The Nation Newspaper

Tag: Shareholders

  • Shareholders laud Transcorp’s turnaround

    •Approve N813m dividend

    Shareholders of Transnational Corporation of Nigeria (Transcorp) Plc have commended the board and management of the conglomerate for the turnaround of the group from a loss position to profitability. Transcorp witnessed considerable growths in turnover and profitability in 2017, pulling back from a pre-tax loss of N5.93 billion in 2016 to a pre-tax profit of N12.31 billion in 2017.

    At the annual general meeting yesterday in Lagos, shareholders unanimously approved the payment of N812.96 million as cash dividend for the 2017 business year, as recommended by the board of the conglomerate. Shareholders will receive a dividend per share of 2.0 kobo.

    National President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, said the leadership of the company has shown strong commitment to wealth creation for shareholders.

    According to him, the management of the conglomerate has kept to their words of delivering superior returns to the shareholders as promised at the previous general meeting.

    “We are very pleased with this turnaround, and we trust that the company will do all it can to uphold this,” Umar said.

    Chairman, New Dimension Shareholders Association, Mr. Patrick Ajudua also commended the management for returning the company to profitability and deciding to pay dividend to shareholders.

    He urged the directors of the conglomerate not to relent in their efforts to ensure that the conglomerate continues to surpass targets every year.

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu, said the improvement in the performance of the conglomerate reflected the underlying improvement in the Nigerian economy.

    According to him, Transcorp is a gauge of Nigeria’s economy as it was setup to drive the nation’s economy in a positive direction by investing in catalytic sectors, capable of improving lives and Transforming Nigeria.

    “When Transcorp is doing well, you don’t have to check to see if Nigeria is also doing well. Their journeys are intertwined,” Elumelu said.

    He assured shareholders that strategic initiatives implemented in 2017 have laid firm foundation for continuous growths in the years ahead.

    He pointed out that achieving excellence in the execution of the group’s identified strategic imperatives remains critical to its success as an organisation as this continues to position it for several opportunities in the economy and adequately insulate it from any challenges within the operating environment.

    He said the group would explore its oil & gas assets to enhance performance in the years ahead while also leveraging on the oil and gas assets to maximize Transcorp’s potential in the power generation space.

    “The plan is for Transcorp Power to continue expanding its generating capacity and contribute even more to the national grid despite already emerging as Nigeria’s highest generator of Power,” Elumelu said.

    He noted that the group has successfully obtained NNPC’s approval for extension of the Phase 1 Exploration Period for its OPL 281 PSC, which has given it additional time to fulfill work commitments, including drilling of the appraisal wells, under the first Phase of the PSC.

    “We are positive that further engagement with investors will lead to effective execution of OPL 281work obligations, as approved under the PSC,” Elumelu said.

    In his remarks, Chief Executive Officer, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Adim Jibunoh assured shareholders that the conglomerate will deliver better returns in the years ahead.

    He outlined that the company has been involved in a number of projects which will ensure that shareholders begin to enjoy real value for their investment in the next few years.

    “We will continue to be driven by our values of execution, enterprises and excellence and will ensure optimal maximisation of opportunities in our operating sectors, and indeed other sectors with openings for opportunistic investments,” Jibunoh said.

    Key extracts of the audited report and accounts of Transcorp for the year ended December 31, 2017 showed that turnover rose by 35 per cent from N59.42 billion in 2016 to N80.28 billion in 2017. Gross profit increased by 21 per cent to N36.42 billion in 2017 compared with N30.17 billion in 2016. Operating profit increased by 25 per cent from N20.72 billion in 2016 to N26.03 billion in 2017.

    Foreign exchange loss reduced to N4.55 billion in 2017 as against N18.7 billion in 2016 while net finance cost also improved from N26.64 billion to N13.73 billion.

    The company made provisions for N1.7 billion taxes in 2017 compared with tax credit of N4.80 billion received in 2016. With these, it reversed from a loss before tax of N5.93 billion in 2016 to profit before tax of N12.3 billion in 2017. After, taxes, net profit stood at N10.61 billion in 2017 as against net loss of N1.13 billion in 2016.

