Capital Market Archives — Business Bells

Business Bells

Category: Capital Market

  • MTN Group Set to Sell 575 Million Shares To Nigerians

    MTN Group Set to Sell 575 Million Shares To Nigerians

     

    MTN Group Limited has announced plans to offer for sale the shares of its Nigerian subsidiary, MTN Nigeria Communications Plc.

     

    The Group has disclosed its intention to proceed with a public offer for sale of 575 million shares in MTN Nigeria.

     

    This was made known in a notice signed by the company’s secretary, Uto Ukpanah and filed with The Exchange.

     

    The notice further stated that the offer would be by way of a bookbuild to institutional investors and a fixed price to retail investors.

    MTN Group Set to Sell 575 Million Shares To Nigerians
    Karl Toriola, MTN Nigeria CEO

    According to the statement, the offer is expected to open in November 2021 with a bookbuild to institutional investors and after which a fixed price will be announced for retail investors before it closes in December 2021.

     

    It is worth noting that this is the first step towards the Group’s previously communicated statement notifying The Exchange and investing public of its intention to sell down 14% of its current shareholding in MTN Nigeria.

     

  • Nigeria’s Cryptocurrency Market Grows by 1,200% in One Year – Report

    Nigeria’s Cryptocurrency Market Grows by 1,200% in One Year – Report

     

    The cryptocurrency market in Nigeria and other African countries have grown by 1200 per cent in one year.

     

    This was disclosed in a report by Chainalysis on Tuesday.

     

    According to the report, the African region has one of the highest grassroots adoptions in the world, with Kenya, Nigeria, South Africa, and Tanzania ranking in the top 20 of its Global Crypto Adoption Index.

     

    The report added that Africa has the third-fastest growing cryptocurrency economy, and a bigger share of its overall transaction volume made up of retail-sized transfers than any other region at just over 7 per cent, versus the global average of 5.5 per cent.

     

    The report said that Africa was the smallest cryptocurrency economy of any region under review, having received $105.6 billion worth of cryptocurrency between July 2020 and June 2021.

     

    It added that Peer to Peer platform is more prominent in Africa than other regions, and many African cryptocurrency users also rely on P2P platforms for remittances and commercial transactions.

     

    It said, “Cross-region transfers also make up a bigger share of Africa’s cryptocurrency market than any other region at 96 per cent of all transaction volume, versus 78 per cent for all regions combined. Thanks in part to this recent growth, no region uses P2P platforms at a higher rate than African cryptocurrency users, as they account for 1.2 per cent of all African transaction volume and 2.6 per cent of all volume for Bitcoin specifically.

     

     

  • Fidelity Bank Profit Before Tax Inclines By 72.4% In First Half Of 2021

    Fidelity Bank Profit Before Tax Inclines By 72.4% In First Half Of 2021

     

    Fidelity Bank Plc has posted a profit before tax (PBT) of N20.6 billion for the six months ended June 30, 2021.

     

    The Managing Director/Chief Executive Officer of Fidelity Bank, Mrs. Nneka Onyeali-Ikpe, disclosed this in the bank’s audited half-year (H1) results released to the Nigerian Exchange (NGX) Limited on Sunday in Lagos.

     

    Onyeali-Ikpe said that the bank’s PBT represented a 72.4 percent growth when compared to N12.0 billion recorded in the comparative period of 2020.

     

    She added that profit after tax (PAT) rose to N19.31 billion from N11.30 billion recorded in the corresponding period.

     

    She said the growth was on the Back of Increased customer transactions and improved operational efficiency.

     

    “We sustained our impressive financial performance with double-digit growth in profit as increased customer transactions drove non-interest revenue while improved operational efficiency continued to moderate cost-to-serve,” she said.

     

    Onyeali-Ikpe also said that the financial result for the period indicated that Gross Earnings increased by 6.2 percent Year-on-Year (YoY) to N112.3 billion on account of 27.8 percent growth in Non-Interest Revenue (NIR) to N23.8 billion from N18.1 billion in H1 2020.

