The Nation Newspaper

Category: Equities

  • Shareholders commend Chams Plc performance

    In what could be described as an imprimatur of support for the board and management of Chams Plc, shareholders of the company yesterday hailed the company’s performance in the last financial year end.

    The event was at the 31st Annual General Meeting of the company in Lagos.

    The shareholders gave their vote of confidence shortly after the announcement of Mr. Olufemi Williams  as the Group Managing Director-designate, by the company’s chairman, Very Rev. Ayo Richards.

    Speaking on behalf the shareholders, Mr. Shehu Mikail, National President, Constance Shareholders Association of Nigeria, said despite the economic downturn occasioned by the plummeting oil prices and fall in the value of the naira, it was heartening to note that the company was a lot of promises.

    The chairman, who noted that the last 12 months has been a period of consolidation for the company, recalled that: “Sir Demola Aladekomo has been a very strong leader, the only Group Managing Director and CEO in the company’s great and nearly 30-year history, and one who has managed the company through challenging times and market transitions. The board is grateful for his innumerable contributions to the company and his distinguished tenure as CEO over the last 29 years.”

    Until the announcement of Aladekomo’s retirement, Williams was the Deputy Managing Director, and a Chams Plc veteran having joined the company in 1990 as a Computer Engineer.

    He rose to the position of General Manager in January 2001, and held same until he joined SuperCard Limited as Managing Director in March 2004. Olufemi was appointed Deputy Managing Director, Chams Plc in January 2012 after the merger of SuperCard Limited with Chams Plc.

    Other appointment ratified by the board and shareholders was Mr. Lukman Balogun as new Deputy Managing Director. He is currently the MD of CardCentre Nigeria Limited, a subsidiary of Chams Plc.

    The board chair also said the directors recommended payment of dividend of 2 kobo per ordinary share of 50 kobo held, just as the outgoing GMD, Aladekomo hinted that the company has set new corporate objectives for the new financial year.

    Among other things, he said the company would focus more on training and development, boosting staff welfare, improve customer base, pushing brand awareness, growing revenue targets, paying dividends by the end of the 2015 financial year among others.

  • Slow first quarter earnings dampen equities

    Slow first quarter earnings dampen equities

    Nigerian equities relapsed to the negative last week as investors sought to rebalance their portfolios in the light of largely tepid first quarter performance by many quoted companies.

    Key benchmark indices at the Nigerian Stock Exchange (NSE) indicated that the market traded largely on negative sentiments during the week. The All Share Index (ASI), the value-based composite index that tracks prices of all quoted companies, indicated a week-on-week decline of 1.48 per cent. The ASI closed the week at 34,485.72 points as against its week’s opening index of 35,005.05 points.

    The downtrend last week pushed the overall market situation to the negative. Average year-to-date return, which opened the week at 1.0 per cent, closed the week at -0.49 per cent. With the exception of the insurance and industrial goods sectors, all group indices at the stock market indicated widespread bearish sentiments.

    The NSE 30 Index, which tracks the 30 most capitalised stocks and thus mirrors the overall market situation, recorded a weekly decline of 1.38 per cent. The NSE Banking Index indicated a week-on-week decline of 1.90 per cent. The NSE Consumer Goods Index slipped by 1.98 per cent. The NSE Oil and Gas Index dropped by 0.75 per cent while the NSE Lotus Islamic Index, which tracks ethical stocks in line with Islamic laws, depreciated by 0.43 per cent. However, the NSE Insurance Index recorded impressive gain of 2.56 per cent while the NSE Industrial Goods Index recorded modest gain of 0.64 per cent.

    Aggregate market value of all quoted companies dropped by N177 billion to close the week at N11.751 trillion as against opening value of N11.928 trillion. Analysis of price movement showed that 42 stocks appreciated during the week as against 33 stocks that depreciated.

