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  • Firm attracts investors to uptown residential estate

    Firm attracts investors to uptown residential estate

    The Magnificent Multiservices Limited, a fast-growing real estate company in Lagos  has held Mega Site Tour and Inspection of its latest projects in Imole Lagos and June 15 Residence, strategically located in the heart of Eleko, Ibeju-Lekki, Lagos.

    The Mega Site Tour by the company, a subsidiary of Raedial Holdings Limited, created a wave of excitement and emotions and attracted realtors, investors, industry professionals, and well-wishers.

    The company kicked off the tour with a visit to Imole Lagos, its latest project in the Epe Local Government Area. The 100 hectares culturally inspired estate located at Ilara, Epe LGA of Lagos State. The estate is a one-of-a-kind project that captures the essence of Nigerian culture while offering the comfort of modern living.

    The Deputy Managing Director of Raedial Holdings Limited, Mrs Claris Agenmonmen, expressed contentment with the site tour, stating, “The first phase of Imole Lagos is 18 hectares of residential and commercial plots located in Ilara, Epe LGA of Lagos State. The land is a prime and dry location with great topography. The goal of Imole Lagos is to create a community that celebrates Nigeria’s rich traditions and to foster a sense of belonging and cultural unity. The plan for Imole Lagos is to blend traditional aesthetics with modern architectural brilliance.”

    Speaking at the event, the Group Brands & Communications Manager of Raedial Holdings Limited, Mrs. Adedoyin Rasaq, said “Due to its proximity to prestigious educational institutions such as Atlantic Hall Secondary School, Augustine University, Yaba Tech, Epe Campus and Lasued, Imole Lagos aims to become a thriving community that sets new standards in modern living and real estate investment. Imole Lagos promises a huge return on investment.

    After the site tour at Epe, the management team, investors, realtors, industry professionals and well-wishers moved to the company’s most popular estate, June 15 Residence.

    Projects Manager of the Magnificent Multiservices Limited, Hamid Ola-Alabanla updated the crowd that since the June 15 launch in May 2023, all individual plots of land in the estate were sold out.

    He further added that the Magnificent, being a company that listens to its subscribers and intends to be part of the housing deficit solution, would officially commence the construction of 130 units of two and three bedroom ensuite bungalows with penthouse. It is projected to be an 18-month project that will be completed in phases and built on two hectares of land.

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    The Chief Finance & Operations Officer of Raedial Holdings Limited, Azeez Osanyin, further let out the biggest announcement at the event, stating: “The first 20 outright paying subscribers of the two-bedroom ensuite bungalows would be given a 29 per cent discount; this is because June 15 Residence is a well-planned estate with a blend of affordability and luxury.”

    President ABN Realtors Group, Emmanuel Achilihu, present at both locations, expressed excitement. He emphasised on the tendency for the properties to appreciate rapidly due to factors that define property pricing in the Lagos market.

     He said, “Both Imole Lagos and June 15 are strategically positioned, easily accessible and have a high potential of yielding maximum returns on investment. As a realtor, this is the kind of property I like to offer to my clients. I am excited about the projects the Magnificent Multiservices Limited keeps offering, and I look forward to working on more projects with the company.”

    The Magnificent Multiservices Limited is a future-forward real estate company committed to building long-lasting homes that are efficient, aesthetically pleasing, and practical in the world today. These homes come with different advanced technological features designed to exceed clients’ expectations. The company also offers services ranging from property acquisition, development and management to construction and joint venture partnerships.

  • Investors await third quarter results as directors meet

    Investors await third quarter results as directors meet

    Directors of several quoted companies are scheduled to meet over the next few days to review and approve third quarter earnings results, ahead of the deadline set by capital market regulators.

    Regulatory filings reviewed by The Nation at the weekend indicated that not less than 40 companies have scheduled their board meetings this week to discuss their third-quarter results.

    This implies that there could be significant inflow of third-quarter earnings in the next few days, ahead of the October 30, 2020 deadline for the submission of the third-quarter results.

    Most analysts expected the trading pattern at the stock market to be significantly influenced by the emerging third quarter results.

    “We expect the direction of market performance to be shaped by the ongoing third quarter earnings season as investors cherry-pick fundamentally sound stocks. Overall, we reiterate the need for taking positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings,” Cordros Capital Group stated at the weekend.