    The balance sheet position of the conglomerate also improved in 2017 as total assets rose by 23 per cent to N285.52 billion in 2017 as against N232.16 billion in 2016. Shareholders’ funds rose by 11 per cent from N86.45 billion in 2016 to N95.71 billion in 2017.

     

     

     

  • Shareholders laud Transcorp’s turnaround

    Shareholders of Transnational Corporation of Nigeria (Transcorp) Plc have commended the board and management of the conglomerate for the turnaround of the group from a loss position to profitability. Transcorp witnessed considerable growths in turnover and profitability in 2017, pulling back from a pre-tax loss of N5.93 billion in 2016 to a pre-tax profit of N12.31 billion in 2017.

    At the annual general meeting yesterday in Lagos, shareholders unanimously approved the payment of N812.96 million as cash dividend for the 2017 business year, as recommended by the board of the conglomerate. Shareholders will receive a dividend per share of 2.0 kobo.

    National President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, said the leadership of the company has shown strong commitment to wealth creation for shareholders.

    According to him, the management of the conglomerate has kept to their words of delivering superior returns to the shareholders as promised at the previous general meeting.

    “We are very pleased with this turnaround, and we trust that the company will do all it can to uphold this,” Umar said.

    Chairman, New Dimension Shareholders Association, Mr. Patrick Ajudua also commended the management for returning the company to profitability and deciding to pay dividend to shareholders.

    He urged the directors of the conglomerate not to relent in their efforts to ensure that the conglomerate continues to surpass targets every year.

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu, said the improvement in the performance of the conglomerate reflected the underlying improvement in the Nigerian economy.

    According to him, Transcorp is a gauge of Nigeria’s economy as it was setup to drive the nation’s economy in a positive direction by investing in catalytic sectors, capable of improving lives and Transforming Nigeria.

    “When Transcorp is doing well, you don’t have to check to see if Nigeria is also doing well. Their journeys are intertwined,” Elumelu said.

    He assured shareholders that strategic initiatives implemented in 2017 have laid firm foundation for continuous growths in the years ahead.

    He pointed out that achieving excellence in the execution of the group’s identified strategic imperatives remains critical to its success as an organisation as this continues to position it for several opportunities in the economy and adequately insulate it from any challenges within the operating environment.

    He said the group would explore its oil & gas assets to enhance performance in the years ahead while also leveraging on the oil and gas assets to maximize Transcorp’s potential in the power generation space.

    “The plan is for Transcorp Power to continue expanding its generating capacity and contribute even more to the national grid despite already emerging as Nigeria’s highest generator of Power,” Elumelu said.

    He noted that the group has successfully obtained NNPC’s approval for extension of the Phase 1 Exploration Period for its OPL 281 PSC, which has given it additional time to fulfill work commitments, including drilling of the appraisal wells, under the first Phase of the PSC.

    “We are positive that further engagement with investors will lead to effective execution of OPL 281work obligations, as approved under the PSC,” Elumelu said.

    In his remarks, Chief Executive Officer, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Adim Jibunoh assured shareholders that the conglomerate will deliver better returns in the years ahead.

    He outlined that the company has been involved in a number of projects which will ensure that shareholders begin to enjoy real value for their investment in the next few years.

    “We will continue to be driven by our values of execution, enterprises and excellence and will ensure optimal maximisation of opportunities in our operating sectors, and indeed other sectors with openings for opportunistic investments,” Jibunoh said.

    Key extracts of the audited report and accounts of Transcorp for the year ended December 31, 2017 showed that turnover rose by 35 per cent from N59.42 billion in 2016 to N80.28 billion in 2017. Gross profit increased by 21 per cent to N36.42 billion in 2017 compared with N30.17 billion in 2016. Operating profit increased by 25 per cent from N20.72 billion in 2016 to N26.03 billion in 2017.

    Foreign exchange loss reduced to N4.55 billion in 2017 as against N18.7 billion in 2016 while net finance cost also improved from N26.64 billion to N13.73 billion.

