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Total Assets in the Banking Sector to Hit N44.2trn

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  • Total Assets in the Banking Sector to Hit N44.2trn

The total assets within the Nigerian banking sector may hit N44.2 trillion by the end of the fourth quarter, according to a report by Afrinvest West Africa.

This projection is 7.8 percent higher than N41.0 trillion recorded in 2018 and also more than the N43.8 trillion recorded in the first half of 2019.

Ike Chioke, the Managing Director, Afrinvest West Africa, while presenting the report with the theme ‘Beyond the Precipice…Pulling Back from the Brink’, said: “Total assets remain strong.”

Similarly, the sector total deposits are predicted to hit N29.1 trillion by the end of this year, about 25.4 percent increase when compared with N23.2 trillion achieved during the same period of 2018 and N25.6 trillion recorded in the first half of 2019.

The report also predicted that the total loan from the banking sector would surge from N15.7 trillion achieved in the first half of 2019 to N16.1 trillion by the end of the year.

The former governor of the Central Bank of Nigeria (CBN) and the current member of President Muhammadu Buhari’s Economic Advisory Council, Charles Soludo, who spoke at the presentation of the report said there has been a huge transformation in the sector when compared with past metrics, prior to bank consolidation.

“In subsequent ones, let us look at where we are in terms of the depth of the banking relative to, even in comparison to Africa. I checked banking by asset size, percentage of GDP, I was struck as to how low we are even by African standard,” Soludo said.

“Countries like Mauritius, Kenya, Senegal, Ghana and several others were much higher. That might have some implication about saving the banking financial system and the kind of economy we want to be able to empower,” he said.

Speaking further, Soludo said, “We had a dream of Nigeria becoming the African banking and financial centre. Now that we are actually integrating Africa to have Africa Continental Free Trade Agreement as it were, what kind of banking and financial system do we really need to be able to move the economy forward?

“The question is, what should be the next level for the banking system and what should be the kind of disruptive change or changes that need to be adopted to be able to move the sector to that level that it is able to power the Nigerian economy and increasingly African economy?”

However, Soludo expects the subsequent report to show the kind of industry to be expected in the next five to 10 years.

“I think it might be one way of pushing us in the direction of further reforms and changes, especially disruptive changes. I like the concept of disruptive changes. You can’t repeat the same thing over and over and expect a different outcome,” he said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

Finance

Debt Market: Dangote Cement Raises N250 Billion in H1, 2020

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Prime Real Estate Development At Eko Atlantic City

Dangote Cement Raises N250 Billion From Debt Market in H1 2020

Dangote Cement raised a total sum of N250 billion from the nation’s debt market in the first half of the year, according to the FMDQ Securities Exchange Limited.

In the statement published on the FMDQ website, the N250 billion debt includes the N100 billion Series 1 Bond raised under Dangote Cement’s N300 billion Bond Programme and the N150 billion Commercial Paper (Series 13-16 Domestic CP Issuance Programme) offered earlier in the year and now listed and quoted on FMDQ Securities.

Mr Michel Puchercos, the Chief Executive Officer, Dangote Cement, was quoted as saying, “This landmark transaction is the largest-ever bond issuance by a corporate issuer in Nigeria.

“It allows us to further broaden our sources of funding by accessing long-term debt at competitive costs from the capital market and builds further on the success of our domestic commercial paper programme.

“The success of these transactions, in the current challenging environment, illustrates investors’ continuous confidence in Dangote Cement’s strategy, strong cash generation and solid credit profile.”

Mr Kobby Bentsi-Enchill, the Executive Director and Head of Debt Capital Markets, Stanbic IBTC Capital Limited, said, “Stanbic IBTC Capital Limited has a long history of partnering with Dangote Cement Plc, and are delighted to have advised on this landmark corporate bond issuance, which reflects the depth and diversity of the Nigerian debt capital markets.”

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Conoil Profit After Tax Declines by 20 Percent in Q1, 2020

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Conoil

Conoil Profit Before Tax Depreciated by 20 Percent in Q1 2020

Conoil Plc, Nigeria’s indigenous oil marketing company, on Tuesday declared a 20 percent declined in both profit before tax and profit after tax for the quarter ended March 31, 2020.

In the unaudited financial results released on the Nigerian Stock Exchange (NSE), Conoil grew revenue by 7 percent from the N35,637 billion filed in the same quarter of 2019 to N38.143 in the first quarter of 2020.

Also, the company’s retained earnings expanded by 8 percent from N14.395 billion in the corresponding quarter of 2019 to N15.556 billion in Q1 2020.

Accordingly, Shareholders’ funds appreciated by 6 percent from N18.566 billion filed in the first quarter of 2019 to N19.728 billion in the same quarter of 2020.

However, profit before tax declined by 20 percent from N468,202 million in Q1 2020 to N382,915 million during the period under review.

The tax paid by the company during the period also declined by 20 percent from N153,025 million in Q1 2019 from N122,533 million in Q1 2020.

The company’s profit before tax declined by 20 percent from N325.178 million in achieved in the first quarter of the corresponding year to N260.382 million in Q1, 2020.

Similarly, earnings per share also declined by 20 percent from 47 kobo in Q1 2019 to 38 kobo in Q1 2020.

Total assets declined from N63.584 billion in Q1 of 2019 to N58.760 billion in Q1, 2020.

Conoil owned equity expanded from N19.467 billion achieved in the first quarter of 2019 to N19.728 billion in the first quarter of 2020.

Total Liabilities declined from N44.117 billion in Q1 2019 to N39.032 billion during the period under review.

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FMDQ Group Admits Dangote N100bn Bond, MTN N100bn Commercial Paper

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Bola Onalede

FMDQ Group Admits Dangote N100bn Bond, MTN N100bn Commercial Paper

The FMDQ Group has said the admission of both the N100 billion Dangote Cement bond and MTN Nigeria N100 billion commercial paper shows the potential of the Nigerian capital market to drive and stimulate economic growth.

The two most capitalised companies successfully raised N100 billion each from the capital market despite the COVID-19 pandemic and economic downturn.

Bode Onadele, the Chief Executive Officer, FMDQ Group, said: “The market has been yearning for corporate benchmarks for pricing and valuation of securities in the debt capital market, and coming at a time when the resilience of the Nigerian financial market is being tested by the impact of the COVID-19 pandemic is even more commendable.

The success of these issuances by the premier and largest business conglomerate in Africa, Dangote Industries, through its subsidiary, Dangote Cement Plc, and the debut made into the Nigerian debt capital market by leading telecommunications giant, MTN Nigeria Communications Plc, lay credence to the untapped and great potential of the Nigerian capital market to support sustainable development in Nigeria, and the confidence of investors, as well as the commitment of FMDQ Group to empower the markets to deliver prosperity to Nigeria and Nigerians.”

Onadele said the inclusion of the two securities on FMDQ validates the innovative and credible capital market solutions championed and efficiently delivered by FMDQ, over the last few years.

“Furthermore, in line with its mandate to facilitate global competitiveness of the Nigerian financial market, FMDQ, through these admissions, has provided the market and its diverse stakeholders – local and international – the much-needed corporate benchmark for the bond and commercial paper markets,” he said.

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