Category: Banking

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Emeka Okonkwo, Union Bank CEO, Increases Stake in the Bank by N20.6 million.

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The Chief Executive Officer of Union Bank of Nigeria, Emeka Okonkwo, has increased his stake in the bank by acquiring an additional 3,951,874 units of the bank’s   shares, worth N20.6 million.

According to a notice signed by the Company’s Secretary/General Counsel, Sonuyiwa Sonubi, the transaction took place at the floor of the Nigerian Exchange Limited (NGX), in Lagos, Nigeria.

The breakdown of the transaction showed that the accomplished banker purchased the aforementioned additional units of shares (3,951,874) at a unit price of N5.21 per share, totalling N20, 589,263.54

Recall that Mr. Emeka Okonkwo was appointed Chief Executive Officer of Union Bank in December 2020, and resumed by April 2021. He joined Union Bank in 2013 as an Executive Director in charge of the Corporate Banking and Treasury business, a role he held until his appointment as M.D/CEO.

Mr Okonkwo had joined the league of Union Bank’s biggest shareholders in May 2021, after he acquired an additional 2.4 million units of shares worth N11.9 million, thereby raising his total holdings in the bank to 8,094,748 units, translating to about 0.03% of the total shareholdings.

The recent transaction will further increase his stakes to 12,046,622 units of shares, placing him as the second highest individual shareholder of the bank, just behind the former CEO, Emeka Emuwa, who owns 196,086,583 units of direct and 20,936551 units of indirect shares in the bank.

 

Union Bank closed trading for the week ended 10th of September, 2021 with a share price of N5.05 per share.

 

 

GTCO Plc to pay 30 kobo interim dividend for H1 2021

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Guaranty Trust Holding Company Plc (GTCO) has proposed an interim dividend of 30 kobo per 50 kobo ordinary share for the first half of the year ended 30 June, 2021.

The proposed dividend is subject to appropriate withholding tax, with a qualification date of September 27, 2021.

On Tuesday October 12, 2021, the dividend which amounts to N8.83 billion will be disbursed electronically to ordinary shareholders whose names appear on the Register of Members as at Monday, September 27, 2021, and who have completed the e-dividend registration and mandated their Registrar to pay their dividends directly into their bank accounts. Holders of GTCO’s GDR listed on the London Stock Exchange will also receive their dividend payment subsequently.

The bank’s registrar is Datamax Registrars Limited. The e-dividend mandate form can be downloaded or filled online on the registrar’s website HERE, or on GTCO’s website.

Garanty Trust Holding Company has 29,431,179,224 outstanding shares and a market capitalization of N797.58 billion as at the time of filing this report. The bank’s shares opened trading on 10th of September, 2021 at N27.10 per share.

In case you missed it: GTCO had earlier released its interim financial results for the half year period ended 30 June, 32021. Its profit after tax declined by 16% to N79.4 billion, just as Earnings per share printed N2.79 as against N3.32 recorded in corresponding period of last year.

2021 H1 Results: GTCO Plc’s profit after tax declines by 16% to N79.4 billion.

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Guaranty Trust Holding Company Plc (GTCO Plc) released its interim financial results for the half year period ended 30th of June, 2021.

  • Net interest income after adjusting for loan impairments was N102.3 billion. (-15.3% YoY)
  • Net fee and commission income of N36.86 billion. (+53.4% YoY)
  • Personnel expenses totalled N17.23 billion. (-1.2% YoY)
  • Customers’ deposits during the period stood at N3.63 trillion.
  • Profit after tax was N79.4 billion. (-15.8% YoY)
  • Earnings per share of N2.79 Vs N3.32 YoY.

See link to results.

UBA Shareholders to get N6.8 billion interim dividend.

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United Bank for Africa Plc (UBA) has declared an interim dividend of N0.20 for every ordinary share of 50 kobo each, for the financial period ended June 30, 2021. The declared dividend is to be paid on all the 34,199,421,368 issued ordinary shares of the bank, amounting to N6.84 billion.

In a statement signed by its secretary, Bili Odum, the financial giant noted that the dividend will be paid electronically on Thursday, September 30, 2021, to shareholders whose names appear on the Register of Members as at Thursday, September 23, 2021, and to those who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.

