Debtors Africa – an independent searchable database of recalcitrant and delinquent debtors in Africa was launched into the market today, in addition a Debtors Report – a comprehensive analysis of the Debt/Non-Performing Loans Situation in the Nigerian Banking Industry was also presented for information.
The report which was done in partnership with Proshare, represents a culmination of a detailed review of the credit experiences of local Nigerian banks in the last two decades and reveals the challenges of a local lending cycle that has seen lenders become victims of the tyranny of bad and delinquent debtors.
The report makes a case for a new approach to the lending cycle to ensure that integrity, professionalism, and evidence-based best lending practices are strictly followed to guarantee the sustainability of the financial system and the prosperity of the larger economy.
Key highlights of the report include:
- The Industry & its Debt Position
- Definition of a delinquent debtor and how this has changed over the years including how banks end up with bad debtors
- The Sectors & Regions affected & Impact on GDP
- Provisions of the law as regards credit collection and recovery in Nigeria
- The AMCON approach, lessons learnt, and the way for banks to adopt a revised credit recovery framework
- Case Study of approaches adopted in recovering debt; and
- Fresh methods a New Approach offers to banks troubled by delinquent debts
The Full Report is available on www.debtorsafrica.com
The Debtors Africa Website is a searchable database of delinquent borrowers which enables speedy assessment of the character of a prospective customer. Of equal importance is that investors can use the database as a starting node for assessing the quality of the management of a business they intend to either partner or invest in.
The searchable database is designed to allow contributors such as Banks, Loan FinTech and Credit companies, Cooperatives, Tax authorities, Private businesses, government agencies, utility providers, etc. list their delinquent debtors and their indebtedness on the platform as a contributor to the platform. With this listings, a moral and business burden is placed on delinquent borrowers as prospective lenders would use the library to fact-check the borrowing history of a loan applicant and use the history to set up a character rating index that would guide credit appraisal memorandums (CAMs) and inform acceptance or decline of credit requests.
By subscribing to the platform which is free, users are able to:
- Search for Delinquent Debtors in Africa using the Company Name or the name of the Directors of a company
- Track the repayment progress of a delinquent debt and other related information to the Debt
- Receive and Monitor Credible and Reliable information on Debt Related Activities in Africa
- Mine Delinquent Debtors Data by Sector, Amount Owed, and more
Over the years, the names of delinquent debtors have been published on various media platforms with no central portal to harness the information published or achieve the objective creditors desire, which is repayment and resolution. With DebtorsAfrica, the new model provides a central hub to access this information and goes beyond naming and so-called “shaming” to informing prospective creditors and other institutions that require character validation, while name removal from the database is subject to the review and removal by the contributor after debt resolution is attained.
Unlike the days when banks published their delinquent debtors list on online digital platforms in which they had no control of content update, modification and removal , the DebtorsAfrica platform puts the burden on creditors who are expected to take the action of delisting themselves further to showing proof of resolution, such that it also serves as an independent check on contributors who may choose to delist a debtor based on mutually agreed terms of settlement .
The emerging global economy requires more credit but it also requires more confidence in the credit-to-debt-to-credit loop. The stronger the integrity and the deeper the financial resources that support the loop the better the financial system and economy becomes. The spread of the digital economy, big data, artificial intelligence and informatics will lead to new approaches of credit evaluation, initiation, monitoring, and recovery.
Kindly download the Executive Summary HERE and the FULL REPORT HERE
EDITOR’S NOTE: This is a sponsored content.
BUA Cement Plc posts impressive unaudited H1, 2020 financial results
Revenue increase by 12.7% to N101.3 billion; Profit After Tax (PAT) rises by 13.74% to N34.82 billion.
One of Africa’s largest cement producers, BUA Cement, has announced an impressive 2020 half-year results declaring revenues of N101.3billion and a Profit After Tax of N34.82billion representing an increase of 12.7% and 13.74% respectively from the corresponding period in 2019. This was contained in a filing to the Nigerian Stock Exchange.
Speaking on the results, Yusuf Binji, Managing Director of BUA Cement said that the continued impressive performance in 2020 despite the challenging operating environment occasioned by the COVID-19 pandemic, was a pointer to the value and strength of the BUA Cement brand and product offerings as well as a nod to the excellent implementation of the company’s Business Continuity Plan which ensured that BUA Cement was able to withstand the impact of the pandemic in the period under review.
