Skye Bank Plc says it has appointed a reputable investment bank as its financial adviser for its proposed recapitalisation programme.
A joint statement, signed by the bank’s Chairman, M. K Ahmad, and the Group Managing Director, Mr. Tokunbo Abiru, indicated that the financial adviser had identified the various options open to the bank for recapitalisation and proposals were being considered by the CBN accordingly.
The statement also noted that Skye Bank had submitted its 2016 financial accounts to the CBN for approval.
According to the statement, since the change in leadership in July 2016, efforts have been made to reposition the institution and put it back on the path of sustainable growth.
Those efforts had stabilised the bank and restored customer confidence through uninterrupted banking services, it stated.
The bank, it added, had recorded significant loan recoveries and improved security documentation, giving the lender the needed leverage to recover its delinquent loans.
The statement quoted the management of Skye Bank as thanking the CBN for the guarantees, waivers and other forbearances over the course of the last one year.
These have also been extended for another year, according to the lender.
Restating its commitment to chart a sustainable future for the bank, the bank also noted that it had reached settlement and restructuring agreements with many of the chronic bad debtors, resulting in substantially improved payments and prospects of future recoveries.
Commenting on the vicious social media campaigns against the bank, the statement berated the sponsors of such messages whom it noted were acting in the hope of escaping lawful debt obligations or accountability for past misdeeds.
The bank further restated its commitment towards ensuring that all those found to have committed economic crimes and infractions were brought to justice.
The statement noted that the bank, working closely with the CBN and its financial advisers, had identified clear and viable options for recapitalising the bank and repositioning it for future growth.
It assured its stakeholders-customers, employees, shareholders, institutional partners and regulators of its continuing commitment to the success and sustainability of the institution.
Skye Bank, designed by the CBN as a Systemically Important Bank, is one of the country’s retail banks with a wide range of electronic solutions and services.
THE Central Bank of Nige-ria (CBN) recorded foreign exchange inflow of $14.53 billion from January to May this year. This represents 121 per cent increase when compared with $6.57 billion recorded from January to May in 2016. Vanguard analysis of the monthly economic reports of the apex bank revealed that foreign exchange outflow through the CBN, however, increased marginally by 5.8 per cent to $9.09 billion within same period this year, compared to the $8.59 billion recorded as outflow same period last year. Consequently, the apex bank recorded net foreign exchange inflow of $5.4 billion in the first five months of this year, up by 367 per cent per cent from net outflow of $2.02 billion recorded in the corresponding period of 2016. Further details, however, revealed that foreign exchange inflow into the CBN has been fluctuating since February when it peaked at $5.1 billion.
In March it dropped to $1.63 billion, rose to $2.87 billion in April but dropped again to $2.26 billion in May. On the other hand, foreign exchange outflow from the apex bank has been on the upward trend since the beginning of the year. In January 2017 foreign exchange outflow from the apex bank rose to $1.18 billion, in February, $1.67 billion in March, $2.16 billion in April, and $3.02 billion in May. Consequently CBN recorded the first net foreign exchange outflow of $761 million in May. This, according to the CBN, was due to decline on crude oil prices. Also it indicated the bullish interventions in the supply side of the interbank foreign exchange market since March this year was taking a toll on the forex resources. Providing details of foreign exchange inflow and outflow in May, CBN said: “The external sector weakened in May 2017 due to the decline in crude oil prices from an average of US$52.90 per barrel in April 2017 to $51.04 per barrel.
Increased shale oil production in the United States and supply by non-members of the Organisation of Petroleum Exporting Countries (OPEC) both contributed to the fall in crude oil prices. Consequently, foreign exchange inflow through the CBN, at $2.26 billion, declined by 21.4 per cent below the level in the preceding month, but was 27.0 per cent above the level in the corresponding period of 2016. The decline relative to the level in the preceding month was driven by fall in both oil and non-oil proceeds. “Aggregate outflow of foreign exchange through the bank at $3.02 billion, increased by 39.6 percent and 78.7 per cent above $2.16 billion and $1.69 billion in the preceding month and the corresponding period of 2016, respectively. The development was driven by outflow through foreign exchange special payment, drawings on letters of credit, inter-bank utilization and external debt service. Overall, the net outflow through the bank in the month of May 2017 was $0.76 billion, in contrast to a net inflow of US$0.71 billion and $0.09 billion recorded in the preceding month and the corresponding period of 2016, respectively.”
