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Business Bells

Category: Capital Market

  • Airtel Records $3.91bn Revenue In Q1 of 2021

    Airtel Records $3.91bn Revenue In Q1 of 2021

     

    Airtel Africa Plc has reported a 14.2 percent growth in income to $3.91bn in the first quarter of 2021.

     

    The company in its financial statement released recently, said it recorded revenue growth across all its regions: Nigeria by 21.9 per cent; East Africa by 23.5 per cent and Francophone Africa by 10 per cent.

     

    Revenues for voice were up by 11 per cent, data was up 31.2 per cent and mobile money was up 35.5 per cent.

     

    Chief executive officer, Airtel Africa Plc, Raghunath Mandava in a statement, said: “In these challenging times, I want to say a huge thank you to all our employees, our business partners, and governments and regulators who have supported us, and in turn facilitated our continued support to the economies and communities we serve.”

     

    “Our performance has been strong, with reported growth of 13.6 per cent in underlying revenue and 18.3 per cent in underlying EBITDA, and constant currency growth of 19.4 per cent and 25.2 per cent respectively.”

     

    “Contributions to this growth came across all regions, with particular improvement in Francophone Africa, and across all our major services, with mobile money, data and voice each posting double-digit revenue growth.”

     

    “Our customer base also grew strongly for most of the year with new customer registration requirements in Nigeria stemming from our onboarding of new customers in the final quarter, and these restrictions were lifted in the second half of April.”

     

    The company’s operating profit increased by 24.2 per cent to $1.12bn in reported currency and by 32.8 per cent in constant currency. Free cash flow was up by 42.8 per cent to $647m on the prior year.

     

    The company grew its customer base by 6.9 per cent to 118.2 million, with increased penetration across mobile data (customer base up 14.5 per cent) and mobile money services (customer base up 18.5 per cent).

     

    However, it witnessed slowdown in customer base growth due to new SIM registration regulations in Nigeria.

  • Fidelity Bank Records 53.9% Profit Growth In Q1 2020

    Fidelity Bank Records 53.9% Profit Growth In Q1 2020

     

    Fidelity Bank says it recorded N10.1 billion in profit before tax (PBT) for the first quarter of 2021 which ended March 31.

     

    According to a statement released by the bank, this represents an increase of 53.9 percent when compared to N6.6 billion recorded in the corresponding period in 2020.

     

    Gross earnings increased by 7.7 percent year on year to N55.1 billion on account of 66.7 percent growth in non-interest revenue to N12.1 billion from N7.2 billion in Q1 2020.

     

    The bank’s unaudited results show an increase in net revenue by 13.4 percent from N30.3 billion in Q1 2020 to N34.4 billion in 2021.

     

    The bank explained that the increase in its non-interest revenue came from foreign exchange related income, digital banking income and account maintenance charge, among other.

     

    It said total customers’ induced transactions across all its service channels increased by 30.4 percent year on year and 17.1 percent quarter on quarter.

     

    Commenting on the results, Nneka Onyeali-Ikpe, chief executive officer of Fidelity Bank Plc, said the bank is committed to sustaining its performance.

     

    She said Fidelity Bank increased its operating expenses by N1.3 billion (6.2%) to N23.0 billion as a result of N4.3 billion growth in regulatory charges.

     

    Excluding the increase in regulatory charges, the bank said its total operating expenses would have dropped by 13.8 percent to N18.6 billion from N21.6 billion in Q1 2020.

     

    “We commenced the year showing impressive double-digit growth in profitability and improved performance across key efficiency indices whilst ensuring our business model continued to deliver strong positive results in line with our guidance for the 2021 financial year,” she said.

     

    “Total deposits increased by 3.1% YTD to N1,751.3bn from N1,699.0bn in 2020FY, driven by 5.5% increase in low cost deposits (Demand: 6.2% | Savings: 4.1%). Foreign currency deposits increased by 15.7% YTD (N46.9bn) and now accounts for 19.7% of total deposits from 17.5% in 2020FY, as we harness the benefits of our renewed drive in Diaspora Banking as well as the recent CBN Naira-for-Dollar Incentive Scheme for diaspora remittances to Nigeria.

