The shares of Guaranty Trust Bank (GTBank) Plc declined at the stock market yesterday, shedding 4.8 per cent despite posting improved profit for the 2016 financial year the previous day. GTBank Plc, Nigerian Breweries Plc ended as the top price losers. Nigerian Breweries led the price losers chart, shedding 5percent, while Nahco, and Forte Oil lost 4.7percent and 3.1percent respectively.
In all, nine stocks depreciated compared with 16 stocks that appreciated. The Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated by 0.74 per cent following gains by Dangote Cement Plc, Nestle Nigeria Plc that led others with 5.0 per cent apiece.
However, dumping of shares of GTBank by investors who remained indifference to the 2016 financial results made the stock to close lower at N24.61 per share, along with Nigerian Breweries Plc, which led other price losers with 5.0 per cent to be at N130.36 per share.
GTBank had on Wednesday reported gross earnings of N414.62 billion for the year ended December 31, 2016, showing an increase of 37 per cent from N301.85 billion in 2015. Profit before tax stood at N165.14billion, representing a growth of 37 per cent over N120.69billion recorded in 2015, while profit after tax rose from N99.436 billion in 2015 to N132 billion.
The bank grew its loan book grew by 16 per cent from N1.373trillion in 2015 to N1.590 trillion in 2016, just as total deposits grew by 29 per cent to N2.111trillion from N1.637trillion in 2015. Based on the results, the bank has proposed final dividend of 175 kobo, bringing the total dividend to 200 kobo per share. The bank has already paid an interim dividend of 25 kobo.
Commenting on the performance, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun Agbaje, said: “The bank’s financial performance in 2016, does not only reflect the resilience of our franchise, it demonstrates the fundamental strength of our businesses to deliver sustainable long-term growth. We successfully navigated the heightened economic uncertainty and regulatory headwinds which dominated the year to deliver a solid performance across all financial and non-financial indices.
He added: “We are transforming our organization into a platform for enriching lives by positioning ourselves at the centre of an extended ecosystem that offers our stakeholders, benefits beyond banking. We also remain committed to maximising shareholders’ value and delivering superior and sustainable return, guided by our founding values of hard work, discipline and integrity.”
The Federal Government plans to raise N213.75bn ($681m) from short-dated Treasury bills at an auction on March 15, the Central Bank of Nigeria said on Wednesday.
It plans to raise N39bn in three-month debt, N48.45bn in six-month bills and N126.30bn in one-year notes, using a Dutch auction system. Payment will be due the day after the auction, according to Reuters.
The CBN issues Treasury bills twice a month to finance the government’s budget deficit, help manage commercial lenders’ liquidity and curb rising inflation.
The country’s inflation had climbed to 18.72 per cent in January, its 12th straight monthly rise. The trend was worsened by dollar shortages, which had crippled the country’s import-dependent economy and triggered the first recession in 25 years.
The Federal Government is also facing funding challenges due to the drop in the price of oil, which the nation depends largely on for revenue. It expects the budget deficit to widen to N2.36tn this year as it tries to spend its way out of the recession.
More than half of the deficit will be funded through local borrowing, the government has said.
The government said on Tuesday that it planned to sell N1.13tn ($3.70bn) worth of Treasury bills in the second quarter of the year, according to the CBN’s debt calendar.
The central bank aims to auction N243bn in 91-day bills, N198bn in 182-day and N689bn in 364-day debt.
The Federal Government is planning to raise $300m via Diaspora Bond this month, according to the Minister of Finance, Mrs. Kemi Adeosun.
A new pact between Ecobank Nigeria Plc and Accion Microfinance Bank Limited, aims at revving up remittances to Nigeria, which was about $20.8 billion in 2015 and provide more financial inclusion to Nigerians, particularly the Small and Medium scale Enterprises (SMEs).
This was disclosed on Monday, at the announcement of the pact by Deputy Managing Director, Ecobank, Tony Okpanachi, which saw Ecobank extend Western Union money transfer to the microfinance bank.
He was optimistic that the development would complement the Central Bank of Nigeria’s agenda on financial inclusion as well as increase volume of remittances to the country.
The decision is expected to ease the plight of SMEs, particularly with regard to financing by giving them access to a one-stop banking service. Okpanachi, who believed that the country’s economic shortfall is paving the way for increased remittances, said the deal is a proof of what the bank is doing to extend financial services to individuals. He said: “Recession usually attract fund. Again the exchange rate makes it attractive to send money to Nigeria. So the volume is on the increase and we are hopeful that the volume would be more than last year’s and we look forward to Accion to boost the volume.”
He said the relationship with the microfinance bank remained a way to strengthen its commercial footprint, adding that Ecobank would partner with other smaller banks that meet its requirements as it explores opportunities.
