Category: Equities

By Collins Nweze

Elev8, a global academy that offers specialised technology training programmes, has launched its new academy in Lagos with virtual events focused on digital enablement through training and skills development in Nigeria.

The academy is expected to boost Nigeria’s digital and tech economy.

Following a launch in Costa Rica last year, elev8 has helped to re-skill hundreds of professionals, setting local talent on the path to new careers and supporting the country’s technological development. The company has set its sights on Africa, where it will be looking to replicate this model to help transform Nigeria’s business landscape.

With the digital economy predicted to account for a quarter of global Gross Domestic Product (GDP) over the next few years, many businesses are looking to accelerate digital adoption to drive growth and ensure efficiency, particularly against the backdrop of the COVID-19 pandemic. elev8 is positioned to support organisations in growing their digital footprint through its executive programmes, intensive bootcamps and tailored training programmes.

Country Head for elev8 Nigeria, Ashim Egunjobi, said:  “As the biggest economy in Africa, with one of the largest populations of young people in the world, effectively skilling talent will be the major differentiator to staying competitive in the digital world. elev8 aims to help assess the digital skills maturity of private and public sector organisations and tailor skilling roadmaps to close the gap.”

The launch  was themed: “The knowledge-based economy – A pathway to Nigeria’s digitally enabled future”.

The event, attended by  leading professionals such as Dr. Omobola Johnson, Iyinoluwa Aboyeji, Olatubosun Alake, and Ola Williams discussed opportunities for digital transformation in Nigeria and how it affects businesses and the economy in the next three years.

From Bolaji Ogundele, Abuja

United Capital Plc has raised N15 billion under the second tranche of its N20 billion commercial paper (CP) issuance programme. It had in April 2020 raised N5.3 billion under the debut Series 1 and 2.

The latest Series 3, a 270-day issuance, was issued at a yield of 1.26 per cent and had a subscription of some 112 per cent with firm commitments from a pool of institutional investors, particularly asset managers.

The debut Series 1 and 2 issuances, with tenors of 182 days and 270 days respectively, were also subscribed to by individual and institutional investors, with interest significantly tilted towards the 270-day offering.

Group Chief Executive Officer, United Capital Plc, Mr. Peter Ashade said the commercial paper issuance was in line with the company’s bid to diversify its funding sources, strengthen its capital base and intensify its strategic initiatives aimed at providing innovative financing solutions to its clients.

He noted that the latest issuance set another ground-breaking record in the Nigerian capital markets, being the lowest yield on record for a 270-day CP issuance by a non-bank issuer.

Key extracts of the nine-month report for the period ended September 30, 2020 showed that gross earnings rose by 33 per cent from N5.32 billion in third quarter 2019 to N7.07 billion in third quarter 2020. Net operating income grew by 58 per cent from N4.29 billion to N6.76 billion.

Profit before tax increased from N3.27 billion to N4.12 billion while profit after tax rose from N2.75 billion to N3.46 billion. Basic earnings per share increased to 58 kobo in third quarter 2020 compared with 46 kobo recorded in third quarter 2019.

The balance sheet of the finance and investment group also improved considerably with total assets rising by 41 per cent from N150.46 billion recorded by the year ended December 31, 2019 to N211.5 billion by the third quarter 2020. Total liabilities also rose by 46 per cent from N130.88 billion in December 2019 to N191.45 billion in third quarter 2020. Shareholders’ fund increased to N20.08 billion in third quarter 2020 as against N19.59 billion in December 2019.

Top-line growth was driven by appreciable growths across business segments including a 55 per cent increase in investment income, 62 per cent increase in fees and commission income and 61 per cent growth in net trading income.

By Taofik Salako, Deputy Group Business Editor

Securities and Exchange Commission (SEC) is exploring various avenues to bring more companies to list on the capital market and to increase the number of products in the market.

The commission said the initiative would raise the market capitalisation of the Nigerian Stock Exchange (NSE) and contribute to the development of the national economy.

SEC’s Director-General, Lamido Yuguda, made this known at a workshop of the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos.

Yuguda, who was represented by the Director, Lagos Zonal Office, SEC,  Mr Stephen Falomo, said the commission took some strategic initiatives to boost market activities and crystallise the growth of the capital market.

He noted that this was done to cushion the negative impact of the global pandemic (COVID-19) on the capital market while adding that its committee on COVID-19 has continued to provide support and equipment towards combating the pandemic and its effect.

According to him, the SEC has continued to leverage its business continuity plan and those of its operators to ensure that capital market activities are carried out during this period with little or no disruption.

