The Nation Newspaper

Category: Equities

  • Why we need additional capital, by UACN

    Why we need additional capital, by UACN

    UAC of Nigeria (UACN) Plc plans to use the net proceeds of its proposed multi-level capital raising programme to finance business expansion and deleverage existing businesses with a view to optimise the conglomerate’s businesses.

    Shareholders of UACN last week approved several capital raising proposals proposed by the board, paving the way for the board to engage professional parties and continue the new issue process.

    Chairman, UAC of Nigeria (UACN) Plc, Senator Udoma Udo Udoma, told shareholders that the company needed new capital to finance its expansion and reduce indebtedness.

    According to him, the group is currently realigning its portfolio and making strategic shifts where necessary while it has also been selectively expanding its capacity to meet customer demand in its logistics operations.

    He said the capital raising was in pursuit of plans to improve returns and address the high leverage position in UACN Property Development Company (UPDC), the real estate subsidiary, and Portland Paints as well as to provide capital for expansion in the Feeds and Logistics businesses and other business expansion plans.

    He said while the directors of the company recognised that the task ahead may not be easy, the board and management are determined to take advantage of the opportunities in the economy to deliver the corporate goals for 2015.

    Key extracts of the audited report and accounts of UACN for the year ended December 31, 2014 showed that the conglomerate recorded a modest top-line growth of nine per cent from N78.7 billion in 2013 to N85.7 billion in 2014 while profit before taxation was N14.1 billion compared to N13.9 billion of 2013. Shareholders at the meeting approved the distribution of N3.3 billion as cash dividends for the 2014 business year. Shareholders would receive a dividend per share of N1.75.

    He outlined that in order to further consolidate on its technology improvement initiative, capacity and efficiency in operations, three new plants were commissioned including a new Feed mill at the Ikeja plant of Livestock Feeds Plc, an automated Pie line for the Restaurants business and a new processing and packaging technology for Supreme Ice cream.

    He noted that in 2014, in line with the company’s vision to be number one in its chosen markets, UACN Group achieved market leadership with its Vital Fish feed brand, which was introduced just three years ago.

    He pointed out that as part of the business transformation process, the company has fully implemented both the new SAP enterprise resource software across the group and the Enterprise Risk Management framework to enhance the control environment of its business.

    He added that the group has already started seeing value from the outsourcing of its internal audit function and whistle blowing mechanism, key initiatives that have strengthened corporate governance at all levels of the business and in the group’s joint-venture operations.

    The Nation’s check indicated that UACN might raise as much as N40 billion in the multi-level capital issue.

    Besides, the board of the conglomerate is also considering new equity funds through a rights issue to existing shareholders. Shareholders approved several resolutions including one that empowers the board to raise N20 billion through any means of capital raising and another resolution that mandates the board to offer some 160.07 million ordinary shares of 50 kobo each to existing shareholders on the basis of one new ordinary share for every 12 shares held as at the closure date.

    In a major strategic move, the conglomerate is seeking to undertake a private placement of 230 million convertible non-redeemable preference shares of 50 kobo each to pre-identified investors at a price of N45 per share.

    In another private placement, the meeting approved a proposed private placement of 100 million convertible non-redeemable preference shares of 50 kobo each to pre-identified investors at a price of N50 per share.

    Under the proposed terms of private placement, the preference shares shall be convertible to ordinary shares within five years on terms to be agreed by the directors. The preference shares holders would not be entitled to dividends but they would be entitled to any distribution of assets and they can attend general meeting and vote as well.

    According to the proposed terms of the rights issue, rights that were unsubscribed would be allotted and sold to other investors.

    To facilitate the new capital issue, shareholders increased the conglomerate’s authorised share capital from N1 billion divided into 2.0 billion ordinary shares of 50 kobo each to N1.7 billion, consisting of 3.0 billion ordinary shares of 50 kobo each and 400 million preference shares of 50 kobo each.

    Nigeria’s oldest surviving business, UACN started business in Nigeria in 1879, well ahead of the 1914 amalgamation that created the current Nigerian nation. A large group of several active companies spreading through manufacturing, services, logistics and real estate sectors of the Nigerian economy, the UACN Group includes four quoted subsidiaries-CAP Plc, UACN Property Development Company (UPDC) Plc, Livestock Feeds and Portland Paints and Products Nigeria Plc; in addition to the parent company, UACN. UPDC Real Estate Investment Trust is a subsidiary of UPDC.