ON Thursday, July 20, 2017, Vanguard published a story titled: “African Prudential Registrars Acquires 6% of UBA Shares” Vanguard Newspapers has since realised that the reported ‘acquisition of 6 percent of UBA Shares by Africa Prudential Registrars Plc’ is wrong. For clarity, United Bank for Africa Plc crossed 2,080,104,955 units of its ordinary shares from the Staff Share Investment Trust Scheme (SSIT) to the Group, at a price of N9.47 per share, through a non-cash transaction executed transparently on the floor of the Nigerian Stock Exchange.
This non-cash transaction, which enables UBA to repossess the shares at no cost to the bank, is part of the process for implementing the Special Resolution of UBA’s shareholders, passed at the Annual General Meeting held on Friday, April 8, 2016, to cancel shares held under the SSIT. These shares which are now treasury shares in the bank will be subsequently cancelled from the shares outstanding of the bank to complete the implementation of the shareholders’ resolution. Upon cancellation of the 2,080,104,955 units of ordinary shares, the outstanding shares of UBA will be reduced from 36,279,526,321 units to 34,199,421,366 units. Implementation will increase the annualized 2017 First Quarter Earnings Per Share (EPS) of the Group by 6.1 per cent, from N2.46 to N2.61, translating to a Price to Earnings Ratio of 3.4x.
The process is value accretive to shareholders as it uniformly unlocks value for every shareholder of UBA, given that the enterprise value of UBA Plc remains unchanged. The unit holding of all shareholders remains the same, whilst their respective percentage holding in UBA Plc will increase. For example, a shareholder who owns 362.8 million units, which translates to one per cent of the bank’s equity before the cancellation of SSIT, will still own same number of units after the cancellation of SSIT, but the implied percentage holding will increase to 1.06 per cent of the bank’s equity, as the cancellation of SSIT shares reduces the outstanding shares and increases the percentage holding of all other shareholders on a pro rata basis. The cancellation of SSIT shares has no impact on the liquidity and capital adequacy ratio of the bank. UBA Plc continues to maintain strong liquidity and capital adequacy ratios, which stood at 41 per cent and 19.4 per cent respectively, as at March 31, 2017. We regret the inconveniences the report might have caused the bank, Africa Prudential Plc and their principal stakeholders.
IN a move to reap from diversification strategy, shareholders of Nigerian Aviation Company, NAHCO Plc, have called on the Board of Directors to reinstate the technical management service agreement with Rose Hill Group(RHG) Limited that was terminated last year. In expressing their confidence in the Board, the shareholders unanimously approved all resolutions tabled before them by the board and urged the new chairman, Architect Usman Bello to build on the success of his predecessor.
Speaking at the company’s Annual General Meeting, AGM in Abuja, the shareholders commended the board and management for the improved results despite the challenging operating environment. All the shareholders, who spoke at the meeting pledged their support for better future results and urged the board and management to sustain the performance. Revd Goodluck Akpore of Onitsha Zone Shareholders Association, who spoke the minds of shareholders present said “ NAHCO should restore the technical management service agreement with Rose Hill Group (RHG) Limited that was terminated last year.
RHG, which is a shareholder of NAHCO, had an agreement with the company to provide management service, but it was cancelled from the second quarter of 2016. However, Akpore said “diversification strategies currently being implemented by NAHCO are some of the benefits of the agreement, saying if RHG is left to go, it would impact negatively on the future performance of the company.”
THE Nigerian Stock Exchange, NSE, has launched a new market surveillance platform, Nasdaq SMARTS Market Surveillance Technology, to nip stock market manipulation in the bud. The technology will, among other things, enable NSE to pro-actively monitor market manipulation (including spoofing and layering), detect and deter manipulative tendencies, gather intelligence, carry out traders’ monitoring and analysis, conduct multi-asset and cross-market surveillance, and execute risk-based supervision of flagged participants. Commenting on the new technology, Ms. Tinuade Awe, General Counsel and Head of Regulation, NSE, said: “As we enter the growth phase of the development of our market, including the introduction of new asset classes such as derivatives, there will be the imperative of processing significant volumes of market information in real-time to detect anomalies. “The SMARTS technology, which we have successfully deployed, allows our team to pro-actively analyse patterns and trends to make sense of the vast amounts of data for investigative purposes and protection of investors, while strengthening the integrity of our market.
Through SMARTS, NSE is leveraging the latest in surveillance technology and demonstrating its commitment to fostering a strong marketplace,” said Tony Sio, Head, Exchange & Regulator Surveillance, Market Technology at Nasdaq. SMARTS performs universal surveillance of all asset classes and provides a strong platform for NSE to develop new products such as derivatives. We look forward to a long partnership with the NSE as the Nigerian markets evolve.”