Yuguda assured stakeholders that the commission will be making more deliberate efforts towards attracting retail investors back into the market.

“Currently, investors with multiple accounts are being allowed to consolidate their accounts into a single one and claim their accrued dividends.

“This is in a bid to encourage more domestic participation in the market. In deepening the market, we are exploring various avenues to increase the number of companies and instruments in our market thereby raising the market capitalisation.

“We believe this is necessary for our market to continue to contribute its quota to the development of our nation’s national economy,” Yuguda added.

Speaking further, the SEC boss revealed that the commission is set to embark on reduction of time to market to ensure it dislodges bureaucratic bottlenecks encountered in raising funds from the market.

“This key initiative involves the ease of administrative procedures from the point of registration of market instruments with the commission to actualising funds raised from the general investing public in order to create efficiency,” Yuguda said.

According to him, the commission is currently improving its surveillance system to identify any form of malpractice in the market

By Taofik Salako, Deputy Group Business Editor

Shareholders of Guaranty Trust Bank (GTB) Plc at the weekend approved the restructuring of the bank to a holding company (holdco).

The approval paves way for Nigeria’s largest financial institution to conclude transition from a standalone commercial bank to a group structure that allows it to invest in other areas of financial services or other businesses.

At the court-ordered meeting in Lagos, shareholders approved the transfer of entire issued and paid up capital of GTB totalling 29.431 billion ordinary shares of 50 kobo each to a new company to be known as Guaranty Trust Holding Company Plc. The new company, Guaranty Trust Holding Company (GTHoldings) Plc, will simultaneously allot the same 29.431 billion ordinary shares of 50 kobo each to the former shareholders of GTB in accordance with their shareholdings in the bank.

Managing Director, Guaranty Trust Bank (GTBank) Plc, Mr. Segun Agbaje said the adoption of holdco was necessitated because of existing Central Bank of Nigeria (CBN)’s regulations, which require the separation of commercial banking business from other financial services businesses.

He explained that under the new structure, existing shareholders of GTB would be migrated to Guaranty Trust Holdings through a share-for-share exchange between the shareholders of GTBank and GTHoldings.

According to him, the overall strategy was to create an operating model that would profitably grow the bank’s presence in the market for commercial banking and non-banking financial services in order to achieve the aspiration to be the dominant financial services group.

“I am delighted over the approval by shareholders for the holding company and I assure the investors of a more rewarding future. The bank will not embark on any share reconstruction as the same number of shares they have with the bank will be maintained,” Agbaje said.

Shareholders were excited about the transition to a holdco structure.

Founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu said the shareholders were excited because the arrangement the bank has put in place for the transition to holdco was devoid of complexities usually known as share reconstruction.

“We are excited about the development because we are going to get value as everything we have would be transferred to the holding company. There will be no manipulation as a result of reconstruction that usually leads to fractional shares,” Nwosu said.

President, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, said GTB has over the years proven to be a force and leading initiator of revolutionary advancement and technology-based development in the nation’s banking industry.

He said shareholders would be looking forward to the growth and advancement the bank will bring into the new business areas it will be taking on with the holdco structure.

“The arrangement where all existing shares of the bank would be transferred entirely to the holdco in the name of the beneficial owners is good, while the same number of units and percentage would be held in the new entity, is commendable,” Okezie said.

By Gbenga Bada

Credite Capital Finance and Investment Limited has distributed total dividend of N35 million to its shareholders, including N15 million as cash dividends and N20 million as scrip dividend.

At the Third     Annual General Meeting (AGM) of the finance company in Lagos, Chief Executive Officer, Mr. Segun Ogunleye said the company has made commendable progress.

He said the company’s recorded a total asset of N1.49 billion for the financial year ended December 31, 2019 as against N1.21 billion recorded in the corresponding period of 2018, an increase of 23.1 per cent.

“The report we have presented is the true position of the company in terms of the result and performance and we are on the right path.  We have been able to deploy technology to drive our business to engage in fintech services and to meet the needs and expectations of the investing public, as we identify our clients and carve a niche in our industry,” Ogunleye said.

He noted that although this year has been marred with some not too palatable occurrences, it has been filled with opportunities.

According to him, even with year 2020 being the way it has been, especially with the impact of COVID-19 and the aftermath of the #EndSARS protest, it is a year that has also been full of opportunities.

“This same year, we ventured into public sector lending and the results are looking good. The organisation is also looking at venturing into mortgage bank financing and venture capital,” Ogunleye said.

He also spoke on Credite Capital Finance’s progress in its corporate social responsibility (CSR) by engaging with schools, orphanages and people living with disabilities.