The Managing Director of Accion, Bunmi Lawson, said the partnership would provide value added service to the bank’s customers. Lawson said: “For Accion, this is a major milestone in the history of our bank, and is a catalyst to extending our frontiers in the financial inclusion drive to reach more micro entrepreneurs and low income earners, to ensure that they have a brighter future.”
She said the bank, which currently boasts of a total asset base of N7.4 billion is well positioned to ease transaction challenges.
Guaranty Trust Bank (GTBank) Plc reported gross earnings of N414.62 billion for the year ended December 31, 2016, showing an increase of 37 per cent from N301.85 billion in 2015. The gross earnings were driven primarily by growth in interest income as well as foreign exchange income.
Profit before tax stood at N165.14billion, representing a growth of 37 per cent over N120.69billion recorded in 2015, while profit after tax rose from N99.436 billion in 2015 to N132 billion. A further analysis of the performance showed that GTBank’s loan book grew by 16 per cent from N1.373trillion in 2015 to N1.590 trillion in 2016, just as total deposits grew by 29 per cent to N2.111trillion from N1.637trillion in 2015.
In all, total assets and contingents stood at N3.70 trillion and shareholders’ funds of N504.9 billion. GTBank’s non-performing loans remained low and within regulatory threshold at 3.66 per cent with adequate coverage of 131.79 per cent.
Capital remains strong with capital adequacy ratio (CAR) of 19.79 per cent, while return on equity (ROAE) and return on assets (ROAA) closed at 35.96 per cent and 5.85 per cent respectively. Based on the results, the bank has proposing final dividend of 175 kobo, bringing the total dividend to 200 kobo per share. The bank has already paid an interim dividend of 25 kobo.
Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun Agbaje, said: “The bank’s financial performance in 2016, does not only reflect the resilience of our franchise, it demonstrates the fundamental strength of our businesses to deliver sustainable long-term growth. We successfully navigated the heightened economic uncertainty and regulatory headwinds which dominated the year to deliver a solid performance across all financial and non-financial indices.
He added: “We are transforming our organization into a platform for enriching lives by positioning ourselves at the centre of an extended ecosystem that offers our stakeholders, benefits beyond banking. We also remain committed to maximising shareholders’ value and delivering superior and sustainable return, guided by our founding values of hard work, discipline and integrity.”
GTBank is the third bank to release its results for 2016. Zenith Bank Plc was the first to announce, declaring a total dividend of 202 kobo. Access Bank Plc followed, announcing a total dividend of 65 kobo.
The Nigerian equities market closed in the green yesterday after opening on negative note the previous day. Price gains by some highly capitalised stocks such as Dangote Cement Plc, Transcorp Plc, Guinness Nigeria Plc and Nigerian Breweries Plc boosted the performance. The Nigerian Stock Exchange (NSE) All-Share Index rose by 2.23 per cent to close higher at 25,129.27, while market capitalisation closed at N8.697 trillion. Got something awesome to share with the world? Click here to share
However, Transcorp Plc led the price gainer’s chart in percentage terms with 7.14 per cent, trailed by Guinness Nigeria Plc and Dangote Cement Plc with 4.9 per cent apiece. The growth recorded in the market is believed to have been bolstered majorly by Dangote Cement, which has the highest capitalisation in the market. The company last week declared a dividend of N8.50 per share for the year ended December 31, 2016. According to the audited results of the leading cement manufacturing firm, revenue grew by 25 per cent from N492 billion in 2015 to N615 billion in 2016. Gross profit stood at N291 billion, up from N289 billion in 2015. A further analysis of the results showed that administrative expenses rose by 12 per cent to N36.7 billion in 2016, from N32.5 billion in 2015. Selling and distribution expenses followed similar trajectory, jumping by 54 per cent from N53.5 billion to N82.6 billion, depressing profit from operating activities to N182 billion in 2016, from N208 billion in 2015. Financing costs rose by 14 per cent to N45 billion, from N33 billion, making profit before tax to be at N180 billion as against N188 billion in 2015.
However, a tax credit recorded by the company lifted its before after tax to N187 billion from N181 billion in 2015. Commenting on the results, the Chief Executive Officer of Dangote Cement, Mr. Onne van der Weijde said: “It was a challenging year for many African economies but we achieved sales and revenue growth of 25 per cent and consolidated our position as Africa’s leading producer of cement. Sales from Nigerian operations increased by 13.8 per cent to nearly 15.1metric tonnes(Mt), at a growth rate far higher than the country’s GDP, which fell in 2016. “The New Year has started well and we expect much higher profitability in Nigeria in 2017, even though we may not see the volume growth we achieved in 2016. I am confident that we will deliver an even stronger performance in 2017 as we increase market share and extend our reach across Africa,” he said.
The Securities and Exchange Commission, on Tuesday, said it had paid about N42bn out of about N117bn unclaimed dividends to investors.