UNILEVER West Africa’s Vice President, Supply Chain, Siddharth Ramaswamy, said the company has concluded plans to increase its investment portfolio in the country, thereby enhancing local manufacturing. This reiterates the company’s commitment to contribute to the growth of the Nigerian economy.
Ramaswamy said this during the courtesy visit and factory tour by the Minister for Science and Technology, Dr. Ogbonnaya Onu, to the manufacturing firm. According to him, the company which has been operating in Nigeria for almost 100 years, would continue to invest in the country, despite the prevailing economic challenges. “Nigeria is strategic to our business operations. This is why we remain committed to the country’s socio-economic development. We currently operate two manufacturing hubs in Nigeria, and we are already taking actions to increase our local manufacturing capacity.
There are ongoing investments which will not only provide additional employment opportunities for Nigerians, but will deliver further economic value through the development of a sustainable supply chain structure consisting of local manufacturers”, he said. Responding, the minister commended Unilever for its long serving history in Nigeria, and re-affirmed the government’s commitment to support Unilever in its operation.
According to him, the government is working hard to move the nation’s economy from a resource based to a knowledge based economy and the government is looking up to partner with organisations such as Unilever to achieve this, through synergy with several research institutions under the Ministry of Science and Technology. He said visits such as this, is to create an avenue to see how the government can assist organizations such as Unilever to overcome challenges by providing enabling environment to grow its business either through incentives or enabling legal framework. “We want companies to use more of local raw materials in production processes. Because when this happens, new jobs will be created, and our Gross Domestic product, GDP, will grow- thereby, reducing poverty. This can only happen if we work with you and other responsible companies”, he said. Onu urged Unilever to show more interest in local research in order to improve its production process. He charged Unilever to work more closely with FIIRO and other research center sunder the Ministry of Science and Technology.
UNILEVER West Africa’s Vice President, Supply Chain, Siddharth Ramaswamy, said the company has concluded plans to increase its investment portfolio in the country, thereby enhancing local manufacturing. This reiterates the company’s commitment to contribute to the growth of the Nigerian economy.
Ramaswamy said this during the courtesy visit and factory tour by the Minister for Science and Technology, Dr. Ogbonnaya Onu, to the manufacturing firm. According to him, the company which has been operating in Nigeria for almost 100 years, would continue to invest in the country, despite the prevailing economic challenges. “Nigeria is strategic to our business operations. This is why we remain committed to the country’s socio-economic development. We currently operate two manufacturing hubs in Nigeria, and we are already taking actions to increase our local manufacturing capacity.
There are ongoing investments which will not only provide additional employment opportunities for Nigerians, but will deliver further economic value through the development of a sustainable supply chain structure consisting of local manufacturers”, he said. Responding, the minister commended Unilever for its long serving history in Nigeria, and re-affirmed the government’s commitment to support Unilever in its operation.
According to him, the government is working hard to move the nation’s economy from a resource based to a knowledge based economy and the government is looking up to partner with organisations such as Unilever to achieve this, through synergy with several research institutions under the Ministry of Science and Technology. He said visits such as this, is to create an avenue to see how the government can assist organizations such as Unilever to overcome challenges by providing enabling environment to grow its business either through incentives or enabling legal framework. “We want companies to use more of local raw materials in production processes. Because when this happens, new jobs will be created, and our Gross Domestic product, GDP, will grow- thereby, reducing poverty. This can only happen if we work with you and other responsible companies”, he said. Onu urged Unilever to show more interest in local research in order to improve its production process. He charged Unilever to work more closely with FIIRO and other research center sunder the Ministry of Science and Technology.
The Central Bank of Nigeria’s Investors and Exporters Foreign Exchange window has traded about $3.83bn since it was established on April 24, it has been learnt.
Foreign exchange traders said this on Monday as the naira traded more strongly on the window than on the black market, Reuters reported.
The window, where buyers and sellers are free to agree an exchange rate, was introduced by the CBN in April to try to attract foreign investors into the country and boost the supply of dollars.
Traders said $407m were traded last week compared with $354.8m in the previous week, indicating a gradual return in investors’ confidence to the forex market.
“We have seen continuous improvement in dollar inflow into the market in recent time from offshore investors and this has also reflected in the volume of transactions at the equity market,” one currency trader told Reuters.
Before the window was introduced, the CBN was the main supplier of hard currency on the interbank forex market, after foreign investors fled naira assets in the wake of an oil price slump in 2014.
A CBN spokesman last month said the bank was, on average, responsible for less than 30 per cent of trading on the investor market.
