The Nation Newspaper

Category: Equities

  • Jaiz Bank grows Q1 profit by 176%

    Jaiz Bank Plc recorded a well-rounded performance in the first quarter as Nigeria’s first non-interest commercial bank reported top-line growth of 24 per cent and profit increase of 176 per cent in its first report as a quoted company.

    Key extracts of the interim report and accounts of Jaiz Bank for the period ended March 31, 2017 showed that gross income rose by 23.7 per cent to N1.62 billion in first quarter 2017 as against N1.31 billion recorded in comparable period of 2016. Total net income grew by 34.3 per cent from N1.08 billion in first quarter 2016 to N1.45 billion in first quarter 2017. Profits before and after tax rose by 175.8 per cent to N203.68 million in first quarter 2017 as against N73.84 million in first quarter 2016. There were no provisions for taxes as the bank is still under tax waiver as a pioneer.

    The balance sheet size of the bank grew by 34.1 per cent as total assets rose to N78.7 billion in first quarter 2017 compared with N58.67 billion in corresponding period of 2016. Total equity funds also rose by 32.5 per cent from N11.25 billion in first quarter 2016 to N14.91 billion in first quarter 2017.

    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.

    Managing Director, Jaiz Bank Plc, Mr. Hassan Usman, said the secret for the above-peer growth rate of Jaiz Bank lies in the uniqueness of its business management approach.

    “We have set out on a path of reinvention of the banking landscape in the country. This journey over the next few years will focus on changing how banks should operate to better improve the lots of the community, while delivering on their commitments to the shareholders. We are focused on building on our culture of ethics and taking the necessary decisions to align our perspective with client expectations,” Usman said in a broad outline of the people-centred approach of the bank.

    He said Jaiz Bank, as Nigeria’s only fully-fledged Islamic bank, is committed to showing that the non-interest banking model can be implemented profitably in the country.

    He pointed out that the projection for the bank for the next five years indicates a gross revenue of N16 billion by 2021and profit before tax of N7.9 billion.

    Usman said Jaiz Bank has developed a bouquet of products and services that has increasingly endeared it to Nigerian businesses and depositors.

    According to him, the bank had focused on building well-diversified investment portfolios across several sectors of the economy including general commerce, real estate and construction, agriculture, education, manufacturing, information and telecommunication and oil and gas among others.

     

  • Sterling Bank’s gross earnings rises by 12% to N28.6b in Q1

    Sterling Bank’s gross earnings rises by 12% to N28.6b in Q1

    Sterling Bank Plc grew headline earnings by 12 per cent to N28.6 billion in the first quarter of 2017 as the bank’s net interest margin improved to 8.2 per cent within the first three months.
    The first-quarter report released at the weekend showed continuing improvement in the underlying core banking business of the bank as management continued to optimise cost management.
    The interim report for the first quarter ended March 31, 2017, released at the Nigerian Stock Exchange (NSE), showed that gross earnings braced the economic recessionary trend to close March 2017 at N28.55 billion compared with N25.50 billion recorded in the comparable period of last year.
    The top-line earnings performance was driven by 26.3 per cent increase in interest income and improved cost management, leaving net interest income higher by 18.3 per cent at N13.5 billion in first quarter 2017 as against N11.4 billion in first quarter 2016. Net interest margin, which measures the underlining profitability off the core banking business, thus improved marginally from 8.1 per cent in first quarter 2016 to 8.2 per cent in first quarter 2017.
    The bank was able to reduce operating expenses through strategic cost control measures taken in response to inflationary pressures. Operating expenses declined from N12.6 billion in first quarter 2016 to N12.2 billion in first quarter 2017. However, impairment charges impacted on the bottom-line. Operating income stood at N14.2 billion while pre and post tax profits stood at N2.03 billion and N1.88 billion respectively in first quarter 2017. In the comparable quarter of 2016, operating profit stood at N15.4 billion while pre and post tax profits were N2.81 billion and N2.54 billion.
    The balance sheet of the bank remained strong as total assets rose by 6.8 per cent to N891.3 billion by March 2017 compared with N834.2 billion recorded at the beginning of this business year. Shareholders’ funds also rode on the back off organic accretion of profit to close March 2017 at N87.5 billion.
    Managing Director, Sterling Bank, Mr. Yemi Adeola, said the first quarter 2017 performance was in line with expectations, as earnings remained resilient with a double-digit growth despite the macroeconomic headwinds that persisted during the period.
    He noted that the bank made significant progress in its efficiency drive through the adoption of strategic cost management initiatives, which resulted in 3.3 per cent reduction in operating expenses and a 190 basis point improvement in cost-to-income ratio.
    He pointed out that net interest margin also improved marginally to 8.2 per cent despite the crowding out effect of sovereign borrowing which kept interest rates high.
    He added that the bank had retained its cautious stance on lending while continuing to strengthen its risk management framework across people, processes and information technology systems.
    “Going into the year, we will continue to explore innovative ways to improve revenue, while simultaneously enhancing the overall efficiency of our business operations,” Adeola said.