     

    She added that the bank’s NIR was driven by strong growth in commission on banking services by 57.7 percent, account maintenance charges by 50.6 percent, digital banking income by 49.4 percent, and trade income by 33.7 percent among others.

     

    Total customer-induced transactions across all distribution channels increased by 58.0 percent YoY and 21.2 percent QoQ.

     

    The bank showed a good appetite in funding the real sector with net loans and advances increasing by 15.8 percent YTD to N1.53 billion from N1.32 billion in 2020FY.

     

    However, the actual growth was 14.7 percent while the impact of the currency adjustment (2020FY: N400.3/dollars-H1 2021: N410.6/dollars) accounted for a 1.1 percent YTD growth in the loan book. Cost of risk came in at 0.3 percent and the NPL ratio (stage 3 loans) dropped to 2.8 percent from 3.8 percent in 2020FY.

     

    Other regulatory ratios remain well above the minimum requirement: capital adequacy ratio at 18.8 percent from 18.2 percent in 2020FY.

     

    Total Deposits increased by 16.5 percent YTD to N1.98 billion from N1.69 billion in 2020FY, driven by increased deposit mobilization across all deposit types.

     

    “Digital Banking gained further traction as we now have 55.1 percent of our customers enrolled on the mobile/internet banking products and 89.3 percent of customer-induced transactions were done on digital platforms.”

     

    She also explained that the bank’s foreign currency deposits increased by 23.1 percent YTD at 149 million dollars and now accounted for 18.5 percent of total deposits from 17.5 percent in 2020FY.

     

    According to her, this is as the bank continues to harness the benefits of its renewed drive in the diaspora banking space.

     

    “We look forward to sustaining the current momentum in H2 by optimizing our balance sheet and lowering our cost–to–serve.

     

    “This will translate to improved earnings while we remain committed to our medium to long-term strategic objectives,”  Onyeali-Ikpe said.

     

     

  • Stanbic IBTC Deepens Investors’ Participation In Stock Market

    Stanbic IBTC Deepens Investors’ Participation In Stock Market

    In deepening investors’ participation in the Nigerian capital market, Stanbic IBTC Stockbrokers, has removed the minimum stockbroking account-opening balance for individuals to allow zero set up amount via its mobile app or electronic trading (e-Trade) platform on its website.

     

    The organisation has taken it upon itself to enlighten and empower prospective investors, especially the millennial and Gen-Z demographics by providing the tools and opportunities for wealth generation and preservation offered through capital market investments.

     

    By removing the opening balance requirement and reducing its online brokerage fees, individual investors are encouraged to take advantage of this opportunity and enjoy the aspirational services provided by Stanbic IBTC Stockbrokers.

     

    The chief executive, Stanbic IBTC Stockbrokers, Titi Ogungbesan said, “This is a great opportunity for new and existing investors to take advantage of. This development will enable interested persons to invest in the Capital Market through Stanbic IBTC Stockbrokers at their own pace.

     

    “In addition to removing the minimum opening account balance, we have also reduced the brokerage fee for transactions executed via our online platforms from one per cent of the brokerage fees to 0.7 per cent; a 30 per cent reduction in commission charged.”

     

    Titi added that potential investors can make use of its self-service options available via the Stanbic IBTC Stockbroking App on the Google Play and Apple stores, as well as its e-Trading portal available.

     

    “Leveraging on technology, we have also made it easier to open a stockbroking account with us via our mobile and web platforms,” she stated.

     

    Stanbic IBTC Stockbrokers is a subsidiary of Stanbic IBTC Holdings Plc, and Nigeria’s largest stockbroking firm with a market share of over 10 per cent of the value of shares traded on the floor of the Nigerian Exchange Limited.

     

  • Annual 41st AGM: Lasaco Delivers Awesome Performance In 2020, Grow Stakeholders Value, Despite Challenges  –Teju Philips

    Annual 41st AGM: Lasaco Delivers Awesome Performance In 2020, Grow Stakeholders Value, Despite Challenges  –Teju Philips

     

    The Chairman of Lasaco Assurance Plc, Mrs Olateju Philips, has disclosed that in spite of the challenging situation experienced in the year 2020 has a result of the COVID-19 pandemic, the company was able to deliver an awesome performance with a record Gross Premium Written of N10.937billion.

