Economy
Stanbic IBTC Grows Profit to N83.2bn, Offers Dividend, Bonus Shares
By Dipo Olowookere
One of the financial institutions operating in Nigeria that is highly trusted by foreign investors, Stanbic IBTC Holdings Plc, has released its results for the 2020 accounting year.
In the period under review, the lender grew its gross earnings to N234.5 billion from N233.8 billion. However, the interest income reduced to N105.8 billion from N120.4 billion, while the interest expense was down to N31.6 billion from N42.6 billion.
Business Post observed that the decline in the interest income in the period under consideration was due to lower interest on loans and advances to banks, interest on loans and advances to customers and interest on investments.
At the close of business on December 31, 2020, Stanbic IBTC had a net interest income of N74.2 billion in contrast to N77.8 billion in 2019. However, its non-interest revenue rose to N124.7 billion from N108.8 billion.
The fee and commission revenue was slightly up to N75.2 billion from N75.0 billion, while the fee and commission expense reduced to N4.0 billion from N4.6 billion, with the net fee and commission income at N71.2 billion as against N70.4 billion in 2019.
Stanbic IBTC said in the reporting year, it had a trading revenue of N52.1 billion, higher than N36.3 billion a year earlier, while the other income went down to N1.4 billion from N2.0 billion.
The company said staff costs gulped N42.1 billion in 2020 compared with N40.6 billion in 2019, while N52.1 billion was used for other operating expenses versus N53.4 billion in 2019.
With N94.3 billion expended on operating costs in the year, marginally higher than N94.0 billion in 2019 and an income after credit impairment charges of N189.0 billion last year in contrast to N185.0 billion a year earlier, the lender was left with a profit before tax of N94.7 billion as against N90.9 billion in 2019.
After the payment of N11.5 billion as income tax for the year, lower than N15.9 billion paid in 2019, the organisation was left with a net profit of N83.2 billion, higher than N75.0 billion of the preceding year.
Meanwhile, the board of Stanbic IBTC has recommended the payment of a final dividend of N40.0 billion, representing N3.60 for each of the company’s shares with shareholders.
The amount would be paid to shareholders whose names appear on the register of members as at the close of business on Wednesday, April 7, 2021.
Also, the firm is proposing the issuance of bonus shares to investors on the basis of one new ordinary share for every six existing ordinary shares held by them as at the close of business on Thursday, June 10, 2021, though subject to shareholders and regulatory approvals.
On Thursday, May 27, 2021, the Annual General Meeting (AGM) of the company will take place at the IBTC Place on Walter Carrington Crescent, Victoria Island, Lagos, at 10.00am, while on Friday, May 28, 2021, the dividends will be paid electronically to shareholders who have completed the e-dividend registration and mandated the registrar, First Registrars & Investor Services Limited, to pay their dividends directly into their bank accounts.
By Adedapo Adesanya
NASD Over-the-Counter (OTC) Securities Exchange remained in the negative territory after it further depreciated by 0.64 per cent on Friday, July 24, despite recording four price gainers.
The NASD Security Index (NSI) dropped 27.4 points at the close of business to settle at 4,294.75 points versus the previous day’s 4,383.48 points, while the market capitalisation gave up N16.49 billion to end at N2.577 trillion, in contrast to the N2.594 trillion it ended a day earlier.
The bourse was down during the session amid heavy sell-offs, with the volume of transactions skyrocketing by 693.9 per cent to 2.99 million units from Thursday’s 377,635 units.
Equally, the value of trades went up by 71.6 per cent to N69.4 million from N40.4 million, and the number of deals increased by 41.0 per cent to 55 deals from the preceding day’s 39 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 75.6 million units traded for N5.4 billion.
GNI Plc was also the most active stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, trailed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
The market ended the session with four price gainers and two price losers, led by FrieslandCampina Wamco Nigeria Plc, which lost N7.44 to trade at N136.19 per share compared with the previous day’s N143.63 per share, and CSCS Plc, which declined by N1.64 to N93.63 per unit from N95.27 per unit.
But MRS Oil gained N13.50 to sell at N148.50 per share versus N135.00 per share, Afriland Properties Plc advanced by 56 Kobo to N17.41 per unit from N16.85 per unit, UBN Property Plc surged by 18 Kobo to N1.93 per share from N1.75 per share, and Food Concepts Plc climbed by 1 Kobo to N2.50 per unit from N2.49 per unit.
