The Nation Newspaper

Category: Equities

  • Unity Bank bounces back with N13.6b profit

    Unity Bank Plc made a remarkable turnaround in 2014 as the commercial bank returned to the green with a pre-tax profit of about N14 billion. Against the background of loss before tax of N33.64 billion in 2013, Unity Bank rode on the back of improved capital base, growing top-line and better cost efficiency to record a full-year profit before tax of N13.64 billion.

    Key extracts of the audited report and accounts of the bank for the year ended December 31, 2014 showed that gross earnings rose from N62.83 billion in 2013 to N77.07 billion in 2014. Interest income had grown from N52.2 billion in 2013 to N62.64 billion in 2014 while net interest income rose from N30.14 billion to N45.45 billion. Fee and commission income stood at N10.71 billion in 2014 as against N7.33 billion in 2013. Other incomes totaled N3.72 billion in 2014 compared with N3.30 billion in 2013.

    After taxes, net profit stood at N10.69 billion in 2014 compared with net loss after tax of N22.58 billion in 2013. Earnings per share thus turned positive with a modest 17.45 kobo in 2014 in contrast with loss per share of 58.74 kobo recorded in previous year.

    The balance sheet of the bank also firmed up substantially. Total assets rose to N413.31 billion in 2014 as against N403.63 billion in 2013. Total liabilities meanwhile dropped from N375.42 billion in 2013 to N337.04 billion in 2014. Shareholders’ funds closed 2014 at N76.26 billion as against N28.21 billion in 2013.

    Unity Bank had raised N39.22 billion new equity funds in 2014 through a combined rights issue of N19.22 billion and special placement of N20 billion.

    In a recent review, managing director, Unity Bank Plc, Mr. Henry Semenitari, said the bank’s growth was founded on the improving fundamentals and would not be impaired by any loss or impairments going forward.

    According to him, the bank’s current growth strategy is anchored on strict operational efficiency in line with its chosen business model and strategic intent of being the leading retail bank in Nigeria.

    “The growth is expected to continue in the foreseeable future, no loan loss, no impairment, no termite will eat into this profit because it’s cash income,” Semenitari assured.

    He said the bank has what it takes to achieve its vision of being the retail bank of choice by 2020 citing its vast nationwide branches, human resources, improved capital base and committed executive and non-executive directors.

    He outlined that Unity Bank is already one of Nigeria’s leading retail banks in the country with 240 business offices spread across the country and ranking as Nigeria’s 7th largest bank by business locations adding that the bank would increase its branch network in the nearest future.

    He pointed out that the bank has carved out a niche for itself as a leading bank in small and medium enterprises, agriculture and rural economy financing noting that the bank is leveraging on its historical

     

  • Access Bank grows profit by N52b

    Access Bank Plc sustained double-digit growths across key performance indicators as the top-tier bank at the weekend released its audited report and accounts for the year ended December 31, 2014.

    Key extracts of the report showed double-digit growths in the top-line, bottom-line, balance sheet size and shareholders’ funds, implying a considerable resilience for the bank against the industry-wide headwinds occasioned by policy changes and fiscal and monetary challenges.

    Gross earnings rode on the back of stronger growth in the bank’s core banking operations and improved cost management to close the year with a total growth of 18.5 per cent. Net interest income had grown by 21 per cent while net interest income closed higher with 29 per cent growth. Net interest margin, which underlines the cost efficiency of the banking operations, had improved from 53.2 per cent in 2013 to 56.5 per cent in 2014.

    Gross earnings stood at N245.22 billion in 2014 as against N206.89 billion in 2013. Interest income rose from N145.96 billion to N176.92 billion while net interest income closed 2014 at N100.02 billion as against N77.72 billion in previous year.

    The bottom-line also showed similar resilience with pre-tax profit rising by 20 per cent while profit after tax grew by 18 per cent. Profit before tax rose from N43.53 billion in 2013 to N52.02 billion in 2014. After taxes, net profit for the year stood at N42.98 billion as against N36.30 billion in previous year. Earnings per share thus rose from N1.57 in 2013 to N1.88 in 2014, representing an increase of 20 per cent.