    UACN acquired Livestock Feeds and Portland Paints in 2013. Other members of the group included UAC Foods Limited, UAC Restaurants Limited, MDS Logistics Plc, Warm Spring Waters Nigeria Limited, Grand Cereals Limited, and Unico CPFA Limited. Listed in 1974, UACN is owned by some 190,000 shareholders.

  • University Press cautious about future outlook

    The board of University Press (UP) Plc is cautious but optimistic that the printing and publishing company would surmount industry and macroeconomic challenges to maintain steady profit and returns to shareholders.

    Against the background of the dwindling revenues accruing to governments across the tiers and the activities of pirates, the performance of University Press declined in the immediate past year. Turnover dropped by 29 percent while net profit declined by 42 per cent.

    In a business review and outlook to be presented to shareholders at the annual general meeting on Wednesday, directors of the company however said expected improvement in the national sphere and current strategies being implemented by the company would lead to improved performance and returns to shareholders.

    “We are cautiously positive about the business outlook in 2015 despite the seeming challenges. I have no doubt that the strategies we have put in place after due considerations of our expectations of the market scenarios in the coming year will be adequate to deliver better results,” the board stated in a report signed by chairman, University Press Plc, Dr. Lalekan Are.

    The report decried the unending piracy militating against the printing and publishing industry, noting that piracy constitutes a major threat to the book business in Nigeria.

    According to the board, the battle against piracy can only be won with the support of government and the public, especially the people that patronize the pirated books.

    “It is our hope that the wind of change blowing across the country will touch this area (piracy). Our company and other genuine publishers shall continue to deploy appropriate strategies and resources to save the industry from pirates who have continued to short-change investors, authors, employees and other stakeholders,” the chairman’s report stated.

    Key extracts of the audited report and accounts of University Press for the year ended March 31, 2015 showed that turnover dropped by 29 percent from N2.44 billion in 2014 to N1.73 billion in 2015. Profit before tax declined by 43 percent to N199.2 million in 2015 as against N348.12 billion in 2015. Profit after tax also dropped by 42 percent from N233.93 million to N136.39 million. Total assets dropped marginally by five per cent from N2.97 billion in 2014 to N2.82 billion in 2015. The board said the performance of the company was adversely affected by decline in public sector funding.

    The board of directors meanwhile retained the dividend payout of N150.99 million, the same paid for the 2014 business year. Shareholders would receive a dividend per share of 20 kobo for the year just ended.

    Shareholders are expected to consider and approve the dividend recommendation at the yearly general meeting scheduled for Ibadan, Oyo State this Wednesday.

     

  • Custodian Life Assurance gets A- rating

    Custodian Life Assurance Limited has been assigned an A-Rating by Global Credit Rating Co (GCR), an indication of the company’s strong financial security.

    In assigning the A-rating to the company, GCR noted that Custodian Life Assurance Limited has evidenced robust capital growth over the review period, underpinned by strong internal capital generation capacity. This is immediately given credence with shareholders’ funds growth of 36 per cent to N4.3 billion in 2014.

    GCR stated that it took cognisance of the sound operating performance reflected by the company, with net surpluses recorded throughout the review period.

    According to the rating agency, Custodian Life’s earnings capacity has benefitted from the favourable commission recovery rates recorded over the past two years, while increasing cost efficiencies are expected to preserve margin strength over the rating horizon.

    “The rating is supported by Custodian Life’s established position in the emerging domestic life assurance market. Further, the insurer is a wholly owned subsidiary of Custodian and Allied Plc, a well-established brand in the Nigerian insurance industry,” GCR stated.

    Commenting on the rating, Mr. Larry Ademeso, the Managing Director of Custodian Life Assurance Limited expressed satisfaction that the vision, contributions and commitment running through the Board to the staff and service delivery have started to receive deserved recognition from reputed agencies.

