Access, Nigeria’s biggest bank posted a record profit after tax of N619 billion

Posted on March 28, 2024March 28, 2024 by Kikelomo Adesina

Access Holding, Nigeria’s biggest bank reported N729 billion in profit before tax for the entire year ending December 31, 2023, this represents a notable increase of roughly 335 percent over the N167.68 billion reported in 2022.

It final fiscal year under the leadership of the late Group CEO, Dr. Herbert Wigwe, the group of the Nigerian Exchange Limited (NGX) reported a profit of N619.3 billion

When compared to the N152.2 billion reported in 2022, this indicated a 307 percent increase. The Central Bank of Nigeria’s (CBN) unification of foreign exchange was a major factor in the notable increase in profits.

The Group reported a foreign exchange gain of N628.93 billion for the 2023 financial year, an increase of 87.44 percent over the N335.55 billion reported for the 2022 fiscal year.

Fair value gains on non-hedging derivatives, equity investments, and fixed-income securities brought in an additional N512.3 billion for Access Holdings, which also saw growth at its net interest income of N555.8 billion and net fee income of N207.7 billion revenue lines. In 2023, its Earnings Per Share (EPS) increased to N17.23 from N4.29 in 2022.

For each ordinary share valued at N0.50, Access Holdings proposed to pay a final dividend of N1.80 kobo, subject to the applicable withholding tax.

Access Holdings also reported N26.7 trillion in total assets in 2023, a 78% increase from the N14.99 trillion reported in 2022, according to the balance sheet position. Key drivers included N8.04 trillion in loans and advances to banks in 2023, up 58% from N5.1 trillion reported in 2022, and N15.3 trillion in customer deposits in 2023, up 65.6% from N9.25 trillion in 2022.

In addition to his wife Chizoba, son Chizi, and Bimbo Ogunbanjo, 61, former president of the National Council of the NGX Group Plc in California, USA, Wigwe passed away on February 9th in a helicopter accident.

Following Wigwe’s untimely death, the Board of Directors of Access Holdings recently announced on February 13 that Ms. Bolaji Agbede had been appointed as the Acting Group Chief Executive Officer.

Mr. Aigboje Aig-Imoukhuede, the Pioneer Group Managing Director/CEO of Access Bank Plc., was recently named Chairman of Access Holdings.

As of the end of 2023, Wigwe had 2.58 billion direct and indirect shares in Access Holdings, or 7.27 percent of the bank.

Dangote Sugar drags NGX to settle lower at 104,136.35 index points

Posted on March 26, 2024 by Kikelomo Adesina

The NGX began the week’s trading on a negative note, falling N288.9 billion as Dangote Sugar Refinery Plc and 29 other companies’ profit-taking operations hampered market performance.

The stock market started for trade with Dangote Sugar Refinery leading the losers table, with a 10% down in share price, or N5.90 to N53.10, and an overall market capitalization loss of N288.9 billion, or N58.88 trillion, from N59.169 trillion.

Consequently, the Month-to-Date and Year-to-Date returns dropped to +4.2 percent and +39.3 percent, respectively, while the NGX All-Share Index lost 0.49 percent, reaching 104,136.35 index points as opposed to the 104,647.37 index points from the previous session.

The NGX Banking and NGX Consumer Goods saw decreases of 1.7% and 0.8%, respectively, while NGX Insurance saw an increase of 0.2%. The NGX Oil & Gas and NGX Industrial Goods indices ended the day at levels of 1,294.38 basis points and 4,832.80 basis points, respectively.

Twenty companies rose and thirty sank, resulting in a negative closing attitude for investors as indicated by market breadth. Ellah Lakes closed at N3.63 per share, recording the largest price gain of 10%. After that, Morison Industries closed at N1.55 with a 9.93% gain, and SUNU Assurance closed at N1.27 with a 9.48% gain.

Secure Electronic Technology saw a 9.09 percent increase to close at 60 kobo per share, while Caverton Offshore Support Group saw a 9.38 percent increase to conclude at N1.75.