    The company made provisions for N1.7 billion taxes in 2017 compared with tax credit of N4.80 billion received in 2016. With these, it reversed from a loss before tax of N5.93 billion in 2016 to profit before tax of N12.3 billion in 2017. After, taxes, net profit stood at N10.61 billion in 2017 as against net loss of N1.13 billion in 2016.

    The balance sheet position of the conglomerate also improved in 2017 as total assets rose by 23 per cent to N285.52 billion in 2017 as against N232.16 billion in 2016. Shareholders’ funds rose by 11 per cent from N86.45 billion in 2016 to N95.71 billion in 2017.

  • Shareholders recapitalise Goldlink Insurance with N3.3b

    THE shareholders of Goldlink Insurance Plc has  approved the re-capitalisation of the firm.

    The approval to raise N3.3 billion capital through right issue was given during the 20th Annual General Meeting (AGM) of the company for  the financial year ended December 31, 2015, at the weekend in Lagos.

    This is coming after about seven years of regulatory intervention in the company by the National Insurance Commission (NAICOM).

    The intervention was as a result of breakdown of acceptable corporate governance practices in the company.

    The company is also waiting for the exit of NAICOM’s intervention to begin business on a clean slate.

    Presenting the reports to shareholders, the Chairman, Alhaji Mohammed Bintude recalled that members of the Interim Management Board (IMB) were not constituted during the period of this report.

    He said while the arrangements for the commencement of the statutory audit for 2015 were yet to be concluded, NAICOM, on  February 25, 2016 reconstituted the current Board of which he became the chairman.

    “Broadly, our mandates include among others, to chart a way for the company’s needed recapitalisation and general repositioning for better business performance.

    “The year 2015 was an election year in the country which witnessed a trail-blazing and successful transition from one political party to another at the federal level, in her journey of democratisation. This remarkable development was however overshadowed by other global and macro-economic developments all of which combined to make the year a tumultuous one.

    “The company made efforts to sustain her market share but could not, owing to the impact of same of the issues already highlighted above, and her current peculiar circumstances,” he said.

    On the financial position of the firm, gross premium written fell by 32 per cent from N3.7 billion in 2014 to N2.5 billion in the current year. The loss before tax however improved marginally from N415 million to N409 million, a difference of one per cent. The company gained some tax reversals which impacted on the loss after tax, reversing the after tax loss of N529 million achieved in 2014, to N350 million in 2015, a difference of 33 per cent.

    “Over the same period, the total assets of the company fell from N2.1 billion in 2014 to Nl.8 billion in 2015, largely contributed by reduction in reinsurance assets and trade receivables.

    “As daunting as the performance appears, it is a reflection partly of the state of the uncertainty in the national economy and the peculiar circumstances of the company itself at the time. It is noteworthy however that the key to achieving a complete turnaround include the recapitalisation of the company, a process which this Board has made remarkable and tremendous progress,” he added.

    During a pre-AGM session with reporters, the interim Managing Director, Mrs Funke Moore, said: “It is a matter of public knowledge that the company has been under NAICOM’s regulatory intervention since the last quarter of 2012 due to the regulator’s observed breakdown of acceptable corporate governance practice(s) in the company’s management.

    “Upon the successful presentation of the company’s financial statements for the years 2011 to 2014 at the company’s 19th AGM in December, 2015, the first Interim Management Board constituted by the NAICOM was dissolved in February, 2016 and reconstituted as it is presently with the core mandate to; perform the normal duties of the Board and take such actions as may be considered necessary for the sound management and growth of the company within the scope of existing policies and practices; and carry out all other things that may be necessary to bring the company to sound management operation and stability.”

    According to her, the magnitude of the challenges the present IMB met on ground was very enormous; several difficult decisions have been taken in the course of the past two years to keep the company afloat. Mrs Moore said because of the company’s antecedents, particularly its brand reliability, knowledge base and quality service delivery, most of its clients have demonstrated uncommon understanding and utmost loyalty.

    “Recapitalising the company has been a very daunting task but am pleased to inform you all that we can now say that we are beginning to see light at the end of the tunnel.