    Analysts at Afrinvest Securities said they expected “market performance to be dictated by third quarter 2023 earnings releases”.

    Directors of Guaranty trust Holding Company (GTCO), Sterling Financial Holdings Company and Cornerstone Insurance are scheduled to meet tomorrow.

    On Wednesday, directors of Access Holdings, Zenith Bank, Seplat Energy, Presco, Nigerian Breweries, BUA Cement and Japaul, among others, are scheduled to meet for the consideration of third quarter financial statements.

    Also, the boards of directors of not less than 12 companies are expected to meet on Thursday, October 26, including FBN Holdings, Fidelity Bank, TotalEnergies Marketing Nigeria, Transnational Corporation of Nigeria, Fidson Healthcare, Lasaco Assurance, Neimeth International Pharmaceuticals, Chams Holdings Company, Capital Hotels, Livestock Feeds, Morison Industries and MRS Oil Nigeria.

    Companies that have scheduled meetings for Friday included United Bank for Africa, Eterna, Abbey Mortgage Bank, May & Baker Nigeria, Meyer, Okomu Oil Palm, AXA Mansard Insurance, Mutual Benefits Assurance, Custodian Investment and Stanbic IBTC Holdings.

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    Post-listing rules at the Nigerian Exchange (NGX) require quoted companies to submit interim or unaudited quarterly report not later than 30 calendar days after the end of the relevant period. Most quoted companies including all banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year.  The deadline for the nine-month period ended September 30, 2023 is thus Monday, October 30, 2023.

    Quoted companies are expected to directly upload their results on the throughput portal at the Exchange, which allows simultaneous access to the information by the investing public.

    Under the rules, quoted companies are required to file their unaudited quarterly accounts with the NGX not later than 30 calendar days after the relevant quarter, and publish it within five business days after the date of filing, in at least two national daily newspapers, and post it on the company’s website, with the web address disclosed in the newspaper publication.

    Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the newspaper publication. Where the company chooses to audit its quarterly accounts, it shall be required to file such accounts not later than 60 calendar days after the relevant quarter.

    While the rules allow the Exchange to grant specific waiver to relevant companies or a general waiver of the deadline under some specific circumstances, the Exchange has not issued any general waiver.

    General waiver is usually given in the event of general disruption to industrial activities such as strike, national crises, many public holidays and other circumstances that in the judgement of the Exchange may significantly impact the 30-day timeline given to companies to prepare and submit the quarterly report.

    The NGX tags defaulting companies for poor corporate governance and also applies various monetary and non-monetary sanctions, including possible delisting in extreme cases. Companies that also delayed their financial statements and accounts face threats of suspension and delisting in addition to the monetary fines. The monetary fines become almost automatic after the expiration of the deadline.

    According to the rules, notwithstanding that a company takes the required steps during the cure periods or later complies with the provisions of the rules, any company that defaults in filing its accounts within the stipulated periods shall be liable to pay the applicable penalties, except the affected company had received waiver or extension of time by the Exchange.

    In addition to the monetary fines, a defaulting company will be tagged with the “Below Listing Standard” (BLS) or any other sign or expression to indicate that the company has failed to submit its accounts within the stipulated period and this tag shall remain for as long as the company fails to file its accounts.

    Also, in a more rigourous naming and shaming practice, a defaulting company is expected to within three business days of receipt of the second filing deficiency notification and suspension of trading in its securities, to inform the Exchange in writing of the status of the accounts, and issue a press release, of not less than half a page, in at least two national daily newspapers, with the company’s web address indicated in the newspaper publication, and posted on the company’s website disclosing the status of the relevant accounts, reason for the delay in submission, and the anticipated filing date. An electronic copy of the publication shall be filed with the Exchange on the same day as the publication. The suspension of trading in the company’s shares shall only be lifted upon submission of the relevant accounts in line with the requirements of the NGX.

  • Investors net N8.33tr gains in eight months

    Investors net N8.33tr gains in eight months

    Investors in Nigerian equities have amassed N8.33 trillion in net capital gains over the past eight months.

    Benchmark indices at the Nigerian Exchange (NGX) closed August 2023 with average year-to-date return of 29.85 per cent, implying net capital gain of N8.33 trillion for the eight-month period ended August 31, 2023.

    The benchmark index- which measures pricing trend at the stock market, had earlier exceeded its previous all-time high set in March 2008 to set a new record.

