Menu Diamond Bank drives H1 growth with digital banking

 

Menu Diamond Bank drives H1 growth with digital banking

 

Diamond Bank Plc grew its top-line to N98.5 billion in the first half of this year through its focus on retail digital banking which hit three million customers.

Key extracts of the interim report and accounts of Diamond Bank Plc for the six-month period ended June 30, 2018 released yesterday at the Nigerian Stock Exchange (NSE) showed that gross earnings rose to N98.5 billion in first half 2018 as against N97.9 billion recorded in comparable period of 2017. Non-interest income rose by 6.4 per cent to N18.8 billion on higher fees from retail transactions on mobile platform while customers’ loan volume decreased by 3.6 per cent to N728.7 billion as maturities exceeded new loans during the period. Investments in fixed income securities increased by 8.0 per cent to N241.7 billion over the same period.

Although the bank’s net interest income reduced by 14.4 per cent to N46.2 billion due to lower interest income from loans and investments, and higher interest expense on deposits; impairment charges declined by 2.9 per cent to N18.39 billion. Pre and post tax profits stood at N2.92 billion and N1.8 billion respectively in first half 2018 as against N9.52 billion and N8.02 billion recorded in corresponding period of 2017.

Chief Executive Officer, Diamond Bank Plc, Mr. Uzoma Dozie said the first half report underscored the bank’s strong focus on the Nigerian market, especially the retail business segment through its digital penetration strategy.

He pointed out that the first half results showed that the bank’s digital strategy is paying off as the institution recorded a milestone figure of three million digital customers as well as a significant increase in its mobile platform transaction fees.

He noted that the  economy has continued to record improvements because of stable, higher than anticipated oil prices adding that the economy has witnessed 15 months of expansion, although investor sentiment has remained mixed caused in part by the election season factor.

“We have capitalised on the positive macro environment to sustain interest income in the short run with positive prospects for growth and have made progress in growing non-interest income. Importantly, we have continued to build awareness of Diamond Bank in the wider financial ecosystem to develop new frontiers in retail banking,” Dozie said.

He pointed out that in addition to retail banking, the bank is investing more resources in its mid-market business banking services to seize the opportunities emerging in that segment.

“In the second half of 2018, these investments will lead to improved profitability overall.  Despite a tough six months being reported, the outlook for 2018 remains bright for the bank as we continue to focus on a return to strong profitability and improvement in other key performance indices,” Dozie said.

Stock Exchange approves Fidson Healthcare’s N4.5b rights issue

 

Authorities at the Nigerian Stock Exchange (NSE) have approved the plan by Fidson Healthcare Plc to raise N4.5 billion new equity capital through rights issue to existing shareholders of the healthcare company.

A regulatory filing at the Exchange at the weekend indicated that the Quotation Committee of the NSE approved the issuance of 900 million ordinary shares of 50 kobo each to existing shareholders of Fidson Healthcare at N5 per share.

The rights issue will be pre-allotted on the basis of three new ordinary shares for every five ordinary shares held as at the close of business on July 5, 2018.

Shareholders of Fidson Healthcare had in 2017 approved a plan by the company to raise N6 billion in new capital to boost its working capital and support its expansion plan. At the annual general meeting in 2017, shareholders had authorised the board of directors of Fidson Healthcare to “raise further capital of up to N6 billion through an offer whether by way of public offering, rights issue, private and special placement of shares”.

The meeting also authorised the directors to absorb oversubscription and to convert existing loans due to any person from the company towards payment for any rights or shares subscribed for. Shareholders also increased the authorised share capital of the company from N1.2 billion to N1.5 billion by the creation of additional 600 million shares of 50 kobo each.

Chairman, Fidson Healthcare Plc, Mr. Felix Ohiwerei, said the new capital would be used to boost working capital that had been negatively impacted by the depreciation of Naira.

He noted that the company’s new factory had come on stream at the tail end of 2016 and the company needs additional capital to realise the full potential and utilise the new factory to full capacity.

Key extracts of the audited report and accounts of Fidson Healthcare for the year ended December 31, 2017 showed that turnover grew by 84 per cent N7.6 billion in 2016 to N14 billion in 2017. Cost of sales increased by 91 per cent from N3.6 billion in 2016 to N6.9 billion in 2017. Pfelix-chairmanbefore tax rose from N443 million in 2016 to N1.57 billion in 2017. With this, earnings per share increased from 21 kobo in 2016 to 71 kobo in 2017.

The financial reports showed a 53 per cent increase in total overhead including administrative and selling and distribution expenses, from N3.1 billion in 2016 to N4.7 billion in 2017, which was due to an increase in the marketing and distribution expenses. Finance cost also increased by 45 per cent from N690 million in 2016 to N1 billion in 2017. The increase in finance cost was mainly due to increased working capital to drive growth and a hike in interest rates from financial institutions. Despite the increase in total cost, the company recorded a 127 per cent increase in operating profit which grew from N1.1 billion in 2016 to N2.5 billion in 2017.

The board of directors of Fidson Healthcare however approved a 300 per cent increase in dividend payout for the 2017 business year. Shareholders will receive a dividend per share of 20 kobo for the 2017 business year, representing an increase of 300 per cent on 5.0 kobo dividend per share paid for the 2016 business year. The company had distributed N75 million as cash dividends to shareholders for the 2016 business year.

NSE: All share index depreciates by 1.09%

 

The All Share Index in the Nigerian Stock Exchange (NSE) fell by 1.09 percent on Wednesday.

It depreciated off the 37 thousand basis points which it attained on Tuesday to close today at 36,612.83 basis points which is 1.09 percent or 404.95 basis points lower than yesterday’s closing of 37,017.78 basis points.

The Market Capitalisation on the other side fell by 147 billion Naira or 1.09 per cent as it stood 13,263 trillion Naira at the close of Wednesday’s transaction, compared to previous closing of 13,410 trillion Naira.

Wednesday’s activities marks the first trading day for the month of August, 2018 even as the market traded 2.40 million shares, worth 4.98 billion Naira in 3,494.00 deals, leading to 21 stocks gaining, 24 declining with the prices on the other stocks remained the same.

This is in comparism to previous trading where Investors exchanged the sum of 2.45 million shared at the value of 4.5 billion Naira in 5,943.00 deals as only 17 stocks appreciated, while 24 stocks declined, living all others unchanged.

Gainers

NEIMETH INTERNATIONAL PHARMACEUTICALS PLC opened for transaction on Wednesday at the price of 0.50 kobo per share and closed at 0.55 kobo per share, gaining 0.05 kobo or 10.00 per cent.

JAIZ BANK PLZ opened at 0.58 kobo per share and closed at 0.63 kobo, gaining 0.05 kobo or 8.62 per cent.

OKOMU OIL PALM PLC opened at N74.70 kobo per share and closed at N81.00 per share, gaining N6.30 kobo or 8.43per cent.

Losers

CAP PLC leads the losers’ table by N3.50 kobo or 10.00 per cent to close at N31.50 per share after opening at N35.00 per share.

ROYAL EXCHANGE PLC followed with an opening price of 0.30 kobo per share to close at 0.27 kobo per share, falling by 0.03 kobo or 10.00 per cent.

Then INTERNATIONAL BREWERIES PLCfell after opening at N37.00 per share and closing at N33.40 kobo per share, losing N3.60 kobo or 9.73per cent.

 

 

Stock market capitalisation gains 0.84%

 

 

 

The All Share Index and the market capitalisation of the Nigerian Stock Exchange gained 0.84 per cent on Monday, starting the week on a positive note.

The All Share Index and the market capitalisation stood at 36,946.05 basis points and N13,384 trillion, gaining 309.08 basis points and N112 billion respectively.

At the end of the day, 31 registered stocks gained, 22 declined while all others remained the same as investors traded 3.19 million shares worth 3.05 billion Naira in 4,091.00 deals.

The top three gainers were Mutual Benefits Assurance Plc, which led the gainers chart with 0.03 kobo or 10.00 per cent ,when it opened for transactions at 0.30 kobo per share and closed at 0.33 kobo per share.

Following right after was Seplat Petroleum Development Company Ltd with an opening price of N625.00 per share and a closing price of N687.50 kobo per share, gaining N62.50 kobo or 10.00 per cent.

Then Northern Nigerian Flour Mills Plc trailed with an opening price of N6.55 kobo per share and a closing price of N7.20 kobo per share, gaining 0.65 kobo or 9.92 per cent.

Losers

Conoil Plc, which  opened at N27.00 per share and closed at N24.30 kobo per share , declined by N2.70 or 10.00 per cent.

It was followed by Pharma-Deko Plc with an opening price of N2.20 kobo per share and a closing price of N1.98, falling by 0.22 kobo or 10.00 per cent.

Medview Airline Plc fell by  0.21 kobo or 9.81per cent to close at N1.93 kobo per share, after opening at N2.14 kobo per share.

Equities Market Rebounds as Corporate Earnings Trickle In

The stock market recorded a marginal growth of 0.09 per cent last week after three weeks of bearish trading. The rebound followed investors’ reaction to the release of corporate results by some companies for the half year ended June 30, 2018.

Specifically, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) appreciated by 0.09 per cent to close at 36,636.97, while market capitalisation closed higher at N13.272 trillion.

Similarly, all other indices finished higher with the exception of the NSE Premium, NSE Consumer Goods, NSE Oil/Gas, NSE Industrial Goods, NSE Pension Indices that depreciated by 0.16 per cent, 0.19 per cent, 3.74 per cent, 4.4 per cent and 0.56 per cent respectively.

Analysts at Cordros Capital Limited said their outlook for equities in the near-to-medium term remained conservative, “in the absence of a near term one-off positive catalyst (save for potential better-than-expected Q2 corporate earnings), more so, amidst brewing political concerns.

“However, stable macroeconomic fundamentals – in addition to the likelihood of external jitters settling – remain supportive of market recovery in the long term.”

 

Daily Performance

The market opened last week on a positive note last Monday, with the NSE ASI rising by 0.30 per cent to 36,711.96 as bargain hunting  that started the preceding Friday continued.

The appreciation recorded in the share prices of some highly capitalised companies such as UBA, Dangote Cement, Nigerian Breweries, FBN Holdings, and Zenith Bank Plc bolster the performance.

However, Cutix Plc led the price gainers for the day, with 10 per cent, trailed by Continental Reinsurance Plc with 6.0 per cent. Wema Bank Plc chalked up 5.8 per cent, just as Transcorp Plc and Japaul Oil & Gas Plc went up by 4.2 per cent and 4.2 per cent respectively.

Other top price gainers included: LASACO Assurance Plc (3.0 per cent); NASCON Allied Industries Plc (2.7 per cent); GTBank Plc (2.1 per cent); FCMB Group Plc (2.0 per cent) and United Capital Plc (1.6 per cent).

Conversely, Abbey Building Society Plc led the price losers with 10.0 per cent. University Press Plc trailed  with a decline of 9.8 per cent. Forte Oil Plc and UACN Property Development Company Plc shed 9.6 per cent and 9.4 per cent in that order. AIICO Insurance Plc, Champion Breweries Plc, Oando Plc and Jaiz Bank Plc went down by 8.9 per cent, 7.3 per cent, 7.2 per cent and 6.1 per cent respectively.

However, activity level weakened as volume and value traded declined 66.8 per cent and 43.4 per cent to 225.9 million shares   and N2.2 billion respectively. Top traded stocks by volume were Medview Airline Plc  (100.0 million shares), Transcorp Plc (16.1 million shares) and  Zenith Bank Plc  (11.3 million shares) while the top traded by value were Dangote Cement Plc   (N564.1 billion), GTBank (N315.5 billion) and  Zenith Bank (N260.3 billion).

Meanwhile, performance across sectors on that day was largely bullish as four of five indices tracked closed higher. The NSE Banking Index gained the most with 0.6 per cent.

It was followed by the NSE   Industrial Goods Index followed with 0.4 per cent, while the NSE Insurance Index and   NSE Consumer Goods Index went up by 0.3 per cent and 0.1 per cent respectively. On the flipside, the NSE Oil & Gas Index shed 1.7 per cent.

Profit taking in bellwether stocks attracted the bears, making the market to close 0.70 per cent lower. Specifically, profit taking in stocks such as International Breweries Plc, Lafarge Africa Plc and Dangote Cement Plc caused the bearish run.

Consequently,  the market shed  N93 billion, pulling the  capitalisation  to N13.2 trillion.

But   activity level strengthened as volume and value traded advanced 67.6 per cent  and 100.1 per cent  to 378.7 million shares  and N4.4 billion respectively. The top traded stocks by volume were Medview Air Plc  (100.0 million shares), Transcorp  (45.5 million shares) and Zenith Bank Plc (42.7 million shares ) while the top traded stocks by value were Zenith Bank (N988.5 million), GTBank (N545.5 million) and Dangote Cement  (N499.5 million).

The sell pressure persisted on Wednesday dragging the index   lower by 0.30 per cent to close at 36,346.80. Major drags to performance were – Dangote Sugar Refinery Plc; Lafarge Africa Plc; Nigerian Breweries Plc and GTBank Plc. In the same manner, activity level fell  as volume and value traded fell 12.9 per cent  and 17.5 per cent  to 329.8 million shares and N3.6 billion  respectively.

The performance across sectors was bearish as four  of  the five  indices tracked. The  NSE Industrial Goods Index led decliners, falling 1.5 per cent  while the NSE  Oil & Gas Index shed 0.8 per cent.  In the same vein,  the NSE Consumer Goods Index 0.8 per cent  just as  the  NSE Insurance Index depreciated 0.5 per cent.

But the market rebounded on Thursday, bolstered by gains recorded by Nestle Nigeria Plc, Zenith Bank, FBN Holdings Plc and GTBank Plc to close 0.22 per cent higher at 36,427.22. But volume and value fell by 48.2 per cent and 18.3 per cent to 171 million shares and N3.0 billion respectively.

The positive performance was sustained last Friday as the NSE ASI appreciating by 0.58 per cent to close at 36,636.97. The appreciation recorded in the share prices of some highly capitalised companies such as International Breweries, FBN Holdings , GT Bank, UBA, and Transcorp  were mainly responsible for the gain recorded.

 

 

Market Turnover

Meanwhile, investors traded 1.417 billion shares worth N16.739 billion in 19,832 deals last week, compared with 1.665 billion shares valued at N14.834 billion that exchanged hands in 18,795 deals the preceding week. However, the Financial Services Industry remained the most active, leading   the activity chart with 832.842 million shares valued at N8.823 billion traded in 10,851 deals. The sector thus contributed 58.7 per cent and 52.7 percent to the total equity turnover volume and value respectively.

The Services Industry followed with 320.350 million shares worth N679.981 million in 584 deals, while the third place was occupied by Conglomerates Industry with a turnover of 99.403 million shares worth N147.372 million in 1,000 deals.

Trading in the top three equities – Medview Airline Plc, FBN Holdings Plc and Zenith Bank Plc – accounted for 578.789 million shares worth N5.153 billion in 2,874 deals,

 

Price Gainers and Losers

The price movement chart displayed 31 equities that appreciated in price during the week, higher than 16 in the previous week, just as 48 equities depreciated in price, lower than 59 equities of the previous week.

Cutix Plc led the price gainers with 46 per cent, trailed by Cement Company of Northern Nigeria Plc with 25.9 per cent. Continental Reinsurance Plc and FBN Holdings Plc chalked up 12.6 per cent and 10 per cent respectively.

Other top price advancers for the week included: Caverton Offshore Support Group Plc (10.0 per cent); Vitafoam Nigeria Plc (9.8 per cent); Capital Oil Plc (8.7 per cent); and Diamond Bank Plc (7.6 per cent); Skye Bank Plc (7.6 per cent); Sterling Bank Plc (6.6 per cent).

Conversely, Rak Unity Petroleum Company Plc led the price losers with 20 per cent, trailed by UACN Property Development Company Plc that shed  18.8 per cent. Secure Electronic Technology Plc and Royal Exchange Plc dipped by 16.6 per cent apiece.

Other top price gainers were: Lafarge Africa Plc (15.3 per cent); Forte Oil Plc (13.9 per cent); NPF Microfinance Bank Plc (12.7 per cent); Abbey Mortgage Bank Plc (10 per cent); Presco Plc (9.9 per cent) and PZ Cussons Nigeria Plc (9.8 per cent).

FCMB Group Records 86% Increase in Half-year Profit

 

 

The FCMB Group Plc recorded a profit before tax (PBT) of N7.1 billion for the six-months ended 30 June 2018.

This represented an increase of 86 per cent from the N3.8billion it achieved for the same period in 2017.

 The bank explained that the positive development reflected the improving performance of the financial institution, as well as the effects of diversification through its investments in asset and wealth management.

From the details of its unaudited results announced on the floor of the Nigerian Stock Exchange (NSE), the Group’s gross revenue rose to N83.9 billion as at the end of June 2018, compared to N77.5billion in the corresponding period of 2017.

Similarly, net interest income rose by nine per cent year-on-year (YoY) from N32.5billion to N35.3billion, while non-interest income grew to N16.5billion, an increase of 29 per cent, from N12.8billion for the same period of last year.

The Commercial & Retail Banking group (which comprises First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited) generated a 32.2 per cent increase in PBT to N2.9 billion for half year 2018, from the N2.2 billion recorded at the end of first quarter 2018.

Its revenue increased 3.7 per cent year-on-year, driven by an 8.1 per cent year-on-year increase in non-interest income and an 8.7 per cent year-on-year increase in net-interest income.

NSE inducts 20 new authorised dealing clerks

 

 

The Nigerian Stock Exchange has announced the induction of 20 authorised dealing clerks.

The Chief Executive Officer, NSE, Mr Oscar Onyema, said the successful dealing clerks had passed through the Exchange’s Automated Trading System training faculty, made up of seasoned capital market regulators and operators.

Onyema, at the 2018 Batch A induction ceremony for recently qualified Dealing Clerks of the Exchange, said, “The ATS training is a pre-requisite for participating in an oral examination, a rigorous exercise to ensure only suitable candidates secure the required regulatory approval to practice as authorised dealing clerks of the Nigerian Stock Exchange.

“It is important to note that out of 23 candidates who had already passed the Chartered Institute of Stockbrokers examination, as well as the 15 days mandatory practical ATS training at the NSE, 20 candidates were successful at the oral examination of the Exchange.”

Congratulating the new clerks, the NSE CEO said, “Your induction today is a testament to your years of dedication and hard work. It also marks the beginning of your journey as authorised dealing clerks of the Nigerian Stock Exchange.

“With the extremely thorough and strict process leading to your qualification, I make bold to say that you are worthy to be practicing stockbrokers enabled to trade on any floor of the Nigerian Stock Exchange in Nigeria. I therefore welcome you all to a new relationship which faces inward – for professionalism, integrity, transparency and reliability; and outward — for excellent service to our investor and issuer communities.”

 

Why Cutix Plc popped to a 5 year high

 

 

Cutix Plc hit a 5 year high of N3.99 in yesterday’s trading session on the Nigerian Stock Exchange (NSE). The stock has also consistently gained in the last three trading sessions this week. The stock went up by 10% on Monday, another 10% on Tuesday, and appreciated by 9.9% in Wednesday’s session.

Year to date, the stock is up 98.5% and is one of the best performing on the NSE year.

The rally in the company’s share price may be related to its declaration of a divivdend of No. 20 per share and abonus of one new share for every ordinary share held. The company disclosed this in a notice containing boardroom resolutions sent to the NSE

Cutix last gave a bonus issue of two shares for every three held in 2012.

Results for the 12 months ended April 2017 show that revenue increased from N3.6 billion in 2017, to N5 billion in 2018. Profit before tax increased from N420 million in 2017 to N688 million in 2018. Profit after tax also surged from N273 million in 2017 to N447 million in 2018.

Steady performer

Cutix has maintained a consistent increase in revenue and profitability over the past 5 years. Revenue increased from N1.9 billion in 2013 to N5.0 billion in 2018. Profit after tax has also increased from N151 million in 2013 to N447 million in 2018. Asides the 2017 financial year, the company has paid dividends consistently for 25 years between 1989 and 2016.

Implications of the bonus issue

A positive fall out from the bonus issue is that it would enhance the liquidity of the stock as more shares will be available to trade.

On the flip side, earnings per share could take a momentary dive as the shares outstanding will double from 880 million to 1.6 billion. EPS for the financial year ended April 2018 was N0.51. Except the company is able to sharply increase its earnings, EPS for the next financial year could be in the range of N0.25 to N0.30.

This would leave the stock trading at a PE ratio of 16 times earnings at current prices, more than the twice the average PE ratio on the NSE. Cutix is currently trading at a price to earnings ratio of 7.8 times earnings, slightly higher than the average PE on the exchange.

Price Earnings is a ratio used to measure how expensive a stock is.

About the company

Cutix Plc was incorporated on November 4, 1982 as a private limited liability company. The company was initially quoted in the Alternative Securities Exchange Market (ASEM) of the NSE on August 12, 1987. On February 18, 2008, it migrated to the main tier

Cutix is into the manufacturing and marketing of electrical, automobile and telecommunication wires, cables and related products.