  • Transcorp grosses N15.8b in Q1

    Transcorp grosses N15.8b in Q1

    Transnational Corporation of Nigeria Plc (Transcorp) Plc recorded considerable improvements in its performance in the first quarter of 2017 as turnover rose by 20 per cent to N15.77 billion.
    Key extracts of the interim report and accounts of Transcorp for the three-month period ended March 31, 2017 showed that group’s total revenue increased to N15.8 billion in first quarter 2017 compared with N13.19 billion recorded in comparable period of 2016. Gross profit rose by 17 per cent to N6.94 billion in 2017 as against N5.91 billion in 2016. Operating profit also grew by 30 per cent to N4.23 billion compared with N3.25 billion. Profit before tax increased marginally from N1.72 billion to N1.73 billion. After taxes, net profit stood at N1.49 billion in first quarter of the year as against N1.21 billion in first quarter 2016, representing an increase of 24 per cent.
    Chief Executive Officer, Transnational Corporation of Nigeria (Transcorp) PLC, Mr. Emmanuel Nnorom said Transcorp’s resilient performance was drawn from the diversity of its various business offerings.
    He noted that while the closure of the Abuja Airport negatively affected occupancy for the group’s hotel business, the overall performance was buoyed growth in its power business following improvements in gas supply.
    “We expect to recover the lost ground brought on by the Abuja airport closure in second quarter 2017. The reopening of the airport will pave the way for aggressive marketing that will improve traffic and occupancy at Transcorp Hotels. In addition we expect to see continued improvement in our power sector revenue as gas supply stabilises following the increased capacity of our plant arising from the recent commissioning of Gas Turbine 15,” Nnorom said.
    Transcorp, owned by more than 300,000 shareholders, has a vast business portfolio that comprises strategic investments in the power, hospitality, agribusiness and oil and gas sectors. The group’s notable businesses include Transcorp Hilton Hotel, Abuja; Transcorp Hotels Calabar; Transcorp Power Limited, owner of 972 megawatts power plant, Teragro Commodities Limited, operator of Teragro Benfruit plant – Nigeria’s first-of-its-kind juice concentrate plant; and Transcorp Energy Limited.

