Category: Equities

Taofik Salako, Deputy Group Business Editor

Union Bank of Nigeria (UBN) Plc and the organisers of TEDxLagos have partnered to host entrepreneurs, social advocates, innovators and thought leaders to explore new and innovative ideas and strategies.

At the virtual TEDxLagos event tagged ‘Upside’, it was a gathering of brilliant ideas and inspiring talks from an interesting line-up of speakers which included medical practitioner, Folakemi Ezenwanne; venture capitalist, Chika Nwobi; and environmental and climate governance advocate, Chukwumerije Okereke.

Head of Corporate Communications and Marketing, Union Bank of Nigeria (UBN) Plc, Ogochukwu Ekezie-Ekaidem, who spoke on the bank’s partnership with TEDxLagos, said the bank was pleased to partner  TEDxLagos for the third consecutive year.

“Now, more than ever before, we believe that great ideas and collaboration are key to moving Nigeria, and indeed, our world forward. Therefore, this partnership with TEDx, a platform known to unravel and amplify brilliant ideas, is one we have identified as a worthy cause, especially in these times,” Ekezie-Ekaidem said.

A major highlight of the day was the session Rise: Innovating in Uncertainty, hosted by Union Bank. This aspect of the programme was designed to shine the spotlight on individuals and groups who are innovatively rising in the face of the difficult times the world faces today.

Speakers in the session included Simi Nwogugu, Trustee of Project Ark and Executive Director, Junior Achievement of Nigeria; and two winners from the ongoing Union Rise Challenge- Katfwang Fwangkat, Chief Executive Officer of Yen Express, a telemedicine and mobile pharmacy platform and; Adams Bamigbose, Founder AGL Artistry, a social enterprise focused on converting waste into Art, Furniture and more recently, mobile handwashing devices.

Ekezie-Ekaidem said Union Bank’s partnership with TEDxLagos reiterates the bank’s continued commitment to innovation, creativity and support for Nigeria’s growth.

On-air-personality, Bella Rose Iyere-Okojie was also on hand to entertain the audience in her role as event host, while music sensation, Di’Ja thrilled participants with a musical performance.

 

 

 

Taofik Salako, Deputy Group Business

President, National Union of Chemical Footwear, Rubber, Leather and Non-Metallic Products Employees (NUCFRLANMPE), Mr Goke Olatunji has urged the Federal Government to consider granting tax holiday and other measures to relieve the private sector of the distress brought by the global COVID-19 pandemic.

He said the implication of the ongoing pandemic on the private sector could be severe enough to cause the closure of companies and massive job losses.

The union requested a tax-free cash flow boost for employers – a stimulus package to help pay wages or for investment to protect against downturn inactivity.

He noted that COVID 19 has once again brought up the realisation that any economy dependent on a sole commodity is incapable of sustainable growth, urging the government to take advantage of Nigeria natural and human resources now.

“Diversification and incentives from government are key to successful industrialisation. We call on government at all levels to exploit the potential of the agricultural sector. The Small and Medium Scale businesses should also be encouraged because of the critical role it plays in employment generation,” Olatunji said.

He also called for improved infrastructure amenities such as good roads, effective power supply and adequate good medical facilities that would carter for the upsurge in the population.

Olatunji said the union has urged employers of labour in the sector not to layoff, adding that the union is ready to hold a round table meeting with the employers.

By Sanni Ologun and Moses Emorinken, Abuja

The Senate on Wednesday confirmed the appointment of Mr. Lamido Yuguda as Director-General of the Securities and Exchange Commission (SEC).

Also confirmed alongside Yuguda were three Executive Commissioners Nominees namely; Mr. Reginald Karawusa, Mr. Ibrahim Boyi and Mr. Temidayo Obisan.

Their confirmation followed the submission of the report of the Committee on Capital Markets which was presented before the Senate by the Chairman, Senator Ibikunle Amosun.

Amosun in his presentation, said the nominees were experienced and suitable for the job and therefore,  recommended their confirmation.

Recall that the President Muhammadu Buhari had last week asked the Senate to confirm Lamido Yuguda as the new Director-General of the SEC.

READ ALSO: Senate passes N10.810tr revised 2020 budget

The president also sought confirmation of Karawusa, Boyi and Obisan as full-time Commissioners of the Commission.

