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Exclusives

Prices of major food items crash further as local and foreign rice continues to ease off

Major food items such as; tomatoes, onions, pepper, potatoes, local and foreign-made rice recorded a decline in their prices.

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prices of food items, SBM Jollof Index, Smuggling of imported rice hits Lagos major markets, as residence brace for shutdown

The prices of locally-made rice have trickled down across major markets in Lagos State on the back of sustained reduction in the price of foreign-made rice as other major food items such as; tomatoes, onions, pepper, and potatoes record further decline in price.

This is according to the latest market survey, carried out by Nairalytics Research – the research arm of Nairametrics.

According to the report, a 50kg bag of Mama’s Pride rice – a locally produced rice now sells for an average of N22,875, representing a 3.7% decline in price, while a 50kg bag of Royal Stallion rice now sells for an average of N24,250.

Also, the price of a bag of onions (Dry onions) crashed by as much as 23% to sell for an average of N16,500, while a big basket of round shaped tomatoes currently sells for an average of N4,000 as against an initial average of N6,500.

This report contains information on items that witnessed price increase, price decrease, as well as information on special markets and insights.

Items that witnessed price decrease

  • The price of a 10kg size of Mama Gold rice decreased by 4% to sell for an average of N4,225 compared to an initial average of N4,400 recorded two weeks ago.
  • A 50kg bag of Royal Stallion that was previously sold for an average of N24,500, now sells for an average of N24,250. This represents a 1% decline in price.
  • Also, the price of a 50kg bag of Mama Gold rice now sells for an average of N24,250 as against an initial average of N24,875.
  • A 50kg bag of Mama’s Pride rice, initially sold for an average of N23,750 now sells for an average of N22,875, representing a reduction of 3.7%.
  • The biggest basket of Irish potatoes that was sold for an average of N25,000 two weeks ago now sells for an average of 17,000. This represents a 32% decline in price.
  • Also, a medium-sized basket of Irish potatoes now sells for an average of N2,200 as against N2,600 recorded earlier in the month.
  • The price of a big basket of round shaped tomatoes dipped by 38.5% to sell for an average of N4,000 compared to an initial average of N6,500.
  • A medium-sized basket of round shaped tomatoes that was initially sold for an average of N3,000 now sells for an average of N1,500. This represents a decline in price of 50%.
  • A big bag size of pepper now sells for an average of N7,250 compared to an initial average of N7,750 representing a decline in price of 6.5%.
  • Also, the price of a medium-sized bag of pepper declined by 6.7% to sell for an average of N3,500 compared to an initial average of N3,750.
  • A big bag of dry onions currently sells for an average of N16,500 as against an average of N21,500 recorded two weeks ago. This represents 23.3% reduction in price.
  • The price of a big bag size of new onions also reduced by 24.2% to sell for an average of N12,500 compared to an initial average of N16,500.
  • A big bag of melon now sells for an average of N43,500. A 3.3% decline when compared to an initial average of N45,000.

Items that witnessed price increase

  • The price of a 50kg bag of honey beans popularly known as “oloyin” increased by 7.6% to sell for an average of N21,875 compared to an initial average of N20,333 while a bag of white beans of the same size grew by 9.6% to sell for an average of N46,750.
  • A big bag of Bush mango seed popularly known as ogbono now sells for an average of N120,000 representing an increase of 14.3% from an initial average of N105,000.
  • A Nylon of crayfish that was initially sold for an average of N14,250 now sells for an average of N14,750. This represents a 3.5% increase in price.
  • A 50kg bag of yellow maize now sells for an average of N24,625 from an initial average of N23,333 while a bag of white maize of the same size now sells for an average of N24,500.
  • The price of a crate of egg increased by 7.2% to sell for an average of N1,300 as against an initial average of N1,213.
  • A 25 litres gallon of vegetable oil that was sold for an average of N16,625 two weeks ago has increased by 9% to sell for an average of N18,125.
  • Also, a 5 litres gallon of vegetable oil now sells for an average of N3,550 as against an initial average of N3,425 recorded earlier in the month.
  • A big basket of sweet potatoes currently sells for an average of N6,500 representing an increase in price of 8.3% compared to an initial average of N6,000.
  • A 50kg bag of white garri that was initially sold for an average of N10,750 now sells for an average of N12,750. This translates to an 18.6% increase in price.

