Connect with us

Finance

Equities Gain, Oando Share Price Drops by 9.54%

Published

on

Nigerian Stock Exchange
  • Equities Gain, Oando Share Price Drops by 9.54%

The Nigerian Stock Exchange market capitalisation appreciated by N14bn at the close of trading on Monday to close at N11.477tn from N11.463tn recorded on Friday last week.

A total of 322.814 million shares valued at N2.734bn were traded in 3,830 deals.

The equities market advanced by 0.12 per cent to bring the year-to-date return to 23.91 per cent. Similarly, volume of transactions advanced by 3.60 per cent, while market turnover declined by 16.40 per cent. The market recorded 23 gainers and 26 losers.

Unilever Nigeria Plc emerged as the top gainer of the day, advancing by 10.24 per cent, to close at N36.38. This was followed by Forte Oil Plc, 7-UP Bottling Company Plc, Champion Breweries Plc and Flour Mills Nigeria Plc, which appreciated by 7.71 per cent, 6.41 per cent, six per cent and five per cent, respectively.

Oando Plc emerged as the top loser with its share price dropping by 9.54 per cent to close at N6.83 from N7.55 after the Securities and Exchange Commission, on Friday, said it was going to investigate the firm.

This was followed by Nascon Allied Industry Plc, Aiico Insurance Plc, Skye Bank Plc and May & Baker Nigeria Plc, which depreciated by 4.95 per cent, 4.92 per cent, 4.92 per cent and 4.78 per cent, accordingly.

Sector performance as measured by the NSE indices showed that the NSE food/beverage and NSE industrial indices gained 1.29 per cent and 0.03 per cent, thus emerging as the only indices to record advancements in the day, while the NSE insurance, NSE oil/gas and NSE banking indices declined.

“We attribute today’s gain to the positive sentiments in the market, specifically in the consumer goods sector. In the remaining trading days of the week, we expect the release of the H1 2017 results to determine the performance of the market,” analysts at Meristem Securities Limited said in a post.

Meanwhile, Nasdaq and the NSE have officially announced that the Exchange has launched a new market surveillance platform powered by SMARTS, Nasdaq’s flagship surveillance solution.

The technology will, among other things, enable NSE to proactively 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.

“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 General Counsel and Head of Regulation, NSE, Tinuade Awe, said.

“Through SMARTS, the NSE is leveraging the latest in surveillance technology and demonstrating its commitment to fostering a strong marketplace,” said Tony Sio, the Head of Exchange & Regulator Surveillance, Market Technology at Nasdaq.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Banking Sector

Fidelity Bank Records a 120.1% Growth in PBT to N39.5bn in Q1 2024

Published

on

Fidelity Bank MD - Mrs Nneka Onyeali-Ikpe

In line with its upward growth trajectory, leading financial institution, Fidelity Bank Plc, has posted an impressive 120.1% growth in Profit Before Tax from N17.9bn at the end of Q1 2023 to N39.5bn for Q1 2024.

This was made known in the Bank’s unaudited financial statements released on the issuer portal of the Nigerian Exchange (NGX) on Tuesday, 30 April 2024.

According to the statement, Gross Earnings increased by 89.9% yoy to N192.1bn from N101.1bn in Q1 2023. The increase was led by a combination of interest income (90.7% yoy) and non-interest income (84.0% yoy).

Growth in interest income was primarily spurred by a higher yield environment and strong earning assets base, while the increase in non-interest income was led by double-digit growth in account maintenance charges, FX-related income, trade, banking services, and remittances, supported by increased customer transactions.

Commenting on the results, Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc stated, “We are pleased to report another quarter of strong financial performance driven by our strategic focus on customer-centricity, digital innovation and operational excellence. Despite the challenging macroeconomic environment, we remained resilient and agile, delivering double-digit growth on key income lines while advancing our business sustainability agenda.”

In the period under review, the bank grew Net interest income grew by 89.5% yoy to N99.6bn from N52.6bn in Q1 2023, driven by interest and similar income as the yield on financial instruments improved to 14.7% from 10.1% in Q1 2023 (2023FY: 11.6%).

In line with the steady rise in interest rates through the year, average funding cost increased by 80bps ytd to 5.2%. However, NIM came in at 8.8% compared to 8.1% in 2023FY, as increased yield on earning assets surpassed funding cost to 15.1% from 13.3% in Q1 2023 (2023FY: 13.5%).

Similarly, Total Deposits increased by 17.2% ytd to N4.7tn from N4.0tn in 2023FY, driven by double-digit growth across all deposit types (demand, savings and term). Net Loans and Advances increased by 21.2% to N3.7tn from N3.1tn in 2023FY.

“Beginning the year on this inspiring note reaffirms our strategy of helping individuals to grow, inspiring businesses to thrive and empowering economies to prosper. We are committed to our guidance as we build a more resilient business franchise with a well-diversified earnings base in 2024,” explained Onyeali-Ikpe.

Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged customer commercial bank with over 8.5 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.

The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.

Continue Reading

Banking Sector

FCMB Group’s Digital Transformation Drives 62.4% Increase in Revenue

Published

on

FCMB - Investors King

FCMB Group Plc, one of Nigeria’s leading financial institutions, has reported a surge in its digital revenue for the 2023 financial year.