    He stated further that the uniqueness of the company’s service delivery is in its ability to provide the market with fast, efficient and highly professional market-driven services, products and operations; adding that the company will continue to aim for higher feats every single day.

    The company’s primary activity is the provision of life insurance associated with death, disability and health liability.

    CLA also provides a diversified portfolio of investment solutions to its customers. Custodian Life Assurance Limited operates from its head office in Lagos, with branches and agency outlets spread across the nation.

     

  • Guinness Nigeria rallies on N4.8b dividend, Diageo’s acquisition

    Guinness Nigeria Plc, one of the oldest listed companies in Nigeria, recorded the second highest gain at the Nigerian stock market last week as investors reacted positively to the proposed distribution of N4.8 billion to shareholders as cash dividends and announcement of a N41 billion bid by Diageo Plc to acquire additional shares in Guinness Nigeria.

    Shareholders would receive a dividend per share of N3.20 for the immediate past business year ended June 30, 2015.

    Diageo Plc, the parent company of Guinness Nigeria Plc, last week said it has launched preliminary discussions on a bid to acquire additional equity stake to increase its majority controlling stake in the Nigerian subsidiary to 70 per cent.

    In a regulatory filing at the Nigerian Stock Exchange (NSE), directors of Guinness Nigeria said Diageo has approached the board with an intention to make an offer to increase its equity stake in Guinness Nigeria from 54.3 per cent to a maximum of 70 per cent. Diageo will maintain Guinness Nigeria’s listing on the NSE. Guinness Nigeria has notified the NSE of Diageo’s approach.

    In a deal estimated at about N41 billion, Diageo, through its wholly-owned subsidiary-Guinness Overseas Limited; plans to purchase up to 236.18 million ordinary shares of 50 kobo each in Guinness Nigeria at a maximum price of N175.

    With the announcement of the dividend recommendation and the Diageo’s proposed bid, Guinness Nigeria’s share price rose by 18.9 per cent or N24.19 to close the week at N152.19 per share. Guinness Nigeria’s performance is significantly above average week-on-week return of 0.60 per cent recorded by the benchmark index for the stock market.

    The audited report and accounts for the 12-month period ended June 30, 2015 showed that the brewer of Malta Guinness recorded nine per cent increase in sales, although cost headwinds impinged on the net earnings.

    Managing Director, Guinness Nigeria Plc, Mr. Peter Ndegwa, said the results reflected strong volume growth on the back of year-on-year impressive performance of the company’s innovation and value brands.

    “We delivered a nine per cent increase in net sales during the year in a tough trading environment largely driven by the growth in our RTD category and value beer segment. Our gross profit also grew by nine per cent,” Ndegwa noted.

    Turnover rose from N109.2 billion in 2014 to N118.5 billion in 2015. Profit before tax stood at N10.8 billion in 2015 as against N11.7 billion in 2014. Profit after tax also closed June 2015 at N7.79 billion compared with N9.57 billion in 2014. Earnings per share thus stood at N5.18 and N6.36 in 2014 and 2015 respectively.

    Ndegwa attributed the depressed bottom-line to recent significant investments in the company’s products and marketing framework.

    “During the year, we continued to invest significantly behind our brands and our route to consumer expansion and these, together with the high interest environment, have driven a profit before tax decline of nine per cent,” Ndegwa said.

    Chairman, Guinness Nigeria Plc, Mr. Babatunde Savage said the company has been well-positioned to take advantage of improvement in the Nigerian economy.

    “The current economic environment is challenging for all companies but we look forward to an improvement in the operating environment and are positioned to take advantage of improving consumer confidence that may occur as a result,” Savage said.

    Guinness Nigeria doubles as one of the oldest companies in Nigeria and one of the oldest listed companies on the Nigerian Stock Exchange (NSE). Guinness Nigeria built its first brewery in Ikeja in 1962, and currently has facilities in Ogba, Benin City and Aba. It was listed on the NSE in 1965. Guinness Nigeria is a member of Diageo Plc; which is listed on both the London Stock Exchange (LSE) and the New York Stock Exchange (NYSE).

     

  • Cowry Asset concludes N3b Zamfara bond underwriting

    Cowry Asset Management Limited has completed full payment of its N3 billion underwriting commitment under the N7 billion Zamfara State Government Bond.