     

    “Retail Banking continued to deliver impressive results as savings deposits increased by 4.1% YTD to N441.6bn and we are on course to achieving the 9th consecutive year of double-digit growth in savings deposits. Savings deposits was responsible for 32.9% of the absolute growth in total deposits and now accounts for 25.2% of total deposits compared to 25.0% in 2020.

     

    “Net Loans and Advances increased by 7.6% YTD to N1,426.3bn from N1,326.1bn in 2020FY. However, the actual growth was 6.8% while the impact of the currency adjustment (2020FY: N400.3/$ – Q1 2021: N407.6/$) accounted for a 0.8% YTD growth in the loan book. Cost of risk came in at 0.4% and the NPL ratio dropped to 3.6% from 3.8% in 2020FY.

     

    “We are committed to sustaining our growth trajectory and achieving the long-term strategic aspirations of the Bank as we look forward to delivering another set of good results in the next quarter.”

  • Nigerian Breweries Shareholders Approve N7.52billion Dividend Payout

    Nigerian Breweries Shareholders Approve N7.52billion Dividend Payout

     

    Shareholders of Nigerian Breweries Plc, Nigeria’s foremost brewer have approved the dividend payout of N7.52 billion for the 2020 financial year.

     

    The approval was given at the 75th Annual General Meeting of the company held at MUSON Centre in Lagos on Thursday, April 22, 2021, even as the company assured the shareholders of its commitment to continually improve the return on their investments.

     

    Speaking during the AGM, shareholders noted that the total dividend payout comes as a result of the exceptional performance recorded by the company for the 2020 financial year.

     

    They stated that the 2020 results contained in the audited report and the 100% dividend payout is a strong reflection of the company’s stability as well as its resilience in the face of the global pandemic and operating challenges in the economy.

    L-R: Non-Executive Director, Nigerian Breweries Plc, Mrs. Adeyinka Aroyewun; Company Secretary/ Legal Director, NB Plc, Mr. Uaboi Agbebaku; Chairman, NB Plc, Chief Kola Jamodu and Finance Director, NB Plc, Mr. Rob Kleinjan during the 75th Annual General Meeting of the company held in Lagos today

    Shareholders who were in attendance expressed appreciation to the board and management of the company for exhibiting the great capacity to keep the company going and stable amid the global pandemic and other operating challenges confronting it.

     

    Speaking during the Q and A section of the meeting, shareholders gave kudos to the company for making a total dividend payment at a time when most listed companies find it hard to pay dividends to their shareholders.

     

    One of the shareholders, Mr. Boniface Okezie who spoke at the meeting hailed the board and management of Nigerian Breweries Plc for helping to maintain a strong and healthy balance sheet amidst recession and inflation that had affected businesses and the Nigerian economy in general.

     

    According to Okezie, the fact that the company remains competitive despite the huge impact of the COVID-19 pandemic on businesses demonstrates the uniqueness of the cost-saving measures deployed.

     

    “Despite the impact of the recession and COVID-19 pandemic, the company was still able to maintain stability. This goes to show the quality of leadership at the company. I must confess that the board and management have done well to keep to its promise of paying dividends. We can only hope that they keep up the tempo so that we can receive higher dividends in the next financial year”, he said

     

    In his remarks at the meeting, the Chairman of Nigerian Breweries Plc, Chief Kola Jamodu explained that each shareholder would receive a final dividend of N0.69k at an ordinary share of 50k, having received an interim dividend of 25k.

     

    On his part, the Company Secretary/Legal Director, Nigerian Breweries Plc, Uaboi Agbebaku disclosed that the 2020 financial year recorded a significant boost in sales volume even though the cost of sales rose from N191.76billion to N218.36billion.

     

    Agbebaku who was optimistic about the growth of the company going forward noted that the company would continue to give utmost priority to the welfare of its shareholders in its decision making.

     

     A breakdown of the company’s audited results shows that its Profit after Tax (PAT) recorded for the 2020 financial year stood at N7.52billion while net revenue increased sharply from N323 billion to 337.01billion between 2019 and 2020, representing a 4.3% rise.

     

    Marketing and Distribution Expenses reduced from N77.70 billion in 2019 to N70.7billion in 2020, while Administrative expenses also dipped by 1.79% from N19.30 billion to N18.96 billion, which was largely informed by the elimination of bad costs.