    The board of the bank has recommended distribution of additional N8.01 billion as cash dividends for the 2014 business year, bringing total dividend for the year to N13.73 billion. Shareholders would receive a final dividend per share of 35 kobo in addition to interim dividend of 25 kobo paid earlier, totaling a dividend per share of 60 kobo. The company had paid the same rate for the 2013 business year.

    The cash dividend will become payable on May 7, the same day it is expected to be approved by the shareholders at the yearly general meeting. The final dividends will be paid to shareholders in the register of the bank by the close of business on April 24, 2015.

    The balance sheet of the bank also showed improved performance. Total assets rose by 15 per cent from N1.84 billion in 2013 to N2.10 billion in 2014. Net assets, otherwise known as shareholders’ funds, also increased by 13 per cent from N244.48 billion to N277.41 billion.

    Access Bank is currently raising new equity funds from existing shareholders. It is offering 7.63 billion ordinary shares of 50 kobo each to existing shareholders at N6.90 per share. The rights issue is closing this Wednesday

    Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe, urged shareholders to take advantage of this extension to fully exercise their rights, assuring them of quality return on their investments.

    “We are going to give good returns on investment as our target is to be among top three banks in 2017,” Wigwe said.

    He added that the bank was already talking to institutional investors, high net-worth investors and individuals, particularly investors who understand the value of long term investments.

    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.

     

    Analysts at Afrinvest Securities Limited have said Access Bank has strong potential to generate high capital gains and above-average dividend yields to investors.

     

     

    In a stock recommendation, analysts indicated that the bank’s share price could rise to N11.80 per share over the next 12 months. The 12-month target price represents a capital gain of 71 per cent on the bank’s rights issue price of N6.90 per share.

     

     

    According to analysts, Access Bank could also deliver above-average returns to long-term investors with its dividend yield at 9.5 per cent. Analysts then placed the “buy” ticker on Access Bank, implying that investors are encouraged to take position in the bank as its 12-month return will definitely not be less than 25 per cent.

     

     

  • Fidelity CEO: BVN’ll boost customers’ credit score

    The ongoing bank verification number (BVN) enrolment will enhance the credit score of bank customers in Nigeria, the Group Managing Director/Chief Executive Officer of Fidelity Bank Plc, Mr. Nnamdi Okonkwo, has said.

    A credit score is primarily based on credit report information typically sourced from credit bureaus. Lenders use credit scores to determine who qualifies for a loan, among others.

    Okonkwo, while speaking to journalists, also said the BVN would enhance access to credit to small and medium scale enterprises (SMEs).

    There are about 17 million registered SMEs in Nigeria. In most countries, SMEs account for up to 70 per cent or more of businesses, yet in developing economies like Nigeria, SMEs suffer from lack of access to finance.

    Thus, the Fidelity Bank boss explained: “In more developed parts of the world, they have credit rating systems and social identification system. For example, if I am Nnamdi Okonkwo, there might be other 1,000 Nnamdi Okonkwos, but each Nnamdi Okonkwo has a unique number assigned by his country such that whenever you put that number in, everything about that person comes out. We are gradually getting to that.

    “Until we get there, credit scoring system is still a challenge. Therefore, it is possible that this same Nnamdi Okonkwo can go to a bank, take a loan and default, move to another bank, still take a loan and default and nobody sees that his credit history is bad. But with what the CBN has done with the BVN, that will be taken care of. That is why I am advising everybody to go and register and get your BVN.

    “When each of us have our BVN, which is tied to our thump, if I need to lend money to you, I can check. If the person is a notorious debtor in other banks, then he doesn’t get a loan from me and that protects all of us because the bank does not own all the money. Most of the monies that banks use to do business belong to depositors. So, whatever initiative the CBN is taking, is to protect depositors and the larger economy.

     

  • Lafarge Africa acquires Ashakacem’s 23.9% shares

    Lafarge Africa Plc achieved 57.6 per cent success in its bid to acquire the entire minority stake in Ashaka Cement (Ashakacem) Plc. The concluding report of the mandatory tender offer (MTO) launched by Lafarge Africa for the Ashakacem’s minority shareholdings was released at the weekend.