    The All Share Index (ASI)- a value-based common index that tracks all share prices at the Nigerian Exchange (NGX), is widely regarded as Nigeria’s sovereign equities index, a barometer of pricing trend and investors’ return at the nation’s stock market.

    The ASI had earlier set a new all-time record to close at 66,490.34 points, about 119.14 points or 0.18 per cent above the previous highest index point of 66,371.20 points recorded on March 05, 2008.

    The ASI rose further to close yesterday at 66,548.99 points as against its year’s opening index of 51,251.06 points.

    Aggregate market value of all quoted equities also rose from its year’s opening value of N27.915 trillion to close yesterday at N36.423 trillion, an increase of N8.51 trillion. The slight difference between the ASI and market capitalisation was due to additional listing of shares during the period.

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    There is analysts’ consensus at the stock market that the bullish trend witnessed in recent period was driven partly by positive investors’ perception of the pro-market administration of President Bola Tinubu.

    The NGX stated that experts’ opinions on the strong performance of the market were that the bullish trend was due to “a combination of factors, including investor sentiment influenced by macroeconomic developments such as the formation and swearing-in of the economic cabinet by President Bola Tinubu”.

    Director General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda, who spoke after a stakeholders’ meeting of the capital market last week, said there was general optimism that ongoing reforms would rejuvenate the economy and lead to a brighter future for the country.

    Not less than 277 stakeholders attended the meeting of the Capital Market Committee (CMC), a consultative assembly of stakeholders in the capital market. Attendees included management and senior staff of SEC, capital market operators (CMOs), representatives of relevant government agencies including the Central Bank of Nigeria (CBN), Debt Management Office (DMO), Federal Inland Revenue Service (FIRS), Investments and Securities Tribunal (IST), National Insurance Commission (NAICOM), National Pension Commission (PENCOM), and Financial System Strategy 2020 (FSS2020).

    The NGX had also attributed the market performance to the “audacious macroeconomic reforms under the new administration” of Tinubu.

    According to the NGX, market operators were of the view that “the policies of the new administration under President Bola Tinubu” had “led to the rise in the fortunes of investors”.

    Afrinvest Securities had said “economy reform optimism” bolstered the market performance, noting that the “the rally in the market followed the promise of critical reforms by the President Bola Tinubu administration”.

     Analysts at Arthur Steven Asset Management said the equities market’s bullish momentum was “because of the new administration which tends to affect the market positively”.

    “The market reacted to the high expectation from the new administration as the government promised the investors easy repatriation of their investment and profit,” Arthur Steven Asset Management stated.

    Further analysis of transactions at the NGX yesterday showed widespread bullish sentiments with 31 gainers to 19 losers. NGX Group recorded the highest price gain of 10 per cent to close at N26.40. Seplat Energy followed with a gain of 9.95 per cent to close at N1,837. Trans-Nationwide Express rose by 9.38 per cent to close at N1.05. University Press appreciated by 9.32 per cent to close at N2.58 while Associated Bus Company rose by 8.64 per cent to close at 88 kobo per share.

    On the negative side, Multiverse Mining and Exploration led the losers’ chart by 10 per cent to close at N2.70 per share. NASCON Allied Industries followed with a decline of 9.81 per cent each to close at N50.55. Honeywell Flour Mills declined by 8.11 per cent to close at N3.40 per share.  May and Baker Nigeria depreciated by 7.27 per cent to close at N5.10 while Jaiz Bank declined by 6.83 per cent to close at N1.50, per share.

    Total turnover decreased by 2.5 per cent to 620.98 million shares valued at N7.18 billion in 7,972 deals. Sterling Financial Holdings Company topped the activity chart with 160.996 million shares valued at N531.392 million. Transnational Corporation (Transcorp) followed with 135.696 million shares worth N847.536 million. Fidelity Bank traded 57.623 million shares valued at N403.334 million. FTN Cocoa processors traded 47.177 million shares valued at N97.395 million while Dangote Sugar Refinery sold 28.858 million shares worth N1.601 billion.

  • Investors upbeat as equities rally N316b gains

    Investors showed improved appetite for Nigerian equities in the immediate past week as attractive valuations, reduced political risk and improved macroeconomic direction spurred a broad-based bargain-hunting for quoted shares.

