Companies
Access Bank has taken a haircut on its loan to Etisalat Nigeria
Published
4 years agoon
By
Chris Pemu
In a recent interview with Arise TV, MD of Access Bank, Herbert Wigwe discussed several issues ranging from why banks are reluctant to take provisions on loans to the power sector and the provisions the bank (as well as other members of the consortium) had made its loan to Etisalat Nigeria.
On Etisalat Nigeria
The consortium of banks has taken an impairment on the loan lent to the company. They also made provisions for loans to companies that do business with the firm. Access Bank’s exposure to Etisalat Nigeria amounts to N11 billion, with the bank making a provision of 30%.
Wigwe also hinted that the bank may take up Etisalat of the UAE for walking away from the loans.
“With respect to their parent, I think as a starting point, nobody walks into a system and takes so many loans and wakes up to say, ‘Oh I have gone.’ It doesn’t add up. So we still have recourse to them.
Access Bank recently released its HY 2017 results. Gross earnings increased from N174 billion in 2016 to N246 billion in 2017. The bank declared an interim dividend of 25 kobo. Access bank is currently trading at N9.93 as at 11.13am in today’s trading session on the Nigerian Stock Exchange.
Etisalat Nigeria had in July last month defaulted on a $1.2 billion loan, it took from a consortium of banks. The firm blamed its default on the sudden devaluation of the Naira against the dollar last year. An attempt by the banks to take over the telco, was blocked by the Central Bank of Nigeria (CBN) and Nigeria Communications Commission (NCC).
Christopher B. Pemu has a degree in Political Science from the University of Lagos. He joined Nairametrics in 2014 as News Editor and later as Managing Editor. He currently serves as the General Manager of Nairametrics.He takes pleasure in traveling, enjoys world politics and in sport, he loves watching football and tennis.


Companies
Africa Prudential proposes dividend of N1 billion for shareholders
Africa Prudential Plc has proposed a sum of N1 billion as dividend for shareholders.

Published
18 hours agoon
March 3, 2021
The Board of Directors of Africa Prudential Plc has proposed a sum of N1 billion as dividend to shareholders for the period ended 31st of December 2020.
This is according to a disclosure signed by the firm’s secretary, Joseph Jibunoh and sent to the Nigerian Stock Exchange, as seen by Nairametrics.
According to the notification, the proposed dividend will be paid electronically to qualified shareholders on the 26th of March, 2021, subject to appropriate withholding tax and approval from the company’s Annual General Meeting (AGM) scheduled a day earlier.
The breakdown of the proposed dividend shows that a sum of 50 kobo will be paid for each outstanding 2,000,000,000 ordinary shares of the company, held by its shareholders, totalling N1 billion. The proposed dividend is 28.6% lower than the 2019 figures of N1.4 billion.
The comparative decline in the company’s proposed dividend for the year might be attributed to a recent dip in profit and other key metrics recorded by the firm in its latest audited financial statement for 2020. For example, the firm posted a profit of N1.45 billion for the year, indicating a decline of 13.98% YoY. In addition, its earnings per share declined by 14.29% to print at 72 kobo.
What you should know
- Africa Prudential had recently announced the appointment of Mrs Zubaida Rasheed as Director.
- Africa Prudential Plc, formerly known as UBA Registrars Ltd, was incorporated as a private limited liability company on 23rd March 2006. It was listed in the NSE on 17th of January, 2013.
Companies
Dangote Sugar proposes N18.2 billion as final dividend for 2020
Dangote Sugar Refinery Plc has proposed a sum of N18.2 billion as the final dividend for shareholders.
Published
2 days agoon
March 2, 2021
The Board of Directors of Nigeria, Dangote Sugar Refinery Plc has proposed a sum of N18.2 billion as the final dividend for shareholders for the period ended 31st December 2020.
This announcement was contained in the audited financial statement of the leading integrated sugar company.
In line with the statement of the Board of DSR, the approval of this proposed dividend at the forthcoming Annual General Meeting will see Dangote Sugar pay out a final dividend of N1.50 for each of the outstanding 12,146,878,241 ordinary shares of the company, held by its shareholders.
The proposed dividend is 36.36% higher than the final dividend of N1.1 per share (N13.36 billion) the sugar company paid its shareholders in 2019.
What you should know
- Dangote Sugar Refinery declared in its audited statement for the period ended 31st December 2020 that its profit for the year climbed to N29.8 billion, from N22.4 billion in 2019.
- According to these figures, DSR’s earnings per share for 2020 are pegged at N2.45. Hence, with a dividend of N1.50 per share, Dangote Sugar is set to payout 61.2% of its profits for 2020.
- At the close of trading activities on the floor of the Nigerian Stock Exchange today, shares in Dangote Sugar Refinery declined by 0.83% to close lower at N17.85.
- At this price, the dividend yield of Dangote Sugar shares is 8.40%.
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