Economy
Stanbic IBTC Raises Interim Dividend to N1 Amid 50% Drop in Profit
By Dipo Olowookere
The board of Stanbic IBTC Holdings Plc has recommended the payment of an interim dividend of N1 for the first half of 2021, higher than the 40 kobo paid in the same period of 2020.
The proposal was contained in the financial statements of the lender released to the Nigerian Exchange (NGX) Limited on Monday.
The cash reward to shareholders is coming despite a decline in the company’s top-line and bottom-line of the results as the gross earnings shrank by 26.06 per cent to N93.6 billion from N126.6 billion in the first half of last year, with the net interest income contracting to N32.9 billion from N37.6 billion due to a decline in the interest income to N44.2 billion from N55.1 billion a year ago as a result of a significant loss in interest on investments (N9.6 billion versus N21.6 billion in HY 20). The increase in interest on loans and advances to customers to N34.2 billion from N32.6 billion could not help the situation.
Also, the interest expense went down to N11.4 billion from N17.6 billion on the back of a decline in interest on borrowed funds, savings accounts, current accounts, term deposits and interbank deposits.
A look at the non-interest revenue of the financial institution showed a decline of 34.24 per cent to N45.9 billion from N69.8 billion mainly because of lower trading revenue in H1 2021 (N5.5 billion versus N34.3 billion in H1 2020).
Stanbic IBTC recorded an increase in net fee and commission income at N41.3 billion compared with N35.1 billion a year ago as the fee and commission income in the period under review stood at N44.8 billion in contrast to N36.7 billion in the same period of last year, while the fee and commission expense was N3.5 billion compared with N1.6 billion in the first six months of last year.
In the first two quarters of this year, the operating expenses of the company stood at N55.4 billion as against N48.5 billion in HY 2020, with staff costs gulping N20.2 billion versus N19.9 billion, while other operating expenses took N35.2 billion, lower than N28.6 billion a year ago.
As at June 30, 2021, the profit before tax of Stanbic IBTC was N24.7 billion, 52.86 per cent lower than N52.4 billion of last year, while the profit after tax went down by 50.22 per cent to N22.5 billion from N45.2 billion, with the earnings per share (EPS) moderating to N1.92 from N4.19.
Stanbic IBTC stated in the results analysed by Business Post that its deposits from customers increased on a year-to-date basis to N958.4 billion from N819.9 billion in FY 2020, while loans and advances to customers rose to N759.6 billion from N625.1 billion.
As for the interim dividend, totalling N12.957 billion, the board said it would be paid on Wednesday, September 29, 2021, to shareholders whose names appear on the register of members as at close of trading on Monday, September 20, 2021, and who have completed the e-dividend registration and mandated the registrar to pay their dividends directly into their bank accounts.
By Dipo Olowookere
Transactions on the floor of the Nigerian Exchange (NGX) Limited rallied on Tuesday by 0.75 per cent after investors intensified their demand for local stocks.
It was a tough battle between the bulls and the bears during the session, but the former overcame by a whisker after the bourse recorded 29 appreciating equities and 28 depreciating equities, indicating a positive market breadth index and strong investor sentiment.
The growth posted by Customs Street yesterday could be attributed to the appetite for MTN Nigeria shares, which chalked up 10.00 per cent to settle at N256.30.
SCOA Nigeria appreciated by 9.93 per cent to N2.99, Omatek grew by 9.88 per cent to 89 Kobo, Universal Insurance rose by 8.70 per cent to 75 Kobo, and CAP gained 8.52 per cent to trade at N47.75.
Conversely, Secure Electronic Technology lost 9.88 per cent to quote at 73 Kobo, Abbey Mortgage Bank declined by 9.09 per cent to N3.30, Sunu Assurances tumbled by 8.21 per cent to N6.15, Deap Capital slumped by 7.08 per cent to N1.05, and C&I Leasing depreciated by 6.82 per cent to N4.10.
A total of 440.3 million equities valued at N12.0 billion exchanged hands in 13,087 deals compared with the 1.3 billion equities worth N17.7 billion transacted in 13,891 deals on Monday, representing a decline in the trading volume, value and number of deals by 66.79 per cent, 32.20 per cent and 5.79 per cent, respectively.