Speaking after the nominees were confirmed, the President of the Senate, Ahmad Lawan,  said, “the Security and Exchange Commission must be efficient and effective in ensuring that we are able to attract and sustain not only domestic investment but foreign direct investment.

“People should bring their monies and feel safe with their investments here. This is essential to create the very enabling climate for investors to be attracted and retained here in the country.”

By Taofik Salako, Deputy Group Business Editor

Unity Bank Plc grew its top-line by 28.7 per cent to N44.59 billion in 2019 as the bank continued its growth trajectory with net profit of N3.4 billion during the year. Interim report of the bank for the first quarter of 2020 showed that pre-tax profit grew to N550 million within the three-month period.

The recent reports showed that the bank has continued on strong growth path started in 2018, after the bank took bold corporate action to clean up its balance sheet in 2017.

Key extracts of the audited report and accounts for the year ended December 31, 2019 showed that gross earnings rose from N34.65 billion in 2018 to N44.59 billion in 2019. Profit before tax stood at N3.64 billion while profit after tax closed at N3.38 billion. It had posted loss of N7.7 billion in 2018.

The interim report for the first quarter ended March 31, 2020 showed profit before tax of N550 million in first quarter 2020 as against N505.3 million recorded in comparable period of 2019. Profit after tax increased by nine per cent to N506.07 million in first quarter 2020 as against N464.87 million recorded in first quarter 2019.

Further analysis of the full-year results showed a relatively strong growth across key financial metrics with net operating income rising by 76.39 per cent to N23.211 billion in 2019 as against N13.159 billion in 2018. Net interest income also grew by 18.06 per cent to N16.493 billion from N13.970 billion while  total asset jumped by 71.93 per cent to N293.052 billion in December 2019 as against N210.80 billion in December 2018. The retail lender also recorded a total comprehensive income of N5.52 billion while earnings per share stood at 28.94 Kobo in 2019.

The results showed that the bank grew its loan books by 135.87 per cent to N104.02 billion in 2019 as against the N44.10 billion in 2018. Unity Bank had embarked on several cost minimization initiatives that appeared to be yielding positive results. These led to a decrease in the bank’s total operating expenses to N19.57 billion in 2019 from N20.71 billion in 2018.

Managing Director, Unity Bank Plc, Mrs. Tomi Somefun said that the potential in many aspects of the bank’s business as reflected in its growing balance sheet was indicative of market confidence in repositioning efforts.

She said the bank will continue to implement these measures, which are aimed at building processes that attract efficiency gains in resource allocation throughout the bank, to boost profitability and bring more value to shareholders.

“It is also noteworthy that playing in the agriculture sector as part of growth strategy and as bulwarks to drive value chain businesses in many segments of the retail market has continued to pay off. Looking ahead, we shall consolidate on the gains in the agribusiness, capitalizing on the growing profile in the sector, whilst also focusing on the youth market with increased investment in technology”, Somefun said.

According to her, the quest to deepen the bank’s retail play will go hand in hand with its focus on digital innovations. The bank has already deployed USSD banking, carried out augmentation of the platform to introduce local languages and further drive financial inclusion and had also launched omni-channel to cater for all segments of the banking public, especially the underbanked.

“In the coming years, the bank will be opening more channels and bundled products bouquet for identified cluster initiatives and also leverage and expand relationships with other partners to drive more growth in earnings and profits,” Somefun said.

She added that the bank has concluded arrangements to launch a healthcare product called UnityCares to tap into credit support intervention scheme for the health sector being rolled out by Central Bank of Nigeria (CBN) as stimulus packages to support the indigenous pharmaceutical companies and healthcare practitioners that hope to build and expand capacity.

By Taofik Salako, Deputy Business Editor

MTN Nigeria Communications Plc has  raised N100 billion in its debut commercial paper (CP) issuance, making history as the largest debut issuance by any Nigerian company.

MTN had planned initially to raise N50 billion under its registered N100 billion CP programme. However, the company recorded impressive oversubscription of 400 per cent and thus decided to increase the offer size to the maximum limit of N100 billion.

MTN Nigeria raised N20 billion under its series 1 180-day CP at an effective yield of 4.90 per cent. The telecommunication company raised N80 billion under its series 2 270-day CP at effective yield of 5.95 per cent.