  • Shareholders laud FCMB over improved performance

    Shareholders laud FCMB over improved performance

    Shareholders of FCMB Group Plc at the weekend commended the board and management of the banking group for notable improvement in the performance of the holding company.
    At the Annual General Meeting (AGM) in Lagos, shareholders unanimously approved the distribution of N1.98 billion as cash dividend for the 2016 business year, representing a dividend per share of 10 kobo and more than 10 per cent in dividend yield.
    Key extracts of the audited report and accounts of FCMB Group for the year ended December 31, 2016 had shown that profit before tax doubled by 109 per cent to N16.3 billion in 2016 as against N7.8 billion in 2015. Profit after tax also jumped by 198 per cent to N14.3 billion in 2016 as against N4.8 billion in 2015. Gross earnings grew by 16 per cent to N176.35 billion in 2016 from N152.51 billion in 2015.
    Reviewing the performance of the company at the general meeting, shareholders commended what they described as impressive growths across the performance indices.
    Founding national coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, commended the board and management of FCMB Group for efficiently running its affairs, citing the appreciable growth recorded in key operating areas.
    He noted that the overall performance of the company has been good despite the recession the economy went through during the year under review.
    ‘’Impressive rise in profitability and dividend payment are clear signs that FCMB is resilient, on a stronger footing to overcome the difficult business environment and continually meet the expectations of shareholders and other stakeholders. Overall, we are satisfied with the performance,’’ Nwosu said.
    Also, National Chairman, Shareholders’ Trustees Association of Nigeria, Alhaji Mukhtar Mukhtar, said shareholders were happy that FCMB has again risen to the occasion by delivering value to shareholders, while also showing a strong ability to adapt effectively and professionally to the dynamics of the business environment.
    “We strongly believe that FCMB will continue to do perform better,’’ Mukhtar said.
    Chairman, FCMB Group, Dr. Jonathan Long, attributed the performance recorded last year to the professionalism and commitment the financial institution brought to bear on its business and operations.
    ‘’The Group has shown itself, capable of weathering the storm and I am confident that the year ahead will prove to be no exception,’’ Long, who was represented by a Director, Mr Bismarck Rewane, said.
    In his remarks, Group Chief Executive Officer, FCMB Group Plc, Mr. Ladi Balogun, noted that the realities of 2016 have been good tests of the resilience of the bank’s turnaround programme commenced in 2015.
    ‘’Across most indices, we have recorded progress and we intend to stay this course in the coming year,’’ Balogun assured.
    He said the financial services group has built a solid business model around retail and transaction banking to deliver sustainable profit growth, effective use of technology to boost efficiency, reduced risk appetite and a great customer experience.

  • Dangote Sugar Refinery assures on better returns

    Dangote Sugar Refinery assures on better returns

    •Shareholders get N7.2b dividend

    DANGOTE Sugar Refinery (DSR) Plc Chairman, Alhaji Aliko Dangote, at the weekend assured shareholders that the board and management of the company were committed to delivering superior returns to its shareholders.
    The reassurance came as shareholders at the Annual General Meeting (AGM) in Lagos approved the distribution of N7.2 billion as cash dividend for the 2016 business year. Shareholders would receive a dividend per share of 60 kobo.
    Dangote said the company’s performance last year reflected the outcome of the group’s strategic initiatives being implemented over the past two years, to ensure the company sustains this performance in the face of the economic downturn.
    He added that efforts were made by the board and management of the company to deliver 2016 financial results, saying during the year under review the company achieved a group turnover of N169 billion, profit before tax of N19.6 billion and profit after tax of N14.4 billion.
    “Our focus is the actualisation of our backward integration plans as the board will continue with the effective management of resources to achieve the target, sustainable financial future for the company and in turn drive sustained returns to shareholders,” Dangote said.
    He said the company is determined on its commitment to achieve 1.5 million metric tonnes of refined sugar per annum from locally grown sugar in six years.
    According to him, to date, about N101 billion has been committed towards the actualisation of these backward integration projects on equipment purchase, land studies and survey, sensitisation campaign for the local communities, rehabilitation and expansion of Savannah Sugar Company.
    DSR Acting Group Managing Director, Abdullahi Sule, an engineer, reiterated that the company’s focus remains leveraging its strengths to maximise every opportunity to generate sales, increase market share and create sustainable value for all stakeholders.
    Shareholders commended the company for sustained growths over the year, in spite of the tough operating environment.
    Speaking on behalf of shareholders, National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Sunny Nwosu said the management of the company has foresight, noting that the company has remained the foremost sugar refinery in Nigeria.
    He said the company has continued to add value to shareholders while making giant strides in national economic development through backward integration.