    The N3 billion paid by Cowry Asset represents 42.86 per cent of the total value of the bond issue, the highest by any of the three underwriters to the bond issue.

    The N7 billion Zamfara State Government Seven-Year Fixed Rate Development Bond was the first tranche under the N30 billion Zamfara State bond issuance programme.

    The net proceeds of the bond issue would enable the Zamfara State Government to deleverage and reposition its finances towards delivering further dividends of democracy to its citizens.

    Securities and Exchange Commission (SEC) at the weekend confirmed that Cowry Asset has “satisfactorily fulfilled its underwriting commitment in accordance with the provisions of the Investment and Securities Act 2007 as well as the Rules and Regulations of the Securities and Exchange Commission”, referring to the full payment of the N3 billion underwriting commitment.

    Commenting on the completion of the underwriting, managing director, Cowry Asset Management Limited, Mr. Johnson Chukwu, said the N3 billion underwriting underlined the financial capacity of Cowry Asset at a time that several financial institutions are struggling to meet regulatory capital.

    He noted that the participation of Cowry Asset as a major underwriter in the Zamfara State bond was another illustration of the commitment of the firm as an indigenous partner in the quest for development of the Nigerian private and public sectors.

    “Cowry Asset has been involved as financial advisers, issuing house and underwriter in several fund raising exercise in the capital market for both public and private companies and governments through public offers, rights issue, private placements, corporate and government bonds. The company provides advisory services and funding to support the growth of Nigerian companies and development of the economy,” Chukwu said.

    He added that Cowry Asset has demonstrated competence in marketing capital issues with her extensive distribution network and team of experts who provide solutions to both issuers and the investing public.

    Cowry Asset, a full-service investment banking firm licensed by SEC as an issuing house, financial adviser, underwriter and venture capital manager, has been a major player in the Nigerian capital market for nearly a decade. It also has subsidiaries in consulting, securities trading and real estate.

    Some of the recent capital offers undertaken by Cowry Asset include the N30 billion Fidelity Bank subordinated unsecured fixed rate bond issuance 2022 and the N8 billion first tranche Cross River State Government fixed-rate seven-year bond issue 2022, among several others.

  • Equities record modest gain after JP Morgan’s scare

    Nigerian equities stabilised and ended the week with a modest gain of N56 billion, riding over the initial knee-jerk reaction to the decision of JP Morgan to exclude Nigerian sovereign bonds from the JPMorgan Government Bond Index-Emerging Markets Indices (JP Morgan GBI-EM Index) by the end of October.

    After the JP Morgan announcement on Tuesday, quoted equities lost N312 billion on Wednesday and moderated with a loss of N18 billion on Thursday. The market rallied N92 billion on Friday to fully neutralise the mid-week meltdown, closing the week with a modest gain of N56 billion.

    The benchmark index at the stock market, the All Share Index (ASI) of the Nigerian Stock Exchange (NSE), recorded average week-on-week gain of 0.60 per cent to close at 29,689.08 points as against the week’s opening index of 29,511.08 points. Aggregate market value of all quoted equities on the NSE rose from N10.148 trillion to close at N10.204 trillion, representing an increase of 0.54 per cent. Average year-to-date return remained negative at -14.33 per cent.

    Price trend analysis showed a stable but tight market situation as bargain-hunting combined with intermittent profit-taking transactions. There were 32 advancers against 37 decliners while 121 stocks closed flat. Trans Nationwide Express recorded the highest gain, in percentage terms, with a gain of 23.36 per cent to close at N1.32. Guinness Nigeria followed with a gain of 18.90 per cent to close at N152.19. Okomu Oil Palm Plc rose by 14.19 per cent to close at N27.12. Evans Medical chalked up 12.50 per cent to close at 72 kobo while Costain (West Africa ) rose by 12.28 per cent to close at 64 kobo.

    Total turnover stood at 1.41 billion shares worth N13.51 billion in 19,950 deals last week as against a total of 2.44 billion shares valued at N21.07 billion that were traded in 22,736 deals in the previous week. The financial services sector led the activity chart with 1.16 billion shares valued at N8.63 billion traded in 11,999 deals; representing 82.24 per cent and 63.90 per cent of the total equity turnover volume and value respectively. The conglomerates sector followed with a turnover of 87.04 million shares worth N474.66 million in 946 deals. The third place was occupied by the information and communication technology sector which recorded a turnover of 49.82 million shares worth N28.9 million in 50 deals.