Subscribers to the CPs included individual and institutional investors including pension fund administrators, asset managers, corporates and other financial institutions.

READ ALSO: MTN Nigeria opens offer of N100b commercial paper issuance

In a regulatory filing yesterday at the Nigerian Stock Exchange (NSE), MTN Nigeria stated that the level of subscription showed a strong investors’ confidence in the company’s ability to deliver on its strategic objectives and maintain market leadership.

Chief Executive Officer, MTN Nigeria Communications Plc, Mr Ferdinand Moolman said the new issuance allowed the company to broaden its sources of funding and combine capital market sources with established lines of credit, thus lowering its cost of borrowing.

He said the net proceeds will be used for the company’s working capital and general corporate purposes. The two series will be listed on the FMDQ Securities Exchange.

Transnational Corporation of Nigeria (Transcorp) Plc has expressed optimism that the appointment of Mrs Foluke Abdulrazaq as its Vice Chairman would help to further facilitate the achievement of its long-term corporate goals. Abdulrazaq’s appointment took effect on Friday, June 05, 2020.

Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu said the appointment of Abdulrazaq demonstrated the group’s commitment to the highest level of governance, human capital investment and diversity and inclusion across all layers of its businesses.

According to him, Abdulrazaq’s reputation as one of Nigeria’s senior business leaders and public servants, coupled with her track record of championing the role of women in business will be an inspiration.

“I am also pleased to announce her appointment as the vice chairman, the first occupant of this role in the history of Transcorp,” Elumelu said.

He added that Abdulrazaq’s extensive leadership experience would support the new management team, led by Mrs. Owen Omogiafo, who recently unveiled her five-year strategic business goals.

Omogiafo’s plan included expansion of the investment portfolio of the Transcorp Group through strategic acquisitions; deepening the market share of the existing businesses, and diversifying into the manufacturing sector, to help realise the group’s vision of improving lives and transforming the economy.

private sectors.  Her public service career includes serving as a Commissioner in the Ministries of Finance and Women Affairs in Lagos State, when during her tenure, the broad policies that led to the state’s Accelerated Revenue Generation Programme (ARGP) were formulated.

She was also the chairman of the state’s Tenders’ Board, a member of the Federal Accounts Allocation Committee (FAAC), and the State’s Executive Council.  Abdurazaq has held, over a period of 20 years, a series of senior positions in the Nigerian financial services sector, including her appointment by the Central Bank of Nigeria and NDIC in September 1995, as the Executive Chairman of the Interim Management Board of Credite Bank Nigeria Limited.

She also served on the group board of United Bank of Africa (UBA) Plc from 2008 to 2020, when she retired as the chairperson of the Board Credit Committee.  Abdulrazaq holds an M.Sc degree in Banking and Finance from the University of Ibadan.

Transcorp has one of the largest shareholder bases, with about 300,000 shareholders, on the Nigerian Stock Exchange (NSE), and is a leading power producer in the country and owner of the iconic Transcorp Hilton Hotel in Abuja, among other significant assets including oil and gas.

By Taofik Salako, Deputy Group Business Editor

Leaders of major securities exchanges and capital market groups will this Wednesday brainstorm on the impact of COVID-19 on the global capital market.

The Nigerian Stock Exchange (NSE) is hosting the special webinar on the impact of COVID-19 on the global capital market. The webinar themed, “Capital markets in a pandemic”, will feature a panel session to be headlined by the Chief Executive Officer (CEO) of NSE, Oscar Onyema, CEO, Luxembourg Stock Exchange (LuxSE), Robert Scharfe; CEO, London Stock Exchange (LSE), Nikhil Rathi; and CEO, World Federation of Exchanges (WFE), Nandini Sukumar. The webinar will be moderated by Eleni Giokos of Cable Network News (CNN).

During the panel session, speakers will dimension the expectations and future of securities exchanges as they transition to the new normal necessitated by the pandemic.

In particular, they will highlight key initiatives around business innovation and digital transformation of exchanges; investors’ protection strategies; capital raising opportunities; social bonds and ESG considerations in product development; as well as global partnerships in a pandemic.

Announcing the webinar, Onyema said the pandemic has created unprecedented disruption in the global economy with varying degrees of volatility.

Read Also: UPDC lists N16b rights issue on NSE

According to him, regardless, financial markets, particularly, capital markets around the world have shown resilience in supporting their economies.