     

    Mr Philips who made this known during the company’s 41st Annual General Meeting held at Marriott Hotel, Ikeja GRA Lagos, added that Lasaco Assurance Plc was able to generate N8.05billion in net underwriting income as against N6.71billion made in 2019, signifying an increase of 20% year on year.

     

    According to her,”In spite of the challenging situation experienced during the course of the year, the company was able to deliver an awesome performance in 2020 and grew stakeholders’ value. We recorded a Gross Premium Written of N10.937billion.

     

    “This signifies a 17% growth in performance compared to Gross Premium Written in 2019. The company made N8.05billion in net underwriting income as against N6.71billion made in 2019 signifying an increase of 20% year on year.

     

    “100% increase was recorded in profit before tax from N315.7billion in 2019 to N679.4million in 2020. Our total asset grew from N18.5billion to N20.5billion signifying 11% increase while shareholders’ fund declined by 2% from N7.98billion in 2019 to N7.80billion in 2020.

     

    Speaking further, she said that with the array of economic events which the company was able to manage in the previous year and strategies put in place by the leadership of the organization, 2021 promises to be better for Lasaco Assurance Plc.

     

    “We are also hopeful that the economic policy adjustments and reforms will aid the business environment positively.

     

    “In the last one year, we have worked assiduously to map out strategies to improve our identity and visibility to increase sales and market share. Our strategies to improve our identity and visibility to increase sales and market share.

     

    “Our strategic digital transformation plan will aid customer experience and the diversification of income streams deepening will add tremendous value to the bottom line.

     

    “Plans have also been devised for the diversification of our Investment portfolio. This will spur the organization to growth through increase in investment income.

     

    She lamented that the COVID-19 pandemic placed Nigeria in a critical condition in 2020 as the country locked down economic activities at the beginning of quarter 2020 in order to minimize the spread of COVID-19 virus.

     

    She said the country entered the crisis with the failing per capital income, high inflation, and governance challenges which affected every aspect of business and economic lives.

     

    “The Nigeria’s economy experienced a 3.6% contraction in the first three quarters of 2020 leading to the worst recessions in decades, oil prices improved and the authorities employed policies to counter the economic distress.

     

    “The economy even with the various unrest experienced across the country, returned to growth albeit marginally, in the final quarter of year 2020, with GDP expanding 0.11% year -on year beating market expectations of 1.9% decline.

     

    “Inflation galloped to a 34- month high 15.75% in December 2020 from 11.98% same period in 2019, fueled by increase food prices due to constraints on domestic supplies and the effect of an exchanged premium that widened to about 24%.

     

    Mrs Philips lamented that citizens agitations in many parts of the country, especially End SARS protest also disrupted lots of activities leading to lost of lives and properties.

     

    She stated that this affected insurance businesses in the country as claims in both high frequency,high severity and near  catastrophy were recorded country wide.

     

    “In 2020, Nigeria financially markets based her actions on the monetary policy. The equity market rose to 50% in 2020. It tops performance is over a decade. However, stock performance in 2021 depends on the direction of monetary policy and relative to business environment.

     

    “Nigeria economy is anticipated to grow by 1.8% in 2021. Despite the current encouraging external situation with oil prices recovery and growth in advance  economies, reform shortfall would hinder the renewed economic expansion and undermine progress towards Nigeria’s development goals.

     

    “Hopefully, policy adjustments and reforms designed to shift the country from it dependence on oil and to diversify the economy towards private sector -led growth will set Nigeria on a more sustainable path to recovery,” she averred.

     

    She assured the shareholders, board members, management, and staff of Lasaco Assurance Plc, that it is the dawn of new era adding that together with their continuous supports, the legacy of the organization will be sustained.

     

  • Stanbic IBTC: Why We Delayed Release Of Half Year Audit

    Stanbic IBTC: Why We Delayed Release Of Half Year Audit

    Stanbic IBTC Holdings Plc has explained the delay in the release of its half-year audited result for the period ended July 31.