“Our resilient performance continues to showcase the value and strength in our product offering alongside our strategic business model. Our revenues increased by 12.7% to N101.3 billion from the corresponding period in 2019 whilst Operating profits increased by 7.0%, from N38.1 billion in H1’2019 to N40.8 billion in H1’2020. Equally, EBITDA margin improved in this quarter to 48.1% – an improvement from 45.6% in Q1, 2020.”
“In a bid to further drive cost efficiencies and sustainability, we entered into strategic alliances for the supply of Liquefied Natural Gas (LNG) at the Kalambaina, Sokoto State and the management of our mining operations. Given these deliberate and strategic choices amongst other cost management efforts, we continue to combine development and innovation into our offerings and activities,” Binji added.
On the impact of the pandemic on the business, Binji noted that, “despite the prevailing economic conditions, we are quite optimistic about the future because it affords us not only with the opportunity to further evolve our business model but also provides an opportunity for accelerated development. We will continue to push to new markets aided by a focused distribution strategy.”
It should be noted that BUA Cement has also been actively involved in alleviating the impact of the virus on the most vulnerable in society while also supporting the government’s efforts by providing foodstuff, PPEs and medical equipment to host communities amongst others.
- Revenue increases by 12.7% from N9 billion in H1’2019 to N101.3 billion, as at H1’2020
- EBITDA increases by 5.8% from N8 billion in H1’2019 to N47.4 billion, as at H1’2020 (Quarter-on Quarter (q/q), EBITDA margin increases from 45.6% in Q1’2020 to 48.1%, as at Q2’2020)
- Operating profit up 7.0%, from N1 billion in H1’2019 to N40.8 billion in H1’2020
- Profit before Tax (PBT) increases by 9.8% from N7 billion, as at H1’2019 to N39.2 billion, as at H1’2020.
- Profit after Tax (PAT) up by 13.7%, from N61 billion in H1’2019 to N34.8 billion, as at H1’2020,
- Earnings Per Share (EPS) increases by 14.4% from N90 kobo in H1’2019 to N1.03 Kobo, as at H1’2020
- Cement volume dispatched up 7.9% from 2,282 kt in H1’2019 to 2,463 kt, as at H1’2020; underpinned by growing market acceptance, our COVID business continuity plan and particularly, a business environment not inundated by the Coronavirus pandemic
- To boost energy efficiency and reduce energy costs, we entered into strategic alliances for the supply of Liquefied Natural Gas (LNG) for the Kalambaina operations and management of our mining operations
- Continued push to ‘new markets’ aided by a focused distribution strategy
Conference call details
BUA Cement Plc will hold a conference call for analysts and investors on 06 August 2020 at 14:00hrs Lagos (09:00hrs New York, 14:00hrs London, 15:00hrs Johannesburg). To pre-register, please click on this Registration link to receive the dial-in details, which includes the passcode.
A copy of the presentation will be made available before the call and can also be downloaded from the Company’s website at http://www.buacement.com/presentations/
About BUA Cement Plc
BUA Cement Plc is Nigeria’s second-largest cement company and the largest producer in its North-West, South-South and South-East regions; with a combined installed capacity of 8 mmtpa and with plans underway to increase existing capacity to 11 mmtpa, through the commissioning of a new 3 mmtpa plant by the first half of 2021 in Sokoto State, Nigeria. BUA Cement operates strategically from Okpella, Edo State and Kalambaina, Sokoto State.
BUA Cement Plc is the third most capitalised company on the floor of the Nigerian Stock Exchange.
BUA Cement is committed to quality – a differentiating attribute, driven by its people, innovation and technology; and positioned to solving Nigeria and Africa’s challenges while driving economic growth and development.
More information can be found at www.buacement.com
Zenith Bank rewards customers with massive giveaways in the “Zenith Beta Life” weekly promo
The Promo is open to existing and new Zenith Bank customers.
Zenith Bank Plc, Nigeria’s leading financial institution, has commenced its “Zenith Beta Life” Promo to reward customers of the Bank with gifts every week starting from 31st July 2020 to 30th July 2021.
During this period, fifty (50) customers will be selected via raffle draw each week and rewarded with gifts worth NGN30,000.