    According to the report, 3,641 shareholders of Ashakacem tendered 534.14 million ordinary shares of 50 kobo each, which represented 23.85 per cent of the total minority stake of 41.39 per cent sought to be acquired by Lafarge Africa.

    The board of Lafarge Africa confirmed that it has allotted about 150.73 million ordinary shares of 50 kobo each of Lafarge Africa and paid about N1.07 billion as shares and cash considerations to the shareholders of Ashakacem that accepted the MTO.

    With this, Lafarge Africa now has 82.46 per cent majority equity stake in Ashakacem. The completion of the MTO followed receipt of the requisite regulatory approvals by Lafarge Africa.

    Following the consolidation of Lafarge’s businesses in Nigeria and South Africa into Lafarge Africa, Lafarge Africa had acquired 58.61 per cent majority equity stake in Ashaka Cement. The majority equity stake was previously held by Lafarge Nigeria (UK) Limited. The acquisition was done through a block trade at the Nigerian Stock Exchange (NSE).

    Lafarge Africa then in late December 2014 launched an MTO to acquire the remaining 41.39 per cent equity stake held by other shareholders in Ashakacem in furtherance of the consolidation of Lafarge’s businesses. The MTO, scheduled to close in January 23, 2015, was extended for another five working days.

    Under the MTO, Lafarge Africa offered 57 ordinary shares of 50 kobo each in exchange for 202 ordinary shares of 50 kobo each of Ashakacem. In addition, Lafarge Africa offered to pay N2 for every acquired Ashakacem’s share.

    Minority shareholders had held 927.009 million ordinary shares of 50 kobo each in Ashakacem, representing 41.39 per cent of the cement company’s total outstanding shares. With this, Lafarge was expected to issue 261.58 million ordinary shares and pay additional cash consideration of N1.85 billion as equity and cash consideration for the full take-over of the 41.39 per cent equity stake held by minority shareholders in Ashakacem.

    Chairman, Lafarge Africa Plc, Chief Olusegun Osunkeye, described the completion of the MTO as a major step in the consolidation of the Lafarge’s businesses.

    “This is a significant step in the conclusion of the consolidation process of Lafarge Africa Plc. I would like to express my appreciation to the AshakaCem shareholders whose participation in the transaction through the tender of their shares has made this a very successful process,’’ Osunkeye said.

    Group managing director, Lafarge Africa Plc, Mr. Guillaume Roux said the enlarged Lafarge group would continue to work to maximize shareholders’ value.

    “We are delighted to have received a great response from AshakaCem Plc shareholders and will continue to work towards maximizing shareholder value,” Roux said.

    The MTO was triggered by the transfer of 58.61 per cent majority equity stake in Ashaka Cement previously held by Lafarge Nigeria (UK) Limited. Section 131 of the Investment and Securities Act (ISA) and Rule 445 of SEC make it mandatory for any institution or person that acquires at least 30 per cent of a company to make an MTO to other minority shareholders.

    Lafarge had on July 9, 2014 received shareholders’ approval to consolidate its cement businesses in Nigeria and combine these with South African operations to create a leading sub-Saharan building materials giant to be known as Lafarge Africa Plc. The consolidation was done by transferring Lafarge’s assets in South Africa and Nigeria to Lafarge Cement Wapco Nigeria Plc.

    Under the transaction, Lafarge Group transferred its direct and indirect shareholdings in Lafarge South Africa Holding Limited of 72.4 per cent and its equity stakes in three other cement companies in Nigeria-United Cement Company of Nigeria (Unicem) Limited, 35 per cent, Ashaka Cement Plc, 58.61 per cent and Atlas Cement Company Limited, 100 per cent to Lafarge Wapco for a cash consideration of $200 million and the issuance of some 1.4 billion Lafarge Africa shares to the Lafarge Group.

    Nigerian Cement Holdings B.V.(NCH), an affiliate of Large Africa Plc, two weeks ago completed the acquisition of the first 15 per cent tranche equity stake in Unicem  NCH, which is owned 50 per cent by Lafarge Africa, had 70 per cent equity stake in Unicem and with the acquisition, it has now increased its stake to 85 per cent.

