Category Archives: Market News

Fidelity Bank has said its gross earnings rose by 34.4 per cent YoY to N337.1bn in 2022 financial period, driven by 45.2 per cent growth in interest and similar income to N295.6bn.

It said this in a statement on Thursday on its 2022 audited financial statements released on the Nigerian bourse.

The increase in interest income was led by a combination of improved yield on earning assets and 19.1 per cent YoY expansion in earnings base to N2.64tn.

This led to a profit before tax of N53.7bn representing 112.9 per cent annual growth.

Commenting on the bank’s performance, the Managing Director/Chief Executive Officer, Fidelity Bank Plc, Nneka Onyeali-Ikpe, said, “We are happy to report another year of impressive double-digit growth across key income and balance sheet lines. This validates our growth strategy and capacity to deliver superior returns to shareholders.”

Further review showed that net interest income increased by 60.9 per cent YoY to N152.7bn.

The high yield environment had a positive impact on net interest margin, which increased to 6.4 per cent from 4.7 per cent in 2021FY while average funding cost inched up slightly to 4.6 per cent from 4.2 per cent.

Similarly, total deposits increased by 27.4 per cent to N2.58tn from N2.02tn in 2021FY, in line with the bank’s guidance for 2022FY published in its investor relations presentation.

The increase was driven by 43.1 per cent growth in low-cost deposits (Demand/savings/domiciliary), which resulted in improved margins.

Speaking on the contribution of foreign currency deposits to its financial performance, Onyeali-Ikpe noted, “FCY deposits increased by $597m (63.4 per cent YoY) to $1.5bn and now accounts for 27.5 per cent of total deposits from 19.7 per cent in 2021FY, as we continue to harness the benefits of our renewed drive in the export business and the diaspora banking space.”

Historically, the statement said, Fidelity Bank had maintained high asset quality and a healthy balance sheet with its regulatory ratios well above the minimum regulatory thresholds.

It reported a liquidity ratio of 39.6 per cent and Capital Adequacy Ratio at 18.1 per cent compared to the minimum regulatory requirement of 30.0 per cent and 15.0 per cent respectively. Its non-performing loans ratio remained unchanged at 2.9 per cent for the year.

Investors are beginning to have confidence in the domestic stock market as the Nigerian Exchange (NGX) Limited appreciated by 0.95 per cent on Wednesday.

40 equities finished on the gainers’ chart during the trading session, while seven shares were on the losers’ table, indicating a positive market breadth and a bullish investor sentiment.

This helped push the All-Share Index (ASI) above 52,000 points after it increased by 491.13 points to 52,097.62 points from 51,606.49 points, as the market capitalisation grew by N267 billion to N28.367 trillion from N28.100 trillion.

Academy Press and Livestock Feeds gained 10.00 per cent each to finish at N1.43 and N1.10, respectively, as Total Energy grew by 9.96 per cent to N217.50, Cadbury Nigeria appreciated by 9.80 per cent to N11.20 and Honeywell Flour rose by 9.80 per cent to N2.80.

Conversely, Fidelity Bank lost 6.57 per cent to trade at N5.26, Fidson fell by 5.56 per cent to N8.50, Linkage Assurance depreciated by 4.35 per cent to 44 Kobo, AXA Mansard depleted by 3.28 per cent to N2.36, and Jaiz Bank went down by 3.26 per cent to 89 Kobo.

Transcorp topped the activity chart with the sale of 6.1 billion stocks valued at N15.6 billion, Aluminium Extrusion sold 112.5 million shares valued at N731.5 million, Access Holdings transacted 60.5 million equities worth N632.3 million, UBA traded 27.6 million shares valued at N218.0 million, and Fidelity Bank sold 22.3 million stocks for N123.6 million.

A total of 6.5 billion equities valued at N19.5 billion were transacted in 5,109 deals in the midweek session, in contrast to the 2.1 billion equities worth N8.9 billion transacted in 6,404 deals on Tuesday, implying a decline in the number of deals by 20.22 per cent, and a surge in the trading volume and value by 209.52 per cent and 119.10 per cent, respectively.

Analysis of the sectorial performance did not really reflect the outcome of the bourse yesterday as the consumer goods, energy, and banking sectors depreciated by 0.13 per cent, 0.12 per cent, and 0.08 per cent apiece, while the insurance and the industrial goods indices appreciated by 0.93 per cent and 0.16 per cent, respectively.

The NASD Over-the-Counter (OTC) Securities Exchange recorded a marginal slide of 0.03 per cent to remain in the red territory on Wednesday, April 26.

In the preceding session, the market dropped 1.44 per cent and this continued into the midweek session with the NASD Unlisted Securities Index (NSI) losing 0.25 points to wrap the session at 727.90 points compared with 728.15 points in the previous session.

Similarly, the sum of N350 million was sliced from the market capitalisation of the bourse to close the session at N1.006 trillion from N1.007 trillion.

