financial institution in Sub Saharan Africa.

    He said the bank has been positioned to sustain its growth trajectory, pointing out that the bank has the necessary resources to achieve its growth targets.

    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. Gross income is expected to rise to N10.07 billion in 2018 and subsequently to N12.59 billion, N15.73 billion, N19.27 billion and N23.51 billion in 2019, 2020, 2021 and 2022 respectively.

    Profit before tax is projected to rise to N1.33 billion in 2018 and grow consecutively to N2.03 billion, N3.01 billion, N43.03 billion and N5.47 billion in 2019, 2020, 2021 and 2022 respectively. After taxes, net profit will rise to N927 million in 2018 and grow further to N1.42 billion in 2019. Profit after tax is projected to jump to N2.11 billion in 2020 and rise consecutively to N2.82 billion and N3.83 billion in 2021 and 2022 respectively.

    Balance sheet of the bank is also expected to increase over the years. Total assets is projected at N123.61 billion in 2018 and subsequently to N150.5 billion, N182.6 billion, N220.02 billion and N262.80 billion in 2019, 2020, 2021 and 2022 respectively. Deposit is projected to rise consecutively to N88.55 billion, N113.34 billion, N142.81 billion, N177.09 billion and N216.05 billion in 2018, 2019, 2020, 2021 and 2022 respectively. Shareholders’ fund is projected to rise to N28.6 billion in 2018 and grow consecutively to peak at N35.23 billion by 2022.

    Shareholders’ return is also expected to grow over the years. Return on equity is expected to firm up to 4.39 per cent in 2018 and improve consecutively to 4.87 per cent, 6.92 per cent, 8.79 per cent and 11.22 per cent in 2019, 2020, 2021 and 2022 respectively.

    Usman said the bank’s growth strategy of focussing on the real sector, though painstaking, will ensure sustainable growth and better returns over the years.

    According to him, Jaiz Bank wants to develop small and medium enterprises (SMEs), grow with them and support them not only for profit making but to ensure the country achieves real growth.

    He said the bank would soon start to disburse $20 million financial lifeline to SMEs as part of the commitments of the bank to drive the growth of the real sector of the economy. Jaiz Bank and Islamic Corporation for the Development of Private Sector (ICD), the development arm of Islamic Development Bank (IDB), had recently signed a $20 million line of agreement to finance SMEs in Nigeria.

    “We shall continue to internally develop new customers, new markets and new product for both our physical and virtual channels. We remain committed to continuous up-scaling of our governance mechanism to meet the highest operating standards. Cost efficiency is at the heart of our value creation model. We shall strive to be a low cost operator,” Usman said.

    He noted that while the bank would continue to expand its operations across the country by opening more branches, it will significantly leverage on technology to reach the nooks and crannies of the country and bring the semi-banked and unbanked population into the formal economy.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema, said Jaiz Bank has demonstrated ability to grow sustainably, urging the bank to continue to uphold high corporate governance.

    Doyen of Stockbrokers, Mr. Sam Ndata, commended Jaiz Bank for continuing to keep investors up-to-date on its operations.

    Former president of Chartered Institute of Stockbrokers (CIS) and Vice Chairman/Chief Executive Officer, Capital Assets Limited, Mr. Ariyo Olushekun also commended the management of the bank for its commitments to sound corporate practices.