    Low-priced stocks dominated the top price changes, underlining the conflicting shift in investors’ mood to potential capital gains and dividend yields as well as aversion for risks associated with illiquid stocks. Ikeja Hotel led the losers with a drop of 22.06 per cent to close at N3.78. Costain West Africa declined by 16 per cent to 84 kobo. Trans Nationwide Express declined by 13.33 per cent to close at N1.17. Livestock Feeds dropped by 11.15 per cent to N2.31 while Fidelity Bank depreciated by N1.90 to close at N10.80 per share.

    Meanwhile, other low-priced stocks dominated the gainers’ list. RT Briscoe recorded the highest gain, in percentage term, of 20.24 per cent to close at N1.01 per share. Neimeth International Pharmaceuticals followed with a gain of 18.95 per cent to close at N1.13 while NPF Microfinance Bank rose by 18.80 per cent to close at N1.39 per share.

    Total turnover stood at 2.06 billion shares worth N17.18 billion in 25,577 deals last week in contrast with a total of 1.92 billion shares valued at N19.40 billion traded in 23,988 deals two weeks ago. Financial sector remained the dominant sector leading the activity chart with 1.61 billion shares valued at N9.90 billion in 14,438 deals. This represented 77.79 per cent and 57.63 per cent of the total equity turnover volume and value respectively. The conglomerates sector followed with a turnover of 214.68 million shares worth N1.580 billion in 1,604 deals. The third place was occupied by the consumer goods sector with 84.940 million shares worth N3.036 billion in 4,313 deals.

    The trio of United Bank for Africa Plc, Transnational Corporation of Nigeria Plc and Standard Alliance Insurance Plc were the most active stocks. The three stocks accounted for 670.96 million shares worth N2.31 billion in 3,133 deals, representing 32.51 per cent and 13.43 per cent of the total equity turnover volume and value respectively.

    Also traded during the week were a total of 2.942 million units of Exchange Traded Products (ETPs) valued at N70.679 million in 47 deals compared with a total of 408,933 units valued at N7.019 million traded in 30 deals in the previous week. Also, a total of 9,450 units of Federal Government bonds valued at N10.824 million were traded in nine deals compared with a total of 10 units of Federal Government bonds valued at N10,792.74 traded in the previous week.

    Analysts at Afrinvest Securities said the investors were becoming more cautious in the wake of slow first quarter earnings.

    “Although more first quarter 2015 corporate releases were posted during the week, investors’ reaction remained largely calm as most of the numbers posted were unimpressive,” analysts said. They noted that given the recent passive mood in the market, the market is expected to continue to trade sideways this week.

     

  • Shareholders commend UBA on prudent management

    Shareholders commend UBA on prudent management

    Shareholders of the United Bank for Africa (UBA) Plc at the weekend commended the board and management of the bank for their ability to continue to sustain the bank’s domestic growth and its increasing penetration in other African markets.

    At the 53rd annual general meeting held at the Oriental Hotel in Lagos, shareholders commended the directors of the bank for the stable performance in the immediate past year. They also approved the modest dividend per share of 10 kobo recommended by the directors, noting that retention of more net earnings would lead to better returns in future.

    Shareholders noted that non-Nigerian African operations accounted for one-fifth of the bank’s earnings during the year and lauded the increasing penetration of the bank in other African countries. UBA emerged as the best bank in Cameroun and Senegal for the fourth and third consecutive year respectively.

    Alhaji Mukhtar Mukhtar, a shareholder of the bank, commended the leadership of the erstwhile group managing director of the bank, Mr. Tony Elumelu, pointing out that his appointment as the chairman of the bank would improve shareholders’ fortunes.

    “I commend the appointment of Tony Elumelu as the chairman. He has proven business leader. I am also happy with the bank’s performance, I have no doubt that it will continue to improve with Elumelu as chairman,” Mukhtar said.

    Another Shareholder, Alhaji Kabiru Tambari commended  the management for focusing on both the short and long term growth of the bank, saying that shareholders are not only interested in the profit the bank makes this year but also in the ability of the bank to sustain its leadership position over the long term.

    Addressing the shareholders, chairman, United Bank for Africa (UBA) Plc, Tony Elumelu assured that the bank would continue to adhere to the best corporate governance practices while striving to improve shareholders’ value.