At the forex window, market regulator FMDQ OTC Securities Exchange quoted the naira at 364.56 to the dollar on Monday, versus 367 to the dollar on the black market.
Commercial banks quoted the naira at 306/dollar on Monday, the level they have been quoting for around the last two weeks
Meanwhile, the CBN on Monday injected a total of $142.5m into the inter-bank foreign exchange, a few days after intervening in the retail segment of the market with the sum of $254.3m.
A breakdown of the Monday’s intervention indicated that the bank offered the sum of $100m to dealers in the wholesale segment, while it allocated the sum of $23m to the Small and Medium Enterprises segment.
Those requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance received $19.5m.
The CBN spokesperson, Mr. Isaac Okorafor, said the CBN would continue to carry out its regular mediation in the market so as to keep the market liquid and guarantee the international value of the naira in line with its mandate.
Sovereign Trust Insurance Plc has reported a growth in its profit before tax from N241m in 2016 Q1 to N488m in 2017 Q1, representing a growth rate of 102 per cent.
The insurer’s underwriting profit rose from N571m in 2016 to N746m in 2017 representing a 30 per cent growth rate, while investment income also grew by 12 per cent from N121m in 2016 to N135m in 2017 Q1, a statement showed.
The company said, “The year 2017 started on a very shaky note shrouded in uncertainty and a very bleak business outlook for some insurance companies, riding on the premise that some of them fell short of their expectations and aspirations in year 2016 as a result of the negative effects of the recession that characterised the Nigerian economy during the year.
“However, for Sovereign Trust Insurance, things are actually looking up considering the company’s first quarter performance in 2017. On a careful examination of the unaudited financial statements which was recently released by the organisation, one can only say that indeed, it has been a season of impressive performance.”
Its total gross premium written grew from N2.3bn in 2016 Q1 to N4.1bn in 2017 representing a 78 per cent growth rate, and its net premium income grew from N1.1bn in 2016 to N1.6bn in 2017, thus growing by 48 per cent.
The underwriting profit rose from N571m in 2016 to N746m in 2017 representing a 30 per cent growth rate, while investment income also grew by 12 per cent from N121m in 2016 to N135m in 2017 Q1.
The company’s management expenses reduced from N402m in 2017 Q1 to N369m in the same period of 2017. This was attributed to the management team’s commitment to reducing cost of operation as much as possible with the ultimate aim of delighting its shareholders.
“Notwithstanding the harsh operating environment of the first quarter of the year, Sovereign Trust Insurance has been able to record meaningful appreciation in all its financial indices going by its first quarter 2017 unaudited financial statements. The future indeed, looks very promising,” it added.
The Nigerian equities market appreciated marginally by 0.16 per cent at the close of trading on Thursday after 20 stocks closed positive.
A total of 168.512 million shares valued at N3.627bn were traded in 3,536 deals.
The Nigerian Stock Exchange market capitalisation rose to N11.151tn from N11.133tn, as the All-Share Index closed at 32,354.78 basis points from 32,302.32 basis points.
The market settled its year-to-date returns at 20.39 per cent, and recorded a total of 23 losers.
Oando Plc was the top gainer for the day, appreciating by 4.97 per cent to close at N7.39.
Axa Mansard Insurance Plc, 7UP Bottling Company Plc, Cutix Plc and FCMB Group Plc also appreciated by 4.91 per cent, 4.85 per cent, 4.76 per cent and 4.35 per cent in their respective share prices.
However, May & Baker Nigeria Plc recorded the highest share price decline, shedding 9.40 per cent, to close at N3.18. UACN Plc, Fidson Healthcare Plc, Flour Mills Nigeria Plc and Red Star Express Plc’s share prices also declined by 4.95 per cent, 4.93 per cent, 4.93 per cent and 4.89 per cent, respectively.
All NSE indices save for NSE food/beverages index which dropped by 1.13 per cent, closed in the green zone at the end of trading.
The NSE oil/gas index recorded the highest advancement of 1.15 per cent while the NSE insurance, NSE banking, NSE industry indices gained by 0.90 per cent, 0.53 per cent and 0.49 per cent, respectively.
Commenting on the performance of the market, equities analysts at Meristem Securities said, “We opine that the slight gain by Dangote Cement Plc (0.96 per cent) at the end of the trading day pushed the market into the green zone as ex-Dangote Cement, the Nigerian bourse would have closed with a loss of 0.19 per cent.
“In anticipation of the earnings season, we do not rule out the possibility that position-taking by investors may drive buy pressures on Friday. However, we still expect a negative week-on-week return.