    The trio of United Bank for Africa Plc, Zenith International Bank Plc and Diamond Bank Plc were the most active stocks, jointly accounting for 588.314 million shares worth N4.667 billion in 4,235 deals, representing 41.77 per cent and 34.55 per cent of the total equity turnover volume and value respectively.

    Also traded during the week were a total of 1,526 units of Exchange Traded Products (ETPs) valued at N695,885.40 million executed in 17 deals compared with a total of 11,357 units valued at N5.868 million transacted in 24 deals two weeks ago. A total of 3,675 units of Federal Government Bonds valued at N3.611 million were traded last week in eight deals compared with a total of 3,489 units valued at N3.674 million traded in similar eight deals two weeks ago.

    “While we observed a knee-jerk reaction in the Nigerian capital market since the announcement, we expect this to stabilize in the medium to long term as we await policy direction from the Buhari’s administration,” Afrinvest Securities stated at the weekend.

    Afrinvest Securities projected that cautious trading would pervade the market for most of this week as the United States Federal Reserves’ highly anticipated September FOMC meeting is scheduled for 16th and 17th of September amid unrelenting instability in crude oil market as Saudi rejects calls to defend market price.

    Analysts at Afrinvest Securities however noted that the JP Morgan’s exclusion could lead to further depreciation in the capital market but this may not be significant.

    “We imagine that the mild reaction that greeted the JP Morgan’s announcement suggests that the risk had already been priced as most risk-averse foreign investors may have already exited the market before now. It also suggests that the level of domestic institutional investors’ participation in the market is higher than commonly acknowledged. Nevertheless, we expect borrowing cost of government to rise at the next auction as subscription level may likely reduce while investors will seek additional premium to compensate for the increased risk perception and liquidity,” Afrinvest Securities stated.

    According to analysts, a further impact is expected to be felt as the exit of foreign investors is expected to increase government’s dependence on domestic investors thereby narrowing the pool of funds in the bonds market. Ultimately, this may increase the risks of government borrowing crowding out private sector investment due to higher borrowing cost.

    “The financial market sentiment is still likely to continue to feel the impact of this news flow as the domestic investor sentiments will seem to be the new major force driving the Nigerian fixed income market whilst the equities market may still continue to enjoy a mix of foreign and domestic sentiments as Nigerian equities still remains in the MSCI (Morgan Stanley Capital Index) for frontier markets,” Afrinvest Securities stated.

    Analysts pointed out that with a weight of 1.5 per cent out of $183.8 billion in the index, $2.8bn worth of foreign holdings of Nigerian government bonds is expected to exit the market, but this is significantly lower than a total of $8.0 billion in September 2014.

    This is expected to further pressure the external reserves as these funds, which have been gradually exiting since 2014, will be expected to leave the financial system; although the effect may not be noticeable on interbank foreign exchange rate given the Central Bank of Nigeria (CBN)’s managed peg of N199/$1.

     

     

  • Sterling Bank grosses N55b in first half

    Sterling Bank grosses N55b in first half

    Sterling Bank Plc recorded modest growths in the first half with 12 per cent growth in the top-line and 6.9 per cent increase in net profit.

    Key extracts of the interim report and accounts for the half year ended June 30, 2015 released yesterday at the Nigerian Stock Exchange (NSE) showed steady growth in key performance indices, underlining the resilience of the bank against inclement operating environment and regulatory headwinds.

    Gross earnings rose by 12 per cent to N55 billion in first half of 2015 as against N49.39 billion in corresponding period of 2014. The top-line was driven by a 32.2 per cent increase in non-interest income to N15.2 billion from N11.4 billion reported in the corresponding period of 2014. Profit before tax inched up by 1.43 per cent from N5.97 billion to N6.06 billion. Profit after tax rose by 6.9 per cent to N5.4 billion in first half 2015 as against N5.1 billion in comparable period of 2014.