    NCH had in November 2014 entered into an agreement with FMN Cement Industries Limited, a wholly owned subsidiary of Flour Mills of Nigeria Plc to acquire its 30 per cent investment in Unicem. The completion of the acquisition of the first tranche of 15 per cent paves the way for the acquisition of  the second tranche of 15 per cent, which is scheduled for on or before February 2016.

    Meanwhile, the board of Lafarge Africa at the weekend also announced that it has appointed leading investment banker, Mr. Mobolaji Balogun, as the successor to retiring chairman, Chief Olusegun Osunkeye.

    Osunkeye, who had earlier retired from Nestle Nigeria as he winds down long industrious boardroom career, opted for voluntary retirement from the board of Lafarge Africa after leading the cement group through a complex consolidation of its operations.

    Osunkeye’s retirement takes effect on May 23, 2015, the same day that Mobolaji Balogun, son of the founder of FCMB Group, Chief Subomi Balogun, steps into the board chairmanship. Balogun has been a non-executive director on the board of Lafarge Africa.

    Also, in apparent appointments made to reflect the completion of the MTO for Ashakacem, the board has also appointed Alhaji Shamsuddeen Usman, Mrs. Elenda Osima-Dokubo, Mrs. Adenike Ogunlesi and Alhaji Umaru Kwairanga as non-executive directors. Kwairanga was the former chairman of Ashakacem. The four appointments took effect last Wednesday.

  • Union Bank marks Money Week with school adoption

    As part of activities marking this year’s Global Money Week and Financial Literacy Day, Union Bank of Nigeria Plc has announced its adoption of Uyo High School, Oron Road, Uyo  in Akwa Ibom State.

    The adoption is in furtherance of a wider Bankers’ Committee initiative to promote Financial Inclusion in Nigeria by providing financial education to schools across the country.

    “Union Bank remains firmly committed to the achievement of Financial Inclusion in Nigeria and we recognise that Financial Literacy is a key step in achieving this,” said Emeka Emuwa, Group Managing Director, Union Bank, and Chairman, Financial Literacy and Public Enlightenment Sub-Committee of the Bankers’ Committee.

    During the visit, Mr. Emuwa taught some pupils a lesson on “Growing Your Money.“ The lesson was taken from a special Financial Literacy Curriculum developed by Junior Achievement Nigeria – a non-profit organisation focused on educating children about their economic environment – and covered topics on savings, investments and protecting one’s money.

    Global Money Week is a worldwide money awareness celebration, which holds from Monday, March 9, to Tuesday, March 17. The initiative is aimed at engaging children on financial education. The Bankers’ Committee in Nigeria designated Thursday, March 12 as its Financial Literacy Day.

    The day is being marked to focus attention on children and youth in primary and secondary schools nationwide and to empower them by enhancing their financial knowledge and planning skills.

     

  • FirstBank rewards 246 customers

    FirstBank of Nigeria has given out cash prizes and gifts to its 246 customers during the savings promo bonanza draw held in Lagos at the weekend.

    Speaking at the event, the bank’s Head, Consumer Banking Products, Mrs. Adebimpe Ihekuna, said the promo was designed to enhance savings culture amongst Nigerians and encourage the youths as well as the unbanked to embrace the financial services.

    “It is designed to reward customers for their patronage and loyalty to the brand over the years in keeping with the brand’s promise of putting customers first,” she said.

    Ihekuna said the promo, which kicked off last September, had at the weekend, saw 246 winners that emerged during the draw rewarded.

    She said the monthly and quarterly raffle draws in the FirstBank Savings Bonanza has produced several winners in the past months to include 300 winners of 32-inch LED Televisions, 300 winners of Samsung Galaxy Tab 3, 300 winners of Home Theatre Systems, 300 winners of N50,000 cash prize each and six winners of a brand new Hyundai Elantra  and Toyota Corolla cars.

    Ihekuna said the bank has offered delightful star prizes during its past promos. For instance, during the ‘Big Splash Promo’ held between June and December 2008, the star prize winner was given a brand new toyota corolla, 2008 model. In the ‘Big Splash Promo – reloaded’ held between February and August 2009, the star prize winner was a Prado Jeep.

