By Taofik Salako, Deputy Group Business Editor

Chemical Allied Products (CAP) Plc manufactures of Dulux paints and industrial  products has added another feather to its cap by emerging the Best performing Stock industrial goods building material chemicals and paints and the Most Profitable company industrial goods, building materials chemicals and paints at the Businessday Nigerian investor value awards (NIVA) held in Lagos recently.

The award ceremony held on Saturday, April 24, 2021 at the Lagos Continental hotels, Victoria Island, Lagos attracted top CEOs, top decision makers in the financial services sector and a host of other distinguished personalities in Nigeria.

Responding while receiving the award CAP Plc’s CEO, David Wright thanked the organizers of the award for finding CAP Plc worthy of the honour.

In his words, “This award is a call for continuous improvement. It lays credence to our overall efforts devoted to enhancing business operating models and a boost to CAP Plc persistent pledge to delivering on market efficiency edges.

“I would like to express my deep gratitude to our regulator, the Securities and Exchange Commission as well and the Board of Directors of CAP for their meticulous oversight and for ensuring sound governance, which I believe is essential to every corporate’s sustainability and long-term value creation,” Wright said.

CAP currently reported a N14 billion market capitalization as at February 1, 2021 and its growth trajectory looks ever so promising. Its announcement of the proposed merger with Portland Paints and Products Nigeria Plc, another top tier player in the Paints industry, in the fourth quarter of 2020 has also boosted investor confidence in the company.

Expected to be concluded in the second quarter of 2021, subject to receiving final regulatory approvals, market analysts said the milestone will undoubtedly a landmark one in the Nigeria decorative & industrial subsector of the manufacturing industry.

The Businessday Nigerian Investor Value (NIVA) Awards, formerly known as the Top 25 CEOs & Next Bulls Awards, celebrates CEOs of public companies who have created sustainable alpha-generating value through strategic intelligence, operating efficiencies, market leadership and organisational values.

Since the first edition held in 2014, the annual awards have served as a capital markets bellwether used in identifying the best performing chief executive officers and stocks on the Nigerian Stock Exchange as well as leading privately-held companies.

By Taofik Salako, Deputy Group Business Editor

Two hundred children are set to receive educational relief packs from the Cordros Group under the Slum2School programme.

Director, Cordros Insurance Brokers Limited, Shola Bola-Audu, who spoke during a presentation ceremony by the financial services group at the Slum2School Innovation Hub in Lagos, said Cordros Group  was deliberate about positively impacting the lives of young Nigerians by providing the relevant financial literacy contents, and promoting social inclusion.

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“In 2019, Cordros made a donation to Special Olympics to support social inclusion through sports. Staff of the group also participated as players in a Special Olympics novelty match,” Bola-Audu said.

Team Lead, Marketing Communications, Cordros Group, Lanre Sonubi said education provides a foundation for development and growth of any society.

He added that investments in education will provide the skills necessary for future generations to prosper.

“Cordros Group will continue to engage in programmes and activities to support education such as financial literacy, mentorships, infrastructure development, skills development and capacity building,” Sonubi said.

By Taofik Salako, Deputy Group Business Editor

United Bank for Africa (UBA) Plc started the business year on an impressive note with double-digit growths across most major performance indicators.

The interim report and accounts of UBA for the three-month ended March 31, 2021 showed that the bank leveraged modest growth in both interest and non-interest income as well as increased efficiency to deliver 24 per cent growth in profit before tax at N40.6 billion compared with N32.7 billion recorded in the first quarter of 2020. Profit after tax also grew by 26.8 per cent from N30.1 billion in March 2020 to N38.2 billion in March 2021.

The bank sustained its strong profitability recording an annualised 20.5 per cent Return on Average Equity (RoAE) compared to 19.9 per cent in the corresponding period of 2020.

The report showed that the UBA Group recorded 5.5 per cent growth in gross earnings to close at N155.4 billion in first quarter 2021 as against N147.2 billion recorded in first quarter 2020.

The bank’s total assets also rose by 2.5 per cent to N7.9 trillion by March 2021 compared with N7.7 trillion recorded at the end of the 2020 financial year while shareholders’ funds grew to N762.4 billion, up by 5.3 per cent from N724.1 billion posted by December 31, 2020.

Group Managing Director, United Bank for Africa (UBA) Plc, Mr. Kennedy Uzoka, expressed satisfaction with the bank’s performance in the first quarter of the year, stating that the result reflects UBA’s capacity to sustainably grow earnings even in a highly uncertain macroeconomic environment.