Lasaco Assurance ended the session as the most traded stock after it sold 108.1 million units valued at N338.7 million, Access Holdings traded 44.0 million units for N1.1 billion, UBA exchanged 27.9 million units worth N945.7 million, Zenith Bank transacted 26.7 million units for N1.3 billion, and Universal Insurance traded 22.7 million units valued at N16.7 million.
On Tuesday, the insurance, banking and industrial goods sectors jumped by 1.03 per cent, 0.30 per cent, and 0.03 per cent, respectively, and the consumer goods and energy counters lost 0.38 per cent and 0.36 per cent apiece.
The All-Share Index (ASI) went up yesterday by 767.63 points to 103,137.99 points from 102,370.36 points and the market capitalisation increased by N472 billion to N63.333 trillion from N62.861 trillion.
By Adedapo Adesanya
Nigeria ranked as Africa’s leading destination for upstream oil and gas investment in 2024, new research from market intelligence firm, Wood Mackenzie, has shown, accounting for three out of four Final Investment Decisions (FIDs) announced by global oil and gas majors, totaling $13.5 billion.
The FIDs announced within the Nigerian market included Shell’s $122 million investment in the Iseni Gas Project, TotalEnergies’ $566 million commitment to the Ubeta Gas Project and Shell’s approval of the Bonga North Tranche 1 project valued at around $5 billion.
According to the Special Adviser to President Bola Tinubu on Energy, Ms Olu Verheijen, these investments reflected Nigeria’s ongoing efforts to unlock its hydrocarbon potential through investor-friendly policies and strategic global partnerships.
Last year, Nigeria introduced several initiatives to create a conducive environment for oil and gas investors, including new tax incentives aimed at attracting up to $10 billion in natural gas investments.
Nigeria, which is Africa’s largest oil producer, also offered tax relief for gas investors, reducing corporate income tax and extending capital allowance benefits – for deepwater gas projects.
Other policies include the Presidential Directive on Local Content Compliance Requirements 2024 to address the reduction in oil and gas investments caused by high operating costs compared to global markets.
Also, the Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines 2024 reduces the time spent to award contracts for oil and gas projects.
In addition to the directives, Nigeria also launched its 2024 oil and gas licensing round, offering 19 blocks for exploration, demonstrating its commitment to continued collaboration with local, regional and international partners.
Market analysts note that with this momentum, further FIDs are anticipated, including TotalEnergies’ expected $750 million commitment to the Ima Shallow Gas Project in 2025.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.22 per cent decline on Monday, January 20, with the market capitalisation shedding N2.35 billion to close at N1.073 trillion compared with the preceding session’s N1.075 trillion and the NASD Unlisted Security Index (NSI) going down by 6.79 points to wrap the session at 3,105.12 points compared with 3,111.91 points recorded in the previous session.
It was observed that the loss recorded on the first trading day of the week was triggered by UBN Property Plc, which crashed by 20 Kobo to trade at N2.00 per share versus last Friday’s N2.20 per share.
However, the share price of Industrial and General Insurance (IGI) Plc went up by 4 Kobo to 40 Kobo per unit from 36 Kobo per unit, it could not stop the bourse from going down at the close of transactions.
The activity chart showed that on Monday, the volume of securities traded by investors increased by 57.9 per cent to 767,610 units from the 486,215 units traded in the preceding session, while the value of shares traded yesterday slumped by 17.7 per cent to N2.3 million from the N2.8 million recorded in the preceding trading day, as the number of deals declined by 14.3 per cent to 12 deals from the 14 deals carried out in the previous trading day.
At the close of transactions, FrieslandCampina Wamco Nigeria Plc remained the most active stock by value on a year-to-date basis with the sale of 4.1 million units worth N162.9 million, followed by Geo-Fluids Plc with a turnover of 9.1 million units valued at N44.0 million, and 11 Plc with the sale of 55,358 for N14.5 million.
Also, Industrial and General Insurance (IGI) Plc closed the day as the most active stock by volume on a year-to-date basis with 25.3 million units sold for N5.9 million, Geo-Fluids Plc came next with 9.1 million units valued at N44.0 million, and FrieslandCampina Wamco Nigeria Plc with 4.1 million units worth N162.9 million.
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