By Dipo Olowookere
Nigeria’s stock exchange succumbed to profit-taking on Friday, losing 0.19 per cent when the closing gong was hit at 4 pm.
Shares in the banking and energy sectors influenced the decline suffered by the Nigerian Exchange (NGX) Limited during the session, as they respectively closed lower by 0.40 per cent and 0.04 per cent.
The industrial goods index was flat yesterday, while the insurance counter gained 0.68 per cent and the consumer goods space chalked up 0.25 per cent. The gains by these two segments could not keep Customs Street in the green territory at the close of business.
As a result, the All-Share Index (ASI) retreated by 474.00 points to 247,357.40 points from 247,831.40 points, and the market capitalisation decreased by N306 billion to N159.588 trillion from N159.894 trillion.
Presco dropped 10.00 per cent during the trading day to close at N2,070.00, Thomas Wyatt crumbled by 9.93 per cent to N3.63, Trans-Nationwide Express plunged by 8.44 per cent to N2.82, Royal Exchange slipped by 7.86 per cent to N1.29, and LivingTrust Mortgage Bank shrank by 7.32 per cent to N3.80.
On the flip side, C&I Leasing improved by 9.48 per cent to N6.35, Cornerstone Insurance rose by 9.09 per cent to N6.00, RT Briscoe jumped by 8.61 per cent to N13.25, Honeywell Flour expanded by 7.38 per cent to N17.45, and Africa Prudential increased by 6.98 per cent to N13.80.
Despite the poor performance, the local bourse recorded a positive market breadth index after finishing with 35 price gainers and 25 price losers, representing strong investor sentiment.
It was a relatively quiet market on Friday, as the activity level dropped, with the trading volume down by 27.72 per cent to 565.5 million units from 782.4 million units, and the trading value contracted by 46.89 per cent to N29.9 billion from N56.3 billion, while the number of deals executed by investors soared by 16.03 per cent to 53,688 deals from 46,273 deals.
Access Holdings was the busiest stock for the session, with a turnover of 128.0 million units sold for N3.8 billion, First Holdco transacted 35.4 million units worth N4.3 billion, Chams exchanged 34.8 million units valued at N154.3 million, Zenith Bank traded 30.4 million units for N3.9 billion, and UBA sold 30.4 million units worth N1.5 billion.
By Adedapo Adesanya
The Naira marked a whole week of appreciation against the United States Dollar on Friday, July 24, further gaining N5.67 or 0.41 per cent to close at N1,362.09/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) compared with N1,367.76/$1 it ended on Thursday.
Equally, the local currency appreciated against the Pound Sterling in the official FX market yesterday by N10.83 to trade at N1,813.62/£1 versus the preceding day’s N1,824.45/£1, and improved against the Euro by N7.68 to settle at N1,549.10/€1, in contrast to the N1,556.78/€1 it was exchanged a day earlier.
However, at the parallel market and GTBank forex counter, the Nigerian currency remained unchanged against the greenback during the session at N1,400/$1 and N1,379/$1, respectively.
The Central Bank of Nigeria (CBN) buffer has been strengthened with sustained foreign portfolio inflows and robust foreign reserves, which stand above $52 billion.
The apex bank’s policy signals that the Naira will be stronger in the near term, with Nigeria clearing hurdles with FX reforms and settlement of all backlogs.
However, some traders expect that pressure may come due to foreign-currency buying from fuel importers as they make Dollar purchases to build inventories.
Meanwhile, Bitcoin (BTC), in the digital currency landscape, trimmed recent gains as it fell by 2.3 per cent to $63,787.73.
The weak action in the AI momentum trade is feeding through to crypto as well.
Further, Cardano (ADA) dropped 3.7 per cent to close at $0.1615, Solana (SOL) dipped by 2.8 per cent to $73.71, Ripple (XRP) crashed by 2.3 per cent to $1.08, Ethereum (ETH) slid by 1.9 per cent to $1,851.58, Dogecoin (DOGE) retreated by 0.8 per cent to $0.0694, Binance Coin (BNB) contracted by 0.7 per cent to $564.18, and TRON (TRX) lost 0.5 per cent to trade at $0.3292, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
