CAPITAL MARKET
Popoola: Digital Transformation Next Growth Phase for NGX
The Chief Executive Officer, Nigerian Exchange (NGX) Limited, Mr. Temi Popoola, CFA, has stated that digital transformation is the next phase of growth for NGX considering its laudable achievements in digitization and digitalization so far. This was expressed at the Nigeria Tech/FinTech Conference hosted by Renaissance Capital on Thursday, 9 September 2021 where Popoola was part of a panel discussion. Speaking at the event, Mr. Popoola reflected on technology at The Exchange, noting that, “If you think about The Exchange, our interaction with technology will be around digitisation, digitalisation and digital transformation. What you will find is that we are extremely digitised and digitalised both internally and the way stakeholders consume our products and services. This Day
Investors lose N177bn as stocks extend decline
The market capitalisation of equities listed on the Nigerian Exchange Limited plunged by N176.64bn last week as the All-Share index dropped for five consecutive days. The NGX ASI declined by 0.86 per cent to 38,921.78 basis points on Friday from 39,201.33bps the previous week, while the market capitalisation fell to N20.28tn from N20.46tn. All indices, with the exception of NGX Consumer Goods (+0.18 per cent), NGX Oil/Gas (+2.28 per cent) and NGX Sovereign Bond (0.26 per cent), depreciated, while the NGX ASeM, NGX Industrial Goods and NGX Growth indices closed flat. A total turnover of 1.43 billion shares worth N13.07bn in 19,315 deals were traded last week by investors on the floor of the exchange, in contrast to a total of 1.34 billion shares valued at N8.65bn that exchanged hands in 19,830 deals in the previous week. Punch
BANKING
Following the low-interest yield environment, Zenith Bank Plc, Fidelity Bank Plc and five other banks have reported 12 per cent drop in interest income from Treasury bills (T-Bills) and government bonds in the first half (H1) of 2021. The other banks are: FBN Holdings Plc, Access bank Plc, United Bank of Africa Plc, Zenith Bank Plc and Guaranty Trust Holdings Plc (formerly Guaranty Trust Bank) and Union Bank of Nigeria Plc. THISDAY can report that the above seven banks reported a sum of N305.15billion interest income from investing in T-Bills and government bonds in H1 2021 as against N346.5billion in H1 2020. Analysts have expressed that the low-yield on government securities impacted on banks interest generated from T-Bills and bonds, maintaining that banks might recouped lost interest income on securities in the second half of 2021. This Day
Fidelity Bank Reports 72.4% Increase in PBT To N20.6bn
Fidelity Bank Plc has announced a profit before tax of N20.6billion for half year ended June 31, 2021 as against the N12billion in reported in half year ended June 30, 2020. The audited results at the Nigerian Exchange Limited (NGX) showed a 6.2 per cent increase in Gross Earnings to N112.3billion on account of 27.8 per cent growth in Non-Interest Revenue (NIR) to N23.8billio from N18.1billion in H1 2020. Non-Interest Revenue was driven by strong growth in Commission on Banking Services (57.7 per cent), Account Maintenance Charges (50.6 per cent), Digital Banking Income (49.4 per cent) and Trade Income (33.7 per cent) etc. as total customer induced transactions across all distribution channels increased by 58 per cent Year-on-Year (YoY). This Day
ECONOMY
Expectations high as Nigeria berths e-Naira October 1
If all things were to work as planned, then the Central Bank of Nigeria (CBN) will on October 1, this year unveil its e-Naira, the nation’s first digital currency for use by businesses, individuals and households longing for faster means of transactions settlement. This much was confirmed by the bank on August 30, 2021, when it announced Bitt Inc. as technical partner for the formal introduction of the e-naira digital currency due to become a legal tender with non-interest-bearing asset status. Governor of the CBN, Godwin Emefiele, has since committing to achieve 95 percent financial inclusion by 2024 implemented several policies to realise this objective. For him, the e-Naira offers yet another critical step in the efforts of the regulator towards closing the nation’s 8.5 percent financial inclusion gender gap to enable it achieve the 2024 financial inclusion target. The Sun
N2trn power subsidy, interventions gulp 6% of CBN’s balance sheet –Report
Except urgent steps are taken, the balance sheet profile of the Central Bank of Nigeria (CBN) may dip further as a report by Agusto & Co has revealed that multiple interventions, which included subsidies to the power sector. have gulped about ($4.9 billion) N2 trillion as at 2020. This was even as the report indicated that the N2 trillion interventions is equivalent to six per cent of the apex’s bank balance sheet. The report, entitled: ‘‘The State of the Nigerian Electric Power Industry – Is there any light at the end of the Tunnel’’? , explained that the shortfall from unreflective tariffs has been borne in large parts by the Federal Government of Nigeria (FGN) through multiple intervention funds and payment assurance facilities from the CBN. It added that, despite this level of intervention, the generating companies had estimated receivables of over N400 billion in 2020 alone, adding that while the interventions have been central in ensuring the profitability of operators along the industry’s value chain, they remain insufficient and unsustainable. The Sun
Nigeria loses N247.61bn in 100 days of Twitter ban
The Twitter ban in Nigeria has extended to 100 days, and in that time frame the nation has lost N247.61bn. The Federal Government had on June 4 suspended Twitter after the social media platform deleted a tweet by the President, Major-General Muhammadu Buhari (retd.). Consequently, telcos on June 5 blocked access to Twitter after receiving a directive by the Nigerian Communications Commission. On this, the Association of Licensed Telecommunications Operators of Nigeria had said, “We, The Association of Licensed Telecommunication Operators of Nigeria wish to confirm that our members have received formal instructions from the Nigerian Communications Commission, the industry regulator, to suspend access to Twitter. Punch