“The NSE on its part has been resolute in its commitment to ensure that there are no disruptions to its operations. With countries gradually opening up and most economies resuming activity, it is important to sustain important dialogues around business innovation and partnership in order to capitalise on the opportunities presented in this challenging time.”

We are, therefore, pleased to create a platform to highlight the activities of exchanges in maintaining an enabling environment for stakeholders to continue to save and access capital during any crisis,” Onyema said.

He added that the webinar is part of the Exchange’s thought leadership series designed to synthesize effective strategies that will enhance stakeholders’ experience in Nigeria and the world over.

He pointed out that since the activation of its business continuity plan March 23, 2020 which saw the transition to remote trading and working, the NSE has remained fully functional, delivering on its mandates to deepen market activity with new listings; engage its various stakeholders through ongoing virtual sessions; and perform its regulatory functions by providing a plethora of relevant guidance documents.

By Taofik Salako, Deputy Group Business Editor

Shareholders of May & Baker Nigeria Plc at the weekend received a total of N431.31 million as cash dividends for the 2019 business year. The distribution followed approval of a 25 per cent increase in dividend payout by shareholders at the annual general meeting of the company.

Shareholders received a dividend per share of 25 kobo at the weekend, an increase of 25 per cent on 20 kobo per share paid for the 2018 business year.

The increased dividend highlighted a 109 per cent increase in May & Baker Nigeria’s net profit in 2019 from N342.7 million in 2018 to N716.4 million in 2019.

At the Annual General Meeting (AGM) held by proxy last week in Lagos, shareholders commended the performance of the healthcare company.They noted that the performance of the company showed resilience, despite the challenges in the operating environment.

Speaking at the 69th AGM, Chairman, May & Baker Nigeria Plc, Senator Daisy Danjuma said the company has great prospects, citing its operational strength and the expansive healthcare market in Sub-Saharan Africa (SSA).

“I see a great future for our company. The attraction of May & Baker as an investment haven lies not only in her long track record of robust performance but more in her future prospects,” Danjuma said.

Read Also: CSCS’ shareholders approve N4.3b dividend

She noted that the healthcare space in sub Saharan Africa (SSA) is still largely untapped and an investment haven for operators like May & Baker.

According to her, Africa’s economic outlook sparks enthusiasm about opportunities especially in its healthcare sector.

“Capturing that promise is the task we must set out to accomplish. Our recipe for success lies in the burning ambition to dominate our defined markets, Nigeria and the Sub-Saharan Africa. I have immense confidence in the ability of our board and management to deliver on this goal,” Danjuma said.

Managing Director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor, said the company’s profit growth was driven by improved operating and cost efficiency as the company made more profit per unit of sale in 2019 compared with 2018.

According to him, distribution expenses came down from N1.434 billion in 2018 to N1.197 billion in 2019. Finance costs also came down by 290 per cent from N339.4 million in 2018 to N114.14 million in 2019 as it was able to put the proceeds of its rights issue received in 2019 to judicious use.

He noted that administrative cost slightly increased to N784.3 million in 2019 from N773.7 million in 2018 but investments in a dedicated plant for her key product also gave the company fresh capital allowance and deferred tax, thus dropping tax exposure drastically from N475.2 million in the previous year to N184.5 million in 2019.

He added that the resilient bottom-line was achieved despite a 5.5 per cent drop in revenue from N8.55 billion in 2018 to N8.080 billion in 2019.

By Taofik Salako, Deputy Group Business Editor

 

Sterling Bank Plc has laid a solid foundation for growth in the years ahead in spite of the mitigating effect of the Coronavirus pandemic and other external shocks.

Chief Executive Officer, Sterling Bank Plc, Mr. Suleiman Abubakar, in a review on the outlook of the bank, assured shareholders and other stakeholders that the future of the bank remains reassuring.

According to him, the bank has laid a sound foundation for 2020 with significant investments in technology to accelerate its digitisation while the bank will further distinguish itself by serving customers with empathy and knowledge on their own terms.

Suleiman noted that for a bank to succeed in these uncertain times, it must be agile, cautious, innovative, knowledgeable and prepared.

He added that the bank’s unwavering commitment to a more disciplined deployment of scarce capital and the strength of its retail business contributed to a 15 per cent growth in profit after tax to N10.6 billion in 2019.