    He explained that the bank’s dividend policy in the immediate past financial year was guided by the need to be prudent adding that the directors of the bank were being futuristic in line with the commitment to sustain the leadership and dominant position of UBA on the continent.

    “Though UBA is adequately capitalized with capital adequacy ratios in excess of regulatory requirement, we proactively raised additional capital during the year to further boost our capital base and it would not have been prudent to pay so much dividend after raising capital from the market. Shareholders should however expect higher dividend in future,” Elumelu said.

    He noted that the improved performance of the bank in 2014 was buoyed by the increased volume of transaction across all service channels and growing share of customers’ wallet.

    According to him, notwithstanding the relatively high cost of doing business in Africa in the year, the bank remained prudent in its operations, thus ensuring profitability in the year.

    “Given increased extraction gains from our unique Pan-African platform, we are optimistic on delivering a stronger performance in 2015,” Elumelu said.

    In his remarks, group managing director, United Bank for Africa (UBA) Plc, Phillips Oduoza, noted that the bank is gaining critical mass across the African continent and the benefit is fast reflecting in the contribution of the African subsidiaries to the group’s profit.

    “In 2014, the African subsidiaries contributed one-fifth of our earnings, a unique diversification benefit which UBA offers its shareholders. We will profitably and prudently grow our market share in all the 19 African countries including Nigeria, where we operate, as we look forward to delivering superior returns to our shareholders,” Oduoza said.

    Key extracts of the audited report and accounts of UBA for the year ended December 31, 2014 showed that gross earnings rose from N264.69 billion in 2013 to N290.02 billion in 2014. Interest income had grown from N185.7 billion to N196.68 billion while net interest income increased from N103.23 billion to N106.13 billion.

    The audited report showed that the banking group substantially consolidated its African operations and enhanced productivity across the group, which helped to cushion impacts of industry-wide regulatory headwinds.

    The bank’s total assets rose to N2.76 trillion in 2014 as against N2.64 trillion in 2013 while shareholders’ funds increased from N235.04 billion to N265.41 billion. The bottom-line performance was however muted by midline costs. Profit before tax stood at N56.2 billion in 2014 as against N56.06 billion in 2013. Profit after tax improved from N46.60 billion in 2013 to N47.91 billion. With this, earnings per share improved slightly from N1.52 in 2013 to N1.56 in 2014. Customer deposits remained stable at N2.17 trillion in 2014.  Buoyed by this stability, UBA expanded its support for businesses on the continent by increasing its loan book by 14 per cent to N1.072 trillion in 2014.

     

  • Transcorp to start commercial farming in Benue

    Transcorp to start commercial farming in Benue

    Transnational Corporation of Nigeria Plc (Transcorp) Plc is concluding arrangements to establish a large-scale commercial farming business in Benue State as part of efforts to further expand the group’s agricultural business.

    Teragro Commodities Limited, the agricultural subsidiary of Transcorp, has already signed a memorandum of understanding (MoU) with the Benue State government to lease land to establish citrus farms in Ushongo, Benue. Benue State’s Commissioner for Agriculture and Natural Resources, Donald Gbugho signed on behalf of the State Government alongside Permanent Secretary to the Minister of Agriculture Dr. Neeyum Tsavnum.

    The MoU represented an expansion of Teragro’s current operations in Benue State, which have previously been focused in Makurdi. Teragro has been functioning as an industrial operation processing oranges and mangoes into concentrates for local consumption. Over time, Teragro has grown and expanded its footprint and now produces concentrate that meets the most rigorous global standards for purchase by multinational corporations, including a leading international beverage manufacturer.

    Managing director, Teragro Commodities Limited, Dupe Olusola said Teragro would continue to contribute to the growth of a diversified economy by exploring opportunities in the agriculture sector.

    “The untapped opportunities in agriculture are huge and we are committed to ensuring that Nigeria can once again generate high revenues from agriculture as it did before the discovery of oil. The new farming land will ensure we can do our part to bring those untapped opportunities to fruition,” Olusola said.