The Director-General, SEC, Mr. Munir Gwarzo, said this at a public hearing organised by the Joint Senate and House of Representatives Committees on Capital Market on “The need to determine the status of unclaimed N90bn dividends in securities for Nigerian investors.”
Gwarzo said efforts by the SEC to address the issue of unclaimed dividends were already showing result with the e-dividend registration system.
He said as a result unclaimed dividend had dropped from N117bn to N75bn.
Gwarzo said, “As of today, based on the reports we received from the registrars, almost N42bn unclaimed dividends have so far been paid, out of a total of N117bn unclaimed dividends as of December30, 2016, which means our message of unclaimed dividend is yielding positive results.”
The Chairman, Senate Committee on Capital Market, Senator Isiaka Adeleke, requested for the list of the beneficiaries.
The Director General of SEC said this would be transmitted to the panel as soon as possible.
The President of the Senate, Senator Bukola Saraki, while declaring the hearing open, said although the commission was making efforts to address the issue, it had remained prevalent.
Saraki, who was represented by the Majority Leader of the Senate, Senator Ahmad Lawan, said, “I am quite aware of the recent initiative of SEC by introducing the e-dividend policy to ensure that accounts of investors are credited directly within 24 hours after the declaration of the dividends by the companies.
“However, the issue of unclaimed dividends remains quite critical, as it has endangered the progress of the Nigeria capital market; an issue among others that has eroded our investor’s confidence.”
Stanbic IBTC Holdings Plc at its fourth annual general meeting held tuesday reiterated its commitment to deliver outstanding value to clients and stakeholders.
Approved by shareholders at the event was the 2015 financial statement of accounts. Stanbic IBTC had in a statement to the Nigerian Stock Exchange on December 21, 2016, disclosed that following the resolution of the dispute with the Financial Reporting Council of Nigeria, its 2015 audited financial statements had been signed off by the external auditors, Messrs. KPMG Professional Services and can now be made public. Chief Executive, Stanbic IBTC Holdings Plc, Mr. Yinka Sanni, said despite a slowing economy, the institution remained in very sound financial shape. Sanni emphasised that the institution remained on track to maintain its long-term strategic growth and profitability objectives by, prioritising asset quality through diligent and systematic approach to risk management.
“Our strategy of building a franchise capable of generating sustainable returns to our shareholders remains in place. Our continued investment in building a cost-efficient and customer-friendly organization, underpinned by our growing customer base, innovation and customized financial solutions should continue to ensure better earnings and indeed very positive outcomes for all stakeholders. Our customers and stakeholders are the epicentre of our existence and will remain so,” he stated.
During the meeting, shareholders approved a dividend as recommended by the Board of Directors, as well as re-elected retiring directors and appointed additional ones. The group, in the financial year ended December 31, 2015 posted gross earnings of N140.027 billion, up from N130.654 billion from 2014. Profit before tax stood at N23.651 billion during the period, while profit after tax was N18.891 billion. Total assets decreased to N937.6 billion by December 2015, while customer deposits was largely flat at N493.5 billion during the same period. “Our balance sheet remains strong and we believe it will get stronger in the coming years. We will continue to deliver exceptional service and value to our customers, together with profitability and growth in a sustainable manner”, Sanni said.
The Central Bank of Nigeria (CBN) said it plans to issue treasury bills worth N1,129,855,189 in the second quarter of the year.
According to the CBN’s Nigerian Treasury Bills issue programme posted on its website yesterday, 91-day treasury bills issue worth N242,673,157 would be sold in next quarter. In the same vein, 182-day valued at N197,891,045 would be issued during the period, just as 364-day bills valued at N689,290,987 would also be auctioned by the regulator next quarter.
Meanwhile, the naira closed at N460 to the dollar at some parallel market points in Lagos yesterday.
The interbank forex market traded $540,000 in early deals at N375 per dollar, near a record low exchange rate hit last November, Thomson Reuters data showed on Monday. The local currency traded at a record low of N375.50 to the dollar last November on the official interbank market before it reversed losses.
The interbank market traded a total of $3.77 million at multiple exchange rates on Monday, the data showed.
Traders said banks were selling dollars bought from international money transfer agents to retail customers at N375.
The Federal Government’s recent listing of the $1bn Eurobond on FMDQ OTC Securities Exchange market will pave the way for domestic listing of Nigerian corporates’ Eurobonds and ignite the vision for an ‘afrodollar’ market, according to the FMDQ.
The Federal Government, through the Debt Management Office, had for the first time listed its Eurobond domestically after successfully raising $1bn from the international markets in February, and following a series of strategic engagements that spanned at least three years with the FMDQ and other stakeholders.
The event was graced by the Director-General of the DMO, Dr. Abraham Nwankwo, along with key representatives from the DMO.