    Benchmark indices for the Nigerian equities market showed average gain of 2.33 per cent at the weekend, equivalent to net capital gains of N307.7 billion for the week. However, the listing of additional shares by Stanbic IBTC Holdings lifted the total increase in market value of quoted equities to N316 billion at the weekend.

    The sustained rally coincided with the Wednesday September 11, 2019’s decision of the Presidential Election Petition Tribunal affirming the election of President Muhammadu Buhari. Total market value of quoted equities rebounded with net gain of N52 billion on Wednesday, rose further by N141 billion on Thursday and capped the rally with a net gain of N172 billion on Friday.

    Many analysts had said investors might have interpreted the decision of the presidential election tribunal as a sign of stability that gives clearer direction of the macroeconomic direction, notwithstanding the discontent in the opposition camp and possible appeal to the Supreme Court.

    The rally, the highest in recent weeks, moderated the negative average year-to-date return to -11.62 per cent. On a quarterly basis, average return so far for the third quarter improved, though still negative, to -7.30 per cent. Meanwhile, the benchmark turned positive for August with a month-to-date return of 0.92 per cent.

    The All Share Index (ASI)-the common value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), rose from its week’s opening index of 27,146.57 points to close weekend at 27,779.00 points. Aggregate market value of all quoted equities also rallied from its opening value of N13.207 trillion for the week to close weekend at N13.523 trillion.

    With 39 advancers to 19 decliners, most sectoral indices also closed positive underlining the broad bargain-hunting that drove the overall market performance. The NSE 30 Index, which tracks the 30 most capitalised stocks at the Nigerian Stock Exchange (NSE), rose by 2.72 per cent. The NSE Banking Index appreciated by 5.06 per cent. The NSE Consumer Goods Index rallied average gain of 0.57 per cent while the NSE Oil and Gas Index rose by 7.19 per cent. However, the NSE Industrial Goods Index declined by 0.41 per cent while the NSE Insurance Index dropped by 2.13 per cent.

    UACN Property Development Company, which is being unbundled by its parent company, UAC of Nigeria, led the rally with a double of its share price by 51.52 per cent to close weekend at N1.50 per share. FBN Holdings followed with a gain of 24.1 per cent to close at N5.40. Seplat Petroleum Development Company placed third with a gain of 15.67 per cent to close at N460. Forte Oil appreciated by 14.1 per cent to close at N16.55. Ecobank Transnational Incorporated rallied by 11.9 per cent to close at N8 while Cornerstone Insurance rose by 11.1 per cent to close at 30 kobo per share.

    On the negative side, Thomas Wyatt Nigeria recorded the highest loss of 9.52 per cent to close at 38 kobo. Continental Reinsurance followed with a drop of 7.98 per cent to close at N1.50. Oando dropped by 7.3 per cent to close at N3.80. Livestock Feeds declined by 7.1 per cent to close at 39 kobo while Cutix depreciated by 6.67 per cent to N1.40 per share.

    The momentum of activities also improved considerably. Total turnover stood at 1.15 billion shares worth N14.08 billion in 17,980 deals compared with a total of 1.10 billion shares valued at N17.08 billion traded in 15,431 deals in the previous week.

    The financial services sector, traditionally the most active, remained atop activities chart with 840.704 million shares valued at N10.765 billion in 11,331 deals, representing 73.30 per cent and 76.45 per cent of the total equity turnover volume and value respectively. The conglomerates sector followed with 111.231 million shares worth N243.124 million in 963 deals while the information and communication technology (ICT) sector occupied a distant third with a turnover of 95.087 million shares worth N605.135 million in 404 deals.

    Banking stocks dominated activities’ chart with the trio of Guaranty Trust Bank, Access Bank and FBN Holdings accounting for 484.003 million shares worth N8.306 billion in 4,265 deals, representing 42.20 per cent and 58.99 per cent of the total equity turnover volume and value respectively.

    Besides equities, a total of  6,540 units of Exchange Traded Products valued at N23,650 were also traded in five deals last week compared with a total of 3,692 units valued at N1.974 million traded in 10 deals two weeks ago.

    On the sovereign bond market, a total of 274 units of Federal Government bonds valued at N280,932 were traded in seven deals compared with a total of 47,690 units valued at N51.008 million traded in 15 deals penultimate week.