    She lauded the efforts and cooperation of the state government and the host community.

    Gbugho thanked Teragro for continuing to invest in Benue State noting that Teragro has contributed immensely to growth in Benue State.

    “They first addressed community and youth unemployment by creating jobs and now, the company is taking a step forward by beginning proper farming, through expert agricultural investors who are standing by with improved varieties of oranges, which the Ushongo people and Benue State at-large can benefit from. This is truly a significant step in the development of agriculture in Benue and in Nigeria,” Gbugho said.

     

  • Why we are investigating BGL, by SEC

    Why we are investigating BGL, by SEC

    Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator, yesterday said it sacked directors of BGL Plc and launched a new comprehensive investigation into the operations of one of Nigeria’s topmost capital market operators because the Commission was convinced that there was need to dig deeper into the operations of the troubled firm.

    SEC had at the weekend sacked the board and management of BGL Plc and set up interim management team for the firm.

    Acting Director-General, Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo, said it took the decisive step of sacking the directors of the company because the firm could not provide satisfactory answers to queries that emanated from previous investigations and the Commission believed there were substantial things to clarify.

    Gwarzo, who gave an insight into why the SEC set up an interim management team and its mandate, said the interim management has the mandate to conduct detailed investigation into the operations of the firm.

    “What we did for BGL was basically extending our investigation process. We undertook target inspection of BGL. When we finished the investigation, we came up with our own report and we wrote them a letter and we said we want them to clarify. They responded by asking us for additional time to respond and we granted them that additional time and they responded. We reviewed their response and we felt there is a need for us to go in and confirm or clarify certain things. That is the situation we are in now,” Gwarzo said.

    He said the findings of the interim management team would determine further action by the Commission. The interim management board set up for BGL by SEC is headed by Mr. Oladipo Aina with Mr. Abubakar Ambursa, Mrs. Hafsat Rufai, Ms. Temitayo Siyanbola and Ms. Tonne Ladipo-Ajayi as members.

    “We set up an interim management team that has already moved in and is doing its job. I don’t want to preempt what the interim management team would come up with, but the moment they finish the report, SEC will look at it and take the next line of action,” Gwarzo said.

    However, Gwarzo did not elaborate on the details of previous investigations. Market sources meanwhile said the Commission moved into BGL after the firm was not able to resolve pending investors’ complaints and resolutions.

    Sources said BGL might be undergoing crunchy liquidity challenges, which hamper its ability to meet financial obligations as assets are tied down in fixed and illiquid assets.

  • Stock Exchange set for direct payment to investors

    Stock Exchange set for direct payment to investors

    The Nigerian stock market is set for a paradigm shift in its payment process, transaction cycle and costs of transactions as the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange (NSE), the Central Securities and Clearing System (CSCS) Plc and other stakeholders finalise key initiatives that will redirect payment of sales’ proceeds to directly to investors’ accounts within a shorter timeframe.

    These were the highlights of the first quarter meeting of the Capital Market Committee (CMC) yesterday in Lagos. The CMC comprises of the all stakeholders in the capital market including SEC, the apex regulator, the NSE, a self-regulatory organisation and the only stock exchange; the CSCS, the depository and settlement agent for the stock market and all the trade groups and relevant public policy makers.

    Addressing financial journalists at the end of the meeting, acting director general, Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo, said the CMC deliberated on key initiatives aimed at enhancing and deepening investors’ participation and confidence in the Nigerian market.

    According to him, one of these initiatives is the implementation of the direct payment of sales’ proceeds to investors’ accounts. This will represent a paradigm shift from the current process under which sales’ proceeds are credited to the stockbrokers’ accounts, who thereafter make payment to the investors.

    Under the direct payment system, investors will provide their bank accounts to the CSCS, the depository, alongside other stockbroking and investment account details, and the CSCS will directly credit the investors’ accounts once transactions are concluded.

    In another major boost, Gwarzo said the CMC was working on a proposal that will hopefully lead to reduction in the settlement cycle from the current “T+3” to “T+2” or “T+1”.