     

    Mr. Chidi Okezie, the Company Secretary, said this in a notice posted on the website of the Nigerian Exchange (NGX) Ltd. in Lagos.

     

    The notice informed NGX Regulatory Ltd. and its stakeholders that the company was currently seeking approval from the Central Bank of Nigeria (CBN) to ensure the release of its audited half-year results ended July 31.

     

    The notice read: “This is to inform NGX Regulation Ltd. as well as our esteemed stakeholders that we are experiencing a slight delay in the release of the 2021 half-year audited financial statements for Stanbic IBTC Holdings Plc.

     

    “This delay is occasioned by the fact that we are currently seeking the approval of our primary regulator, the CBN for the half-year audited financial statements, following which the said financial statements will then be released to the market.

     

    “We are working diligently to ensure that our company’s half-year results are submitted to the NGX as soon we receive approval from our primary Regulator, the CBN; and this may occur before or shortly after the regulatory due date of  Aug. 29,” it explained.

     

  • NGX At 60: ‘After Six Decades, We Trade 300 Securities Worth N35Tn’

    NGX At 60: ‘After Six Decades, We Trade 300 Securities Worth N35Tn’

    The Nigerian Exchange Group (NGX Group) Plc on Tuesday celebrated 60 years of its operations.

     

    The Group’s Chairman, Otunba Abimbola Ogunbanjo, in a statement, paid tribute to the original subscribers to the articles of association.

     

    He named them; R.S.V. Scott, representing C.T. Bowring and Co. Nigeria Ltd.; Chief Theophilus Adebayo Doherty; Sir Odumegwu Ojukwu; Mr. Akintola Williams and Alhaji Shehu Bukar, John Holt Ltd. and Investment Company of Nig. Ltd., (ICON).

     

    He stated: “We celebrate the vision of these seven individuals and organizations, who in the Nigerian spirit, broke new ground in starting the Exchange, and we are proud of our sterling history over these six decades.

     

    “From our humble beginnings when only 19 securities were listed for trading, we are now demutualized and we trade over 300 securities worth about N35 trillion,” Ogunbanjo said.

     

    The Group Managing Director/Chief Executive Officer, NGX Group, Mr. Oscar Onyema, appreciated the contributions of the capital market stakeholders.

     

    Onyema said: “We must thank our invaluable stakeholders who have contributed to six decades of growth and partnership.

     

    “To the trading license holders, issuers, regulators, government and its agencies, media, and other stakeholders.

     

    “We recognize your support and reiterate our commitment to building a market infrastructure group that supports your business objectives across the entire value chain for many years to come.

     

    “In consonance with the innovative spirit of our founding fathers which has continued to drive our operations, demutualization has allowed us to transition into a profit-driven, shareholder-held, and globally competitive organization.

     

    “Building on six decades of growth and partnership, NGX Group of companies is now positioned to be a key player in strengthening our competitiveness on a larger scale,” he added.

     

    According to Onyema, the recently launched campaign “Stock Africa Is Made Of” further encapsulates the group’s commitment to fulfilling the dreams of the founding fathers not only in Nigeria but also in Africa.

     

    It will be recalled that the NGX Group recently refreshed its brand identity in an official launch headlined by President Muhammad Buhari.

     

    NGX Group’s new structure boasts three wholly-owned subsidiaries: Nigerian Exchange (NGX) Ltd., the operating exchange with Mr. Temi Popoola as CEO; NGX Regulation (NGX RegCo) Ltd., the independent regulation company with Ms. Tinuade Awe as CEO; and NGX Real Estate (NGX RelCo) Ltd., with Mr. Gabriel Igbeka as acting CEO.

     

    The Group officially commenced operations on Aug.  25, 1961, as the Lagos Stock Exchange, after it was founded on Sept. 15, 1960.

     

  • Dangote Sugar Records N131.9bn Revenue in H1, Cement Posts N191.6bn in Six Months

    Dangote Sugar Records N131.9bn Revenue in H1, Cement Posts N191.6bn in Six Months

     

    Dangote Sugar Refinery has posted N131.95 billion revenue in its unaudited financial results for the half year (H1) ended June 30, 2021.