    Beyond Nigeria, investors’ sentiment for quoted equities appeared to improve globally last week with most global markets closing positive. In the United States of America, the Dow Jones Industrial Average (DJIA), S & P 500 Index and NASDAQ Index appreciated by 1.4 per cent, 1.2 per cent and 1.1 per cent respectively. In United Kingdom, the UK FTSE ASI appreciated by 1.1 per cent. France’s CAC 40 Index rose by 1.0 per cent. Germany’s XETRA DAX Index rallied by 2.2 per cent. Hong Kong’s Hang Seng Index advanced by 2.5 per cent. Japan’s Nikkei 225 Index rose by 3.7 per cent. China’s Shanghai Composite Index appreciated by 1.1 per cent. Russia’s RTS Index rose by 1.6 per cent. India’s BSE Sens Index also rose by 1.1 per cent while Brazil’s Ibovespa Index posted average gain of 1.5 per cent.

    Major African markets also showed positive sentiment. South Africa’s FTSE/JSE Index posted a week-on-week gain of 2.8 per cent. Egypt’s EGX 30 Index indicated average gain of 1.2 per cent while Kenya’s NSE 20 Index appreciated by 0.9 per cent. However, Ghana’s GSE Composite Index dipped by 0.2 per cent.

    Analysts meanwhile remained cautious about the outlook for the Nigerian equities market, although improved macroeconomic direction is expected to impact the market positively.

    “Our view continues to favour cautious trading owing to the fact the gains recorded this week were not broad-based. Nonetheless, we note that valuations remain attractive while price deterioration has resulted in expected dividend yields on some stocks rising significantly to levels on par with yields on Treasury bills. Hence, we advise that long-term investors consider appropriately timed investments,” Cordros Securities stated.

    Most analysts believed the delivery of the presidential election judgement would spur government activities in the period ahead and provide additional impetus for market performance.

    Managing Director, APT Securities & Funds Limited, Mallam Kasimu Garba Kurfi, said the decision of the presidential election tribunal would provide a clearer direction for the market.

    “We are expecting positive response, especially in view of the early presentation of the underlying assets for the 2020 national budget,” Kurfi said.

    Chief Executive Officer, Sofunix Investment and Com

  • Investors await interim dividends of major banks

    Investors have stepped up demand for shares of the largest banks amidst expectations that the lenders will declare interim dividends on their half-year results.

    Four leading banks-Guaranty Trust Bank (GTB), Zenith Bank, United Bank for Africa (UBA) and Access Bank, have established a regular pattern of twice-a-year dividend payment, with interim dividend usually declared on first half reports. Stanbic IBTC Holdings had also declared interim dividend in recent period.

    Under the three-step final process for the release of dividend recommendations and audited reports, the board of directors meets to consider and approve the audited financial statements as well as dividend recommendation, then authorises the transmission of the signed reports to the primary regulator, in the case of financial institutions and other regulated entities and with the receipt of the approval of the primary regulator, transmits the dividend recommendation and audited report to the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) for announcement to the investing public.

    Already, the four leading banks have confirmed that they might declare interim dividend for the first half of 2019. In separate regulatory filings, the banks had indicated that their directors had met and deliberated on dividend payment. The boards of Zenith Bank, Access Bank and GTB had met last month to deliberate on the half-year 2019 results. Also included on the agenda was a consideration for interim dividend payment.

    UBA on Tuesday indicated that its board of directors will be meeting on August 22, 2019 to consider the audited financial statements for the half year ended June 30, 2019.

    The four-Access Bank, Guaranty Trust Bank, Zenith Bank and UBA were among the five most active stocks yesterday at the Nigerian Stock Exchange (NSE). Market analysts said investors were positioning for the first half results and interim dividends of the major banks.

    UBA had paid N6.84 billion to shareholders as interim dividend for the first half of last year, representing interim dividend per share of 20 kobo.

    Access Bank had also paid N7.23 billion to its shareholders as interim dividend for the first half of 2018, indicating interim dividend per share of 25 kobo, the same rate paid for first half of 2017.

    Zenith Bank Plc had distributed N9.42 billion to shareholders as interim dividend for the half-year ended June 30, 2018, representing interim dividend per share of 30 kobo, 20 per cent above 25 kobo paid as interim dividend for the first half of 2017. The bank had distributed N7.5 billion as interim dividend for the first half of 2017. GTB had also paid interim dividend per share of 30 kobo for the first half of last year.