The unlisted securities market recorded a price loser and a price gainer during the trading session, with Central Securities Clearing System (CSCS) Plc depreciating by 7 Kobo to close at N13.00 per share compared with the previous day’s N13.07 per share, as Afriland Properties Plc appreciated yesterday by 4 Kobo to close at N2.30 per unit, in contrast to Tuesday’s closing value of N2.26 per unit.

During the session, the volume of securities traded at the bourse went down by 60.0 per cent to 2.8 million units from the 7.0 million units quoted at the Tuesday session.

Also, the value of shares traded at the session went down by 56.2 per cent to N7.6 million from the N17.3 million achieved a day earlier.

These transactions were carried out in seven deals, in contrast to the 12 deals executed in the preceding trading session, indicating a decline of 41.7 per cent.

Geo-Fluids Plc remained the most traded stock by volume (year-to-date) with the sale of 820.8 million units valued at N1.3 billion, Industrial and General Insurance (IGI) Plc stood in second place with 615.6 units worth N48.6 million, while UBN Property Plc was in third place with 369.8 million units valued at N313.0 million.

The most traded stock by value (year-to-date) was VFD Group Plc as it has transacted 10.4 million units worth N2.4 billion, Geo-Fluids Plc followed with 820.8 million units worth N1.3 billion, and FrieslandCampina Wamco Nigeria Plc was in third place with 4.6 million units valued at N320.4 million.

Nigerian Aviation Handling Company Plc said its pre-tax profit rose by 315.1 per cent in 2022, riding on the back of strong sales income and business-wide efficiency.

A statement said the board of the aviation handling group recommended an increase of 251 per cent in dividend payouts from N665.93m paid in the 2021 financial year to N2.34bnin the corresponding period of 2022.

It stated that, “Shareholders on the register of the company as of the close of business on May 12, 2023, will receive a dividend per share of N1.20 for the 2022 business year. The dividend will become payable on May 26, 2023.”

The audited report and accounts for the year ended December 31, 2022, released at the Nigerian Exchange showed that group turnover rose by 63.3 per cent from N10.23bn in 2021 to N16.71bn in 2022.

Gross profit doubled by 125.81 per cent from N3.34bn to N7.55bn. Operating profit rose by 274.2 per cent from N1.05bn to N3.94bn.

Despite the inflationary trend that affected administrative expenses, profit before tax jumped by 315.14 per cent to N3.84bn in 2022 from N924.86m in 2021.

Net profit increased by 246.4 per cent from N771.62m to N2.67bn.

Earnings per share also rose by 257.89 per cent from 38 kobo to N1.36. The group balance sheet expanded with total assets rising by 13.9 per cent from N16.44bn to N18.73bn. Total equity funds improved by 28.6 per cent from N7.02bn to N9.03bn.

It stated that the group performance was underlined by significant improvements across the businesses, driven mainly by the group’s flagship handling business.

On a standalone basis, the parent company reported a 66.4 per cent growth in turnover from N9.66bn in 2021 to N16.07bn in 2022.

Gross profit grew by 140.3 per cent from N2.96bn to N7.12bn, while operating profit rose by 330.5 per cent from N860.61m to N3.71bn.

According to the statement, profit before tax jumped by 387.08 per cent from N742.8m to N3.62bn, and profit after tax followed the trend with an increase of 339.3 per cent from N579.73m in 2021 to N2.548bn in 2022.

Earnings per share jumped from 30 kobo in 2021 to N1.31 in 2022.

The parent company’s balance sheet also emerged stronger as total assets grew by 10.7 per cent from N16.28bn to N18.03bn. Total equity rose by 27 per cent from N6.98bn in 2021 to N8.86bn in 2022.

The Group Managing Director, NAHCO Plc, Mr Indranil Gupta, said the 2022 results showed the gains of recent investments and continuous improvements in the operations of the aviation handling group.

 

The Nigerian Exchange Limited rebounded on Tuesday, recording N2bn gain for investors.

The All-Share Index also appreciated by 11.54 base points to 51, 138.92, pushing the year-to-date returns marginally to 0.22 per cent at the end of trading.

Market activities showed trade turnover strengthened relative to the previous session, as the volume and value of transactions surged by 703.18 per cent and 220.17 per cent respectively.

Similarly, investors’ sentiment as measured by market breadth improved leading to 21 gainers against 21 decliners.

A total of 1.82bn units of shares valued at N5.02bn were exchanged in 4,669 deals on the NGX. Indigenous conglomerate, Transcorp, led the volume and value chart with 1.60bn units traded in deals worth N3.09bn.

Buying interests were also recorded in the shares of Nigerian Breweries (+1.10 per cent) and GTCO (+0.60 per cent).

Performance across indices was largely bearish as the insurance, banking and industrial goods indices declined by 1.43 per cent, 0.50 per cent and 0.01 per cent respectively, on the back of sell-offs in Linkage Assurance (-8.33 per cent), Zenith Bank (-0.91 per cent) and Wapco (-0.21 per cent).