Conversely, Jaiz Bank trailed behind with a 9.92% decline to settle at N2.18, per share, while Dangote Sugar Refinery and International Energy Insurance headed the losers’ table by 10% each to close at N53.10 and N1.35, respectively.

DEAP Capital Management & Trust went down 9.52% to settle at 57 kobo per share, while Ikeja Hotels lost 9.72% to close at N5.85.

With 306.822 million units sold in 9,343 trades for a total value of N11.383 billion, the overall volume traded decreased by 39.34 percent. With 35.548 million shares valued at N4.052 billion, transactions involving shares of the Nigeria Infrastructure Debt Fund (NIDF) topped the activity list.

United Bank for Africa (UBA) traded 19.539 million shares valued at N519.286 million, followed by Jaiz Bank with 23.511 million shares worth N52.573 million.

Nigeria Stocks All Share Index settles at 104,647.37 index points

Posted on March 23, 2024 by Kikelomo Adesina

The Nigerian Exchange Limited (NGX) saw an increase in the NGX All-Share Index. Due to purchasing pressure in the banking and services sectors, the local exchange ended the week’s trading session on a high note. As a result, the NGX All Share Index finished at 104,647.37 index points, up +0.25%. The year-to-date return of the local bourse stands at 39.95%

The NGX upward trend led to a significant gain in market capitalization of N146.95 billion, indicating investors’ increased trust in stock markets. This culminated in a total market capitalization of N59.17 trillion.

AIRTELAFRI, DANGCEM, GEREGU, BUA Cement, BUAFOODS, MTNN, SEPLAT, TRANSCOHOT, and TRANSPOWER in the most recent trading session, showed resistance to the volatility seen in other shares by exhibiting stable stock prices.

The financial sector, where important institutions experienced an increase in the value of their stock, made a substantial contribution to this upward market movement. Since there were 34 winners and 14 losers, the market breadth index was positive.

With a noteworthy 10% increase in its stock value, NSLTECH led the group of 34 advancing stocks and the market attitude remained positive.

Conversely, IKEJAHOTEL and PZ had a 10% decline each, making them the least successful companies out of the 14 that experienced a decline.

GTCO was notable for its value traded, but ACCESSCORP dominated the day’s activity in terms of trading volume.

Market activities saw a spike, with 9,574 deals completed on the day, up from 8,790 deals in the previous session. Activity levels saw a +57% increase in total volume, reaching 515 million units valued at N14.3 billion.

Nigerian stocks fall on Hot inflation data

Posted on March 19, 2024 by Kikelomo Adesina

Investors’ reactions to the most recent Consumer Price Index data released by the Nigerian Statistics Bureau caused the currency to drop by 0.4%.

Due to selling pressure in consumer goods, and telecom industries, the local stock exchange closed the first trading session on a negative note. The result was a -0.4% decline in the NGX All Share Index, which ended up at 104,663.34 index points. The market capitalization dropped to N59.18 trillion at the end of trading on Monday.

The National Bureau of Statistics released the February 2024 inflation rate on Friday. It increased to 31.70 percent from 29.90 percent in the previous month and was 9.79 percent higher than the 21.91 percent recorded in February 2023. The percentage increases for the food and core indices were 37.92 percent and 25.13 percent, respectively.

Inflation was also predicted to keep rising as long as the naira’s value declined relative to the US dollar. The manufacturing industry is still unduly dependent on imports, and supply chain disruption worsens insecurity.

There were 27 winners and 18 losers, indicating a positive market breadth index. Leading gainers included ABCTRANS PLC (+9.86 percent), while MCNICHOLS PLC (-9.3 percent) was the top loser.

In terms of activity levels, total volume increased by +32 percent to 287 million units worth N10.8 billion. Other top gainers include NEM PLC (+9.77 percent), while other bottom losers include DAARCOMM PLC (-8.73 percent).