    Post-listing rules at the NSE require quoted companies to submit interim or unaudited quarterly report not later than 30 calendar days after the end of the relevant period. Most quoted companies including all banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year.  The deadline for the six-month period ended June 30, 2019 is thus July 30, 2019.

    However, where a company chooses to audit its quarterly accounts, it shall be required to file such accounts not later than 60 calendar days after the relevant quarter.

    All the four leading banks also undertake audit of their half-year accounts. The deadline for the submission of their accounts is thus August 29, 2019.

  • Investors endorse agro-industrial processing zones

    investors have endorsed the African Development Bank’s (AfDB) Special Agro-Industrial Processing Zones (SAPZ) initiative, describing it as a pathway to Africa’s agricultural revolution.

    SAPZs are designed to concentrate agro-processing activities within areas of high agricultural potential in order to increase productivity and competitiveness. The initiative is expected to provide millions of youth and rural men and women with employment and entrepreneurship opportunities.

    Speaking at an investment forum, Minister of Agriculture and Rural Development, Audu Ogbeh, said the country was eager to work with the bank to develop SAPZs.

    “I can’t thank the AfDB and all the investors gathered here today enough. We need to make agriculture work again. It is with initiatives like this that we can truly create wealth and employment for our teeming youth population,” Ogbeh said.

    He said the investment forum was an opportunity to secure the commitment of key agribusiness companies and banks in the planning, investment and implementation of priority SAPZs in Nigeria.

    Key participants included top government officials and big industry players, including the Dangote Group, the Manufacturers Association of Nigeria (MAN), Flour Mills of Nigeria, Olam International, the Nigeria Private Sector Alliance (NiPSA), the International Labour Organization (ILO), commercial and development banks, the United Nations Industrial Organisation (UNIDO), and the Cocoa Association of Nigeria.

    Special Adviser on Industrialisation to the African Development Bank President, Professor Banji Oyelaran-Oyeyinka, said the initiative could boost the gross domestic product (GDP) of rural regions and bridge the rural-urban divide.

    He said: “Nigeria currently trails in the supply of quality agro-processing products. Nigeria must take advantage of the opportunities in this sector to create non-oil sector jobs and raise its GDP.”

  • Access Bank reassures investors, pays N14.5b dividend

    Access Bank Plc yesterday reassured its shareholders that its five-year strategic growth plan and benefits from its recent business combination will create higher returns in the years ahead.

    The reassurance came as shareholders at the annual general meeting yesterday in Lagos approved the payment of N14.46 billion as cash dividends for the 2018 business year. Shareholders will receive a final dividend of 25 kobo per share, in addition to an interim dividend of 25 kobo per share paid earlier, bringing total dividend for the 2018 business year to 50 kobo per share.

    Shareholders who spoke at the meeting commended the board and management of the bank for sustaining a good dividend payout policy, noting that its merger with Diamond Bank brought smiles on the faces of shareholders of both banks.

    Founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu who spoke on behalf of other shareholders at the meeting applauded the board for the successful merger with Diamond Bank.

    He however frowned at charges imposed on banks by Assets Management Corporation of Nigeria (AMCON) and other regulators, saying these have become major concerns to investors.

    He urged shareholders to organise themselves in such a way that they can direct their complaints to the government and regulators on the issues affecting banking business in the country.

    Addressing the shareholders, Chairman, Access Bank Plc, Mrs Mosun Belo-Olusoga said that despite unfavourable market condition, Access Bank delivered a strong performance, demonstrating an effective strategy backed by strong governance.

    She noted that in January 2018, the bank began the implementation of another five-year strategy which should translate to better returns in the years ahead.

    “A key aspect of our intent over the next five years is to build a large diversified bank, by consolidating our wholesale franchise and embedding ourselves firmly in the retail market,” Belo-Olusoga said.

    She also noted that the bank’s merger with Diamond Bank would create the required scale, customer base and support our desire to achieve a wider reach across the continent.

    According to her, the combination will provide us with an increased physical presence and payment capabilities in relevant countries.

    “The combination will significantly fast track the achievement of a number of our strategic intents in the short term. It provides us with a competitive advantage that will withstand the realities of market uncertainties, while ensuring sustainable revenue in the years ahead,” Belo-Olusoga said.

    Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe said the implementation of the five-year strategy will focus on retail banking growth, adding that the quarterly contribution of the segment to group profits during the year assured that the strategies and investments were prudent.