    Under the “T+3”, transactions carried out on the capital market is expected to be settled three days after the trade date. Reducing the cycle means that transactions will be settled faster.

    “One area that we also think will encourage investors greatly is the area of direct payment where if a client gives his shares to be sold, the proceeds of the sale would be credited into his account directly. So, he would have direct access to the funds. And, hopefully, our settlement system might be reduced from “T+3”, probably to “T+1” or “T+2,” Gwarzo said.

    He added that the CMC would at its next meeting, second quarter meeting, discussed a report by the sub-committee set up on reduction of transaction costs as part of efforts to encourage investors.

  • GTBank grosses N79b in three months

    GTBank grosses N79b in three months

    Guaranty Trust Bank (GTBank) Plc recorded double-digit growths in the top-line and bottom-line in the first quarter, a strong start that triggered a rally on the share price of the stock at the weekend.

    Key extracts of the unaudited report and accounts of GTBank for the period ended March 31, 2015 showed that gross earnings and pre-tax profit rose by 17 per cent each. After tax, net profit rose by 15 per cent.

    Gross earnings rose to N79.02 billion in first quarter 2015 as against N67.58 billion recorded in comparable period of 2014. The top-line performance was driven by strong growth in interest income and effective management of operating expenses and cost of risk. Profit before tax rose from N28.01 billion to N32.65 billion. After taxes, net profit increased to N26.56 billion in first quarter 2015 compared with N23.11 billion recorded in first quarter 2014. Earnings per share improved from 81 kobo in first quarter 2014 to 94 kobo in first quarter 2015.

    The balance sheet remained strong with total assets of N3.15 trillion. Customer deposits rose to N1.69 trillion in March 2015 as against N1.65 trillion by the year ended December 31, 2014. Shareholders’ funds however slipped marginally from N374.33 billion in December 2014 to N357.59 billion in March 2015.The bank continued to improve on its credit asset management. The proportion of gross loans and advances to non-performing loans improved to 3.06 per cent as against 3.40 per cent in the comparative period of 2014. Loan book grew by 28 per cent to N1.30 trillion in 2015 as against N1.02 trillion in corresponding period of 2014.

    Managing director, Guaranty Trust Bank (GTBank) Plc, Segun Agbaje, said the major focus for the bank going forward is to strengthen market positions with distinctive customer propositions in chosen segments in order to deliver long-term sustainable and efficient growth as well as strong shareholder returns.

    He noted that as a financial institution with a bias for industry leadership, exceptional service delivery and innovation, GTBank has experienced tremendous growth since its inception in Nigeria in 1990. Now, the bank presently employs over 10,000 peoples in Cote d’Ivoire, Kenya, Gambia, Ghana, Liberia, Sierra Leone, Rwanda, Uganda and the United Kingdom.

    GTBank recently distributed N44.15 billion as final dividend, representing a dividend per share of N1.50 kobo. Total dividend per share for 2014 stood at N1.75 as against N1.70 paid for the 2013 business year. It had paid interim dividend per share of 25 kobo. This brought total payout to N51.5 billion for the 2014 business year as against N50.03 billion in 2013.

    Key extracts of the audited report and accounts for the year ended December 31, 2014 showed that GTBank grew its top-line by 15 per cent with gross earnings of N278.52 billion in 2014 compared with N242.67 billion in 2013. Profit before tax rose by nine per cent from N107.09 billion to N116.39 billion. Profit after tax grew by 10 per cent from N90.02 billion to N98.69 billion. Earnings per share consequently rose by 10 per cent to N3.47 in 2014 as against N3.17 in 2013.

    Balance sheet analysis showed that deposits base expanded by 14 per cent to N1.65 trillion in 2014 compared with N1.44 trillion in 2013. Shareholders’ funds also rose by 13 per cent from N332.35 billion to N374.33 billion. Total balance sheet size rose by 12.4 per cent from N2.10 trillion in 2013 to N2.36 trillion in 2014.

    GTBank also continued to maintain disciplined and prudent approach to loan growth as the proportion of non-performing loans to total loans dropped from 3.58 per cent in 2013 to 3.15 per cent in 2014.