The OTC Exchange also hosted the Securities and Exchange Commission; the adviser to the issuer and co-sponsor of the Eurobond on FMDQ, Stanbic IBTC Capital Limited; the arranger/dealer and co-sponsor of the issue on FMDQ, Standard Chartered Capital and Advisory Nigeria Limited.
Other parties to the listing included representatives of Citigroup Global Markets Limited and the legal advisers to the issue, Banwo & Ighodalo and Udo Udoma & Belo-Osagie, amongst others.
In her opening remarks, the FMDQ’s Chairman, Dr. Sarah Alade, who was represented by the Vice Chairman of FMDQ, Mr. Jibril Aku, congratulated the issuer on the epochal step, noting that the move by the FGN to list on a domestic exchange, in addition to listing offshore, was a welcome development, and a stance, which would rightly position the nation to maximise its potential via the debt capital market.
In line with FMDQ’s vision for the transformation of the markets, the OTC Exchange, since its debut in the Nigerian financial market landscape, already granted trading status for $1.50bn of the previously issued FGN Eurobonds and $3.15bn of Eurobonds issued by Nigerian companies.
This was to ensure price formation and provision of information transparency to protect investors’ interests.
The SEC’s Director-General, Mr. Mounir Gwarzo, represented by Mr. Adamu Sambo, in his remarks, also commended the issuer for achieving this milestone and reiterated the SEC’s commitment to continue to support the development of the nation’s debt capital markets, ensuring that integrity and efficiency would be upheld for the protection of investors.
Delivering the keynote address, Nwankwo highlighted critical milestones achieved by this transaction.
He also stated that it was the longest tenored debt security, at 15 years, issued by the FBN in the international capital markets.
The DMO DG said the wide infrastructural gap, which constrained the development efforts of the nation, could be better matched by tapping into long-term financing options, via domestic and foreign debt capital markets.
Stanbic IBTC Capital Limited, represented by Mr. Yinka Sanni, the Chief Executive Officer of Stanbic IBTC Holdings Plc, said, “This is indeed a testament to international investor confidence in Nigeria’s road map towards economic recovery and growth.
“The overwhelming success of the transaction on the whole evidences the underlying potential of Nigeria, and Stanbic IBTC Capital Limited is indeed proud to be part of this transaction. We are also pleased to sponsor the quotation of this Eurobond on FMDQ’s platform. Though Stanbic IBTC Capital Limited has sponsored many listings on FMDQ’s platform, this particular listing is very special as it represents the first ever Eurobond on the OTC Exchange,” he said.
Some commercial banks have heeded the Central Bank of Nigeria’s (CBN) directive on the opening of teller points for retail foreign exchange transactions, THISDAY investigations have shown. The CBN had said the new directive was a reaffirmation of its willingness, capability and determination to meet FX demand in the market. Some of the commercial banks branches visited in Abuja yesterday to assess the level of compliance with the directive had already created special points for FX transactions as well as electronic display boards to show current FX rates. However, officials of some banks’ branches visited around the Asokoro area of Abuja expressed ignorance of the central bank’s new directive. When asked if his bank had complied with the new directive, a senior official in one of the second generation banks said his branch was not aware of the directive.
He said it was the headquarters of the bank that should preoccupy itself with handling such directives, adding that the directive he was familiar with was the one mandating commercial banks to create FX sales points at airports to attend to travellers’ FX needs. He, alongside a female colleague, said the banks needed some time to comply with the latest directive. In issuing the new directive, the CBN said the initiative was aimed at easing access to buying and selling of FX at all locations as well as easing access by customers and other users, without any hindrance. The CBN on Sunday also directed all commercial banks to process and meet the demand for travel allowances (PTA/BTA) by end-users within 24 hours of such applications. THISDAY investigations showed that although some of the banks within the Federal Capital Territory (FCT) had electronic monitors for FX rates, they posted insufficient information on rates. For instance, while some of them displayed only their selling rates without the buying rate, others showed the rate at which they were buying but not selling.
THISDAY further observed that most of the banking halls visited had only a few customers conducting FX transactions. In a related development, the central bank yesterday sustained its intervention in the FX market, when it provided another $367,134,329.93 in forwards sales. A breakdown showed that $144,073,753.07 was for 45 days forwards, while $223,060,576.86 was for 60 days. However, the naira traded between N455 and 460 to the dollar at some parallel market points in Lagos. The CBN acting Director in charge of Corporate Communications, Isaac Okorafor, confirmed the release, adding that the move was in line with the Bank’s determination to ease the FX pressure on various sectors through forward sales under the new flexible regime to keep the market liquid. The CBN recently introduced new FX measures, which among other things, are aimed at easing the burden of travellers and to ensure that transactions are settled at much more competitive exchange rates. The central bank had also directed all commercial and deposit banks to open FX retail outlets at major airports as soon as logistics permit.