     

  • Excitement, Commendations as Zenith Bank Pays N94.2bn Dividend

    Excitement, Commendations as Zenith Bank Pays N94.2bn Dividend

     

    Shareholders of Zenith Bank Plc on Tuesday approved the payment of proposed N94.19 billion dividend for the year ended December 31, 2020.

     

    The shareholders commended the board and management of the bank for the improved financial results and dividend payment, which translated to N3.00 per share. An interim dividend of N0.30 was paid last year while a final dividend of N2.70 was recommended and would be paid after the approval by the shareholders.

     

    The shareholders were excited that despite a challenging macroeconomic environment exacerbated by the COVID-19 pandemic, Zenith Bank Plc posted gross earnings of N696.5 billion, which showed an increase of 5 per cent from N662.3 billion reported in the previous year.

     

    Non-interest income grew by 8 per cent from N232.1 billion in 2019 to N251.7 billion in 2020 and while non-interest income rose from N415.6 billion in 2019 to N420.8 billion in 2020.

     

    Similarly, profit before tax (PBT) increased by 5.0 per cent, growing from N243.3 billion to N255.9 billion in 2020 as a result of a blend of growth in the top line and a significant reduction in interest expense. Interest expense reduced from N148.5 billion in 2019 to N121.1 billion in 2020, significantly increasing the net interest income from N267.0 billion in 2019 to N299.7 billion in 2020.

     

    The group’s increased retail activities translated to a corresponding increase in retail deposits and loans. Thus, retail deposits grew by N612.7 billion from N1.11 trillion to N1.72 trillion, while savings balances grew by 88 per cent to close at N1.16 trillion.

     

    According to the bank, this retail drive, coupled with the low-interest yield environment helped reduce the cost of funding from 3 per cent to 2.1 per cent and reduced interest expense.

     

    Although returns on equity and assets also reduced from 23.8 per cent to 22.4 per cent and from 3.4 per cent to 3.1 per cent, respectively, Zenith Bank still delivered improved earnings per share (EPS), which grew 10 per cent from N6.65 to N7.34 in 2020.

     

    A further breakdown of the performance showed that the group also increased corporate customer deposits, which alongside the growth in retail deposits, delivered total deposit growth of 25 per cent to close at N5.34 trillion, and drove growth in market share.

     

    Total assets also increased by 34 per cent, from N6.35 trillion to N8.48 trillion. In spite of the COVID-19 pandemic and its associated challenges, the group created new viable risk assets as gross loans grew by 19 per cent from N2.46 trillion to N2.92 trillion. This was achieved while maintaining a stable and low overall NPL ratio of 4.29 per cent compared with 4.3 per cent in 2019 across the entire portfolio and an increase in the cost of risk from 1.1 per cent to 1.5 per cent, reflecting the elevated risk environment in 2020.

     

    The group recorded liquidity and capital adequacy ratios of 66.2 per cent and 23 per cent and remained above regulatory thresholds of 30 per cent and 15 per cent, respectively.

     

    Consistent with this superlative performance and in recognition of its track record of excellent performance, Zenith Bank was voted as Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020, Best Bank in Nigeria in the Global Finance World’s Best Banks Awards 2020 and Best Corporate Governance ‘Financial Services’ Africa 2020 by the Ethical Boardroom.

     

    Also, the bank emerged as the Most Valuable Banking Brand in Nigeria, for the fourth consecutive year, in the Banker Magazine “Top 500 Banking Brands 2021” and Number One Bank in Nigeria by Tier-1 Capital in the “2020 Top 1000 World Banks” Ranking published by The Banker Magazine. Similarly, the bank was recognised as Bank of the Decade (People’s Choice) at the THISDAY Awards 2020, Retail Bank of the year at 2020 BusinessDay Banks and Other Financial Institutions (BOFI) Awards, and Best Company in Promotion of Good Health and Well-Being as well as Best Company in Promotion of Gender Equality and Women Empowerment at the Sustainability, Enterprise and Responsibility (SERAS) Awards 2020.

  • Three Million Nigerians Lose N18bn To Ponzi Schemes – SEC

    Three Million Nigerians Lose N18bn To Ponzi Schemes – SEC

    Over three million Nigerians have lost about N18bn through Ponzi schemes, the Securities and Exchange Commission stated on Tuesday.

     

    Director-General, SEC, Lamido Yuguda, made this known during a webinar organised by the commission.