Items that maintained initial prices

  • A 50kg bag of brown beans continues to sell for an average of N30,000 same as recorded two weeks ago.
  • A big tuber of yam still sells for an average of N1,000 while a medium-sized tuber sells for an average of N588.
  • A 50kg bag of Ijebu garri continues to sell for an average of N14,375, while yellow garri sells for an average of N11,125.
  • A 50kg bag of Honey well and Mama Gold flour sells for N13,950 and N13,850 respectively, while a bag of Dangote flour sells for an average of N13,750.
  • A 25 litres gallon of palm oil sells for an average of N13,000 while a 5 litres size sells for an average of N2,675.
  • Horse fish (Kote) and Titus fish still sell for an average of N613 and 638 respectively across markets in Lagos.
  • A carton of full chicken sells for an average of N14,125, Chicken lap also sells for an average of N13,875 while a carton of turkey is sold for an average of N18,500.
  • A 12.5kg cylinder of cooking gas is filled for an average of N3,975, while a 5kg cylinder is filled for an average of N1,750
  • Amongst the list of food items that maintained their initial prices include: noodles, beverages, cocoa drinks, sugar, water, and juice.

Special markets/items

  • Nairalytics could sight customers and traders at the onion section of the Mile-12 market bantering with each other, as a customer was seen exercising bargaining power at the market. “Now that the price of onions has reduced drastically, it is our time to do shakara for you,” she teased.
  • Recall that a big bag of Onions was sold for as high as N90,000 last year due to seasonal fluctuation and other factors, but now at an average of N16,500, it represents an 81.7% decline in price.
  • The increase in the price of egg was attributed to increase in the prices of Chicken and their feeds. Notably, in a conversation with an egg supplier at Mushin market, she explained to Nairalytics that the increase in the price of items used in the production of chicken feeds such as maize, soya beans has caused increase in the price of chicken, consequently affecting the cost of eggs.
  • Below is a price list of various 50kg size brands of rice as obtained from Daleko market – Local rice; Big Bull (N24,000), Mama Pride (N22,500), Mama’s Choice (N22,500), Umza (N22,000), Solar (N22,500), Three Brothers (N22,500), Labana (N21,500), Ma Nasarawa (N18,000), Royal Naija (N18,000).
  • While Foreign rice – Cap Cap (N24,000), Royal Stallion (N24,500), Tomato (N24,000), Caprice (N24,500)