    The bank’s Head, Marketing and Corporate Communications, Mrs. Folake Ani-Mumuney reiterated the lender’s commitment to her customers’ needs and aspirations and enjoined them to continue to patronize the Bank whilst assuring of the bank’s drive to continue to churn out innovative and tailored-fit products and services.

    In ensuring transparency and credibility of the draws, the process is under the supervision of the national lottery regulatory council and with world class consultants, KPMG, to ensure the promo aligns with world best practice.

  • Banks lose N6.2b to fraudsters

    The Nigeria Interbank Settlement System (NIBSS) has put the total amount of cash lost by banks to fraudsters in 2014 at N6.2 billion, as against N7.75 billion attempted fraud cases.

    NIBSS’s Head, Information System Security, Olufemi Fadamo disclosed this during the Nigeria Electronic Fraud Forum (NeFF) held in Lagos at the weekend. He said the volume of attempted fraud in 2014 showed a great improvement compared to N19 billion in 2013.

    He said the fraud cases were only those that passed through the Nigeria Central Switch and that frauds were mainly carried out through the Automated Teller Machine (ATM) channels.

    Fadamo however disclosed that fraudsters have changed their strategy, and are now using mainly the Point of Sale (PoS) channels to perpetrate their acts.

    NeFF Chairman, ‘Dipo Fatokun, said the body has come a long way since it was inaugurated in December 2011 and that it has over the years, remained committed to its core objectives of enabling information exchange and knowledge sharing on fraud issues amongst key stakeholders.

    He said the NeFF was established with the objective of ensuring collaborative and proactive approach to tackling/mitigating fraud and limiting occurrences and losses.

    The body he said is also serving as an official body that represents the industry’s position on fraud related issues, while proffering solutions that restore public confidence on card usage and electronic payments in general.

    Fatokun, who is also Central Bank of Nigeria (CBN) Director of e-Payment said the NeFF has over the years, increased information and knowledge sharing, proffered solutions that have been adopted into circulars for the industry, embarked on strategic relationships and structured the administration.

    According to Fatokun, NeFF was able to achieve these feat by creating an online presence that eases access to information on fraud and related matters. He said the body has entered into collaboration with the Economic and Financial Crimes Commission (EFCC) to tackle card fraud, adding that the group has been able to create a membership schedule comprising 47 organisations and 145 members.

     

  • ICAN, CITN sign MoU on taxation practice

    ICAN, CITN sign MoU on taxation practice

    The Institute of Chartered Accountant of Nigeria (ICAN) and the Chartered Institute of Taxation of Nigeria (CITN) have resolved the long-drawn rift between the two bodies over the practice and regulation of taxation in Nigeria.

    In an arbitration mediated by the Association of Professional Bodies of Nigeria (APBN), ICAN and CITN last week signed Memorandum of Understanding (MoU) at an elaborate ceremony to end the professional crisis, which had lingered for more than a decade.

    The highlights of the MoU and terms of settlement provide that chartered accountants will be able to engage in the practice of taxation without further examination from CITN. However, CITN will serve as the specialty regulator for the taxation practice in Nigeria. Members of ICAN are expected to undergo induction process for membership of CITN.

    President, Chartered Institute of Taxation of Nigeria (CITN), Chief Mark Dike commended the efforts of all parties in resolving the dispute.

    “ My joy knows no bounds that a preventable dispute that lingered on for several years and which defied several mediations is eventually being laid to rest today through the signing of both the Terms of Settlement, ToS and Memorandum of Understanding by ICAN and CITN. This feat was facilitated by the astute and painstaking mediation efforts of our umbrella body, APBN,” Dike said.

    President, Institute of Chartered Accountant of Nigeria (ICAN), Mr. Chidi Ajeagbu also commended the APBN for wading into the issue which had gone through the Court of Appeal and Supreme Court.

    He said ICAN would work together with CITN to improve the practice of taxation and membership of the specialized regulatory body.

    President, Association of Professional Bodies of Nigeria (APBN), Mr. Foluso Fasoto noted that when in 2005 a dispute arose between ICAN and CITN; APBN had intervened, relying on section 4(4) of the APBN constitution.