While the Register of Shareholders will be closed on Friday, September 24, 2021, Qualification Date has been scheduled for Thursday, September 23, 2021.

It is worthy to note that the declared interim dividend of 20kobo per share is about 17.6% higher than the amount declared in the corresponding period of last year (HY 2020: 17 kobo). This increase might be attributed to a much improved financial performance reported by the bank during the just concluded half-year period.

HY 2021 Highlights

Recall that the lender had recently recorded a double digit surge in most of its key financial metrics for the recently concluded half year period. For example, its Net interest income after impairment, Net fee and commission income and profit after tax all grew by 29.1%, 18.6% and 36.3% respectively.

UBA closed trading today 9th of September, 2021 with a share price of N7.85 per share on the floor of the Nigerian Exchange Limited (NGX).

 

2021 H1 Results: UBA grows half year profit by 36% to N60.58 billion.

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United Bank for Africa Plc (UBA) released its interim financial results for the half year period ended 30th of June, 2021.

  • Net interest income after impairment was N143.93 billion. (+29.1% YoY)
  • Net fee and commission income of N45.77 billion. (+18.6% YoY)
  • Employee benefit expenses totalled N42.62 billion. (-4.4% YoY)
  • Loans and advances to customers stood at N2.63 trillion.
  • Profit after tax was N60.58 billion. (+36.3% YoY)
  • Earnings per share of N1.69 Vs N1.24 YoY.
  • An interim dividend of 20 kobo per share was declared

See link to results.

Access Bank Plc announces 5-Year Senior Unsecured Note Issuance.

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Access Bank Plc has announced plans to issue a 5-Year fixed rate Senior Unsecured Note, as part of its Global Medium Term Note Programme.

To facilitate this, the bank announced that it will be hosting a series of global investor and fixed income investor calls, from September 11, 2021.  The calls will be co-anchored by a series of leading financial institutions such as; Absa, Barclays, J.P. Morgan and Standard Chartered Bank (Joint Bookrunners) and Chapel Hill Denham, Rand Merchant Bank (Financial Advisers).

Confirming this development, the bank in a statement signed by its secretary, Sunday Ekwochi said: ‘’Access Bank Plc (‘’Access Bank’’ or ‘’the Bank’’) announces today on the Nigerian Exchange Limited that it has mandated Absa, Barclays, J.P. Morgan and Standard Chartered Bank as Joint Bookrunners and Chapel Hill Denham and Rand Merchant Bank as Financial Advisers and Joint Bookrunners to arrange a global investor call in addition to a series of fixed income investor calls commencing on September 11, 2021. The issuance of a 5-Year fixed rare USD-denominated Regulation S/144A Senior Unsecured Note under the Bank’s Global Medium Term Note Programme may follow subject to market conditions.

The bank further added that: ‘’Kindly note that this announcement is not being made in, and copies of it may not be distributed or sent into, the United States (except that it may be sent in the United States directly to qualified institutional buyers, as defined in rule 144a under the U.S. Securities Act of 1993, as amended (the ‘’Securities Act’’), Canada, Australia, Japan, Nigeria or any other jurisdiction where to do so would be unlawful. These materials do not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein have not been and will not be registered under the Securities Act, and may not be offered or sold in the United States or to U.S persons unless such securities are registered under the Securities Act or pursuant to an exemption from the registration requirements of the Securities Act. Recipients of this announcement may not forward this to any other person resident in Nigeria. Access Bank will not be liable for violation of Nigeria’s securities laws where a recipient forwards this announcement to other persons resident in Nigeria’’

Back story: Recall that Access Bank’s $300 million senior bond issued in 2016 is due for repayment in October this year. Based on the current FX policy restrictions by the CBN, the lender through the proposed issuance is trying to refinance its debt by exploring other sources of funding.

Sterling Bank projects profit after tax of N2.99 billion in Q4 2021.

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Sterling Bank Plc released its earnings forecasts for the fourth quarter of the year (Q4, 2021).

  • Gross earnings is expected to hit N40.19 billion
  • Interest income is projected at N30.8 billion.
  • Net operating income is expected to hit N28.8 billion.
  • Operating expenses projection of N25.6 billion
  • Tax is projected at N259.7 million
  • Profit after tax is projected at N2.99 billion

See link to results.