    “This year’s AGM is particularly important because aside presenting the 2015 financials, it affords the Board the opportunity of presenting a workable ‘recapitalisation plan to the shareholders.

    “It is the Board’s hope that the recapitalisation plan, which has already received the regulator’s approval will be also be acceptable to the shareholders so that the company can quickly announce its resurgence in the Nigeria insurance market.  This will enable us start immediate planning on how to recover lost grounds,” she said.

    On the company’s future outlook, she stated that despite the reduction in some of their accounts the company is still holding its ground with a moderate market share and considerable goodwill from clients.

    “The company remains a good brand.  The feedbacks from our clientele have been very positive.  Indeed, we can confidently say that the market is waiting for a recapitalised Goldlink with renewed ability to meet our obligations as at when due.  We are assured of warm receptions by our erstwhile big brokers once we can conclude the issue of our recapitalisation,” she added.

    She commended the commitment of the company’s management and staff for their  faith in the brand.

    “Their many sacrifices must be acknowledged.  It is the people that make the company and I must say that I am proud of our present workforce.  I am full of praises for their resolve to always promptly discharge the company’s contractual obligations to the clients thereby encouraging customer- loyalty and conviction that the situation on ground has not, in any way, hampered the company’s ability to render quality insurance services that remain the yardstick for assessing sound underwriting outfits.

    “The workers’ doggedness in the face of current unfair competition and the management’s prudence have seen us pay off some of our big longstanding claims, even in the face of our meagre resources.  A recapitalised Goldlink will certainly imbue greater motivation and confidence in our ‘goal – getter’ workforce with attendant zeal to deliver more,” she added.

  • FCMB promises better returns as shareholders get N1.98b dividend

    The board and management of FCMB Group Plc at the weekend assured shareholders that the group is stronger to add value and increase returns to shareholders.

    The assurance came as shareholders at the annual general meeting in Lagos approved the payment of N1.98 billion as cash dividend for the 2017 business year. They will receive a dividend per share of 10 kobo, the same amount for the 2016 business year.

    FCMB Group Plc Chairman, Mr. Oladipupo Jadesimi said though the company met with a number of challenges last year, it was able to surmount them due to the commitment of all the personnel of the group.

    The directors of the company, he said, have continued to take proactive measures to ensure that the group remains strong and in a better position to withstand regulatory and economic headwinds.

    ‘’We will continue to shore up the capital of the bank through profit retention in preparation for the growth opportunities that we expect as the economy recovers,’’ Jadesimi said.

    In his remarks, Group Chief Executive, FCMB Group Plc, Mr. Ladi Balogun, noted that in spite of the reduction in headline numbers, the group performance in 2017 was an improvement over the previous year after adjusting for the significant foreign exchange revaluation income booked in 2016.

    According to him, the key drivers of the group’s performance include increase in income from non-banking activities, lower impairment charges from the bank and its subsidiaries, and improved operating efficiencies through more pervasive use of technology.

    He added that the FCMB Group’s successful acquisition of the 88.2 per cent majority stake in Legacy Pension Managers Limited will go a long way to help achieve further diversification of service offerings and consequent earnings within the FCMB Group.

    “We see significant growth opportunities in the pension management industry in Nigeria as it is yet to achieve maturity and will support and facilitate strategic organic and inorganic growth initiatives that will position Legacy in the top-tier of its industry over the next few years,’’ Balogun said.

    He pointed out that companies within the group have shown improvements and are well-positioned to deliver more cutting-edge solutions that will provide the best customer experience in their respective target markets.

    Key extracts of the audited report and accounts of FCMB Group for the year ended December 31, 2017 indicated that the financial services holding group struggled with constrained top-line and bottom-line in 2017, but its underlying fundamentals remained strong.

    Group deposits grew to N689.9 billion in 2017, an increase of five per cent on N657.6 billion recorded in 2016. The Group’s capital adequacy ratio also improved to 16.9 per cent in 2017 as against 16.7 per cent in 2016. Asset base also increased to N1.19 trillion in 2017 compared with N1.17 trillion in 2016. Non-interest income stood at N32 billion in 2017 while loans and advances totalled N649.8 billion during the year.