He added that the robust capital and liquidity positions have positioned the bank as it continues to support its customers across diverse sectors and markets, guided by prudent risk management practices.

“This impressive first quarter 2021 results reflect the capacity of our business to sustainably grow earnings even in a highly uncertain macroeconomic environment. We remain upbeat on the macroeconomic outlook of the countries in which we operate, especially as the COVID-19 vaccine distribution gains traction globally, whilst commodity prices and currencies continue to stabilise.”

Our robust capital and liquidity positions have positioned us to continue to support our customers across diverse sectors and markets, guided by prudent risk management practices,” Uzoka said.

He pointed out the bank’s effort towards diligently executing its priorities for the year 2021, as it leverages people, process, and technology to deliver the best customer experience across all  its channels and touchpoints, achieving industry leadership and dominance.

According to him, the bank is making strong progress in Nigeria where its continuous market share and efficiency gains are translating into higher profits.

“We are committed to sustaining this strong start throughout the year, leveraging our customer-First (C-1st) philosophy and unparalleled execution to deliver even stronger returns to our esteemed shareholders in 2021 and beyond;” Uzoka said.

Group Chief Finance Officer, United Bank for Africa (UBA) Plc, Ugo Nwaghodoh, said it was, particularly, pleasant to see annualised return on average equity of 20.5 per cent and return on average asset of 2.0 per cent by the end of the first quarter, noting that these indices buttress the group’s commitment to delivering sustainable value to its stakeholders.

“We continued to deploy our balance sheet efficiency and digital-led cost optimisation initiatives to achieve desired outcomes. Cost-to-income ratio improved by 200 basis points to 60.4 per cent during the period, whilst cost of funds settled at 2.0 per cent, a 130 basis points reduction from 3.3 per  cent in first quarter 2020,” Nwaghodoh said.

He expressed confidence that the bank will meet and surpass its target for the remaining three quarters of the year.

“We are confident on the strong prospect for earnings growth, particularly as we are better positioned to consolidate recent market share gains in Nigeria and other geographies where we operate. This result is a strong start for the year, and we are optimistic about sustaining the exciting performance throughout the year and beyond,” Nwaghodoh added.

By Taofik Salako, Deputy Group Business Editor

Nigerian equities reopened yesterday  on a positive run as early first quarter earnings spurred investors’ interest in quoted shares.

Benchmark indices at the Nigerian Exchange (NGX) Limited, the new name of Nigerian Stock Exchange (NSE), showed average return of 0.10 per cent, representing net capital gain of N21 billion. With these, average year to date return moderated to -3.5 per cent.

The All Share Index (ASI)- a common value-based index that tracks all share prices at the Exchange rose from its opening index of 38,808.01 points to close at 38,848.02 points.

Aggregate market value of all quoted equities also rose correspondingly from its opening value of N20.310 trillion to close at N20.331 trillion.

The overall market situation was driven by price appreciation in medium and large-capitalised stocks including UAC of Nigeria, Northern Nigeria Flour Mills, Guaranty Trust Bank, MTN Nigeria Communications (MTNN) and FCMB Group. There were 18 gainers to 12 losers.

FCMB Group led the advancers, in terms of percentage gains, with a gain of 9.77 per cent to close at N2.92 per share. NNFM and University Press followed with a gain 9.35 per cent each to close at N5.85 and N1.17 per share, respectively.  Honeywell Flour Mill rose by 9.24 per cent to close at N1.30, while Mutual Benefits Assurance appreciated by 8.82 per cent to close at 37k per share.

On the other hand, FTN Cocoa Processors led the losers’ chart in percentage terms, dropping 10 per cent to close at 45k per share.  Unity Bank followed with 7.81 per cent, to close at 59k, while UACN Property Development Company shed 5.06 per cent to close at 75k per share.  Jaiz Bank shed 4.69 per cent to close at 61k, while Africa Prudential depreciated by 4.55 per cent to close at N5.25 per share.

Total turnover increased by 93.8 per cent with an exchange of 508.64 million shares valued at N32.10 billion in 4,324 deals.  MTNN topped the activity chart with 181.73 million shares valued at N29.68 billion.  Fidelity Bank followed with 106.88 million shares worth N224.75 million, while FBN Holdings traded 35.02 million shares valued at N267.18 million. UACN sold 20.43 million shares worth N209.02 million, while Zenith  Bank transacted 18.17 million shares valued at N392.78 million.

“In subsequent trading sessions, we expect the market to remain subdued by increased sell-offs given the weak investor sentiment and expected rise in marginal rates at this week’s bond auction,” Afrinvest Securities stated.