     

     

  • Dangote Sugar Refinery declares N4.8b dividend

    Dangote Sugar Refinery declares N4.8b dividend

    Shareholders of Dangote Sugar Refinery (DSR) Plc will share about N4.8 billion as cash dividends for the immediate past business year, according to the board of the manufacturing company.

    A dividend recommendation released at the weekend indicated that shareholders would receive a dividend per share of 40 kobo for the business year ended December 31, 2014. However, the dividend represents a 33.3 per cent on 60 kobo dividend paid for the previous year.

    Audited report and accounts of the company for the year ended December 31, 2014 showed mixed performance. Turnover dropped from N103.15 billion in 2013 to N94.86 billion in 2014. Profit before tax also slipped from N16.27 billion in 2013 to N15.27 billion in 2014. However, with reduction in tax provisions, net profit increased from N10.85 billion to N11.64 billion. With this, earnings per share rose marginally from 90 kobo to 97 kobo.

    Total assets increased to N92.80 billion in 2014 as against N83.16 billion in 2013. Shareholders’ funds also rose from N46.98 billion to N51.41 billion.

    DSR distributed N7.2 billion to shareholders as cash dividends for the 2013 business year, representing a dividend per share of 60 kobo.

    Chairman, Dangote Sugar Refinery (DSR) Plc, Aliko Dangote, had assured that the company’s 10-year growth plan would deliver better returns to shareholders and consolidate its position as the largest sugar company in West Africa.

    According to him, pursuant to the introduction of the federal Government’s National Sugar Master Plan in Nigeria, DSR has begun it own development plan which would lead to phenomenal growth in its capacity over the next five to 10 years.

    “This plan is targeted at the production by your company of 1.5 million to 2.0 million tonnes of sugar per annum from locally-grown sugar cane within the next five to 10 years. This will further consolidate our position as the largest sugar producer in West African region,” Dangote said.

    H e noted that the company has taken great care in the preparation of this sugar development plan with the operations being structures to include an increased focused on the company’s backward integration project.

    He said the company has a robust growth agenda driven by the backward integration development plans.

    “As we commence this journey our priority remains to consolidate our clear leadership of the sugar industry in Nigeria. We will work to ensure ongoing operational efficiency to drive continued growth across our markets,” Dangote said.

     

  • Access Bank assures shareholders as Q1 earnings rise by 34%

    Access Bank assures shareholders as Q1 earnings rise by 34%

    The management of Access Bank Plc has assured shareholders of the bank that the bank is focused on delivering better returns on their investments. The assurance came as the bank released its first quarter unaudited report and accounts, showing 34 per cent growth in gross earnings and 21 per cent growth in pre-tax profit.

    The three-month report for the period ended March 31, 2015 showed that gross earnings rose by 34 per cent to N76.7 billion in first quarter 2015 compared with N57.3 billion recorded in comparable period of 2014. Non-interest income rose by 17 per cent while non-interest income grew by 47 per cent. Interest Income rose from N39.6 billion to N46.4 billion, benefiting from a loan portfolio growth and improved yields on fixed income securities. Non-interest income rose from N17.6 billion to N30.4billion, driven by growth in net trading income.

    Operating income rose by 28 per cent from N42.2 billion to N54.0 billion. Profit before tax rose to N16.5 billion as against N13.6 billion in comparable period of 2014. Profit after tax grew by 11 per cent to N13.7 billion in first quarter of 2015 compared with N12.3 billion recorded in first quarter 2014. Return on average equity improved from 19.7 per cent in first quarter 2014 to 19.2 per cent in first quarter 2015.

    Total assets closed March 2015 at N2.14 trillion as against N2.10 trillion in December 2014. Loans and advances recorded a modest growth of two per cent to N1.15 trillion in first quarter 2015 as against N1.12 trillion in December 2014. Customer deposits however dropped marginally from N1.45 trillion in December 2014 to N1.39 trillion in March 2015. The bank attributed the decline to run-off of expensive funds and replacement with stable and lower cost deposits as it strived to sustain its margins.