    Headline figures, however, showed a top-down decline in actual figures. Gross earnings dropped from N176.35 billion in 2016 to N169.88 billion in 2017. Profit before tax declined from N16.25 billion to N11.46 billion. Profit after tax also dropped from N14.34 billion to N9.41 billion. Consequently, earnings per share dropped from 72 kobo in 2016 to N48 kobo in 2017.

    FCMB Group comprises eight subsidiaries including First City Monument Bank Limited, FCMB Capital Markets, CSL Stockbrokers Limited, CSL Trustees Limited, Legacy Pension Managers Limited, FCMB (UK) Limited, First City Asset Management Limited and Credit Direct Limited.

     

  • Shareholders approve N459b capital raising for Access Bank

    Shareholders of Access Bank Plc yesterday authorised the board of directors of the bank to raise up to $1.5 billion or N459 billion in new debt issue. Shareholders passed a resolution increasing the size of the bank’s existing $1 billion debt issuance programme to $1.5 billion by the addition of $500 million.

    The debt issuance programme will enable Access Bank to raise capital through the issuance of non-convertible loans, notes, bonds and any other instruments whether by wa of public offering, private placement, book building process reverse call inquiry or any other method or combination of methods.

    At the annual general meeting in Lagos, shareholders authorised the board of the commercial bank to decide the details of any issue and take all necessary actions necessary in the process of the capital raising.

    Chairman, Access Bank Plc, Mrs Mosun Belo-Olusoga, said the increase in the size of the prospective issuance to $1.5 billion demonstrated the commitment of the directors of the bank to strengthening its funding, capital base and profitability through a robust capital structure.

    According to her, the proactive issuance programme is underscored by the growing scale of regulatory headwinds and economic realities which have put demands on liquidity and capital.

    She said the board deems it necessary to further bolster the bank’s capital and funding base through the issuance of debt securities through any instrument considered appropriate for the bank to meet its growth objectives.

    She noted the successful implementation of the bank’s five year strategic growth plan of 2013 to 2017 and the launch of a new five-year plan aimed at making the bank to become Africa’s gateway to the world by 2022.

    “As we move on to the next phase of our growth story, the board is positive that we will achieve our growth aspirations through a sustained and sharp focus on our strategic priorities. Operating efficiency will remain at the heart of our decisions and we will continue to focus on effective execution of our strategy and on delivering value to shareholders,” Belo-Olusoga said.

    Shareholders who spoke at the meeting commended the bank’s consistent dividend payment policy. Shareholders also applauded the bank for surpassing N4 trillion balance sheet size. Shareholders also approved the payment of N18.8 billion as cash dividend for the 2017 business year. Shareholders will receive a final dividend of 40 kobo, in addition to interim dividend of 25 kobo, bringing the total dividend per share for 2017 to 65 kobo.

    Representatives of shareholders’ groups that spoke at the meeting included Mr. Adebayo Adeleke of Independent Shareholders Association of Nigeria (ISAN), Mrs Bisi Bakare, President of the Pragmatic Shareholders Association of Nigeria and Alhaji Muktar Muktar, President, Trusted Shareholders’ Association of Nigeria (TSAN).

    Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe said the bank recorded well-rounded performance in 2017 with improvements in all key performance indices such as earnings per share, cost of risk and capital adequacy ratio, which are the major ratios financial institutions are measured by.

    “Looking at the top-line of major banks, we are doing well. The new phase of our five-year corporate strategic plan will extensively cover what we could not achieve in the previous phase. We shall continue to invest in staff trainings in order to ensure our staff remain one of the best amongst their colleagues in the industry. As a customer friendly institution we have set-up an Interactive Voice Response (IVR) centre and ombudsman complaints Call Centre to tackle issues from customers,” Wigwe said.

    Key extracts of the audited report and accounts of Access Bank for the year ended December 31, 2017 showed that gross earnings grew by 20 per cent to N459.08 billion in 2017 as against N381.32 billion recorded in 2016. Group’s operating income rose to N302.6 billion in 2017 as against N272.6 billion in 2016.