The Promo is open to existing and new Zenith Bank customers with the following raffle qualifying criteria:
- maintain a minimum deposit of NGN5,000 for the period;
- request and collect a Zenith Bank Card; and
- download and register on the Zenith Mobile App or register for *966# EazyBanking.
Zenith Bank Plc is recognised as one of the most customer-focused financial institutions in the country and was voted the most customer-focused bank in Nigeria for the retail and SME segments in the 2018 KPMG Annual Banking Industry Customer Satisfaction Survey (BICSS).
A clear leader in the digital space with several firsts in the deployment of innovative products, solutions and an assortment of alternative channels that ensure convenience, speed and safety of transactions, Zenith Bank has clearly distinguished itself in the Nigerian financial services industry through superior service quality, unique customer experience and sound financial indices.
In recognition of its track record of excellent performance, Zenith Bank was voted as the Best Commercial Bank in Nigeria 2019 by the World Finance and the Best Digital Bank in Nigeria 2019 by Agusto and Co. The Bank was also recognised as Bank of the Year and Best in Retail Banking at the 2019 BusinessDay Banks and Other Financial Institutions (BOFI) Awards.
More recently, the Bank emerged as the Most Valuable Banking Brand in Nigeria, for the third consecutive year, in the Banker Magazine “Top 500 Banking Brands 2020”, number one Bank in Nigeria by Tier-1 Capital in the “2020 Top 1000 World Banks” Ranking published by The Banker Magazine, Best Bank in Nigeria 2020 in the Global Finance World’s Best Banks Awards 2020, and Bank of the Decade (People’s Choice) at the ThisDay Awards 2020.
Corporate Finance and Business Valuation redefined by Coronation Capital
Professor Aswath Damodaran took his time to provide practical guidance on the entire valuation process.
The word ‘valuation’ has been mistaken by several experts and audiences around the world as the process of pricing an asset. While some believe it is an opportunity for bargaining or negotiation between parties involved, lessons from the just concluded 2nd edition of the Coronation Capital Masterclass, which was tagged Corporate Finance and Business Valuation, suggests otherwise and the expert trainer provided a simplified process for carrying out company valuation.
The facilitator of the Masterclass, Professor Aswath Damodaran of New York University Sterns Business School took his time to provide practical guidance on the entire valuation process to the participants. According to him, “Valuation is not a science or an art, it is a craft that provides a bridge between values and numbers. Valuing an asset is not the same as pricing that asset. Valuation is driven by Cash-flows from existing assets, the growth in those cash flows and quality of the growth (which represents the risk in the process).
The Second edition of the Coronation Capital Masterclass which discussed “Corporate Finance and Business Valuation” with Professor Aswath Damodaran of the New York University Sterns Business School, unlike the first edition was hosted virtually due to the impact of the novel coronavirus on the globe which includes sustained travel restrictions.
Giving his opening remarks the Chairman of Coronation Capital Mr. Aigboje Aig-Imoukhuede said the masterclass was an attestation to the value placed by the Coronation Capital and its ecosystem on valuation of assets and its culture of continuous learning and development. He described himself as a student of Professor Aswath Damodaran and believed it was a privilege to learn from the scholar.
Here are 10 key takeaways from the NYU Finance Professor’s classes during the Coronation Capital Masterclass session.
- Valuation Is not a Science or Art, but a Craft
- Valuing an Asset is not the same as Pricing an Asset
- A Good Valuation is the expression of a Possible, Plausible and Probable story in numbers
- When developing stories from numbers, ensure to connect all drivers of value to valuation and keep the feedback loop open
- All Valuations are biased. The only question is how much and in which direction is the bias
- There is no precise valuation and “You don’t have to be right to make money, you just have to be less wrong than everybody else”
- As companies get larger, it gets more difficult to sustain value-adding growth
- The payoff to Valuation is greatest when it is least precise
- Simpler valuation models do much better than complex ones
- Always question but respect markets. The market is always right
“Valuation is a process that needs to developed, through understanding what the #company does, and ensuring the story is possible, probable, and plausible, it should not sound too abstract”. – @AswathDamodaran
Every Valuation starts with a narrative. In developing that narrative, the critical assessment of the following is crucial in providing a strong base of understanding about the business.
- The company (products, management & history)
- Present and future competition
- Macro environment in which it operates.