Market rallies further by 0.72% as CAP leads advancers
Nigeria’s stock market furthered its journey into the green zone on Tuesday as investors saw buy opportunities in counters like CAP Plc which rallied most on the Bourse by N1.80 or 10percent.
The market rose by 0.72percent as investors booked about N182billion gain. The record gain on Custom Street has pushed equities market’s return year-to-date (YtD) to 10.51percent.
Others stocks that occupied topmost position on the buy-side of the Nigerian Exchange Limited (NGX) are Berger Paints Plc (+60kobo or 9.68percent); Neimeth International Pharmaceuticals Plc (+14kobo or 9.86percet), Meyer Plc (+12 or 9.68percent) and Learn Africa Plc (+18kobo or 9.52percent).
Stocks like GTCO, Zenith Bank, Nigerian Breweries, Fidelity Bank and Linkage Assurance were actively traded on Tuesday as investors in 5,832 deals exchanged 245,422,059 units valued at N4.580billion.
The Nigerian Exchange All Share Index (ASI) reached new high of 47,205.03 points at the close of trading session as against preceding day’s 46,867.95 points; while the value of listed stocks on the Exchange increased to N25.448trillion from N25.266trillion recorded the preceding trading day.
Union Bank grows full year 2021 earnings by 8.9%
Union Bank of Nigeria Plc has released its audited financial statements for the year ended December 31, 2021 which reflects resilient revenue growth in the face of macroeconomic headwinds. The bank sustained steady performance as a result of increased customer engagement from an enhanced operating and go-to-market model and gains derived from our digital penetration strategy.
The financial highlights: Gross earnings: up 8.9percent to N175billion (N160.7billion in full year (FY) 2020), driven by strong non-interest income. Non-interest income: up 26.7percent to N55.7billion (N44billion in FY 2020) driven by significant increases in debt recoveries. Net operating income after impairments: down 3.6percent to N99.7billion (N103.4billion in FY 2020).
Profit before tax: down by 19.3percent to N20.5billion (N25.4billion in 2020). Operating expenses: marginally grew by 1.5percent to N79.1billion (N78billion in FY 2020), reflecting tight cost control despite inflationary pressures. Gross loans: up 22percent at N899.1billion (N736.7billion in December 2020) as Union Bank expand our lending to key economic sectors of opportunity. Customer deposits: up 20.4percent at N1.4trillion (N1.1 trillion in December 2020) as the bank continues to expand our product base and digital channels.
Commenting on the results, Emeka Okonkwo, CEO, Union Bank of Nigeria Plc said: “Following an enhancement to our operating and go-to-market model to deliver better performance and efficiency leveraging our network across the regions, we are increasing our customer engagement and product penetration which is translating into higher customer revenues across geographies.
On the back of this, the Bank has continued to record headline growth by diversifying our income streams and accelerating our recoveries programme.”
“For the full year, our gross earnings grew by 8.9percent from N161billion to N175billion, while our net operating income after impairments dropped by 3.6percent to N99.7billion from N103.4billion. Interest income grew by 1percent as our earnings asset base expanded with a growing loan book.
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“We continued our strong growth in non-interest income through a combination of aggressive recoveries, which grew 119percent in the period, from N7.2bn to N15.9billion and further growth in fee and commission income (33percent) and e-business (26percent). These were delivered on the back of sustained multi-channel growth in users, volume and value across our digital and agent channels. Total active UnionMobile users now stands at 3.3 million, up 20percent while our Union360 customer base grew by 22percent to 26,400.
“In 2022, the Bank will continue to focus on broadening and deepening the strong foundations we have built, while enhancing our digital delivery platforms and service propositions to customers. We remain deeply thankful to our erstwhile core investors, Union Global Partners and Atlas Mara who have been instrumental to our journey since 2012. Their invaluable support and expertise helped steer the Bank through turbulent waters and into an era of growth and stability.
“As we turn a new chapter for our Bank with a new core investor expected to come on board, we are proud of the solid foundation built over the last ten years and look forward to a seamless transition and continued successes in the future, ” the CEO stated.
Speaking on the FY 2021 numbers, Chief Financial Officer Joe Mbulu said: “We maintained very strong cost controls during the year despite the inflationary pressures and the translation effect of currency depreciation on our cost base. Operating expenses increased marginally by 1.5percent with increasing regulatory, depreciation and amortisation costs. Customer deposits grew by 20percent while our loan book grew by 22percent from N736.7billion to N899.1billion, as we deepened support for key sectors in the economy. We have been remained proactive in the way we manage our growing risk assets, maintaining our asset quality during the year with our NPL ratio growing marginally from 4percent to 4.3percent.”