    However, the bank’s bottom-line contracted as pre-tax profit dropped by 11 per cent from N90.34 billion in 2016 to N80.07 billion in 2017. After taxes, net profit declined from N71.44 billion to N61.99 billion. With these, earnings per share dropped simultaneously from N2.50 in 2016 to N2.18 in 2017.

    Wigwe said the bank’s operating performance in 2017 was impacted by the residual effects of macro-economic conditions of 2016, noting that the bank’s fundamentals remain strong and the group remains poised for sustainable growth in the coming periods.

  • Shareholders approve new name for Custodian and Allied

    Shareholders of Custodian and Allied Plc yesterday approved a change of the group’s name to Custodian Investment Plc in a strategic move to align the brand name with the enlarged business outlook of the group.

    At the annual general meeting in Lagos, shareholders approved a special resolution to change the name of the company from Custodian and Allied Plc to Custodian Investment Plc or any other name that may be approved by the Corporate Affairs Commission (CAC) without any further reference to shareholders for their approval.

    Custodian and Allied, a holding company, includes four subsidiaries- Custodian and Allied Insurance Limited, Custodian Life Assurance Limited, Custodian Trustees Limited and CrusaderSterling Pensions Limited.

    Chairman, Custodian and Allied Plc, Dr Omobola Johnson said the group has been positioned to take advantage of emerging opportunities and sustain growth across all its portfolios.

    She noted that following the meltdown of the stock market and the relatively low interest rate regime of 2016, the environment in 2017 was more favourable to companies with net investible funds such as Custodian and Allied Plc.

    According to her, the various revenue streams of the group including premium income, investment income, fees and commission recorded significant growths while the company’s costs were effectively managed, resulting in a 37 per cent increase in net profit.

    “In spite of the uncertainty that usually accompanies election cycles in Nigeria, it is my utmost belief that our management is well positioned and adept enough to weather the storm and continue to take our company to greater heights,” Johnson said.

    She urged shareholders to support the board and management of the company as they strive to create better values for all stakeholders.

    Shareholders who spoke at the meeting commended the board and management of the company for the impressive performance and dividend payout. Custodian and Allied witnessed significant improvement in its profitability in 2017 as the group’s profit after tax rose by 37 per cent from N5.3 billion in 2016 to N7.3 billion in 2017. Gross revenue increased from N38.55 billion in 2016 to N43.05 billion in 2017.

    Shareholders approved the payment of a final dividend of 32 kobo for every 50 kobo ordinary share. The company had earlier paid an interim dividend of 10 kobo per share, bringing total dividend per share to 42 kobo, the highest payout by the company so far. The company has consistently paid dividends to its shareholders every year for the past 20 years.

    Custodian and Allied is a non-bank financial institution with investments in life and non-life insurance, pension fund administration, trusteeship and property holding businesses.

     

     

  • UBA targets higher returns as shareholders get N29.1b dividend

    Directors of United Bank for Africa (UBA) Plc yesterday assured that the bank will continue to improve its performance as shareholders unanimously approved the distribution of N29.1 billion as cash dividend for the 2017 business year.

    At the annual general meeting in Lagos, shareholders commended the board and management of the pan-African commercial banking group for the strong growth in 2017, particularly the remarkable growth and profitability of the group’s subsidiaries, which contributed 45 per cent of UBA’s profit for the year.

    With the approval of the dividend payment, shareholders will receive a total dividend per share of 85 kobo, consisting of a final dividend per share of 65 kobo in addition to interim dividend of 20 kobo earlier paid after the first-half results. The total payout for 2017 represented a 13 per cent growth on a dividend per share of 75 kobo paid for the 2016 financial year.

    Chairman, United Bank for Africa (UBA) Plc, Mr Tony Elumelu, said the bank remains strong and continues to explore opportunities across the continent to deepen its growth and diversify income sources.