“We have a programme for them, and even in our immediate environment, we look for ways to add value to the area where the company operates.  We are looking to have a scholarship programme in the near future and apart from the fact that we give money to some schools for their working capital, we give them support for their programmes.  We also have an orphanage that we provide for on a monthly basis in terms of utilities,” Ogunleye said.

Stakeholders in the stock market have commended the smooth transition at Fidelity Bank Plc with the impending retirement of the current managing director and the appointment of a managing director designate from within the bank.

At a virtual closing gong ceremony at the Nigerian Stock Exchange (NSE), Managing Director, Fidelity Bank Plc, Mr. Nnamdi Okonkwo gave account of his seven-year stewardship and formally introduced his successor, Mrs. Nneka Onyeali-Ikpe to the investing public. Okonkwo is retiring by December 31, 2020 while Onyeali-Ikpe will assume office on January 1, 2021.

Okonkwo said he has delivered on his promise, upon assuming office on January 1, 2014, to foster a robust engagement with the market, grow the bank and improve on key performance indices.

He pointed out that the bank has been able to grow its return on equity (ROE) which averaged at five per cent in 2013 to 13.3 per cent in 2019.

He attributed the successful capital raising exercise of 2015 and 2017, when the bank raised N30 billion local bond and $400 million Eurobond, respectively to the result of the deepening of investor engagements, through holding quarterly earnings calls and non-deal roadshows across different geographies.

According to him, the bank currently in the process of issuing a N74 billion series 1 Bonds under its N100 million bond issuance programme.

Okonkwo said the bank has enjoyed a very stable leadership since inception and was very pleased with the crop of leaders he is leaving behind.

“We recently appointed five executive directors from within and the incoming managing director, Mrs. Nneka Onyeali-Ikpe has been an integral part of management since 2015. She is part of the success story and we are convinced that the performance of the bank, under her leadership, will be even better,” Okonkwo said.

Onyeali-Ikpe assured that the corporate aspirations of the bank will remain the same under her leadership.

She commended Okonkwo for laying a solid foundation for her and the new team, to take the bank to greater heights.

“We will continue to deliver superior returns and to do this, we will rely on the active support of the market and all stakeholders,” Onyeali-Ikpe said.

Head Listing, Nigerian Stock Exchange (NSE), Mr. Olumide Bolumole commended the bank for its sustained financial performance and successful transition.

Doyen of the Market, the oldest trading stockbroker present on the trading floor, Alhaji Rasheed Yusuf said the smooth transition has shown the seamless internal succession programme of the bank.

“It is cheering news to us in the stockbroking community and the market that the new managing director was appointed from within. Fidelity Bank is a well-known brand with high expectations from us. You have been meeting our expectations, but we want more. We are eagerly looking forward to when you will become a Tier 1 bank. Please be assured that the market will give you all the required support,” Yusuf said.

Jaiz Bank Plc has deployed enough electronic channels (e-channels) and technology infrastructure to capture all intending pilgrims under its new Hajj Savings Scheme.

Managing Director, Jaiz Bank Plc, Hassan Usman gave this assurance at the launch and sensitisation on the Hajj Savings Scheme in Lokoja, Kogi State.

He said the bank has invested in technology by deploying various platforms such as the mobile app, *773# USSD code and agent banking to be able it capture all the intending pilgrims with ease.

Represented by the Divisional Head, Corporate Services, Mallam Ismaila Adamu, Usman said the bank is fully prepared for a hitch-free take off of the scheme in the state and country in general.

He said Jaiz bank has 40 branches nationwide in addition to the electronic platforms to capture the Hajj savers.

“With such a scheme in place, intending pilgrims that do not have the wherewithal can gradually plan and actualize their dreams without stress,” Usman said.

Chairman, National Hajj Commission of Nigeria (NAHCON), Alhaji Zikirullah Hassan said the Commission in collaboration with the various state Muslim pilgrims welfare boards can leverage on the scheme to have the liquid funds required to effectively plan for Hajj operations early, thereby securing better bargain for accommodation and other services for their pilgrims.

Chairman, Kogi State Hajj Commission, Sheik Abdullah Lukman said the scheme will allow Muslims to prepare ahead of time by making gradual deposits through Jaiz Bank, as part of the reforms in the Hajj system in the country.

He said the new scheme is more accessible and in the long run will bring down the cost of Hajj for Nigerian Muslims through proper planning, as well as investment in Shari’a compliant instruments by Jaiz Bank, where the saver will be earning profit in return.