Suleiman spoke at the 58th Annual General Meeting (AGM) of the bank held virtually by proxy and streamed live from the MUSON Centre in Lagos.

Addressing shareholders at the meeting, Chairman, Sterling Bank Plc, Mr. Asue Ighodalo said the bank’s shareholders’ fund grew by 22.2 per cent to N119.6 billion because of increase in retained earnings despite the challenging operating environment under which it operated during the financial year ended December 31, 2019.

He said the recorded growth in total equity was attributable to growth in comprehensive income arising from gains recorded from investments in debt securities.

He added that the board of directors recognised the importance of dividends to its shareholders and constantly sought to balance this with capital requirements to support the bank’s next wave of growth.

“Accordingly, the board recommends the payment of three kobo per share as dividend for the year ended December 31, 2019 to reward our loyal and committed shareholders. This affords the bank the required buffer to finance its growth ambitions, and effectively become a first-class, stronger, creative and extremely dependable financial institution,” Ighodalo said.

According to him, a direct contribution of the bank’s investments in technology and intelligent automation can be seen in the performance of) SPECTA- Nigeria’s fastest digital retail lending platform.”

He said SPECTA remained the major source of incremental lending, contributing to the growth of the bank’s core business and offering over N45 billion in loans to individuals and small business owners in 2019 alone.This represented over 200 per cent growth in loans given to the bank’s retail and consumer segment compared to 2018.

He explained that the bank consolidated its efforts in the mobilisation of deposits during the review period, thereby recording a 17.4 per cent growth in deposit base to N893 billion from N761 billion.

He noted that the bank achieved) a) higher) growth) of) 19.4 per cent in) the) mobilisation) of) low-cost current and savings accounts deposits, maintaining a 60 per cent deposit mix during the year, a development that contributed largely to improved cost of funds from 7.4 per cent in 2018 to 6.3 per cent.

He pointed out that although the bank’s earnings grew only marginally by one per cent to N150.2 billion, it was able to deliver 12.5 per cent growth) in profit) before) tax and 15 per  cent) growth) in) profit) after-tax at N10.6 billion; despite 12 per cent increase in operating) expenses.

He attributed the growth in operating expenses to increased investments in human capital and technology, reflective of the bank’s transformation journey and desire to further motivate and upskill employees of the bank.

Meanwhile, shareholders have commended Sterling Bank Plc for sustaining steady performance in spite of the challenges in the operating environment. They commended the overall performance of the bank and the board’s decision on dividend payment.

President, Noble Shareholders Association, Mr. Mathew Akinlade, commended the bank for bringing down its non-performing loans (NPL) ratio from 8.7 per cent in 2018 to 2.2 per cent in 2019, a development which he described as below the benchmark of five per cent prescribed by the Central Bank of Nigeria.

He lauded the bank for compliance which reduced penalties for contraventions in 2019 by 73.3 per cent compared to 2018.

Founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu appreciated the increase in the bank’s demand deposit which went up by 47 per cent and described it as “quite good.”

As a shareholder who is also a customer of the bank, Nwosu was full of appreciation for the way employees of the bank attend to customers and expressed the hope that this excellent service delivery would continue to differentiate Sterling Bank post-COVID-19.

A shareholders’ activist, Mr. Nonah Awoh commended the bank for its level of financial disclosure.

“I don’t think it is out of place to have payments of external assessors stated. I want other companies to learn from Sterling Bank and do the same,” Awoh said.

President, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, noted that the bank has done a lot to grow assets to N1.182 trillion while loans and advances have also grown.

“We commend the board for retaining earnings, protecting shareholders’ funds, and ensuring there is no insider abuse as it relates to loans. We are happy that our bank is at the forefront of the fight against COVID-19 and keeping the environment clean through its support for LAWMA,” Okezie said.

National Coordinator, Shareholders United Front (SUF), Mr. Gbenga Idowu, commended the bank’s strategic focus on the critical sectors of health, education, agriculture, renewable energy and transportation, under its HEART strategic initiative.

He noted that these sectors are critical sectors to national growth and development, especially in the wake of COVID-19 pandemic.

He urged the bank to remain committed to these critical sectors, most especially agriculture, which he described as the future of the country.