Banking stocks, led by UBA, GTCO, Zenith Bank, FBN Holdings, and Access, dominated trade volume. Transcorp, United Bank for Africa, and Guaranty Trust Holding Company led the day’s market trend in terms of volume and value.

Bargain hunters spur Nigeria’s stock market rally

Posted on March 14, 2024 by Kikelomo Adesina

Buyer pressure in the consumer goods and industrial sectors helped Nigeria’s main stock market to maintain its rise.

The NGX All-Share Index gained 0.05 percent to close at 104,056 index point 21 index points, up from a 0.5 percent gain to close at 104,007.31 index points the day before.

Remarkably, higher yields on fixed-income assets have not deterred investors from buying equities, even after monetary authorities raised the benchmark interest rate by as much as 400 basis points in February.

The NGX All Share Index has achieved a 39.16 percent year-to-date growth, with a gain of N27.74 billion recorded in the NGX market valuation.

Regarding activity levels, the total volume dropped by 30% to 226 million units valued at N7.4 billion. Without negative catalysts, the market expects sentiment trading to mirror the previous week. Purchasing high-quality stocks with solid fundamentals is advised for investors. Recent price movements indicate that investors will likely continue to look for deals due to strong corporate actions and fundamentals.

Because of strong buying pressure in the consumer and industrial goods sectors, the local stock exchange closed today’s trading session higher. The market breadth index was negative because there were 18 winners and 22 losers.

ROYALEX PLC (+9.72 percent) led today’s gainers, while INTENEGINS PLC (-10 percent) was the biggest loser. Other high achievers are UNILEVER PLC (+9.59 percent), while SUNUASSURANCE PLC (-9.93 percent) is among the lowest

Transcorp Power electrifies Nigeria’s Stock Market

Posted on March 11, 2024 by Kikelomo Adesina

Transcorp Power is now the second company that generates electricity to be listed by introduction on the Nigerian Exchange Limited (NGX) mainboard. In the Introduction, only existing, outstanding shares are sold; no new shares are created, and the company listing is exempt from the book building, underwriting, and public offer processes.

Transcorp Power listing by introduction implies that only current owners of the business—that is, shareholders—transfer their current shares to any potential buyer of a stake in the business. Its price is approaching N400 per share on the Exchange because of the stock market’s substantial appreciation since it listed 7.5 billion shares outstanding at N240.00 per share on March 4, 2024.

Investor demand for the company’s stock price during its first week of trading on the NGX was incredibly strong, driven by the company’s strong fundamentals and well-funded management, which also offered a high rate of return-on-investment. Transcorp Power’s valuation grew by almost N1trillion within a week on the NGX

The largest gas-fired power plant in Nigeria, Transcorp Power is a subsidiary of Transnational Corporation Plc (Transcorp), the continent’s most prominent listed and diversified conglomerate. It sets the standard for energy generation for millions of people in Nigeria and throughout Africa.

The NGX listed utility company has been able to gradually increase its capacity utilization rate over the past few years, despite installed capacity remaining constant. The company’s utilization rate reached a five-year high of 78% in 2023. Over the previous five years, Transcorp Power’s revenue has increased dramatically due to a rise in energy delivery and capacity charges as well as the profitable expansion into foreign markets.

Transcorp Power reported revenue of N55.94 billion in 2019 and N65.12 billion in 2020, according to the revenue breakdown. Revenue was N74.33 billion in 2021, N90.35 billion in 2022, and N142.12 billion in 2023.

The breakdown also showed that Transcorp Power’s revenue was derived from local customers to the tune of 82.2 percent, while its revenue from international customers accounted for 17.8 percent.

The company has maintained and increased its EBITDA margins, solidifying its reputation as one of Nigeria’s top power generation firms. From 36.7 percent in 2019 to 48.8 percent in 2023, EBITDA margins have grown.

The MD/CEO, of Transcorp Power, Peter Ikenga, stated the business offers a special opportunity in Nigeria’s power generation subsector, which is essential to the development of the nation’s economy.

