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Corporate News roundup for the week ended November 4, 2017

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This Corporate News Compilation for the week ended November, 4th 2017 is brought to you by Bluechip Technology Ltd Nigeria.

  1. Vik Industries Ltd announced the introduction of “Nigeria’s first ever locally-produced groundnut spread” named Nutzy peanut butter. The company claims the peanut butter is better than some of the imported brands we have in local supermarkets (don’t expect you to believe that). They also claimed the peanut butter can be used to prepare local soups, sauces and dips. Explaining why he thought the butter could do better than foreign made ones, he claimed it is because Nigerian groundnuts taste differently and are one of the best in the world. So, I looked up these guys and they have a manufacturing plant in Oshodi Isolo area of Lagos. They are more renowned for manufacturing plastic products, so it appears this is a new product division. The company’s CEO is Mr. Ajay Ramnanai. The company by the way, has been in Nigeria for over 50 years.  
  2. Ahead of the impending competition from Kwese TV and TsTV, Star Times has launched its own Pay per day model for all its bouquet. Start Times said its customers, who are mostly lower middle class can watch as many as 30 channels with just N60 per day or N300 per week for its NOVA bouquet. Considering that it cost N900 a month for the same bouquet, the Pay per day buffs are effectively paying double he amount it cost for a one-month subscription.Image result for star times, kwese tv, tstv
  3. Uber seems to have upped its game with a rash of new features for its drivers. The new GM, Uber West Africa, Lola Kassim, said the introduction of new features was in response to some of the feedback they have received over the past few months. Here are examples of some of the new features. Drivers and riders can now chat within the app instead of calling on their mobile phone. This is good for those who hate to reveal their private numbers. Uber drivers can now share their trips to “their loved ones”, a security feature for drivers carrying riders into destination which they feel is unsafe. Uber drivers can also set a time when they want to go home enabling them to book rides that are on their path home, helping them to some extra bucks. Uber has about 7,000 partners in Nigeria with under 300 thounsands riders.Image result for uber
  4. MTN gave us the closest date yet to a launch of its impending IPO. Its CEO, Rob Shutter informed the media that the IPO “project” could go live in the “next six months or so”. 6 months from now is in May 2018. In a related news, farmers in the Northern part of Nigeria pleaded that MTN deactivate unregistered SIM cards in the north, which it claims is being used by Boko Hara, members to perpetuate violence and terrorism.Image result for MTN
  5. Globacom reported last week that it was building about 200 base transceiver stations (BTS) at a cost of about N18 billion. This suggest the cost of the base station is about N90 million each. The NCC claims Nigeria has about 40,000 base stations and is said to require about 80,000 BTS. Investments in the telecoms industry dried up in 2017 as GSM firms suffer the effect of a recession.Image result for globacom
  6. This time last year, airlines were lining up in droves to pull out of flight operations from Nigeria, following the exchange rate crisis. However, 2017 has turned out better than expected after the CBN introduced the Importer Exporter window, increasing forex inflows into the country. Emirates airline, one of those that left confirmed it (I hear it’s the Minister not them) is resuming flight operations out of Abuja after one year of suspension. And by the way, British Airways and Emirates have also rolled out decent end of year promos for travelers. Check here, if you need cheap tickets.Image result for british and emirate airlines
  7. South African firm, Sumitomo Rubber, South Africa has teamed up with Tyre Express Nigeria Ltd to introduce a Dunlop Store in VI, Nigeria. The South African firm sells Dunlop, Falken and Sumitomo tyres brands in about 48 African countries. Sumitomo is a Japanese company with presence in about 9 African countries. They are, Kenya, South Africa, Morocco, Ghana, Madagascar, Mozambique, Angola and Tanzania. Strangely, they don’t have a base in Nigeria.Image result for Dunlop tyres stores Nigeria
  8. There was more capital raising news last week, following the announcement by Flour Mills that it was embarking on a rights issue. The company plans to raise N70 billion which it plans to repay its loans. Lafarge earlier announced it wanted to raise N132 billion. We will be watching these two offers closely as I do not know if this market is deep enough for over N200 billion in a space of 6 weeks. About N127 billion was raised in the first half of this year via rights issue. The highest we have ever raised in a rights issue in any year was N200b and that was in 2014.Image result for flour mills of nigeria