  • UBA grows pre-tax profit by 41% to N25.5b in Q1

    United Bank for Africa (UBA) Plc sustained a well-rounded performance in the first three months of this year as profit before tax grew by 41 per cent to N25.5 billion.
    Key extracts of the three-month earnings report for the period ended March 31, 2017 showed significant growths on key performance indices. Group gross earnings rose by 38 per cent to N101.25 billion in first quarter 2017 compared with N73.66 billion recorded in comparable period of 2016. The top-line was driven by an unprecedented 43 per cent growth in interest income. Profit before tax rose to N25.5 billion in first quarter 2017 compared with N18.1 billion in first quarter of 2016. Profit after tax increased by 32 per cent to N22.4 billion in first quarter 2017 as against N17 billion recorded in the corresponding period of last year. The group sustained its strong profitability recording an annualised 19.4 per cent Return on Average equity (RoAE).
    Group Managing Director, United Bank for Africa UBA), Mr. Kennedy Uzoka, said the performance in the first quarter strengthens the group’s optimism on economic and business recovery in Nigeria and many of its markets across Africa.
    “More importantly, this result is evidence of efficiency gains in our pricing, balance sheet management and operations,” Uzoka said.
    He noted that the group has made further progress in its consistent retail penetration, as reflected in the 12 per cent year-to-date growth in retail savings and current account deposits while the group, notwithstanding the tight interest rate environment, recorded 30 basis points reduction in cost of funds to 3.4 per cent, a positive result of the group’s customer service-led approach to low cost deposit mobilisation.
    He pointed out that low cost savings and current accounts (CASA) represent 80 per cent of the group’s deposit funding by the first quarter.
    “Our businesses outside Nigeria continued to wax stronger, contributing 35 per cent of our earnings. We remained prudent in risk asset creation growing net loans by two per cent year-to-date, as we have continued to monitor development in key sectors of the economy to take advantage of emerging bankable opportunities in due time. Albeit the structural challenges that exist in Africa, the opportunities and returns are immense and compelling. We will deepen our penetration across our chosen markets, as we diligently execute our strategies for consistent market share gain,” Uzoka said, emphasising the increasing relevance of the group’s African operations to its bottom line.

  • NIPCO shareholders get N563m dividend

    NIPCO shareholders get N563m dividend

    Shareholders of NIPCO Plc yesterday approved the distribution of N563 million as cash dividend for the 2016 business year as shareholders applauded the strides by the company to increase its dominance in the Nigerian downstream oil sector.

    NIPCO had through its wholly-owned subsidiary acquired the 60 per cent majority equity stake in Mobil Oil Nigeria Plc from ExxonMobil Oil Corporation.

    The breakdown of the dividend implies that shareholders will receive a dividend per share of N3. Key extracts of the audited report and accounts of NIPCO for the year ended December 31, 2016 showed that turnover dropped from N170.50 billion in 2015 to N114.72 billion in 2016. Profit after tax meanwhile rose from N1. 42 billion in 2015 to N1.60 billion in 2016.

    Speaking at the 13th annual general meeting (AGM) yesterday at Transcorp Hotel, Abuja, chairman, NIPCO Plc, Chief Bestman Anekwe said the results demonstrated the aggressive push the company had made in the downstream sector.

    He described the year 2016 as one of the most difficult years ever witnessed in the socio-economic development of the nation but noted that the proactive nature of the company made it to stand shoulder high among its peers by being able to sustain its growth pattern.

    He pointed out what he described as the giant and audacious stride of acquiring ExxonMobil’s 60 per cent equity stake in Mobil Oil Nigeria Plc, which has further strengthened NIPCO’s position in the industry and widened its retail footprints.

    Anekwe commended shareholders for their unflinching support and constructive partnership over the years, which has enabled the company to attain enviable height in the industry in spite of a tough operating environment.

    In his own remarks, Group Managing Director, NIPCO Plc, Mr. VenkataramanVenkatapathy attributed the improved performance of the company to increased sales drive, effective management of resources and adjustment of business model to the changing market variables.