     

    The Group Managing Director/CEO of the refinery, Ravindra Singhvi, made the disclosure in a statement on Sunday.

     

    The company’s revenue rose by 27.8 per cent in contrast to N103.23 billion recorded in the comparative period of 2020, showing a strong improvements in performance indices.

     

    Also, Gross Profit grew by 37.3 per cent to N28.59 billion compared to N20.82 billion recorded in the corresponding period of 2020, due to better top line performance.

     

    Group sales volume increased to 388,589 tonnes while production volume also increased by 7.6 per cent to 403, 846 tonnes driven by operations optimization drive.

     

    “We commenced the year on a strong footing with impressive performance in first half as the financial results have shown, with a stronger Q1 top line growth and a robust Q2 top line growth year on year.

     

    “During the period under review we launched our new packaging designs for the 50kg fortified and non-fortified sugar bags with the theme: ‘Dangote Sugar has a new look…. Same Great Quality’.

     

    “The theme reaffirms the quality of our product and inspires a deeper connection to the Dangote Sugar brand among our valued customers and consumers, whilst refreshing our market presence as the leading sugar brand in Nigeria, ” Singhvi said.

     

    Singhvi also said that the company, as part of its supply chain management sustainability journey, continued to enhance its outgrowers scheme.

     

    “The technical and agriculture support provided for them over time has led to the improved yield from our outgrowers sugarcane farms at the Numan Sugar Estate.

     

    “This effort will be sustained to ensure the socioeconomic growth of our immediate communities and improved sugar cane supply for production.

     

    “The team is committed to navigate the second half of the year, keeping the health and safety of our people and partners as top priority.

     

    “Our Refinery in Apapa and Backward Integration Operations in Numan, Adamawa State and Tunga, Nasarawa State continue to operate in compliance with our health and safety protocols while ensuring our commitment to the environment and sustainable business practices are maintained.”

     

    According to Singhvi, the recurrent challenges with Apapa traffic gridlock persisted during the first half of the year but expressed optimism that the truck call up system will address the situation.

     

    He explained that the achievement of the Dangote Sugar Backward Integration Projects targets remains the focus.

     

    “We are resolute and will continue in our quest to put Nigeria on the path of sugar self-sufficiency and on the world sugar map,” he added.

     

    Also, Dangote Cement posted a Profit After Tax (PAT) of N191.6 billion, after a tax charge of N89.6 billion in its unaudited results for the half year ending on June 30.

     

    The Group Managing Director, Dangote Cement, Mr Michel Puchercos, said this in a statement on Sunday in Lagos.

     

    Puchercos said that the company’s resilient results for the six months ending on June 30, was as a result of the group sales volumes which hit 15.3Mt.

     

    “We are pleased to report a solid set of the good results for the first half of the year.

     

    “Our performance reflects the strong demand across the group, with increases in revenue and profitability, compared to the same period last year,” he said.

     

    Pucheros added: “This strong intrinsic performance is magnified by the lower Q2 2020 results because of COVID-19.

     

    “The growth trend continues, and we are focused on meeting the strong market demand across all our countries of operation.”

     

    According to him, the company will continue to maintain a strong focus on health and safety measures in all our engagements with stakeholders.

     

    “We have learned a lot over the past year on how to mitigate risks associated with COVID-19.

     

    “We remain committed to protecting our team members and communities by being fully compliant with local laws and regulations.

     

    “We are improving the output of our existing and new assets and I am happy to announce that our three Mt Okpella Plant, Edo, is on track to come on stream in the next quarter,” he said.

     

    Puchercos also said that the company’s Alternative Fuel project which focused on leveraging waste management solutions, reducing CO2 emissions and sourcing material locally was at an advanced stage, while procurement and installation of the necessary equipment across all plants was ongoing.

     

    He added that Dangote Cement was focused on sound governance.(NAN)

     

     

     

  • Lafarge Africa Declares Profit of N19.19 Billion In Q2 2021

    Lafarge Africa Declares Profit of N19.19 Billion In Q2 2021

    Lafarge Africa (Wapco) Plc has declared a 25.75% growth in net profit in the second quarter of the year (Q2 2021).