  9. On the housing front, Lagos State Government announced that it has signed an MOU with the Nigerian Mortgage Refinance Company to deliver about 20,000 housing units. If there is one thing the NMRC is very good at, it is signing MOUs. It was setup to help inject liquidity in the housing sector, however, housing for all still remain a utopian desire.Image result for Nigerian Mortgage Refinance Company
  10. In related news, Grenadines Homes, who we reported a few weeks back was developing of the N40 billion Atlantic Resort, revealed that it is introducing a concept hotel that will provide high returns on investment for investors. The Oceanna hotel room, as they call it, basically allows investors to have a stake in a hotel room and will earn a good portion of the rate paid by guests. This is not exactly a new concept around the world, but its fairly new in Nigeria. Some investors have tried unsuccessfully to introduce it. Grenadines claimed it will give investors about 14% returns per annum as against 6% for buy to let investments. Buy to let investments, which is another name for rental properties, yield about 6%, according to their data. They also claim it will take about 17 years to recover your money.Image result for Grenadines Homes, Oceanna hotel
  11. Still on real estate, Transcorp announced last week that it had signed a 20-year extension of its management contract with Hilton.Image result for transcorp hilton hotels
  12. The newly established Development Bank of Nigeria has commenced lending activities. Last week, it reported that it lent out about N5 billion to three microfinance banks. They are, Fortis Microfinance Bank Plc, LAPO Microfinance Bank Limited and NPF Microfinance Bank Plc. The banks will be expected to lend the money to about 20,000 entrepreneurs.Image result for Development Bank of Nigeria
  13. In our “one chance” story of the week, a Ford model, Nneoma Anosike has taken Wema Bank to court for using her face in an ad. According to her lawyers, Wema Bank used her for an advert with the bank’s corporate logo beside her face and the words, “Be yourself, everyone else is taken”. Her lawyer also claims, this projection of Nneoma by the bank was with the aim of projecting the bank’s value and goodwill using her fame and popularity. They have sued Wema Bank, N20 million.Image result for wema bank plc
  14. By the way, Access Bank said it has signed a deal with Chinese car maker GAC Motors to offer potential vehicle buyers loans to buy the car. They claim all you need is to provide 10% equity and with a “brought down” interest rate of 24%.Image result for Access Bank said it has signed a deal with Chinese car maker GAC Motors
  15. Diamond Bank has confirmed plans to spin off some of its assets outside Nigeria, part of its restructuring plans. First on the list is Diamond Bank SA, where it plans to divest 97.7% of its holdings. It plans to sell it for 61 million Euros. Their 2016 annual report shows they valued the investment at N5.8 billion. Their other subsidiary, Diamond UK is valued at N7.9 billion.Image result for diamond bank
  16. A newspaper reported last week that a US company was planning to acquire a Nigerian Bank. According to the report, United States-based private equity firm, Milost Global Inc, is currently conducting due diligence on one of Nigerian banks in preparation for possible acquisition. They did not reveal the name of the bank but only stated that they have about 250 branches. We don’t know for sure but what bank this is, but it might be Unity Bank. Unity Bank has about 240 branches and we understand that they are looking to raise capital.Image result for Milost Global Inc,
  17. Some of us were shocked to hear last week that Rosatam, a Russian state-owned company has signed an agreement with Nigeria to construct and operate a nuclear power plant and research center in Nigeria.Image result for russian state owned company rosatom
  18. Looks like the NNPC is about to compete with the CBN/BOI on the establishment of a bio-fuel plant. A few months ago, the CBN/BOI reported that it wanted to setup one in Kogi State, and is expected to cost about $300k. NNPC took their own rhetoric a step further, by announcing that it was setting up a 65 million litres bio-fuel plant in Okeluse, Ondo State. They claimed it will create a whopping 1 million jobs in Ondo State. The CBN/BOI plant was expected to have a capacity of 100k litres per day.Image result for NNPC
  19. Finally, Total Nigeria has inaugurated its second lube production plant in Nigeria. The plant is in Koko, Delta State. The first is in Kirikiri Lagos.Image result for total nigeria

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MTN, Dangote Cement, Nestle, others top best dividend stocks in 2019

MTN Nigeria, Dangote Cement, Nestle Nigeria, Stanbic IBTC, GT bank and Zenith bank were the highest paying dividend stocks on the floor of the NSE in 2019. 

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Dividend payment is one of the very few ways available for investors to earn a constant stream of income. It is also the main reason shareholders hold unto their shares in a company. Therefore, it brings great satisfaction to investors when these companies declare dividends to their shareholders.

According to data gathered by Nairalytics, the research arm of Nairametrics, MTN Nigeria, Dangote Cement, Nestle Nigeria, Stanbic IBTC, GTBank, and Zenith bank were the highest paying dividend stocks on the floor of the Nigerian Stock Exchange in 2019.

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With a combined value of N691.23 billion, these six companies make up a diverse list that includes the telecommunication, food and beverage, industrial manufacturing, and banking sectors.

Here’s a breakdown

MTN Nigeria Communications Plc posted a total dividend per share of N7.92k (interim – N2.95k, Final – N4.97k), summing up to N161.21 billion. A dividend payment was made on May 19, 2020, to shareholders whose names appeared on the Register of Members as at April 17, 2020.

(READ MORE: Why these companies remain on NSE’s delisting radar)

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The telco giant’s revenue of N1.17 trillion in 2019 against N1.04 trillion in 2018 represents a 12.6% increase. Profit after tax (PAT) also increased significantly by 38.7% from N145.7 billion in 2018 to N202.1 billion in 2019.

MTN, MTN, Dangote Cement, Nestle, others top best dividends stock in 2019

Dangote Cement Plc declared a total dividend payout of N272.65 billion. This breaks down to every shareholder of the company earning N16 on every share held. A payment expected to be made after the company’s annual general meeting is scheduled for June 16, 2020, with a qualification date of May 25, 2020.

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It is worth noting that the cement manufacturing giant posted a profit after tax of N200.52 billion, a 48.6% decline when compared to a profit of N390.33 billion recorded  in 2018.

Nestle Nigeria Plc declared a total dividend of N70 per share to its shareholders, indicating a total payment of N55.49 billion. The leading consumer goods maker generated N284.04 billion in revenue for the year ended December 2019.

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The multinational’s profit after tax stood at N45.68 billion, a 6.22% increase compared to N43.01 billion posted in 2018.

Patricia

(READ MORE: List of Dividends announced so far in 2020 (May))

The management of Stanbic IBTC Holdings Plc proposed a total dividend per share of N3 (interim – N1 and final – N2) per ordinary share of 50 kobos each, which summed up to N31.57 billion. The interim dividends (N10.47 billion) was paid on October 3, 2019, while the final dividend of N21.01 billion is expected to be paid by June 18, 2020.

The bank’s full-year result shows that the group’s gross earnings increased by 5.2% from N222.36 billion in 2018 to N233.81 billion in 2019.

Stanbic IBTC’s profit after tax for the period  recorded a marginal increase of 0.8% to N75.04 billion compared to N74.44 billion in 2018.

Guaranty Trust Bank Plc declared a total of N82.41 billion to shareholders on March 30, 2020 as dividends for the year ended 2019. This indicates a total dividend payment of N2.8 per 50 kobo ordinary shares to shareholders. Final dividend was paid on March 30, 2020 to shareholders whose names were registered in the company’s register of members as at March 18, 2020 which was the qualification date.

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GTBank, which is Nigeria’s most capitalized bank, posted a profit after tax of N196.85 billion, showing a 6.5% increase compared to N184.71 billion recorded in the preceding year.

GTBank declares dividend payment for FY 2019

GTBank

Zenith Bank Plc also paid N2.8 dividends per ordinary share to its shareholders, summing up to N87.91 billion (interim – N9.42 billion, Final – N78.49 billion) for the year ended 2019. The bank posted profit after tax (PAT) of N208.84 billion in the year under review.

(READ MORE: CFOs of FUGAZ and their 3-year performance record)

The final dividends were paid to Shareholder in March 2020 whose names appeared in the Register of Members as at close of business on 9th March 2020.

What is dividend?

A dividend is a payment by a company to its shareholders, which is paid at the end of a quarter or year. Note that dividends are usually cash payments, although they can sometimes be paid out in company stock.

(READ MORE: NSE Set to Host Sustainable Capital Markets Forum to Promote Green Finance in West Africa)

What to look out for in dividend stocks

The following are what you should look out for in dividend stocks:

Payout Ratio: The dividend payout ratio is the percentage of a company’s earnings it uses in paying out dividends. This is an important metric to use when digging into dividend stocks you are considering to buy.

Dividend History: This is simple. All a potential investor needs to do is to check the track record of the company. Many of the companies mentioned above have trackable and impressive track records, including long records of paying annual and interim dividends.

Industry Strength: Here, it is better to own shares in a decent company in a great and lucrative sector than owning shares of a great firm in a tough industry.

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IMF advises banks to suspend dividend payment

However, halting dividend payments may not go down well for many retail and institutional investors, who rely on bank dividends for regular income.

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IMF discloses immediate priority , Reduce funding oil subsidy - IMF to Nigeria , IMF: 40% of African countries can't pay back their debts , Nigeria among countries that pushed Global debt to $188 trillion - IMF , Coronavirus: World Bank, IMF to support Nigeria and other member countries affected, IMF, World Bank to hold meetings via conference call over Coronavirus epidemic, IMF advises banks to suspend dividend payment

In an article published on its website, International Monetary Fund (IMF) Managing Director, Kristalina Georgieva, advised banks to halt dividend payment for now. According to her, with the expectation of a deep recession in 2020 and partial recovery in 2021, banks’ resilience will be tested. Therefore, having in place strong capital and liquidity positions to support fresh credit will be essential.

According to the article, one of the steps needed to reinforce bank buffers is retaining earnings from ongoing operations which are not insignificant.

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IMF staff calculate that the 30 global systemically important banks distributed about US$250bn in dividends and share buybacks last year.

READ MORE: State Governments: Another cycle of non-payment of salaries to begin soon

In a circular dated January 31, 2018, the Central Bank of Nigeria (CBN) stipulated new conditions for eligibility of Nigerian banks to pay dividend and the quantum of dividend to be paid out by banks who are eligible. Prior to the release of the circular, dividend payout policy for Nigerian banks had been spelt out in Section 16(1) of BOFIA 2004 (as amended) and Prudential Guidelines for DMBs of 2010. The circular provided guidelines and restrictions around divdidend payout for banks based on NPL ratio, CRR levels, and Capital Adequacy Ratio (CAR).

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However, there were no regulatory restriction on dividend payout for banks that meet the minimum capital adequacy ratio, have a CRR of “low” or “moderate” and an NPL ratio of not more than 5%. However, it is expected that the Board of such institutions will recommend payouts based on effective risk assessment and economic realities. Indeed, current economic realities demand caution.

Current economic realities mean that banks face asset quality threats, further devaluation threat which may impact capital in some cases, and lower profits which in turn affects the quantum of capital retained. Ideally, these should reflect in NPL ratio and CAR ratio and should immediately restrict banks’ ability to pay dividend. However, there is usually a time lag before these ratios begin to reflect the new economic realities. Therefore, IMF’s advise may come in handy for many banks.

(READ MORE: Software security limitations cited as major reason for Covid-19 bank rush)

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That said, halting dividend payments may not go down well for many retail and institutional investors, who rely on bank dividends for regular income. Banks like Zenith and Guaranty Trust have a good history of consistent dividend payment with attractive yields which is a major attraction for many shareholders.

IMF advises banks to suspend dividend payment

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Patricia

CSL STOCKBROKERS LIMITED CSL Stockbrokers,

Member of the Nigerian Stock Exchange,

First City Plaza, 44 Marina,

PO Box 9117,

Lagos State,

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NIGERIA.

 

 

 

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CFOs of FUGAZ and their 3-year performance record

CFO is to ensure that the company is highly profitable so that no matter how high it’s share price might be, if listed on the floor of the Nigerian Stock Exchange, it would still be termed undervalued.

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Among many executive positions in an organisation, the Chief Financial Officer (CFO) is sometimes considered to be one of the most strategic, and rightly so. When the firm in question is an operator in the financial services sector, then the office becomes even more critical to be thrown to just anyone.

Besides being responsible for fiscal operating results, the CFO is the senior executive directly responsible for managing the financial strategy, decision and actions of a company. He tracks cash flow, analyses the company’s financial strengths and weaknesses, and fill in for the lapses, reducing operations costs and increasing income.

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In other words, we can say that the job of the CFO is to ensure that the company is highly profitable so that no matter how high it’s share price might be, if listed on the floor of the Nigerian Stock Exchange, it would still be termed undervalued.

This article looks at the CFOs in Nigeria’s tier one banks, their profiles, their last 3 years records and projections for 2020.

READ ALSO: Billionaire investors in the Nigerian Insurance space (2)

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Ugo Nwaghodoh, Group CFO, United Bank for Africa Plc (UBA)

Ugo is a seasoned financial analyst and accountant with experience spanning assurance, advisory, financial control, financial modelling & programming, strategy and business transformation, investor relations, corporate restructuring, risk management, mergers & acquisition, business integration and project management.

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He has been the Group CFO at United Bank for Africa Plc since 2011, managing the performance, financial control, portfolio investment and investor relations among others.  Before then he was the Divisional Head, Financial Control and Investor Relations between 2008 and 2011.

He also had a brief stint as Group Chief Compliance Officer, and as Head of Special Project (Corporate Mergers). He was Head, Performance Management, Strategy and Business Transformation for about 3 years, where he drove the cost optimization initiatives of the bank, and engaged in policy formulation.

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Before UBA, he had worked as Manager, Assurance and Business Advisory Services with PriceWaterhouseCoopers Nigeria for 8 years, and 2 years in Kenya on secondment.

Patricia

He has a degree in Accounting and Finance, and MSc in Finance & Management from the Cranfield School of Management, Cranfield University.

He is a fellow, Institute of Chartered Accountants of Nigeria (FCA).

His last 3 years performance

UBA, under Nwaghodoh’s watch, had a fairly unfavourable 2018 as cost to income ratio increased from 57.8% in 2017 to 64% in 2018, and profit after tax almost remained the same increasing only slightly from N78.59 billion in 2017 to N78.60 billion in 2018.

The bank, however, staged a comeback in 2019 with cost to income ratio reduced to 62.7% while profit after tax increased by over N10 billion to N89.08 billion.

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Share price however declined from N10.3 in 2017 to N7.7 in 2018 and N7.15 in 2019, probably not Nwaghodoh’s fault though, since this happened across most financial services institutions. In addition, the bank also paid N30 million as fine to the CBN in 2018, a situation which led shareholders to cry out to Apex bank for what was termed ‘unfair penalties’.

Nwaghodoh, however, has a beautifully designed investor relations page to his credit, with answers to Investors FAQs, analysts reports and credit ratings for the bank, shareholders information and news among others.

Oluseyi Kumapayi, CFO Access Bank Plc

Kumapayi joined Access Bank in 2002. Before then, he was with the First City Monument Bank (FCMB) where he served as Financial officer.

Kumapayi got his MBA from the Kellogg school of management, Northwestern University, and  has been severally endorsed in Corporate finance, risk management and business strategy, financial analysis, mergers and acquisitions, financial modelling and investment banking.

He also attended the INSEAD course on Risk Management, London Business School (LBS) High Performance People Skills program, Euromoney, Assets and Liability Management, Strategy Master Class and Mergers and Acquisition. He is a Certified Chartered Accountant.

Now let’s look at the bank’s three years performance under Kumapayi. 

For the cost to income ratio, Access bank has remained profitable over the last three years, but now the question would be how profitable?

Cost to income ratio reduced from 72.40% in 2017 to 65.30% in 2018 showing that the bank’s strategies succeeded in reducing the ratio of cost to income and making more profits. However, 2019 recorded a negative progression to 68.7%.

This is in spite of the fact that profit after tax grew significantly to N97.5 billion in 2019, from N94.98 billion in 2018 and N53.6billion in 2017.

Overall, we can say the indices point to greater progress made in 2018, compared to 2019.

Note also that the merger between Access Bank and Diamond bank started in 2018, running through 2019 before it was eventually sealed with the launching of the new Access logo, and the slogan ‘access more’. The role of a CFO in a merger of this magnitude is ourightly priceless, given that not all merger talks result in a successful merger of assets, shareholders, and even management team.

There is also the acquistion of controlling equity interest in Transnational Bank Kenya Plc, which Access Bank undertook in October 2019.

Share price at last day of the year progressed from N10.45 to N6.8 to N10, showing that share price dropped most in 2018, which interestingly happened to be the most profitable year so far. In the same 2018, Access bank paid N20 million in fines to the Central Bank of Nigeria.

Kumapayi has kept the investor relations page of the bank’s website duly updated with annual financial reports, investor news, credit ratings, upcoming events, shareholders information and news.

 

Oyewale Ariyibi, CFO, First bank of Nigeria Plc

Oyewale Ariyibi, CFO, FBN Holdings

Before becoming Chief Financial Officer at FBN Holdings Plc, Oyewale Ariyibi had worked with Transnational Corporation of Nigeria Plc (Transcorp) as Chief Finance Officer, and at Standard Chartered Bank, Nigeria as Country Financial Controller.

He has a cumulative 23 years experience in banking and financial services, business assurance, tax management, business process review and consulting across several institutions.

He has been certified in areas such as capital raising, tax planning and cost management, operational risk management, strategic and corporate planning, compliance and business assurance amongst others, and is a Fellow of the Institute of Chartered Accountants of Nigeria (FCA), Associate of the Chartered Institute of Taxation (ACIT) and Certified Pension Institute of Nigeria (ACIP).

So what has he done with First Bank in the last three years?

Profit after tax has been on an increase, from N47.78 billion in 2017 to N59.74 billion in 2018 and N62.09 billion in 2019. This is laudable given that 2016/17 was not the best times for the Nigerian economy.

Share price has however dropped from N8.8 in 2017 to N7.95 in 2018 and N6.15 in 2019.

This may be no fault of his given that he has managed to keep the cost to income ratio stable at 80.17% in 2017, 80.15% in 2018, but it increased slightly in 2019 to 81.31%.

Note that the FBN Holdings also paid a fine of N32.65 million to the CBN in 2018.

This trend can be considered worrisome not only because FBN holdings has the highest cost to income ratio among the tier one banks, but because it is the only of the five banks where cost to income ratio did not reduce over the last 3 years.

This probably explains why shareholders earned 0.25 dividends per share in 2017, 0.26 in 2018 and 0.38 in 2019, the least dividends declared by any of the top banks.

The investors’ relations page of the bank’s site is a bit unclear and it is not easy to access needed information, but once a site visitor gets past the initial confusion, one can see shareholders information, corporate governance reports, financial highlights, unclaimed dividends, press releases and news.

Ariyibi might need to ask some pointers from his colleagues in other tier one banks.

Recently, Ariyibi led engagements with regulators towards FBN’s intention to divest its 65% holdings in FBN insurance Limited.

 

Mukhtar Adam, CFO Zenith Bank Plc.

Mukhtar Adam was appointed Chief Financial Officer (CFO) of Zenith Bank in 2018, and is currently the Group Head, Financial Control and Strategic Planning Group of the bank.

Before this, he was the bank’s Deputy CFO, and sometime before 2014, he headed the Financial Reporting, Tax Management and Strategic Planning Groups, overseeing the entire Zenith Group’s financial reporting.

Adams worked in Financial Services Group of the Nigerian and Ghanaian practices of PricewaterhouseCoopers (now PwC), as a Senior Consultant, before joining Zenith Bank in 2007.

Adam holds a PhD in Finance from the Leeds Beckett University (UK); M.Sc. (Finance – Financial Sector Management) from University of London’s School of Oriental and African Studies, (UK); MBA (Finance) from the University of Leicester (UK) and B.Ed. Social Sciences (Economics and Management) from the University of Cape Coast (Ghana).

Many feathers for one man’s cap, we must agree!

He also holds a Diploma in International Financial Reporting Standards (IFRS) from the Institute of Chartered Accountants in England and Wales (ICAEW).

He is a member of the Institute of Chartered Accountants of Nigeria (ICAN), Chartered Institute of Taxation of Nigeria (CITN), and Institute of Chartered Accountants of Ghana (ICAG).

So, what has Mukhtar Adam achieved for Zenith bank since he took over from Stanley Amuchie in 2018?

It’s been three progressive years for this tier one bank as cost to income ratio has continued to decline from 52.70 in 2017, to 49.30 in 2018 and further down to 48.8% in 2019. Commendably, this progression is not just a result of cutting down operation costs, but increasing income.

Profit after tax for 2017 stood at N173.79 billion and increased to N193.42 billion in 2018 and spiked further to N208.84 billion in 2019.

Whatever magic wand Adams holds over the bank, it must be working well because among the five tier one banks, Zenith bank has consistently had the highest profit after tax for the past three years.

Share price of the bank also moved from N25.6 in 2017 to N23.05 in 2018 and further down to N18.6 as at last day of 2019.

However, this cannot be counted against him as share price is subject to a whole range of extraneous factors. In the 2018, the bank paid N10 million fine to the CBN.

With his input, the bank also maintains a detailed investors relations page with press releases, credit ratings, corporate governance reports and financial updates. In addition to the BOT which pops up to help guide a visitor through the page and answer inquiries, Adams also appears to be one CFO who spells out his key financial strategies on all aspects of the banks operations, on the investors relations page.

Adebanji Adeniyi, CFO, GT Bank

Adeniyi became CFO of GT bank in 2013.

Adeniyi has been certified competent in risk management, portfolio management, risks and investments, Operational dynamics and Associated Risks among others, and has over two decades of professional experience.

He gained his early experience from notable companies including PricewaterhouseCoopers, and Arthur Andersen (now KPMG).

Adebanji Adeniyi, Chief Financial Officer, GT Bank

His banking experience comes from his stint with Lead Bank Plc, and his years at GT Bank. He is a Fellow of Institute of Chartered Accountants (FCA), and also holds a MBA.

So, what has he been up to in the last 3 years.

For Guaranty Trust Bank Plc, cost to income ratio reduced from 38.2% in 2017, to 37.2% in 2018, and to 36.1% in 2019

In addition to its gradual improvement, GT bank has maintained the best cost to income ratio among the top banks.

The bank has also maintained a high profit after tax after Zenith bank. GT Bank recorded N170.47 billion profits after tax in 2017 and this increased to N184.64 billion in 2018 and N196.86 billion in 2019.

Like other banks, however, share price has dropped over the years – from N40.75 in 2017 to N34.45 in 2018 and N29.7 in 2019. In addition to this, GT Bank also received a heavy penalty of N24 million in 2018 from the CBN.

In terms of profitability, both for the bank and for investors, Adeniyi is getting it right.

The bank also has a well laid out investors relations page detailing corporate and financial information, outlooks and insights, upcoming events and investors news, shareholders information and annual reports.

Kudos!

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