    According to him, although the year was marked by economic constraints, NIPCO made spirited efforts to reduce the impact on its customers without having any negative effect on shareholders’ return on investment.

    “We prepared ceaselessly for the expected harsh operating environment by focusing on effective management of resources with a special focus on cost containment without jeopardizing quality in our entire operations,” Venkatapathy said.

  • Diamond Bank optimistic as profit drops to N5.03b

    Diamond Bank Plc yesterday released its audited report and accounts for the 2016 business year with an assurance that the fundamentals of the bank remain strong despite the tough macroeconomic environment.

    Chief Executive Officer, Diamond Bank Plc, Uzoma Dozie, who spoke against the release of the 2016 results yesterday, said the fundamentals of the bank remain very strong as it continues to generate operating profits that are comparable to any of its peers, as evidenced by the 2016 financial results.

    He however noted that impairments in the bank’s loan portfolio have continued to impact financial performance, assuring that mitigating the impact of impairments and improving the quality of loans underwritten remain priorities for the bank in 2017.

    He assured that the regulatory capital of the bank remains strong while the liquidity of the bank also remains high and is well above the guidance ratio stipulated by the Central Bank of Nigeria (CBN).

    “Looking to the year ahead, we believe the macro conditions and other external factors will remain challenging. However, by pursuing our technology-led retail strategy and with our focus on innovation and scalability, the bank is well-placed to benefit in the medium to long-term from the favourable fundamentals in Nigeria, namely a large population, many of which remain unbanked.

    This strategy stands to benefit all stakeholders, including our shareholders and customers in the long run,” Dozie said.

    Key extracts of the audited report and accounts for the year ended December 31, 2016 showed that gross earnings declined from N217.09 billion in 2015 to N212.41 billion in 2016. Profit before tax also dropped from N7.09 billion to N5.03 billion while profit after tax declined from N5.66 billion in 2015 to N3.50 billion in 2016.

    The report showed that the bank posted 53 per cent growth in total comprehensive income to N12.1 billion with non-interest income surging by 6.9 per cent to N53.9 billion, ostensibly stimulated by transactional fees.

    Although the ripple effect of the tough operating business environment impacted negatively on corporate performance, Diamond Bank demonstrated its ability to maintain appreciable growth as revenue from non-interest income, especially its mobile banking increased from N0.41 billion in 2015 to N2.6 billion in 2016.

    This accounted for 19.2 per cent of N13.4 billion ADC revenue in 2016 with Diamond Mobile Apps usage surging from 6.8 million to 11.0 million, while transaction volume increased from N6.9 billion to N11.5 billion. The bank’s retail customer count currently stands at more than 13 million.

    Dozie said the bank’s stable growth and continued success in spite of the harsh economic headwinds, is hinged on implementing retail and digital-led strategies that are primed to promote sustainable growth and profitability in the long term.

    According to him, the restructuring of bank’s operating model was a key development completed last year with the emerging model improving customer engagement, value chain approach to business and efficiencies across the bank.

    He noted that these measures have helped to improve Diamond Bank’s low-cost deposit base from the retail segment, while also facilitating growth in non-interest income and a reduction in interest expenses.

    He said though Diamond Bank has continued to grow its corporate and mid-tier business segments, the bank’s focus remains on retail banking and providing convenient and easy banking to the Micro, Small and Medium-scale Enterprises (MSME) segment, pointing out that the concept of value chain management and the deployment of digital strategies will help provide end-to-end solution and ultimately improve value for the bank and the customers.

    “In the months ahead, the bank will continue to deploy new technologies and digital applications to drive financial inclusion and convenient banking amid a decline in the pace of economic activities and weak economic fundamentals. The bank will also continue to deepen its retail strategy to mop up low cost fund, expand its credit creation structure and increase market share in all market segments,” Dozie added.