    Further analysis showed that operating expenses was relatively flat at N24.2 billion leading to an improvement in cost –to-income ratio. The bank’s balance sheet also came in stronger with shareholders’ funds increasing by 4.4 per cent to N88.4 billion as against N84.7 billion in 2014.Total assets , excluding contingent liabilities, increased by 1.2 per cent to N834.0 billion as against N824.5 billion in 2014.

    Commenting on the results, managing director, Sterling Bank Plc, Mr. Yemi Adeola, said the bank continued to strengthen its mid and bottom-line performances, as its increasing focus on cost reduction, credit risk management and operating efficiency cushioned macro headwinds and retained value for shareholders.

    According to him, the performance in the first half underscored the steady progress of the bank’s growth plan and its resilience in the face of regulatory and other macroeconomic headwinds.

    He noted that the bank prioritized performance optimization and operational efficiency leading to a 260-basis points improvement in cost-to-income ratio while it also achieved pre-tax return on average equity of 14 per cent with a double-digit growth in top-line earnings.

    He pointed out that the capital position of the bank has remained strong with capital adequacy ratio at 15 per cent, 50 per cent higher than the regulatory benchmark.

    Adeola said the bank would in the second half complete the ongoing implementation of a number of technology-led service improvement initiatives across core and subsidiary systems in order to improve operating efficiency and employee productivity.

    “Furthermore, we remain confident that we will complete the final tranche of our capital program in order to build additional resilience in view of the prevailing difficult macro-economic conditions while also strengthening earnings capacity”,  Adeola added.

  • Kudos for CCNN

    Shareholders have passed a vote of confidence on the board and management of the Cement Company of Northern Nigeria (CCNN) Plc for improving the fortunes of the company in the last one year.

    The shareholders spoke on the sidelines of the company’s 36th Annual General Meeting in Abuja.

    Speaking on behalf of a shareholder group, Shehu Mallam Mikail, National President, Constance Shareholders’ Association of Nigeria, expressed satisfaction with the track record of the company, saying it has continued to deliver shareholders’ value.

    According to him, “The sterling performance of the company was made possible because the Board and Management are being transparent in their reports and also comply with all the necessary rules that govern all the quoted companies in Nigeria.”

    Besides, he said the company was able to declare substantial dividends in spite of the poor state of infrastructure, among others.

    “With a proactive approach of the Board/Management which prompted the company to make an alternative measure in maintaining a stable production line by using Biomass as a supplementary Kiln fuel through which it as able to reduce the cost of energy. And the company is really abiding to the company mission of producing and marketing high quality cement for national development.”

    Judging by the modest success achieved by the company, the shareholders said they would continue to throw their weight behind the board.

    “Shareholders would surely support companies that put smiles on their faces when dividends are being declared,”Afolabi Bankole, a shareholder said.

    “We are happy with the performance of the company thus far and that is why we have promised to continuously support all the resolutions passed by the Board/Management because it shows they know how to carry along all the stakeholders, including minority or majority shareholders of the company.”

    They however stressed the need for the company need to raise more funds so as to able to complete the coal line project as expected to be completed by 2017.

    CCNN posted a profit after tax of N1.9 billion in the financial year ended December 31, 2014, indicating an increase of 23 per cent over the N1.56 billion recorded in the corresponding period of 2013.

    From a high of N2.77 billion in 2013, CCNN Plc’s production and operational expenses significantly declined to N2.40 billion in 2014. Shareholders were also apprised of the developments the company took in the financial year, including CCNN Plc’s proposed N48billion cement plant expansion, which will modernise production facilities and raise the company’s output to 2.0 million metric tonnes of cement annually.

  • Access Bank rallies as shareholders get N5.7b interim dividend

    Access Bank rallies as shareholders get N5.7b interim dividend

    Access Bank Plc was a major contrarian stock in the negative trading at the Nigerian stock market yesterday as the top-tier commercial bank released its half-year earnings report, showing impressive growths across key fundamentals.

