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Omoluwabi Mortgage Bank sees improvement in Q1 2019 turnover

Omoluwabi Mortgage Bank sees improvement in Q1 2019 turnover

Turnover realised by Omoluwabi Mortgage Bank in the first quarter of 2019 rose by 3.7 percent to N125.1 million from N120.6 million same period last year. The Q1 2019 turnover amounted to 27 percent of N460.9 million turnover the firm made in full year 2018, implying that it stands a good chance to surpass the 2018 record in full year 2019. Interest income for the period rose to N54.6 million, a 93 percent increase over N28.3 million realised in similar period in 2018. Net interest income for the period rose to N42.3 million, which was twice as much as N21.7 million recorded at the end of the first quarter of 2018.

However, fee income declined sharply to N6.3 million compared with N16.2 million recorded same period in 2018. Consequently, total operating income was down to N112.8 million at the end of the quarter as against N114 million it posted in similar period in 2018.

Total operating expenses increased to N79.6 million in contrast to N75.9 million it made in 2018. The total comprehensive income for the period fell to N33.3 million as against N38 million the firm recorded at the end of the first quarter of 2018.

READ ALSO:Omoluabi Mortgage Bank plc changes name, holds 6th annual general meeting

Meanwhile, the share price of MTN Nigeria recorded its first decline nine days after it was admitted to the main board of the Nigerian Stock Exchange (NSE). It shed 6.04 percent to close at N140 per share on Friday May 24, 2019. MTN Nigeria ended the week with a market capitalisation of N2.85 trillion representing 21 percent of the overall equity market while Dangote Cement which ended the week at N200 per share and controlled 25 percent of the equity market capitalisation. It ended the week with N3.41 trillion market capitalisation.

In spite of the decline, analysts are of the views that the sentiment towards MTN Nigeria is still very strong and positive.

“Having rallied strongly to N150 level, I think today’s breather in MTN’s share price is expected, particularly as the current price aligns with peer valuation. Notably, at N145, the stock trades around 6.4x EBITDA, which is a justified premium to average peer valuation of 5.6x, considering the growth and strong fundamentals of the business in Nigeria. As you rightly know that the listing price of N90 was a benchmark valuation anchored on the OTC price of linked notes, hence, the market is still searching for the fair value for the stock and hopefully, it should find a near term price equilibrium at which it can settle soon”, Abiola Rasak, head, investor’s relation at the United Bank for Africa (UBA) said.

‘Sentiment for the stock remains largely positive, and this could potentially drive further gains in the coming weeks”, Kemi Akinde, senior analyst at Meristem Securities, said.

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