  • Equities lose N17b in tight market situation

    The topsy-turvy market situation at the Nigerian stock market continued yesterday as a selloff on large-cap stocks pressed the overall market position to a marginal loss of N17 billion. With 16 gainers to 15 losers, the stock market traded on almost a balance of profit-taking and bargain-hunting but losses recorded by highly capitalised stocks tilted the overall market position to the bears.

    Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) declined from its opening value of N8.765 trillion to close at N8.748 trillion. The All Share Index (ASI), the benchmark index for the market, also slipped marginally by 0.19 per cent from its opening index of 25,331.77 points to close at 25,282.75 points.

    The decline pushed the negative average year-to-date return to -5.92 per cent. The decline was largely due to losses recorded by large-cap stocks such as FBN Holdings, Dangote Cement, Zenith Bank, Okomu Oil and Dangote Sugar Refinery.

    Most sectoral indices closed in the negative. The NSE Industrial Goods Index and the NSE Banking Index declined by 0.3 per cent each while the NSE Insurance Index slipped by 0.1 per cent. Meanwhile, the NSE Oil & Gas index rose by 0.5 per cent while the NSE Consumer Goods Index inched up by 0.1 per cent.

    Seven-Up Bottling Company led the losers with a loss of N5.24 to close at N99.66. Okomu Oil Palm dropped by N2.49 to close at N47.39. Dangote Cement lost N1 to close at N159. Nascon Allied Industries declined by 70 kobo to close at N7.74 while UAC of Nigeria dropped by 50 kobo to close at N14.10.

    Total turnover volume however declined by 54.11 per cent to 147.89 million shares valued at N836.84 million in 2,578 deals. Transactions in the shares of Transcorp topped the activity chart with 28.07 million shares valued at N25.67 billion. Diamond Bank followed with 24.98 million shares worth N21.78 million while FCMB Group placed third with 13.8 million shares valued at N13.8 million.

    On the upside, Seplat Petroleum Development Company led the gainers with a gain of N5 to close at N405. Nigerian Breweries rose by N1 to close at N124. Stanbic IBTC Holdings added 49 kobo to close at N19.50. Nestle Nigeria chalked up 30 kobo to close at N750.30 while Africa Prudential rose by 12 kobo to N2.53 per share.

  • Unilever to sell spreads business in global restructuring

    Unilever to sell spreads business in global restructuring

    Unilever Group, the parent company of Unilever Nigeria Plc, has indicated its intention to divest its spreads business as part of a global restructuring of its businesses.

    Unilever Group said the divestment was part of a strategic review aimed at accelerating sustainable shareholder value creation.

    Unilever Nigeria yesterday confirmed the plan to sell the spreads business but added that the announcement has no immediate effect on the activities of the Nigerian subsidiary. Unilever Nigeria’s share price remained unchanged at N33.15 per share at the Nigerian Stock Exchange (NSE).

    Chairman,   Marjin Dekkers, said the proposed sale of the spreads business and other restructurings were fully supported by the board of directors.

    According to him, the review that the board of directors of the Unilever Group has undertaken has been detailed and comprehensive and it has confirmed that the group’s model of long-term shareholder value creation has been successful and remains as valid as ever.

    Chief executive officer, Unilever, Paul Polman, said the group has decided that the sale of the spreads business would lead to accelerated development of its portfolio.

    “After a long history in Unilever, we have decided that the future of the spreads business now lies outside the Group,” Polman said.

    Nigerian shareholders had largely shunned a N43 billion share-acquisition bid by Unilever Overseas Holdings , United Kingdom aimed at acquiring a quarter of Unilever Nigeria’s shares to increase the multinational’s majority equity stake in the Nigerian subsidiary to 75 per cent.

    Unilever UK’s total shareholdings in Unilever Nigeria only increased by 8.49 per cent from 50.04 per cent to 58.53 per cent after the conclusion of acquisition bid. Besides, Unilever UK had resorted to mopping up the shares of Unilever Nigeria through the Nigerian Stock Exchange (NSE).