    “Our ongoing collective efforts to deliver exemplary value will be paramount in guaranteeing our profitability and the long-term sustainability of our business,” Wigwe said.

    Key extracts of the audited report and accounts of Access Bank for the year ended December 31, 2018 showed that the bank grew pre and post tax profits by 32 per cent and 58 per cent respectively. Gross earnings had risen by 15 per cent. Total assets increased by 21 per cent while customers’ deposit grew by 14 per cent.

    The report indicated that gross earnings rose to N528.7 billion in 2018 compared with N459.1billion in 2017. Interest and non-interest incomes contributed 72 per cent and 26 per cent respectively to the top-line. Profit before tax rose from N78.2 billion to N103.2 billion while profit after tax increased to N95.0 billion in 2018 as against N60.1 billion in 2017. With these, earnings per share rose from N2.11 in 2017 to N3.31 in 2018. Return on average equity (ROAE) stood at 19.0 per cent while return on asset closed 2018 at 2.1 per cent.

    The bank’s balance sheet remained strong and diversified with total assets rising to N4.95 trillion in 2018 as against N4.10 trillion in 2017. Loans and advances increased from N2.06 trillion to N2.14 trillion. Customer’s deposits improved to N2.57 trillion from N2.25 trillion. Capital adequacy ratio (CAR) remained adequate at 20.8 per cent, taking into consideration the regulatory transitional arrangement of IFRS 9 implementation. On a full impact basis, CAR stood at 19.9 per cent. Also, Liquidity ratios improved from 47.2 per cent to 50.9 per cent, well above regulatory requirements.

  • Nigerian equities rally N198b gain as investors swoop on banks

    Nigerian equities sustained a major recovery last week as investors responded positively to first quarter earnings. The equities market closed weekend with average gain of 1.78 per cent for the week, equivalent to net capital gain of N198 billion. The rally during the week moderated the negative average year-to-date return to -4.28 per cent.

    Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) closed weekend at N11.301 trillion as against its opening value of N11.103 trillion for the week. The All Share Index (ASI)- the main index that tracks share prices, also rose from the week’s opening index of 29,560.47 points to close weekend at 30,086.31 points.

    Market analysts agreed that the rebound was due to the onset of first quarter earnings, especially the positive results released by leading first-tier banks.

    “The week’s positive close and sentiment can be attributed to the positive first quarter 2019 results that have started to filter in. We opine that investors will continue to take position in attractive stocks ahead of earnings expectations,” Afrinvest Securities stated.

    Analysts at Cordros Capital also attributed the rebound to earnings season, noting that strong numbers reported by most first-tier banks and other companies renewed sentiment for naira risk assets.

    “We reiterate our view that the blend of a compelling valuation story, together with positive macroeconomic picture leaves scope for a market recovery in the medium term. However, we guide investors to tread the cautious trading path in the short term,” Cordros Capital stated.

    Banking stocks accounted for some two-thirds of total turnover at the Exchange with the trio of Union Bank of Nigeria (UBN), Access Bank and Guaranty Trust Bank accounting for about 36 per cent of total turnover volume and 42.4 per cent of total turnover value. Investors staked N4.85 billion on 355.04 million shares of UBN, Access Bank and GTB in 2,133 deals.

    Total turnover during the four-day trading session last week stood at 988.69 million shares worth N11.43 billion in 13,596 deals as against a total of 1.77 billion shares valued at N15.26 billion traded in 17,015 deals in the previous week.

    The bank-led financial services sector remained the most active with a turnover of 766.19 million shares valued at N7.26 billion in 7,820 deals, representing 77.50 per cent and 63.51 per cent of the total equity turnover volume and value respectively. The information and communication technology (ICT) sector occupied a distant second with 74.77 million shares worth N24.60 million in 212 deals while the consumer goods sector place third with a turnover of 48.02 million shares worth N3.095 billion in 2,374 deals.

    There were no trading in Exchange Traded Products (ETPs) last week compared with a total of 13,740 units valued at N215, 010 traded in two deals two weeks ago.

    Meanwhile, a total of 14,246 units of Federal Government bonds valued at N14.98 million were traded in 17 deals compared with a total of 787,527 units valued at N795 million traded in 26 deals penultimate week.