     

    Ponzi schemes are fraudulent investing scams which generate returns for early investors with money taken from later investors.

     

    They are similar to pyramid schemes in that both are based on using new investors’ funds to pay the earlier backers.

     

    Speaking at the webinar, Yuguda said, “Ponzi schemes operate with unsustainable operating models that ultimately lead to huge losses for investors.

     

    “Following the collapse of the MMM Ponzi scheme, the Nigerian Deposit Insurance Corporation had estimated that over three million Nigerians lost about N18bn.”

  • Stocks Shed N20bn As Insurance Firms Lead Losers

    Stocks Shed N20bn As Insurance Firms Lead Losers

    Investors lost N20bn on Wednesday as the nation’s stock market extended its decline to the third consecutive trading session amid profit-taking.

     

    Five insurance stocks were among the top six losers at the end of trading on Wednesday.

     

    The market had on Monday started the month on a negative note, ending a five-day gaining streak.

     

    The market capitalisation of equities listed on the Nigerian Stock Exchange had risen by 3.44 per cent last week as the market continued its upward trend for five consecutive trading sessions.

     

    Investors gained over N1tn in January as the market capitalisation rose to N22.19tn on Friday from N21.06tn at the start of the month.

     

    The NSE All-Share Index, however, dropped by 0.13 per cent on Monday to 42,357.90 basis points from 42,412.66bps last Friday, while the market capitalisation fell to N22.16tn from N22.19tn.

     

    The ASI fell further on Tuesday to 42,043.79bps while the market capitalisation lost N70bn to close at N21.99tn.

     

    On Wednesday, the benchmark index dipped by 0.10 per cent to 42,000.01bps while the market capitalisation declined by N20bn to N21.970tn.

     

    Twenty-seven stocks recorded price reduction on Wednesday, with Linkage Assurance Plc topping the losers’ table as its share price dipped by 9.88 per cent to N0.73.

     

    Other top losers were Champion Breweries Plc, Regency Alliance Insurance Plc, African Alliance Insurance Plc, Wapic Insurance Plc and Niger Insurance Plc.

     

    Nineteen stocks, led by NCR Nigeria Plc, recorded gains at the end of trading.

     

    It was followed by Consolidated Hallmark Insurance Plc, Prestige Assurance Plc, McNichols Plc and Eterna Plc.

     

    Analysts at Cordros Capital Limited noted that the bearish sentiments persisted in the equities market, following profit-taking on Guaranty Trust Bank Plc, Wapco Insurance Plc and Ecobank Transnational Incorporated stocks.

     

  • SEC Unveils How To Register For Future Fund Raising

    SEC Unveils How To Register For Future Fund Raising

    The Securities and Exchange Commission has released general rules for Collective Investment Schemes, prescribing that all units/securities of a collective investment scheme must be registered by the commission.

     

    The rule, which is on the commission’s website, also states that all units/securities subject to registration by the commission may be offered through ‘offer for subscription, offer for sale and may be registered by way of shelf registration’.

     

    SEC explained in a statement issued on Wednesday that shelf registration was a filing undertaken by issuers intending to access the market in the near future, permitting issuers to disclose certain information in a core disclosure document updated on a regular basis.

     

    The commission said in the case of shelf registration, some provisions would be applicable, including the value of the shelf programme not being less than N5bn.

     

    It also stated that an issuer might issue, offer/purchase, or make an invitation to subscribe for/purchase units under a shelf registration, where at the time of the issue, offer/invitation, there was in force a shelf prospectus as updated by a supplementary shelf prospectus, both of which had been registered by the commission.

     

    Another provision was that a shelf prospectus would be subject to renewal every three years from the date of its issue.

     

    The statement said, “A shelf prospectus shall comply with the general form and contents of a prospectus as set out in these rules and regulations and state that the shelf prospectus has been registered by the commission.

  • Capital Market, Viable Funding Source For SMEs – NSE

    Capital Market, Viable Funding Source For SMEs – NSE

    The Nigerian Stock Exchange has described the capital market as a viable source of funding for Small and Medium Enterprises, saying it continues to support the growth and development of small businesses in the country.

     

    It said in a statement that the most recent of these efforts was the webinar it hosted on Wednesday, with the theme ‘Capital raising for SMEs through the stock exchange’.