Transcorp Power, in his words, is a prominent thermal power-producing company in Nigeria, making up 7% of the country’s power generation capacity.

With its current assets, it currently generates 10% of Nigeria’s power and has the potential to contribute even more. Ikenga emphasized the company’s strong operational history, pointing outthat the rapid increase in available capacity to 701 MW from 160 MW in 2017 and its steady contribution to the national grid demonstrate the dependability and efficiency of the plant.

MTN Nigeria, Dangote Sugar light up NGX, settles at 100,335 index points

Posted on March 8, 2024 by Kikelomo Adesina

The NGX closed on a positive note today, due to buying pressure in the Genos, Telecoms, and Consumer goods sectors. Amidst declining interest in banking stocks, the All-Share Index edged higher above 100,000 points by 0.75% to 100,335 index points on Thursday, marking the start of the NGX’s fourth day of positive trading.

Investors gained N420 billion during this period. The year-to-date return reached 34.2% because of the market valuation increased by 0.75 percent to N56.73 trillion. Strong-basis consumer goods stocks continued to be highly sought after by investors.

Though trading was positive, sentiment in the market remained negative with 26 stocks rising and 34 falling.

MTN Nigeria and Dangote Sugar led the gainers’ chart, closing at N201.30 and N50.6, respectively, after each company gained 10%.

FTN Cocoa and Guinness lost ten percent apiece to close at N1.53 and N45.90 on the decliners chart, while Transcorp lost ninety-five percent to close at N17.10.

The overall traded volume increased by 33.19 percent to 554.72 million units on Thursday, but the overall traded value decreased by 9.11 percent to N17.73 billion, despite a 3.96 percent increase in total deals to 9,708. Overall, the level of market activity was mixed.

In the banking and insurance indexes, which saw declines of 2 percent and 0 percent, respectively, due to investor sell-offs of stocks like FBN Holding, Ecobank Transnational Incorporated, and Zenith Bank, the performance was bearish across all sectors. In contrast, investors’ interest in stocks like MTN Nigeria, Dangote Sugar, and Transcorp Power remained strong, as evidenced by the consumer goods and industrial goods indexes closing in the green by 0.62% and 0.01% respectively.

The Oil and Gas index, meanwhile, did not change from the previous close. Transcorp, with 301.36 million shares traded in 2,184 trades and valued at N5.65 billion, emerged as the most traded security by volume and value on Thursday.

Lafarge Nigeria posts annual revenue of N405.5 billion

Posted on March 5, 2024 by Kikelomo Adesina

Lafarge Nigeria Plc reported sales of N405.5 billion for last year, an 8.6% increase over the N373.2 billion reported for the same time in 2022.

The NGX-listed company posted a profit after tax of N51.1 billion, down from N53.6 billion a year earlier, amid a reported FX loss of N21 billion during the year.

According to the company’s 2023 financial statement, which was made available on the Nigerian Exchange Limited (NGX), its operating profit increased by 21.7 percent to N102.5 billion from N84.2 billion in 2022.

However, due to pressure from foreign exchange (FX) losses and a higher effective tax rate following the expiration of its pioneer status incentive in 2022, its profit after tax (PAT) decreased by 4.7% to N51.14 billion from N53.65 billion.

The CEO of Lafarge Nigeria Plc, Lolu Alade-Akinyemi stated that the company’s foundation was still solid. “We increased the top line by 8.6% and the operating margin from 22.6% to 25.3% in the full year 2023, despite very difficult macroeconomic headwinds. Due to significant FX devaluation losses and an increased effective tax rate, profit after tax decreased by 4.7% year over year. “

Spiral inflation and the extraordinary devaluation of the Naira, along with the resulting pressure on energy and supply chain costs, had a significant effect on our performance.

