Economy
UBA Slashes Dividend by 56% Amid Rise in FY2020 Revenue, Profit
By Adedapo Adesanya
Tier-one lender, the United Bank for Africa (UBA) Plc, will pay its shareholders 35 kobo as final dividend for the fiscal year 2020.
Business Post observed that this represents a 56.3 per cent or 45 kobo decline from the 80 kobo paid in the corresponding period of 2019.
This is happening despite the group recording a 10.8 per cent increase in its gross earning for the year ended December 31, 2020, as there were significant increases in the three main operating segments.
The decision to cut the cash reward to investors may have been influenced by the harsh effect of COVID-19 pandemic on the business environment in the year under review.
This will be the first time in the last five years that the company will be paying a lower dividend. In the 2015 fiscal year, it paid shareholders 40 kobo per unit and in 2016, it was increased to 55 kobo per unit.
In 2017, UBA raised its dividend to 65 kobo per share and in the 2018 financial year, the dividend payout was retained at 65 kobo per unit, but it was increased to 80 kobo per share in the 2019 fiscal year.
A look at the performance of UBA last year showed that its revenue increased to N620.4 billion from N559.8 billion achieved in the previous year, indicating a N60.6 billion rise.
Business Post analysis further showed that in UBA’s three major business groups – Corporate banking; Retail/Commercial banking; and Treasury and Financial Markets, there were significant improvements on record.
At its corporate arm, which provides a broad range of financial solutions to multinational organisations and financial institutions, raked N201.0 billion as revenue, 10.8 per cent or N19.6 billion higher than N181.4 billion in 2019.
Its Retail/Commercial banking wing, which serves the middle and retail segments of the market, grew by 10.8 per cent or N20.9 billion to N214.4 billion from N193.5 billion in 12 months.
Also, the Treasury and Financial Markets, which provides innovative financing and risk management solutions and advisory services to UBA’s corporate and institutional customers, appreciated by 10.8 [per cent or N20.0 billion to N204.9 billion from N184.9 billion.
A look at the bottom line of the results showed that there was an increase in the Profit After Tax (PAT) by N24.7 billion or 27.7 per cent to N113.8 billion from N89.1 billion recorded in 2019.
In the financial statements released by the board to the Nigerian Stock Exchange (NSE), UBA said proposed final dividend of 35 kobo would be presented for approval to shareholders at the next Annual General Meeting (AGM) fixed for Thursday, April 1, 2021, at the UBA House in Lagos by 10:00am.
Economy
BNB Price Reflects Changing Dynamics in the Digital Asset Market
Economy
NASD Unlisted Security Index Crosses 4,000-point Benchmark Again
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange achieved a milestone on Friday, April 24, 2026, after five securities on the platform helped with a 1.85 per cent growth.
Data showed that the NASD Unlisted Security Index (NSI) again crossed the 4,000-point benchmark yesterday.
The index chalked up 73.64 points during the trading day to close at 4,052.59 points compared with the preceding session’s 3,978.95 points, while the market capitalisation added N5.38 billion to finish at N2.424 trillion versus Thursday’s closing value of N2.380 trillion.
The price gainers were led by Okitipupa Plc, which grew by N25.00 to sell at N305.00 per share compared with the previous price of N280.00 per share. Central Securities Clearing System (CSCS) Plc gained N6.92 to close at N76.26 per unit versus N69.34 per unit, Afriland Properties Plc appreciated by N1.00 to N17.00 per share from N18.00 per share, FrieslandCampina Wamco Nigeria Plc improved by 55 Kobo to N99.55 per unit from N99.00 per unit, and Food Concepts Plc increased by 5 Kobo to N2.70 per share from N2.65 per share.
However, there was a price loser, MRS Oil, which dipped by N21.75 to N195.75 per unit from N217.50 per unit.
During the final session of the week, the value of securities jumped 75.2 per cent to N41.3 million from N23.6 million units, and the number of deals expanded by 62.9 per cent to 44 deals from 27 deals, while the volume of securities declined marginally by 0.9 per cent to 447,403 units from 451,522 units.
At the close of trades, Great Nigeria Insurance (GNI) Plc was the most traded stock by volume (year-to-date) with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
GNI was also the most active stock by value (year-to-date) with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 59.6 million units transacted for N4.0 billion, and Okitipupa Plc with 27.8 million units exchanged for N1.9 billion.
Economy
Naira Slips to N1,358/$1 as FX Reserves, Policy Uncertainty Concerns
By Adedapo Adesanya
It was not a good day for the Nigerian Naira in the currency market on Friday, April 24, as its value depreciated against the major foreign currencies at the close of transactions.
In the Nigerian Autonomous Foreign Exchange Market (NAFEX), it lost N4.53 or 0.33 per cent against the United States Dollar yesterday to trade at N1,358.44/$1, in contrast to the N1,353.91/$1 it was exchanged on Thursday.
Equally, the domestic currency slipped against the Pound Sterling in the official market during the session by N8.14 to close at N1,834.02/£1, compared with the previous rate of N1,825.88/£1 and dropped N8.01 against the Euro to sell at N1,590.73/€1 versus N1,582.72/€1.
Also, the Naira depreciated against the US Dollar at the GTBank FX desk on Friday by N4 to quote at N1,370/$1 compared with the previous session’s N1,366/$1, and at the parallel market, it depleted by N5 to settle at N1,380/$1 versus the preceding day’s N1,375/$1.
Data published by the Central Bank of Nigeria (CBN) indicated that NFEM interbank turnover surged to N43.562 million across 68 deals, up from N28.117 million the previous day.
Despite the CBN’s reassurance that the recent drop in external reserves is not worrisome, the market remains unsettled by persistent concerns over liquidity constraints, policy transparency, and weakening confidence in Nigeria’s FX market as gross reserves continue to decline to $48.4 billion.
The outlook for the Dollar appears supported by broader macro risks, including elevated oil prices tied to the tanker traffic disruptions in the Strait of Hormuz and a continued US-Iran standoff over ceasefire negotiations.
A look at the digital currency market showed that investors are sitting on the edge as the US Dollar rebounded amid geopolitical and inflation risks despite continued inflows into US spot bitcoin Exchange Traded Funds (ETFs).
Solana (SOL) rose by 1.2 per cent to sell $86.45, Cardano (ADA) appreciated by 1.1 per cent to $0.2517, Dogecoin (DOGE) grew by 0.9 per cent to $0.0989, Ripple (XRP) improved by 0.3 per cent to $1.43, Ethereum (ETH) soared by 0.2 per cent to $2,316.83, and Binance Coin (BNB) chalked up 0.1 per cent to sell for $637.44.
However, TRON (TRX) depreciated by 1.3 per cent to $0.3235, and Bitcoin (BTC) lost 0.2 per cent to close at $77,562.27, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
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