     

    The cement company recorded a 29.40% increase in revenue, taking revenue for the period to N73.55 billion from N56.84 billion in the same quarter of 2020.

     

    According to the financial report released today, net income increased by N3.93 billion, reflecting a growth of 25.75% from N15.26 billion recorded in the corresponding period of 2020 to N19.19 billion in the current period. From the previous quarter (Q1) however, the company showed a growth in its net profit by N10.05 billion.

     

    The financial statement revealed that the company generates its revenue through the sale of cement and aggregates & concrete. The revenue from the sale of cement stood at N71.51 billion during the period, reflecting a growth of 26.95% from N56.33 billion in the same quarter of 2020, while revenue made from aggregates & concrete stood at N2.04 billion up from N519 million in 2020.

     

    Investment One

    Other income for the period, however, declined from N1.08 billion in 2020 to N145 million in the current period, despite increases recorded in government grants. This is due to the fact that the company recorded no gains on the disposal of its property, plants and equipment, as well as no writebacks of provisions no longer required during the period.

     

    Lafarge Africa Plc witnessed a decline in net finance costs, attributable to the high foreign exchange gain recorded in the period, despite the hike in bank charges. Net assets for the period stood at N371.85 billion an uptick compared to N359.6 billion recorded as of December 2020.

     

    In Q1, Lafarge Africa Plc reported a growth of 12.20% in revenue. In the same vein, net profit for the period grew by 13.26% from N8.07 billion to N9.14 billion.

     

    Earnings per share for the period grew by 7 kobo from N0.50 to N0.57.

     

    Lafarge Africa Plc is currently trading at N22.90 per share and its market capitalization stands at N368.87 billion as of today, Thursday, July 29, 2021. Year-to-date performance shows that the share price of the company has gained

  • Stanbic IBTC Bank Nigeria PMI: New order Growth Quickens to 17-Month High in June

    Stanbic IBTC Bank Nigeria PMI: New order Growth Quickens to 17-Month High in June

     

    June data revealed a positive end to the first half of 2021 with a solid expansion recorded in the Nigerian private sector. Greater client demand in both domestic and international markets led to a sharp and accelerated rise in new orders. That said, output, purchasing and employment growth softened during the month.

     

    Meanwhile, firms reduced their backlogs at the second most marked rate in the series. Sentiment regarding output in the year ahead was weak in the context of the historical average, but firms continued to foresee a rise in output by June 2022. On the price front, overall input price inflation was robust, but eased to the softest since December 2020 despite a sharper rise in purchase costs.

     

    The headline figure derived from the survey is the Purchasing Managers’ Index™ (PMI®). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration. At 53.6 in June, down from 54.4 in May, the headline PMI registered a solid rate of growth, but one which moderated from May’s nine-month peak. The latest uptick extended the period of expansion to 12 consecutive months, however. New order inflows rose strongly in June, with the pace of expansion quickening to the fastest since January 2020. Greater client demand was often mentioned by respondents.

     

    International demand for Nigerian goods and services also increased, and at the fourth-quickest rate in the series. Although client demand rose at a sharp and accelerated pace, output growth moderated in June. The rate of expansion was still solid but posted below the long-run series average. Sector data revealed services recorded the sharpest increase in activity followed by wholesale & retail and manufacturing respectively. Agriculture meanwhile registered a fractional rise. To support higher output, firms engaged in buying activity with growth now seen in each month since July 2020. Inventories also rose at a similar pace, though the rate of expansion softened in both.

     

    Workforce numbers rose marginally in June, which coincided with only a slight rise in staff costs. Amid efforts to keep on top of outstanding business, backlogs fell at the second most marked rate in the series, surpassed only by that seen in February. On the price front, higher raw material costs underpinned a rise in purchase prices which quickened to a three-month high. Overall input prices rose sharply, though at the softest rate since December 2020. Higher prices were passed on to clients, with the rate of charge inflation robust overall.

     

    Finally, firms remain optimistic about their output prospects over the year ahead, but the degree of positivity was far below the series average in June.