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Equity market sustains selloffs in Tier-1 banks, down by N720bn



The value of transactions on the Nigerian Exchange Ltd. (NGX) on Wednesday further declined by 4.80 percent due to sustained selloffs in the shares of Tier- one banks.

Specifically, investors traded a total of 396.23 million shares valued at N5.83 billion in 10,549 deals, compared to 280.46 million shares valued at N6.12 billion exchanged in 9,141 deals posted on Tuesday.

Selloffs in the equities of FBN Holdings (FBNH), Guaranty Trust Holding Company (GTCO), and Zenith Bank dragged the market down.

Consequently, investors lost N720 billion or 1.31 percent, as the market capitalisation, which opened at N55.037 trillion, closed at N54.317 trillion.

The All-Share Index also shed 1.31 percent or 1,317 points to close at 99,266.02, as against 100,582.89 recorded in the previous session.

As a result, the Year-To-Date return on the index fell to 32.76 per cent.

Meanwhile, market breadth closed negative with 50 losers and four gainers on the trading floor.

Transcorp led the activity chart in volume with 52.57 million shares traded at the value of N675.58 million, United Bank of Africa (UBA) sold 39.47 million shares worth N823.93 million.

Access Corporation traded 35.29 million shares worth N621 million, while Zenith Bank led in value with sales 30.93 million shares worth N1 billion and Universal Insurance traded 23.22 million shares worth N8.11 million.

On the losers table, Wema Bank, Oando Plc, Nigerian Breweries, The Initiative Plc and Red Star Express Plc led in percentage terms of 10 each to close at N7.02, N9.90, N30.60,N1.80 and N3.42 per share, respectively.

Conversely, PZ Cusson led the gainers table in percentage terms of 10 to close at N29.15, Juli Plc rose by 9.93 percent to close at N3.10, while AXA Mansard gained 1.53 percent to close at N5.30 per share.

Nigerian Aviation Handling Company Plc also garnered 0.69 percent to close at N29, and Nigerian Police Force Microfinance Bank gained 0.55 percent to close at N1.84 per share.

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capital market

Equity market: Investors lose N412bn



Losses in the stocks of Dangote Sugar, Guaranty Trust Holding Company (GTCO), among others have further weakened the performance of the equity market of Nigerian Exchange Ltd. (NGX).
Specifically, investors lost N412 billion or 0.71 per cent, as the market capitalisation, which opened at N58.276 trillion, closed at N57.864 trillion.

Similarly, the All-Share index shed 0.71 per cent or 733 points to settle at 102,314.56, as against 103,047.23 recorded on Monday.Consequently, the Year-To-Date (YTD) return dropped to 36.83 per cent.

Profit taking in some banking stocks such as:  FBN Holdings (FBNH), Zenith Bank, Access Corporation, as well as United Capital, Nestle, Eterna Plc, among other stocks pushed the market performance further to a negative terrain.

Market breadth also closed negative with 36 losers and 12 gainers on the trading floor of the Exchange.

On the losers table, Dangote Sugar and GTCO led by 10 per cent each to close at N53.10 and N41.40 per share, respectively.

Flour Mills lost 9.87 per cent to close at N33.80, Multiverse declined by 9.84 per cent to close at N13.75 and FTN Cocoa Processors depreciated by 8.82 per cent to close at N1.55 per share.

Conversely, Transcorp led the gainers table by 9.93 per cent to close at N14.95, Morison Industries Plc followed by 9.87 per cent to close at N2.56 per share.

Also, Oando Plc added 9.61 per cent to close at N12.55, Caverton advanced by 8.54 per cent to close at N1.78 and Deap Capital Management rose by 7.94 per cent to close at 68k per share.

However, analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 569.96 per cent.

A total of 734.04 million shares valued at N21.59 billion were exchanged in 12,491 deals, compared to 245.86 million shares valued at N3.22 billion, exchanged in 5,302 deals traded in the previous session.

United Bank of Africa (UBA) led the volume chart with 148.88 million shares traded in deals worth N4.01 billion.

Zenith Bank traded 135.81 million shares valued at N5.48 billion, GTCO sold 98.76 million shares worth N4.13 billion, Transcorp transacted 71.43 million shares worth N998.48 million.

Access Corporation also sold 44.31 million shares valued at N868.1 million.

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capital market

Zenith Bank posts remarkable triple digit topline, bottom line growth



Zenith Bank Plc has announced its audited results for the year ended December 31, 2023, achieving a remarkable triple-digit growth of 125% in gross earnings from NGN945.6 billion reported in 2022 to NGN2.132 trillion in 2023. According to the audited financial results for the 2023 financial year presented to the Nigerian Exchange (NGX), this impressive triple-digit growth in gross earnings resulted in a Year-on-Year (YoY) increase of 180% in Profit Before Tax (PBT) from NGN284.7 billion in 2022 to NGN796 billion in 2023. Profit After Tax (PAT) also recorded triple-digit growth of 202% from NGN223.9 billion to NGN676.9 billion in the period ended December 31, 2023.

The increase in gross earnings is primarily due to growth in interest and non-interest income. Interest income increased by 112% from NGN540 billion in 2022 to NGN1.1 trillion in 2023. Non-interest income grew by 141% from NGN381 billion to NGN918.9 billion in the same period. The increase in interest income is attributed to the growth in the size of risk assets and their effective repricing, alongside the rise in the yield of other interest-bearing instruments over the year. Growth in non-interest income was driven by significant trading gains and an increase in gains from the revaluation of foreign currencies.

The cost of funds grew from 1.9% in 2022 to 3.0% in 2023 due to the high interest rate environment while interest expense increased by 135% from NGN173.5 billion in 2022 to NGN408.5 billion in 2023. Notwithstanding the 32% growth in operating expenses in 2023, the Group’s cost-to-income ratio improved significantly from 54.4% in 2022 to 36.1% in 2023 due to improved top-line performance. Return on Average Equity (ROAE) increased by 118% from 16.8% in 2022 to 36.6% in 2023, underpinned by improved gross earnings, as the Group sought to deliver better shareholder returns. Return on Average Assets (ROAA) also grew by 95% from 2.1% to 4.1% in the same period.

The Group has continued to deepen its market leadership in key corporate and retail deposit segments as customer deposits increased by 69% from NGN9.0 trillion to NGN15.2 trillion in 2023. Its retail drive continues to yield dividends as retail deposits now constitute 46% of total deposits (compared to 44% in 2022) and grew by 77% from NGN3.97 trillion in 2022 to NGN7.04 trillion in 2023, also reinforcing increased customer confidence in the Zenith brand.

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capital market

eTranzact records N2.2bn profit in 2023



eTranzact International Plc on Monday announced a Profit After Tax (PAT) of N2.2 billion for the year ended Dec. 31, 2023, as against N1.18 billion posted in 2022.

Company Secretary of eTranzact, Mr Isaiah Oreweme, said this in the company’s annual report and audited financial statements for the year 2023, sent to the Nigerian Exchange Ltd. (NGX) in Lagos.

Oreweme said that the electronic payment technology and maintenance services company’s Profit Before Tax (PBT) for the year under review stood at N3.2 billion, compared to N1.61 billion recorded in the year 2022.

He stated that the company’s gross profit rose to N8.32 billion at the end of the 2023 financial year from N5.7 billion posted in the previous year.

According to him, the total liabilities of eTranzact leaped to N16.73 billion as at the close of the 2023 financial year, from N10.5 billion recorded in the year 2022.

The company secretary stated that the firm’s total assets also grew to N28.21 billion in 2023, compared to N19.78 billion posted in the year 2022.

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