 

Jaiz Bank Plc secures $25 million from Islamic Corporation to support SMEs in Nigeria.

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Jaiz Bank Plc has secured an additional $25million line of financing (LOF) from Islamic Corporation for the Development of the Private Sector (ICD),  to support Small and Medium Enterprises (SMEs) in Nigeria.

This is according to a statement signed by the bank’s secretary, Mrs Rukayat Dahiru, and uploaded on the website of the Nigerian Exchange Limited (NGX).

According to the notice, the non-interest bank had been in partnership with the ICD since 2018, when it granted a $20m Line of Finance (LOF) to support SMEs in the country. Having effectively disbursed the funds to eligible SMEs and subsequently repaid the LOF, Jaiz Bank approached and obtained an additional $25m from ICD for onward disbursement.

The bank further revealed that it secured the $25m LOF earlier in February this year, but could not proceed with the signing ceremony due to COVID-19 restrictions. However, the formal agreement was signed on the 2nd of September, 2021 during the recently concluded Islamic Development Bank (IsDB) annual meeting which was held in Tashkent, Uzbekistan. The meeting afforded Chief Executives of both institutions the opportunity to meet and finalize the deal.

What you should know:

  • The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development financial institution and a member of the Islamic Development Bank (IsDB) Group. ICD was established in November 199 to support the economic development of its member countries through the provision of finance for private sector projects, and promotion of competition/entrepreneurship, while encouraging cross border investments.

Despite decreased earnings, Stanbic IBTC declares improved interim dividend of N12.96 billion.

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Despite recording a slump in most of its key financial metrics for the half year period ended June 30, 2021, Stanbic IBTC Holdings Plc has declared an improved interim dividend of N1.00 per ordinary share of 50 kobo each.

The proposed interim dividend indicates a gain of about 150% when compared to the amount declared in the corresponding period of last year (HY 2020: 40 kobo). It is pertinent to note that the declared dividend will be paid on each of the outstanding 12,956,997,163 ordinary shares of the bank, amounting to N12.96 billion.

The banking giant in a recent notice filed with the Nigerian Exchange Limited (NGX), revealed that the dividend which is subject to deduction of appropriate withholding tax and regulatory approval, will be paid to shareholders whose names appear in the Register of Members as at the close of business on Monday, September 20, 2021.

The dividends will be disbursed electronically to qualified shareholders on Wednesday, September 29, 2021. Qualified shareholders in this context means shareholders whose names appear on the company’s register as at the aforementioned date, and who have completed the e-dividend registration, mandating the Registrar to pay their dividends directly into their Bank accounts.

While the Register of Shareholders will be closed from September 21 to September 28, 2021, Qualification Date has been scheduled for Monday, September 20, 2021.

 Stanbic IBTC Half Year Review

Recall that Stanbic IBTC had earlier released its financial results for the half year period ended June 30, 2021. The bank’s gross earnings for the period under review stood at N93.6 billion, compared to N126.6 billion recorded in corresponding period of 2020, indicating a decline of about 26.1%.

The bank’s Profit before tax also slumped by 52.9%, from N52.41 billion recorded in HY 2020 to N24.71 billion. Profit after tax also declined by about 50.13% to N22.54 billion. Consequently, earnings per share (EPS) slumped to N1.92K, down from N4.19K recorded in the comparable period in 2020.

What you should know:

  • An interim dividend is a type of dividend that is declared and distributed by a company to its shareholders prior to the determination of final profit position for the financial year. Before interim dividends are paid, the company’s financial statements will also be audited.
  • Stanbic IBTC closed trading today 6th of September, 2021 with a share price of N39.20.

Half Year 2021: Stanbic IBTC suffers 50% decline in profit amid slump in revenue.

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Stanbic IBTC Holdings Plc released its interim financial results for the half year period ended 30 June, 2021.

  • Gross earnings for the period totalled N93.6 billion. (-26.1% YoY)
  • Net interest income was N32.9 billion. (-12.4% YoY)
  • Net fee and commission income of N41.3 billion. (+18% YoY)
  • Operating expenses totalled N55.4 billion. (+14.1% YoY)
  • Profit for the period was N22.54 billion. (-50.1% YoY)
  • Earnings per share of N1.92 Vs N4.19 YoY.
  • An interim dividend of N1 per share was declared.

See link to results.