    Underlying ratios underscored improved performance. Capital adequacy ratio improved to 19.6 per cent in March 2015 as against 18.4 per cent in December 2014.Credit quality was sustained during the period as the percentage of non-performing loans to total gross loans improved to 2.1 per cent in March 2015 as against 2.2 per cent in December 2014. Coverage Ratio with regulatory risk reserve increased to 165 per cent in first quarter 2015 as against 154 per cent in December 2014. However, net interest margin declined to 5.9 per cent in first quarter 2015 as against 7.1 per cent in comparable period of 2014.Cost to income ratio stood at 62.2 per cent in first quarter 2015 as against 64.6 per cent in first quarter 2014.

    Commenting on the results, group managing director, Access Bank Plc, Herbert Wigwe, said the first quarter performance underlined the bank’s steady progress towards key strategic objectives.

    “Our focus remains on the delivery of sustainable value to our shareholders. We continue to deepen and broaden our top-tier corporate relationships whilst optimizing and growing our diverse retail customer base to support low-cost liability growth,” Wigwe said.

    Access Bank recently floated a rights issue of 7.63 billion ordinary shares of 50 kobo each at N6.90. The net proceeds of the N53 billion offer would be used to upgrade the information and communication technology (ICT) systems of the bank to provide better services and build a more robust ICT platform as well as upgrade the branch network and facilities to serve the growing number of clients and further improve the working environment of staff.

    The bank would also use part of the proceeds to further develop its distribution channel infrastructure to provide better and more efficient services to clients while it would also augment its working capital to expand its loan book in its identified sectors of growth in line with its medium term strategic objectives. Access Bank would also use part of the proceeds to pursue opportunities for international expansion.

     

     

  • UBA optimistic as Q1 profit grows by 36%

    The directors of United Bank for Africa (UBA) Plc are optimistic the bank is set for a stronger performance this year as first quarter earnings showed considerable growths in the top-line and the bottom-line.

    Key extracts of the three-month unaudited report and accounts of UBA for the period ended March 31, 2015 showed that the top-line rose by 22 per cent while pre and post tax profits rose by 36 per cent and 35 per cent respectively. Gross earnings rose to N83.1 billion by March 2015 compared with N68.1billion made in the first three months of 2014. Profit before tax grew by 36 per cent to N18.4 billion in first quarter 2015 as against N13.5 billion in comparable period of 2014. After taxes, net profit grew by 35 per cent to N17 billion in first quarter 2015 as against N12.6 billion in the comparable period of 2014.

    Group managing director, United Bank for Africa (UBA) Plc, Mr. Phillips Oduoza, described the first quarter performance as a great start to the year noting that the performance in the first quarter underlined the resilience of the bank as it admirably weathered the uncertainties that characterized the Nigerian economy during the first quarter of 2015.

    “We witnessed what can best be described as a quantum leap in our profit and balance sheet drivers. Besides the significant growth in profits, I am also impressed by the six per cent quarter-to-date growth in deposits and the low 1.6 per cent non-performing loans (NPL) ratio, which reflects our prudence.  It shows our focus on both profit drivers and risks within our operating environment,” Oduoza said.

    He explained that the group’s African business operations contributed over one-fifth of the group’s earnings in the first quarter adding that there would be a more positive outlook as the bank’s pan-African operations increasingly gain critical mass across the African markets.

    He said the bank would remain focused on cross selling initiatives and niche market  play as it continues to build a leading Pan-African financial services franchise and delivering superior value to its shareholders.

    The significant growth in profit after tax means that the bank’s earnings per share at the end of the 2015 financial year is forecast to rise by 35 per cent to N2.06 from N1.53, if the first quarter growth rate is sustained, while return on equity is expected to rise to 24.8 per cent from 22.1 percent within the same period, showing significant improvement in returns to shareholders.

    Commenting on the results, group chief financial officer, United Bank for Africa (UBA), Ugo Nwaghodoh, said the bank tapped into efficiency gains in its operations to boost profitability.