South Africa’s Durban area hit by heavy flood, 45 Dead
According to local officials, the Durban area of South Africa was hit by heavy flooding which is claimed to have not only damaged the port, highways, and other infrastructure but also claimed the lives of at least 45 people.
According to Bloomberg, South Africa’s military was deployed to assist local authorities with rescue operations in Durban and the surrounding eThekwini metropolitan area as residents fled flooded areas.
Local officials who have been looking for people who were swept away by the flood told the press that some people had been killed.
The Durban port has been taken over by floodwaters that have littered the area with shipping containers.
The government is working tirelessly to provide temporary shelter for hundreds of people who lost their homes to the flood and restore electricity to the areas that lost power as a result of the damage caused by the flood.
Bloomberg reported that the local emergency services have been working round the clock to help people who were trapped in their homes as that number decreased.
At a press briefing on Tuesday, Mxolisi Kaunda, mayor of the eThekwini metropolitan municipality, said that they were working hard to restore power following the damage the flood had done to the power stations.
He assured us that they were going to work round the clock to not only assess the damage but restore normalcy to the province.
AfDB, AU sign protocol of agreement for the African Union Institution Capacity Building Project
The African Union Commission and the African Development Bank signed a protocol of agreement with the objective of completing the African Union Institutional Capacity Building Project in Addis Ababa, Ethiopia.
Ably represented by both organizations were Monique Nsanzabaganwa, the Deputy Chairperson of the African Union Commission, and Yacine Fal, of the African Development Bank, who both reaffirmed the organization’s belief that the building project will help accelerate the AU’s efforts to implement Agenda 2063.
According to an official press release from the AU, the initiative, which was endorsed in 2015, is the African Union’s vision for a connected, wealthy, and peaceful Africa, driven by its own population and represents a powerful force in the global economy.
This building project would not only help build capacity within the African continent but also help achieve a considerable percentage of the Agenda 2063 objectives.
For example, the group wants to make sure that its member nations have a high standard of living, improve the quality of life for their citizenry, and ensure that they have a well-educated population with an emphasis on science, technology, and innovation.
The group also thinks that having a healthy and well-fed population would make Africa more competitive on the world stage.
Funding for the project is expected to come in a way of a grant from the Bank Group’s concessional financing window, which would cost $11.48 million.
“This project was approved by the Board of Directors in February 2022 and the signing of the protocol agreement signals the start of the implementation phase of the project.” The press release stated.
“As you know, this ceremony and the signing of the protocol of agreement represent the culmination of a series of interactions and consultations that have occurred between the African Union Commission, the African Development Bank, and several stakeholders starting last year, “Nsanzabaganwa, said, appreciating the efforts every person made to get to the signing of the protocol of agreement.
There is expected to be an upgrade and integration of the various part of the project. Some of the essential parts include information management, procurement, and financial management, human resources, and outcomes management.
The system also has the capacity to identify and address areas of concern in the African Union’s continental warning system.
A system that helps resource persons identify areas of conflict and insecurity throughout the continent.
“Today is a milestone. Reaching it would not have been possible without the mutual trust and collaboration that our respective institutions have shown historically and throughout the process. ” Fal, the bank’s acting vice president, said.
In a meeting, the institutions agreed to focus on promoting regional integration among African businesses and countries and to help African institutions and businesses become more effective.
“Not only are bank investments plugging regional infrastructure gaps, they are also strengthening the institutional capabilities of the AU, regional economic communities, the African Continental Free Trade Agreement Secretariat, and other regional mechanisms,” Fal said.
Food, others rise to its highest, fastest in 40 years as consumer prices jump to 8.5% in the USA
Food and other retail prices rose to their highest level in 40 years.
During the year, prices rose by 8.5% which is adjudged to be the fastest rate since December 1981.
According to USAToday, the main driver of this rise is the rise in gasoline prices, as the price jumped by 18.3%, which accounted for more than half of the overall rise in costs. AAA, reported that the average unleaded gas set a record at $4.33 a gallon last month before easing to $4.11. Pump prices are up 48% the highest in recent years.
This rise in gasoline prices is influenced by the ongoing war in Ukraine between Russia and Ukraine.
Food prices also rose by 8.8%, which, according to data, was the highest since May 1981.
According to tradingeconomics, many analysts expect prices to rise further as the war in Ukraine continues.