    According to him, in spite of the fact that the issue has become a subject of court action, APBN did not relent in its efforts of mediation between its two member bodies.

    He said APBN believes that the court should not come to solve the problems between professional members.

    “It is on record that the APBN, through its Mediation Committee has resolved similar issues in the past. To mention but a few: Tte Nigerian Institute of Architect, NIA and the Nigerian Institute of Town Planners, NITP; the Nigerian Society of Engineers , NSE and the Nigerian Institute of Estate Surveyors and Valuers (NIESV),” Fasoto said.

     

     

  • UBA takes banking to Facebook

    United Bank for Africa (UBA) Plc has introduced an online banking solution called “U-Social”, which offers flexibility and convenience to customers who desire to do banking transactions on social media, using their Facebook account.

    The product, it said in a statement, is designed to promote financial inclusion and to make the bank’s services available to customers regardless of the time and their locations. U-Social comes as online-based application on Facebook, it is easy to download and immediately syncs with the user’s Facebook account. U-Social is also an easy-to-use and secure banking solution, which is accessible to all UBA customers who are on Facebook.

    With the product, users can also pay for all cable TV bills right on their Facebook page without having to disengage from any interesting conversation thread that is on-going.  It also gives users opportunity to UBA’s U-Social users can also buy airtime right from their Facebook page and have cheques confirmed, cancelled and initiate new transactions while logged into their Facebook account.

    “The beauty of U-social is that it has simplified banking and made it part of the social media space.” Yinka Adedeji, UBA’s Divisional Head, e-banking said. “With UBA’s U-Social, Facebook is not just where people connect with friends and family, it is also the place anyone can do his or her banking with ease” he explained.

    U-Social has added a new dimension to UBA’s social media banking space. The bank is also the only pan-African bank to have a twitter notification transaction alert for its customers.

    The bank, in 2014, introduced transaction alerts on twitter, which enabled customers to receive notifications of any transactions on their account as direct messages on their twitter handle. This is applicable to all of the bank’s customers in the 19 countries in which UBA has operations across Africa.

  • N25.7b charge: Atuche gets April date

    JUSTICE Lateef Lawal- Akapo of the High Court of Lagos State, Ikeja has fixed  Monday, April 13, for ruling on an application filed by a former Managing Director of Bank PHB, Francis Atuche.

    Atuche is seeking leave of court to quash the N25.7 billion theft charge preferred against him by the Economic and Financial Crimes Commission (EFCC).

    Justice Lawal-Akapo fixed the date for ruling on his application after hearing arguments from the defence and prosecution lawyers.

    The EFCC had charged Atuche and   his wife, Elizabeth, to court for allegedly stealing the money from the bank.

    They are being prosecuted alongside a former Chief Financial Officer of the bank, Ugo Anyanwu.

    Arguing the application, Atuche’s counsel, Tayo Oyetibo (SAN), asked the court to quash the charge for want of jurisdiction.

    Oyetibo said the application was hinged on a judgment delivered by the Court of Appeal, Lagos on November 21, 2014 which struck out the theft charges preferred against a former Managing Director of Finbank Plc,  Okey Nwosu and others.

    Oyetibo argued that both Nwosu and Atuche’s cases were similar, stressing that the lower court has a judicial duty to follow the decision of the appellate court.

    The Court of Appeal in Nwosu’s case held that “the Lagos State High Court lacked jurisdiction to entertain the charge because it emanated from capital market transactions.

    “The appellate court held that such capital market-based matter was an exclusive jurisdiction of the Federal High Court”, he added.

    He also urged the court to take judicial notice of the judgment of the Court of Appeal, Lagos delivered December 31, 2014 in the case of Erasmus Akingbola against the Federal Republic of Nigeria before arriving at its decision.

    According to him, the appellate court struck out the case against Akingbola, a former Managing Director of Intercontinental Bank Plc on the same grounds.

    However, the EFCC counsel, Miss Chinenye Ugwuagu, in her notice of preliminary objection, urged the court to dismiss the application for being frivolous and vexatious.

    Ugwuagu argued that the Court of Appeal’s decision in Nwosu’s case was not applicable to the case of  Atuche .