     

    The NSE said the webinar was hosted in collaboration with various trade groups/chambers of commerce in the Northern region of the country, and was headlined by the President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, Hajia Saratu Iya Aliyu.

     

    Speaking at the event, the Divisional Head, Listings Business, NSE, Mr Olumide Bolumole, said, “The traditional role of The Exchange as a platform for capital formation and liquidity holds good promise for businesses.

     

    “Despite the impact of COVID-19, the NSE functioned to facilitate needed financing with over N2.5tn in capital raised by governments and corporates in 2020 across various asset classes.”

     

    On her part, the NACCIMA boss commended the National Council and management of the NSE for organising the webinar.

  • PZ Cussons Records Revenue Growth As Operating Profit Falls

    PZ Cussons Records Revenue Growth As Operating Profit Falls

    PZ Cussons, a leading consumer products group, has reported its results for the six months to November 30, 2020.

     

    The UK manufacturer saw revenue growth of 14.6 percent with growth in all regions, with revenue from its focus brands, Carex, Morning Fresh, Cussons Baby and St Tropez, rising an impressive 21.9 percent.

     

    However, PZ Cussons said the reported profit from continuing operations fell 1.4 percent to £36.3 million due to the profit on the disposal of its Greek business last year and, in this year, exceptional costs primarily related to Nigeria.

     

    In Europe and the Americas, the group saw unprecedented growth (+32.6 percent) driven by the hand wash and hand sanitizer category but warned that demand remains volatile and competition was increasing as new brands enter the market.

     

    Modest growth was recorded in Asia Pacific (+4.2 percent) and Africa (+5.9 percent).

     

    Commenting on the profit, Non-Executive Chair Caroline Silver (Chair) said, “The organization has been stabilized in the last 12 months with the arrival of Jonathan Myers as CEO and his new management team.”

     

    “Our fast start to this financial year was maintained with the Group delivering strong growth in revenue and adjusted profit across all Regions, notwithstanding increased investment in marketing and organisational capabilities.”

     

    “In the second half of this year, with our recent strategy review moving into execution, we expect further progression in brand building, the continued turnaround of key brands and the implementation of our simplification project in Nigeria.

     

    “The external environment continues to remain very challenging and volatile but we remain focused on developing our strategic plans that will benefit all stakeholders in the longer term.”

  • Equity Market Closes January Bullish, Gains N1.13tn

    Equity Market Closes January Bullish, Gains N1.13tn

    Trading activities on the floor of the Nigerian stock market finished the month of January impressive to emerge the best performing exchange in Africa.

     

    Available data revealed that activities on the Nigerian Stock Exchange which opened the trading year at N21.06tn in market capitalisation and 40,270.72 in index at the beginning of trading on January 4, 2021 closed the month at N22.19tn and 42,412 index points, hence earned a year to date gain of about N1.13tn or 5.3 per cent year to date.

     

    According to Bloomberg report, the index kept a clean sheet all week, up +58bps on Friday, and +3.44 per cent w/w.

     

    Equities ended the month +5.32 per cent firmer. In USD terms (+7.10 per cent), the NSE ranked 7th, according to Bloomberg World Equities Index ranking.

     

    Oil and gas stocks finally halted the weeklong losing streak to finish higher, +0.63 per cent – Ardova +8.57 per cent and Oando +2.50 per cent providing support. All other sectors also finished in green, save for industrials, with a marginal decline of -8bps.

     

    Turnover last week stayed impressive, with a daily average of $14.53mn.

     

    On Friday, investors traded a total of $17.18m. Zenith retained the top spot on the activity chart with $3.20m traded.

     

    Other notable volumes were MTN $2.47m; GTB $1.84m and Wapco $1.56m. Trading was skewed mostly towards domestic investors.

     

    Meanwhile, the NSE All-Share Index and market capitalisation both appreciated by 3.442 per cent to close last week at 42,412.66 and N22.18tn respectively.

     

    Similarly, all other indices finished higher with the exception of NSE Oil/Gas which depreciated by 7.25 per cent while the NSE ASeM and NSE Growth Indices closed flat

     

    A total turnover of 2.57bn shares worth N27.88bn in 31,466 deals were traded last week by investors on the floor of the exchange, in contrast to a total of 4.29bn shares valued at N25.99bn that exchanged hands the previous week in 32,849 deals.