According to the 2023 audited financial results filed with the Nigerian Exchange Limited, FCMB Group’s digital revenue increased by 62.4% in digital revenue to N60.3 billion from N37.1 billion in the previous year.

With a strategic focus on digitalization, the group has successfully expanded its digital offerings, resulting in a significant uptick in revenue derived from digital channels.

In its 2023 financial report, FCMB Group highlighted the strides made in digital retail lending with over 1.6 million loans totaling N100.9 billion accessed, underwritten, and disbursed through digital channels.

Similarly, digital SME lending witnessed significant traction, with over 20,500 loans totaling N177.9 billion disbursed via digital platforms.

The group’s digital wealth propositions also experienced robust growth, with assets under management reaching N15.1 billion, reflecting a substantial increase from N8.5 billion in 2022.

The surge in digital revenue was attributed to the successful execution of FCMB Group’s digital strategy, which prioritizes innovation, customer-centricity, and operational excellence.

By embracing digital payments, wealth management, and lending solutions, FCMB Group has empowered a greater number of customers while driving revenue growth and operational efficiency.

Commenting on the financial performance, FCMB Group highlighted the reduction of its cost-to-income ratio to 66.3%, excluding revaluation gain (48.9% inclusive of revaluation income).

This achievement underscores the effectiveness of the group’s digital initiatives in optimizing costs and enhancing operational efficiency.

The robust financial performance was further underscored by FCMB Group’s profit before tax, which surged to N104.4 billion in 2023, indicating a remarkable 186% year-on-year growth.

Various divisions of the group, including banking, consumer finance, investment management, and investment banking, recorded robust earnings growth, reflecting the overall strength and resilience of the group.

Furthermore, FCMB Group’s gross revenue rose by 82.5% to N516.4 billion from N283 billion, driven by a 61.7% growth in interest income and a 154.4% growth in non-interest income.

Net interest income grew by 44.8%, propelled by an increase in the yield on earning assets.

In addition to its financial achievements, FCMB Group underscored its commitment to environmental sustainability by transitioning 160 branches to solar power, with 78% of its business locations now powered by renewable energy.

The group also secured funding of up to N13 billion from local development finance institutions to support customers in accessing solar energy solutions.

Looking ahead, FCMB Group reiterated its commitment to leveraging its unique group structure to build a technology-driven ecosystem that fosters inclusive and sustainable growth.

With a focus on continued innovation and digitization, FCMB Group is poised to sustain its growth trajectory and deliver value to its customers, shareholders, and communities across Nigeria.

Continue Reading

Banking Sector

Ecobank’s Profit After Tax Grows to $407m in 2023

Published

on

Ecobank - Investors King

Ecobank Transnational Incorporated (ETI) has reported a $407 million profit after tax for the 2023 financial year.

This represents an 11% increase from the $367 million reported for the year 2022 and reflects the pan-African banking group’s continued growth trajectory amidst challenging economic conditions.

The financial results, filed with the Nigerian Exchange Limited on Tuesday, showcased Ecobank’s robust performance despite the headwinds posed by higher inflation, interest rates, and currency depreciation across Africa.

The group’s profit before tax also rose by 8% or 34% when adjusted for foreign currency translation effects to $581 million.

According to Ecobank, the growth in profit was primarily driven by revenue outpacing expense growth, resulting in positive operating leverage.

The group’s pre-provision, pre-tax operating profit hit $951 million in the year under review, representing a 17% increase from the previous year.

Commenting on the financial results, Jeremy Awori, CEO of Ecobank Group, acknowledged the challenges faced by households, businesses, and governments across Africa in 2023.

Despite the economic uncertainties, Awori declared Ecobank’s unwavering commitment to its customers and stakeholders.

Awori stated, “Ecobank generated a return on tangible shareholders’ equity of 24.9% despite the challenging operating environment in 2023.”

Net revenue exceeded $2.0 billion for the first time since 2015, reaching $2.1 billion, underscoring the efficacy of Ecobank’s 5-year growth, Transformation, and Returns strategy.

The CEO attributed Ecobank’s encouraging results to its customer-centric approach and initiatives aimed at revenue diversification, growth, and low-cost deposit mobilization.

The consumer and commercial banking businesses witnessed an increase in their share of group-wide revenues and profits, indicating progress in strategic objectives.

However, amidst the overall positive performance, Ecobank’s Nigerian operations faced challenges, with profit before tax declining to $27 million in 2023 from $31 million in 2022, representing a 15% decrease.

The challenging operating environment in Nigeria, characterized by high inflation and currency depreciation, impacted the performance of the Nigerian segment.

Looking ahead, Ecobank remains committed to its strategic agenda, which emphasizes technology-driven innovation, revenue diversification, and cost management.

The group’s focus on disciplined cost management aims to redirect savings into investments in marketing, sales capabilities, and technology, driving sustainable returns in the future.

As shareholders approved a N10 billion rights issue, Ecobank is well-positioned to capitalize on emerging opportunities and navigate evolving market dynamics.

With a resilient performance in 2023, Ecobank reaffirms its commitment to driving growth, delivering value to shareholders, and advancing financial inclusion across Africa.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending