The likely releases of audited first-half (H1) financials statements of listed Nigerian banks and the possibility of most of them declaring interim dividend would be major stimulus to the buy-side activities this week at the Nigerian equities market.
Lagos-based GTI Research analysts said they expect bullish sentiment this week amidst profit-taking, as “we also look forward to the release of other interim dividend-paying financial institutions’ half-year (H1) results”, adding that movement in the fixed income (FI) market will also influence market sentiment this week.
Zenith Bank Plc last week released its audited financial report for the half-year (H1) to June 30, 2021. Highlights of Zenith Bank’s group’s operating results for the half-year (H1) period under review show that gross earnings flattened by 0.15percent to N345.55billion, from a high of N346.08billion recorded in the half-year (H1) of 2020.
The bank’s audited half-year financial results presented to the Nigerian Exchange (NGX) show the Group recorded a growth in profit before tax of 3percent from N114 billion reported in H1 2020 to N117 billion in H1 2021.
The Board of Directors of Zenith Bank Plc proposed an interim dividend of 30kobo per share (same as in H1’2020) from the retained earnings account as at June 30, 2021. Zenith Bank Plc has 31,396,493,786 in shares outstanding, which means that it will pay interim dividend worth N9.42billion, subject to withholding tax (WHT).
Expectedly, investors will buy the stocks of Zenith Bank Plc ahead of the qualification date for the proposed interim dividend. The qualification date for the dividend is September 10, 2021.
The stock market of Africa’s largest economy had in the trading week ended Friday, August 27 recorded mixed trading sessions as investors continued to favour small-to-mid cap names amid persistent lukewarm activity levels.
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Banking, insurance, oil/gas sector stocks helped push the market to record positive close while consumer goods and industrial stocks were major laggards. Investors in Nigeria booked only N1billion gain, while the market’s benchmark performance indicator also printed slightly high by 0.01percent when compared to the preceding trading week.
“This week, we expect the pendulum of a sentiment to be swayed by the outcome of audited numbers of the big banks during the week,” according to Lagos-based analysts at United Capital Plc.
Other banks like Access Bank Plc, GTCo Plc, UBA Plc, Stanbic IBTC Holdings Plc, and Fidelity Bank Plc have notified the Nigerian Exchange Limited and the investing public of delays in publishing their 2021 half year (H1) audited financial statements (AFS) that are undergoing review by the Central Bank of Nigeria (CBN). These banks results are expected to be published upon receipt of the CBN’s approval.
“We expect market activity levels to improve largely on the back of increased demand in the Tier-1 banking names, like we saw on Friday last week, especially as these companies begin to release their audited H1’21 Earnings and investors position for possible favourable dividend announcements”, said analysts at Vetiva Capital Management Limited.
Also, given the positive growth in real GDP by 5.01percent year-on-year (YoY) published by National Bureau of Statistics (NBS) last week, Meristem Securities Limited analysts expect this to spur buying activities in the market for the week.
“However this would be marginal as we believe the strong uptick is largely due to low base and slightly on improved economic activities.
“Also we expect the release of banks financials and possible dividend declaration to drive investors to take position in the week. On this note, we expect the general positive sentiment which occurred last week to linger into the week, thus driving the market up to a positive close”, Meristem Securities Limited further noted.
Access Bank Plc in an August 19 notice at the Nigerian Exchange Limited (NGX) had said that due to its ongoing strategic business combination across jurisdictions and the need to obtain regulatory approval, “the release of the Group’s 2021 audited interim financial statements could be delayed beyond the regulatory due date of August 29”.
Access said the NGX approved an extension of time to publish its audited interim financial statement, adding that it expects to public the results on or before September 10, 2021.
“Please be informed that the Board of United Bank for Africa Plc at its meeting which held on Thursday, August 12, 2021, considered and approved the 2021 Audited Half Year Results and Reports and payment of an interim dividend, subject to the approval of the Central Bank of Nigeria.
“The Nigerian Exchange Limited and the investing public would be immediately notified upon receipt of approval of the 2021 Audited Half Year Results and Reports by the Central Bank of Nigeria”, United Bank for Africa Plc had said in its August 13 notice to the investing public signed by the Group Company Secretary, Bili A. Odum.
GTCo Plc in its August 25 notice said the Central Bank of Nigeria (CBN) is in the process of reviewing its audited financial statement for the half year period to June 30, adding that it would be published upon receipt of approval of the apex bank.
Stanbic IBTC Holdings Plc in its August 24 notice informed the NGX Regulation Limited as well as its esteemed stakeholders that it is experiencing a slight delay in the release of the 2021 Half Year Audited Financial Statements. “This delay is occasioned by the fact that we are currently seeking the approval of our primary Regulator, the Central Bank of Nigeria (CBN) for the 2021 Half Year Audited Financial Statements, following which the said Financial Statements will then be released to the Market.”
“We are working diligently to ensure that our Company’s 2021 Half Year Results are submitted to the Nigerian Exchange Limited as soon we receive approval from our primary Regulator, the CBN; and this may occur before or shortly after the regulatory due date of August 29, 2021”, Stanbic IBTC Holdings Plc noted.
Also, Fidelity Bank Plc reminded its insiders that the trading window for dealing in the bank’s shares remains closed to all Insiders and their Connected Persons until 24 hours after the release of the audited financial statements for the half year ended June 30, 2021.
Fidelity had informed Nigerian Exchange Limited (NGX), its esteemed shareholders and the general public that “following the approval of Fidelity Bank Plc’s Audited Financial Statements (AFS) by its Board of Directors on August 5, 2021, the AFS was submitted to our primary regulator (the Central Bank of Nigeria (CBN), for its approval, before release of same to the market”.
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