    Sectoral analysis showed widespread positive sentiments as investors sought to take positions ahead of the closure of dividend qualification and in anticipation of strong earnings in the 2019 business year. The NSE 30 Index, which tracks the 30 most capitalised companies at the Exchange, posted a positive return of 2.08 per cent for the week. The NSE Banking Index also recorded above-average return of 2.07 per cent. The Consumer Goods Index recorded the highest gain of 5.07 per cent. The NSE Insurance Index rallied average gain of 2.44 per cent while the NSE Industrial Goods Index recorded modest gain of 0.46 per cent. However, the NSE Oil and Gas Index was the only contrarian index with negative return of -2.12 per cent.

    There were 33 advancers and decliners each while 101 stocks remained unchanged. However, gains by highly capitalised stocks boosted the market position. Chams recorded the highest gain, in percentage terms, with a gain of 28.57 per cent to close at 36 kobo. First Aluminium Nigeria followed with a gain of 28.13 per cent to close at 41 kobo. Dangote Flour Mills rose by 27.38 per cent to close at N10.70. Access Bank rose by 15.13 per cent to close at N6.85 while AIICO Insurance rallied by 10.29 per cent to close at 75 kobo.

    On the negative side, Associated Bus Company led with a drop of 17.5 per cent to close at 33 kobo. Royal Exchange followed with a loss of 12 per cent to close at 22 kobo. United Capital dropped by 11.43 per cent. C & I Leasing dropped by 9.9 per cent to close at N7.20. AG Leventis declined by 9.68 per cent to close at 28 kobo while UACN Property Development Company lost 9.64 per cent to close at N1.50 per share.

    The recovery at the Nigerian market also mirrored the continuing positive global outlook. Key global indices in the advanced and emerging markets closed weekend positive. In America, the Dow Jones Industrial Average (DJIA) rose by 0.3 per cent while the S & P inched up by 0.1 per cent. In Europe, the FTSE 100 posted a gain of 0.4 per cent. Euro Stoxx 50 rallied by 1.5 per cent. In Asia, the CSI 300 Index rose by 2.1 per cent while Nikkei 225 rose by 1.0 per cent. The MSCI EM, which tracks emerging markets, rose by 0.8 per cent while the MSCI FM, which tracks frontier equities, inched up by 0.1 per cent.

    port and accounts for the first quarter ended March 31, 2019 showed that GTB’s gross earnings inched up by 1.2 per cent to N110.33 billion in first quarter 2019 as against N108.97 billion in first quarter 2018. Profit before tax rose by 8.3 per cent from N52.62 billion to N56.98 billion. Profit after tax also rose from N44.67 billion to N49.30 billion. With these, earnings per share increased from N1.58 in first quarter 2018 to N1.74 in first quarter 2019.

    In the same period, Access Bank grew its top-line by 16.5 per cent as gross earnings rose to N160.12 billion in first quarter 2019 as against N137.54 billion in first quarter 2018. Profit before tax jumped by 66 per cent from N27.44 billion to N45.10 billion. After taxes, net profit leapt by 86.03 per cent from N22.12 billion in first quarter 2018 to N41.15 billion in first quarter 2019. Earnings per share also rose from 77 kobo to N1.39.

  • NNPC eyes investors at U.S energy confab

    The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru,  is expected to woo investors to the potential investments in the oil and gas sector in Nigeria.

    He is billed to address foreign investors at the CERAWeek, an international energy conference scheduled for Houston, the U.S, today.

    Baru, who will speak during a Special Session titled: Africa: Foundations for New Investment, will be joined by some African petroleum ministers, heads of National Oil Companies (NOCs) and other global energy industry leaders.

    He is expected to discuss the abundant investment opportunities in Nigeria’s oil and gas industry, particularly providing meaningful insights into key investment initiatives as they affect the country’s emerging capital projects within the oil, gas, power and the renewable energy sectors.

    In the same vein, Dr. Baru will be among African oil and gas industry leaders, who will join the U.S. Energy Secretary, Rick Perry, in a private government-to-government meeting on trade engagement between the U.S and African countries.

    Organised by IHS Markit, CERA is a global platform on energy trends and public policy where over 4,000 oil and gas experts convene annually to debate the future of oil, natural gas, renewable energy, power and new technologies.

    This year’s edition will explore other big issues confronting the energy industry, hosting speakers such as U.S. Secretary of State, Mike Pompeo; OPEC Secretary General, Mohammed Barkindo and the  Crown Princess of Denmark, Mary Elizabeth among others.