“We are positioned for sustainable growth over the medium to long term by maintaining a strong balance sheet and strong free cash flow position despite these challenges. “As we have in the past, we are dedicated to providing sustainable value to all stakeholders in the years to come.” He added

He further stated that despite pressure from inflation and the economy being impacted by currency devaluation, the Nigerian infrastructure and construction sector is projected to keep expanding.

Dangote Cement: Nigeria’s most valuable company posts record income of N553 billion

Posted on March 4, 2024 by Kikelomo Adesina

Dangote Cement, Nigeria’s most valuable company and partly owned by Africa’s richest man, more than doubled its comprehensive income to N1 trillion by converting net investments in overseas operations into naira, resulting in record windfall income.

According to its audited earnings report, which was released on Friday, comprehensive income—which is defined as cash earned from profit after tax plus extraordinary gains outside of a company’s regular sources of income rose by 150% from N405.4 billion to N796 billion.

Profit before taxes increased to N553.1 billion, up 5.5%, while profit after taxes increased to N455.6 billion, up from N382.3 billion.

Dangote Cement recently surpassed Airtel Africa to become Nigeria’s largest corporation by market value on the NGX. At present, the corporation has a market capitalization of N11.7 trillion.

Since a new government entered office in May of last year, the value of the naira against the dollar has dropped by more than 70%, exacerbating Nigeria’s currency crisis.

Numerous business entities like Nigerian Breweries, Nestle Nigeria, and Guinness Nigeria have suffered losses due to the Naira’s decline, which has caused some multinational corporations to relocate. The Naira’s value against the US dollar has been steadily rising in recent months.

According to its website, the largest cement manufacturer in Sub-Saharan Africa is present in nine African countries in addition to Nigeria.

For the last five years, Dangote Cement has paid dividends regularly. In light of its outstanding success in comparison to the N20 per share distributed the previous year, the blue-chip company announced a dividend of N30 per share.

MTN’s income takes a huge blow on record losses from Nigerian Subsidiary

Posted on March 3, 2024 by Kikelomo Adesina

MTN, Africa’s largest telcom carrier warned that it expects annual profits to drop by as much as 90%.

For MTN’s Nigeria business, which has approximately 79 million customers and generates around a third of the company’s earnings, the naira has fallen by 70% versus the US dollar since June, increasing operating and financing costs as well as foreign exchange losses.

On March 25, the full-year results for the larger MTN group will be revealed. The telecoms giant recorded a 49% increase in mobile money transactions and a 45% increase in data traffic, despite the setback to its Nigerian unit.

The sharp devaluation of the naira against the US dollar has negatively impacted MTN Nigeria’s financial results, despite the operating company’s solid underlying operational performance.

Following the devaluation, about one-third of the group’s income comes from MTN Nigeria. The wireless carrier, which does most of its business in foreign currencies with trading partners, lost N740 billion in net foreign exchange last year because of abrupt increases in the value of the naira relative to the dollar.

MTN Nigeria reported a N133.8 billion net loss in 2023 in a separate filing with the Nigerian Stock Exchange despite a 22% increase in revenue over the prior year. Karl Toriola, the CEO of MTN Nigeria, stated that the company’s operating costs had increased since the long-standing currency peg in Nigeria was lifted, allowing the naira to trade freely.

“This development significantly increased the costs associated with our tower leases for MTN Nigeria and contributed to the upward pressure on the cost of doing business in Nigeria,” the statement read. Since MTN Nigeria’s tower leases are dollar-indexed, the company stated that operating expenses are estimated to be 45–50% foreign currency exposed.

MTN and Africa’s largest independent tower operator, US-listed IHS Towers, which leases nearly all of its 16,000 towers in Nigeria to the company, have been at odds over governance. MTN, which holds 26% of IHS, has requested voting rights to represent its ownership interest.

MTN Nigeria earlier declared in September of last year that it would move from IHS Towers to American Tower Corporation for the leases of 2,500 towers nationwide on terms that would expire this year and in 2025. At the time, MTN claimed the acquisition would enable cost savings and portfolio diversification for its towers.