By Taofik Salako, Deputy Group Business Editor

Not fewer than 2,000 chartered stockbrokers will be trading on the Lagos Commodities and Futures Exchange (LCFE).

LC FE plans to trade on four broad ranges of assets that promise to open up enormous wealth across the country. These include agricultural commodities, currencies, solid minerals and oil and gas.

The LCFE is being promoted by the Lagos State Government and Association of Securities Dealing Houses of Nigeria (ASHON) among others.

The forthcoming onboarding of chartered stockbrokers to trade on the LCFE followed the Memorandum of Understanding (MoU) between the Chartered Institute of Stockbrokers ( CIS) and the LCFE.

With the MoU, the two organisations shall collaborate in the onboarding of CIS’  members into the platform of LCFE, creation of  certification courses in agricultural commodities, solid mineral commodities, oil and gas commodities and currenciesand organisation of joint training and manpower development, including continuing professional development (CPD).

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According to the agreement, CIS shall use its platform and contacts to mobilise its members and other operators in the financial services industry to attend Training programs and any certificate courses organised by CIS and LCFE.

Also, the parties agree to work together for faculty, course materials and content development in providing  trainings, workshops, and seminars for the stakeholders in the commodities ecosystem and value chains and joint monitoring and evaluation of professional standard in the  industry.”, according to the MoU.

President, Chartered Institute of Stockbrokers (CIS), Mr Olatunde Amolegbe said the MoU was consistent with the statutory functions of the Institute in the area of capacity building.

He noted that securities traders commonly referred to as stockbrokers were trained to deal in different asset classes including commodities and futures.

“The Memorandum of Understanding between the Chartered Institute of Stockbrokers and Lagos Commodities and Futures Exchange is a step in the right direction. We operate a robust syllabus by global standard. This positions our professional members to trade asset classes.

“The LCFE provides the market infrastructure while the CIS takes care of the manpower. It is a symbiotic relationship. We have signed MoU with many professional organisations in Nigeria and abroad, especially,  in the area of capacity building,” Amolegbe said.

Managing Director, Lagos Commodities and Futures Exchange (LCFE), Mr Akin Akeredolu-Ale, said the MoU would advance the  partnership between the LCFE and CIS.

By Taofik Salako, Deputy Group Business Editor

Young Nigerians need to imbibe the culture of saving money early in life to enable them secure their future.

Acting Managing Director, Polaris Bank Limited, Mr Innocent Ike gave this advice in a virtual presentation while addressing pupils of Adeleke University High School, Ede, Osun State as part of activities  marking the Global Money Week hosted by the bank.

The school was adopted by Polaris Bank to mark this year’s Global Money Week.

The event was aimed at raising awareness on the importance of savings and need for young ones becoming financially aware at an early age.

Ike expressed concern and warned on the consequences of poor savings culture on young people with no savings or financial investment, even as he assured that Polaris Bank would continue to sustain efforts aimed at promoting financial literacy among youths in particular and Nigerians in general.

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“We need to learn, save and earn money. You do not save after spending but rather, you save first before spending. The idea is to “catch them young” by educating them on finance and financial investment so that in future, their personal and financial lives can be guaranteed. To achieve this, we need to imbibe the culture of saving, no matter how small,” Ike said.

He further explained that the financial sensitisation was part of the Global Money Week, a yearly programme organised, in conjunction with the Central Bank of Nigeria (CBN) and a non-governmental organisation, Junior Achievement Nigeria (JAN), to help raise awareness among students on the need to be financially independent.

“Although it is an annual event, for us at Polaris Bank, we will continue to engage schools, parents and teachers, because we believe that by being financially literate, students and indeed, the young ones, will be able to build their capacity for future business endeavours, thereby securing their future from poverty and other financial challenges,” Ike said.

He expressed confidence that Polaris Bank, the CBN and the entire players in the banking sector, were ready to carry out enlightenment continuously; educating and teaching students on how to manage money that comes into their hands.

After the presentation, a brief question and answer session followed where an elated Principal of the School, Dr. Adetayo Timothy, responding after the over two hours, 30 minutes’ segment, said knowledge is power and applauded the presentation by Polaris Bank which he believes “has undoubtedly, empowered these young students on the fundamentals of saving, earning and investment.”

“You would not realise the quantum of financial knowledge Polaris Bank has shared with these students this morning until they put to practice everything they have been exposed to and see the impact in their lives in the days ahead. We cannot thank Polaris Bank enough; your coming to our school today has created an image within this community and beyond that you are indeed, a bank that does not shy away from its Corporate Social Responsibilities,” Timothy said.