Economy
Equities Investors Rake over N2.2tr in Q1 2017
By The Nation
Equities’ investors at the stock market are smiling to the bank as they netted more than N2.2 trillion gains in the first half of the year, The Nation is reporting.
Most quoted equities closed the first half at the weekend at their four-year best performance with double-digit returns ahead of inflation. Most investors saw their portfolios rising by almost a quarter, while others garnered more than double the average benchmark.
The six-month average year-to-date return at the weekend stood at 23.23 percent, almost seven percentage points ahead of the current inflation rate of 16.25 percent. In monetary terms, the year-to-date gain stood at N2.2 trillion, underlining the fact that the appreciation in market value was driven by share price increases rather than new listings.
Aggregate market value of all quoted equities on the Nigerian Stock Exchange (NSE) closed the first half at N11.452 trillion as against 2017’s opening value of N9.247 trillion, representing a net capital gain of N2.205 trillion or 23.85 percent.
The All Share Index (ASI)-the benchmark index that doubles as sovereign equities index for Nigeria, crossed seven levels to close at 33,117.48 points in the review period, compared with its year’s opening index of 26,874.62 points, representing an increase of 23.23 percent.
The rebound in the first half, driven largely by gains recorded in the second quarter, represents a major recovery for hard-pressed investors, who had lost N3.98 trillion in the past three years.
The stock market had been on a losing streak since 2014. Investors lost N1.75 trillion in 2014 and followed this with another loss of N1.63 trillion in 2015. Against the expectation that political transition and a new government will quicken a rebound, equities closed 2016 with a net capital loss of N604 billion.
Aggregate market value of all quoted equities on the NSE closed 2016 at N9.247 trillion, as against N13.226 trillion recorded at the start of trading in 2014, representing a net capital loss of N3.98 trillion.
Managing Director, Cowry Asset Management Limited, Johnson Chukwu, said the recovery was a response to positive changes in the polity, noting that the stock market performance usually aligns with macroeconomic outlook.
He said the market had remained depressed in the first quarter under poor liquidity, amidst uncertain and unrealistic foreign exchange management.But the market turned around in the second quarter, he pointed out, with the changes in the foreign exchange management and improvement in macroeconomic coordination.
Chukwu said the market recovery was boosted by the introduction of the Investors’ and Exporters’ foreign exchange window, as well as the narrowing of the exchange rates between official and parallel rates due to policy stimulation by the Central Bank of Nigeria (CBN).
He said the improvement in foreign exchange market and overall macroeconomic performance encouraged foreign portfolio investors to redirect funds to Nigerian equities, thereby supporting the domestic investors’ base.
He added that the ongoing revision of the investment guidelines for pension funds administrators (PFAs), which includes mandatory investment off a certain percentage of pension funds in equities, also encouraged many PFAs to take early positions in equities ahead of the release of the final guidelines.
GTI Capital Chief Operating Officer, Kehinde Hassan, said the market was primed for recovery by the steep declines in previous years and substantial undervaluation of several equities, pointing out that the steady corporate earnings in the previous year and first quarter of this year boosted investors’enthusiasm as companies majorly have shown resilience in the face of the tough operating environment.
He said with global projections indicating a positive outlook for the economy and the prospects that corporate earnings may remain steady, investors viewed the undervaluation of quoted equities as an incentive.
Banking stocks have been major drivers of the rally after first quarter earnings showed a largely positive performance. The Deposit Money Banks (DMBs), reported pre-tax profit of about N234 billion on gross earnings of N1.07 trillion in the first quarter of this year.
Key extracts of the interim report and accounts of banks for the three-month period ended March 31, 2017, indicated that total assets rose to N35.3 trillion by the end of the review period, driven largely by profit accretion as all tracked banks posted a profit during the period. Gross earnings totaled N1.072 trillion, driven mostly by growth in core banking operations. Profit before tax stood at N233.66 billion while profit after tax stood at N196.7 billion.
About 80 percent of tracked banks recorded higher pre and post tax profits compared with the corresponding period of the previous year while nearly all banks reported growths in top-line earnings. Average gross earnings for the industry in the first quarter stood at N71.47 billion while average profit before tax stood at N15.57 billion. After taxes, average net profit stood at N13.11 billion on the back of average total assets of N2.35 trillion.
The Nation had tracked the results of all quoted banks on the Nigerian Stock Exchange (NSE), with the exception of the troubled Skye Bank, which has not submitted both the audited report for 2016 and first quarter result for 2017. The report of Skye Bank will not lead to any material change in the overall figures for the sector. There are altogether 16 banks quoted on the NSE including Guaranty Trust Bank, Zenith Bank, Access Bank, United Bank for Africa, FBN Holdings, FCMB Group, Ecobank Transnational Incorporated, Stanbic IBTC Holdings, Unity Bank, Sterling Bank, Fidelity Bank, Union Bank of Nigeria, Wema Bank, Diamond Bank, Jaiz Bank and Skye Bank.
Banks’ chiefs said they were optimistic of continuing growths in the remaining period of the year, citing expected improvement in the macroeconomic environment.
“We remain positive that economic activities will improve as the economy is beginning to show signs of positive outlook due to an increase in the supply of foreign exchange to both retail and corporate users and decreasing headline inflation,” Stanbic IBTC Holdings Chief Executive, Mr. Yinka Sanni, said.
Sterling Bank Managing Director, Mr. Yemi Adeola, said the first quarter of this year’s performance was in line with expectations, noting that the bank would continue to explore innovative ways to improve revenue, while simultaneously enhancing the overall efficiency of its business operations.
“We remain committed to maximising shareholders’ value and delivering a superior and sustainable return, guided by our founding values of hard work, discipline and integrity,” Managing Director, Guaranty Trust Bank, Mr Segun Agbaje, said.
Source: The Nation
By Adedapo Adesanya
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