    “Our balance sheet is well protected and our commitment to exceeding regulatory requirements remains unhindered. We recently opened operations in Mali, because that economy is a viable one and will contribute to our bottomline. Mali will benefit from UBA’s presence across Africa, especially with the economic and trade ties amongst Senegal, Guinea and Mali. UBA Group as well as other subsidiaries will also benefit from the Mali operation,” Elumelu said.

    He assured shareholders that the bank will remain a socially responsible organisation by continuing its investments as well as donations to worthy causes aimed at the progress of host countries and Africa at large.

    Group Managing Director, United Bank for Africa (UBA) Plc, Mr. Kennedy Uzoka, said the banking group has been positioned to surpass its previous performance in the years ahead.

    According to him, while the significant growth of 16 per cent in profit before tax to N105.3 billion in 2017 demonstrated the viability of the bank’s growth model, management’s focus on operational efficiencies and other initiatives will position the bank o achieve better performance in the next financial year.

    “UBA has built a great brand that is recognized all over the world, and because of this, we have decided to focus on strategy on what the customer wants rather than what we like. Everything we do is from the standpoint of the customers because this approach will ensure the sustainability of our growth trajectory. To this end, we have made a lot of investments in technology to ensure that we cater to the dynamic needs of our customers at all times,” Uzoka said.

    Shareholders who spoke at the meeting commended the bank for the impressive performance, which has seen steady growth in dividend payment to shareholders.

    Chairman, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, commended Uzoka for his hard work on customer service, product innovation and more importantly, the continuous improvement in the group’s profitability.

    “We are impressed with what our bank is doing across the continent and I will say that we are beginning to live our name, as the Global Bank for Africa. It reinforces the fact that good things can come from Africa. UBA has showcased a high level of ingenuity in the banking space, and we are glad for how this is translating into gains for our business and steady returns to shareholders,” Okezie said.

    Shareholders also lauded the bank on the recent promotion of more than 47 per cent of its workforce, within 12 months, adding that it remained a commendable feat at a period where many banks and companies are laying off staff, due to the recession that rocked the country about two years ago.

    Another shareholder, Mr. Timothy Adesiyan, commended the bank for being the first bank in Africa to embrace artificial intelligence technology into the banking space, through the introduction of UBA’s virtual banking robot, called “Leo”.

    He said shareholders remained impressed that UBA’s investments in key countries such as Ghana, Burkina Faso and Cote d’Ivoire were paying off adding that UBA has become a catalyst for growth in Africa.

    “We have been benefitting from this in the area of dividends, and we ask that this momentum be sustained,” Adesiyan said.

    A shareholder and analyst, Nonah Awoh, also commended the bank for the performance and urged the management to do more to ensure that all the African subsidiaries contribute at least 50 per cent to the bottomline.

  • Shareholders praise Transcorp Hotels mgt

    Despite the challenging economic climate in the hospitality business in the country, shareholders of Transcorp Hotels Plc have commended the management and staff of the company for achieving an impressive financial year ended 31st December 2017.

    The Chairman, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie disclosed this at the fourth annual general meeting (AGM) of the company in Abuja, attributing the achievement to 30 years of rich experience in providing superior luxury hospitality service.

    He said: “The management of the company is resourceful and committed as demonstrated in its profitable position every year.

    “In the first annual general meeting by any public quoted company in 2018, the shareholders unanimously approved the board’s recommendation of a final dividend of N12.45 kobo per share expressing their confidence in the Company’s ability to deliver on expectations.

    “We applaud the company for the remarkable growth it recorded amidst socio-political and economic challenges that impacted negatively on hotel occupancy.

     

     

    hotel” Ozigbo stated.

  • GSK Nigeria to pay N8.97b special dividend to shareholders

    GlaxoSmithKline Consumer Nigeria (GSK) Plc will distribute a total of N8.97 billion as dividend to shareholders for the 2017 business year.

    The board of directors of GSK yesterday indicated that it has approved the payment of N8.49 billion as special dividend and N478.4 million as ordinary dividend, bringing total payout for the 2017 business year to N8.97 billion.

    A breakdown of the dividend recommendation showed that shareholders will receive a special dividend per share of N7.10 and ordinary dividend per share of 40 kobo, implying a total dividend per share of N7.50.