    On the strength of the six-month earnings, which saw 43 per cent growth in gross earnings and 39 per cent in profit after tax, the board of the bank has recommended distribution of N5.72 billion as interim dividend to shareholders. The breakdown of the dividend recommendation indicated that shareholders on the register of the bank as at the close of business on September 3, 2015 would receive a dividend per share of 25 kobo. More than 830,000 shareholders would benefit from the interim dividend, which becomes payable on September 10, 2 105.

    Against the average decline of 0.98 per cent, Access Bank’s share price rose by 4.91 per cent, the fourth highest percentage gain, to close at N4.29 as the news made the round at the Nigerian Stock Exchange (NSE).

    Key extracts of the audited report for the six-month ended June 30, 2015 showed that gross earnings rose by 43 per cent to N168.3 billion in first half 2015 as against N117.9 billion recorded in comparable period of 2014. The top-line was boosted by an 18 per cent increase in interest income to N98.9 billion in the first half of 2015 compared with N83.6 billion in the comparable period of 2014. Group profit before tax leapt by 44 per cent to N39.1 billion as against N27.1 billion in previous year while profit after tax grew by 39 per cent to N31.3 billion in first half 2015 compared with N22.6 billion in first half 2014.

    Non-interest income had risen by 101 per cent to N69.4 billion in first half 2015 as against N34.6 billion in first half 2014. Return on average equity improved to 21.6 per cent in first half 2015 from 16.5 per cent in 2014.

    Group managing director, Access Bank Plc, Mr. Herbert Wigwe said the results reflect the bank’s concerted efforts to deliver on its growth objectives for 2015.

    According to him, while the first half of the year was defined by significant macro-economic and policy headwinds with major impact on all aspects of its business, the group despite those challenges reported improved profits in the first half of the year with significant contributions from its securities trading business.

    He commended the strong support from shareholders of the bank noting that the success of the recently concluded rights issue which raised N41.8 billion has placed the bank in a stronger position.

    “With our capital position secure, our priority will be to focus on; driving migration of our customers to alternative platforms  to boost profitability of our channels; implementing  our customer service improvement initiatives; generating low-cost liability from continued engagement with customers; growing risk assets by deepening market share in target sectors; optimising and improving penetration of our customers’ value chain and driving operational efficiency through  cost containment and procurement optimization measures,” Wigwe said.

  • Twitter falls below IPO price

    Twitter Inc shares fell below their $26 initial public offering price, down almost two-thirds from a peak soon after the stock began trading.

    The selloff was triggered three weeks ago, when Jack Dorsey, co-founder and interim chief executive officer, warned that it would take a while before Twitter is able to reverse a slowdown in user growth.

    While his candor was applauded by analysts, investors appear to have taken his comments — which also described product performance as “unacceptable” — to heart. The board’s search for a new CEO, and uncertainty over whether Dorsey is in contention for the job, also have weighed on the shares. At stake is whether Twitter — used by 316 million monthly users posting and sharing 140-character messages — can become a mainstream platform instead of a niche forum favored by journalists and celebrities.

    Bloomberg reported that Twitter was down 5.9 percent at $25.97 on Thursday amid a general market selloff. The company’s shares have declined about 28 percent so far this year.

    At the time of Twitter’s November 2013 IPO, the company was heralded as a high-growth stock with the potential to be the next Facebook Inc. Yet the San Francisco-based company has failed to grow as fast as expected. Twitter has endured months of pressure over the user numbers, tweaking its features and shuffling its product and engineering leadership, without much progress.

    Further share declines could add pressure on Twitter to seek a takeover, or complete its search for a CEO. Dorsey also runs Square Inc., which he couldn’t leave without straining the payment company’s planned IPO, people familiar with the matter have said.

    When Twitter reported earnings on July 28, Dorsey and Chief Financial Officer Anthony Noto struck a critical tone, saying user growth won’t improve until the service boosts its appeal to a bigger market and that product improvements and marketing so far have met with minimal success. Even since the IPO, Twitter’s growth has stagnated while rival social applications, including WhatsApp and Facebook Messenger, have drawn hundreds of millions more people.

    Twitter’s board also is planning a shakeup that involves the departure of former CEO Dick Costolo, people with knowledge of the matter have said. The changes, which could be announced when the company names a permanent CEO, are aimed at making the group of directors more diverse, said the people, who asked not to be identified because the deliberations aren’t public.