    The dividend recommendation as well as the audited report and accounts of the healthcare company were approved by the directors of the company at their meeting at the weekend. The dividend will be paid on May 25, 2018, a day after the annual general meeting in Lagos.

    GSK has recently been distributing its surplus capital as special dividend to shareholders after it concluded sales of segment of its business to other investors. GSK had in 2016 concluded a N22.6 billion divestment of its drinks business to the Japanese group, Suntory Beverage and Food Limited (SBF).

    GSK Nigeria transferred the ownership to Suntory Beverage & Food Nigeria Limited, a subsidiary of the SBF, on October 1, 2016. GSK Nigeria’s drinks business included the two iconic brands-Lucozade and Ribena. The sale included the company’s business of manufacturing, bottling, marketing, distributing and selling of the Ribena and Lucozade brands in Nigeria and all assets attached to or deployed in connection with the business.

    Following intense negotiations on May 31, 2016, GSK Nigeria and Suntory had agreed to the terms of the proposed sale of the drinks business for a headline price of $79.2 million. Suntory Beverage & Food Nigeria Limited is a subsidiary of the Japanese group, Suntory Beverage and Food Limited (SBF), a leading soft drinks company with total sales of £6.6 billion.

    After the conclusion of the divestment deal, GSK Nigeria had in 2016 paid a special dividend of N716 million to shareholders, representing 60 kobo per share.

    Now, the retained business of GSK Nigeria would be its consumer healthcare wellness, oral healthcare, nutrition and pharmaceutical and vaccines businesses.

  • Shareholders mull legal action against CBN’s bank dividend policy

    Shareholders mull legal action against CBN’s bank dividend policy

    Minority and retail shareholders have called on the Central Bank of Nigeria (CBN) to rescind its newly amended dividend payment policy for deposit money banks (DMBs), threatening to take legal action against the apex bank if it failed to withdraw the policy.

    Minority and retail shareholders under the auspices of Pragmatic Shareholders Association (PSA) said the CBN’s dividend policy for banks runs contrary to the current efforts aimed at encouraging retail investors in the Nigerian capital market.

    In a communiqué issued at the end of their emergency meeting at the weekend, the shareholders said the apex bank was chasing a wild goose by shifting the blame of non-performing loans to shareholders rather than addressing the underlying causes of non-performing loans.

    Under the amended dividend policy, banks that do not meet the minimum capital adequacy ratio (CAR) will not be allowed to pay dividend. Also, banks with non-performing loans (NPLs) above 10 per cent will not be allowed to pay dividend. Banks that meet the minimum CAR requirement, but have NPL ratio of more than 5.0 per cent, but less than 10 per cent will be allowed to pay a maximum of 30 per cent of earnings as dividend. Banks with CAR of at least 3.0 per cent above minimum requirement and NPL ratio of more than 5.0 per cent, but less than 10 per cent will be allowed to pay up to a maximum of 75 per cent of earnings as dividends while banks that meet the minimum capital adequacy ratio and non-performing loan ratio have no regulatory restrictions and can pay dividend as wish.

    Shareholders said the apex bank should take the blame for the level of non-performing loans in the Nigerian banking industry, alleging that the bad debts were as a result of the failure of the apex bank to efficiently discharge its regulatory functions.

    They alleged that the board and management of the CBN cannot be absolved from the high level complicity and sabotage that have continued to fuel recurring bad loans.

    “The apex bank owes it a duty to Nigerians and the international community to publish profiles of loan defaulters and invoke operating laws through the banks on all bad loans,” the communiqué, signed by PSA’s National Coordinator, Mrs Bisi Bakare stated.

    They called on the National Assembly to intervene and protect the domestic retail shareholders from what they described as kill-joy policies of the apex bank.

    According to the association, the use of dividend payment as bad debt management tool will not only have negative impact on the domestic capital market and national capital accumulation, but may also encourage defaulters.

    The association also chided the Securities and Exchange Commission (SEC) “for abandoning and reneging on its corporate responsibilities to shareholders”.