Market insights

  • The reduction in the price of local rice has been attributed to the decline in the price of foreign rice, owing to the reopening of land borders across the country. According to a rice dealer at Daleko market popularly known as “Iya Nike” she explained that due to the influx of foreign rice into the country, locally made rice are forced to drive their prices down so as to remain competitive in the market.
  • She further explained that some brands of local rice now sell for as low as N18,000 but expressed her worries as some brands of locally made rice and foreign rice are now sold for relatively the same price, depending on the quality of the product, which could affect the sales of locally made rice in the country.
  • Meanwhile, traders of tomatoes at Mile-12 market have attributed the significant decline in the price of tomatoes to seasonal fluctuation. Malam Audu, a trader at the tomatoes section of Mile-12 market, explained that it is normal for the prices of tomatoes to reduce by this time of the year, due to season. “this is the time of the year that the price of tomatoes usually reduces because we just harvested and there have been large inflows of the product into the market” He said.
  • It is worth noting that there is only round-shaped tomatoes in the market and oval-shaped variant of the item is yet to be sighted in any the markets covered.
ItemsBrandUnitMUSHIN (21/1/2021)DALEKO (21/1/2021)OYINGBO (21/1/2021)MILE 12 (21/1/2021)Average MUSHIN (7/1/2021)DALEKO (7/1/2021)OYINGBO (7/1/2021)MILE 12 (7/1/2021)Average
Bag of RiceMama Gold10kg440042004200410042253.977272727272744004200450045004400
Bag of RiceRoyal Stallion50Kg24500240002450024000242501.02040816326532500024000250002400024500
Bag of RiceRice Master10kg NA410041004.6511627906977 NA43004300
Bag of RiceMama Gold50kg24000240002450024500242502.51256281407042500024000245002600024875
Bag of RiceCaprice50kg240002400024000240002400002500022000240002500024000
Bag of RiceMama's Pride50kg23000225002300023000228753.68421052631582300024000240002400023750
Bag of BeansOloyin50kg2200022000220002150021875-7.581967213116520000210002000020333.333333333
Bag of BeansWhite50kg4800048000460004500046750-9.570312499999140000450004300042666.666666667
Bag of BeansBrown50kg320003000030000280003000003200030000300002800030000
Tuber of YamAbuja1 Big Size Tuber100090011001000100001000900110010001000
Tuber of YamAbuja1 Medium Size Tuber550600550650587.50550600550650587.5
Carton of NoodlesIndomie305g (Belle full)32003250330033003262.5032003250330033003262.5
Carton of NoodlesIndomie200g (Hungry man)32003200320032003200032003200320032003200
Carton of NoodlesChikki100g22002200210023002200022002200210023002200
Carton of NoodlesMinimie70g19001750170018001787.5019001750170018001787.5
Carton of NoodlesGolden Penny70g17001500160016001600017001500160016001600
Bag of GarriIjebu80kg145001400014500145001437501450014000145001450014375
Bag of GarriWhite50kg1250012000140001250012750-18.6046511627911050011000110001050010750
Bag of GarriYellow50kg110001100011500110001112501100011000115001100011125
Basket of PotatoSweetBig Basket65006500-8.333333333333360006000
Basket of PotatoSweetSmall Basket7007507250700750725
Basket of PotatosweetSmallest Basket4003003500400300350
Basket of PotatoIrishBiggest Basket18000160001700032250002500025000
Basket of PotatoIrishMedium Basket2200220015.38461538461526002600
Basket of PotatoIrishSmall Basket15001400145012.121212121212170016001650
Packet of PastaGolden Penny500g44004400430042004325044004400430042004325
Packet of PastaDangote500g42004300430043004275042004300430043004275
Packet of PastaPower (1 pc)500g2502302502302400250230250230240
Packet of PastaBonita (1 pc)500g2202302302202250220230230220225
Gallon of Palm OilLocal5 Litres27002600280026002675027002600280026002675
Gallon of Palm OilLocal25 Litres130001300013000130001300001300013000130001300013000
Gallon of Vegetable OilLocal5 Litres36003600350035003550-3.649635036496334003400350034003425
Gallon of Vegetable OilLocal25 Litres1800018000180001850018125-9.02255639097741600017000170001650016625
Gallon of Vegetable OilKings5 Litres32003000300028003000032003000300028003000
Gallon of Vegetable OilWesson5 Litres45003900390043004150045003900390043004150
Gallon of Vegetable OilMamador3.8 Litres25002450250028002562.5025002450250028002562.5
Gallon of Vegetable OilPower3 Litres19001800180022001925019001800180022001925
Bunch of PlaintainPlantain1 Big Bunch5006005006005500500600500600550
Bag of FlourDangote50kg136001360013800140001375001360013600138001400013750
Bag of FlourHoney well50Kg140001360014000142001395001400013600140001420013950
Bag of FlourMama Gold50kg138001360014000140001385001380013600140001400013850
MilkPeak Powdered (Tin)400g12001300120012501237.5012001300120012501237.5
Milkpeak Powdered(Tin)900g28002750270027502750028002750270027502750
MilkPeak milk (Refill)500g12001100120012001175012001100120012001175
MilkDano Powdered (Tin)500g12001200110012001175012001200110012001175
MilkDano Powdered(Tin)900g26002500240025002500026002500240025002500
MilkDano (Refill)500g100095010001000987.50100095010001000987.5
MilkThreeCrown (Refill)380g8007508007507750800750800750775
MilkLoya Powdered (Tin)400g10001100110010501062.5010001100110010501062.5
MilkLoya (Refill)400g900800850800837.50900800850800837.5
MilkCoast (Refill)500g7507507507507500750750750750750
Cocoa BeveragesMilo (Tin)500g15001450150014501475015001450150014501475
Cocoa BeveragesMilo (Tin)1kg25002450240025002462.5025002450240025002462.5
Cocoa BeveragesMilo Refill500g11001100100011001075011001100100011001075
Cocoa BeveragesBournvita Refill500g13001300120013001275013001300120013001275
Cocoa BeveragesBournvita (Plastic)900g22002200230022002225022002200230022002225
Cocoa BeveragesOvaltine Refill500g10009001000950962.5010009001000950962.5
Cocoa BeveragesOvaltine(Plastic)500g15001500145014001462.5015001500145014001462.5
CoffeeNescafe Classic50g6006006006006000600600600600600
TeaLipton Yellow label52g300290300300297.50300290300300297.5
TeaTop tea52g3003003003003000300300300300300
SugarSt' Louis Sugar(Cube) 500g600600600550587.50600600600550587.5
SugarGolden Penny Sugar (cube)500g400350400400387.50400350400400387.5
BreadVal-U1 loaf4504504504504500450450450450450
BreadButterfield1 loaf450450400450437.50450450400450437.5
EggN/ACrate13001300130013001300-7.216494845360812001200125012001212.5
Bottled Water (Refill)CwayRefill600650600600612.50600650600600612.5
Juice5 Alive1 litre550550550600562.50550550550600562.5
JuiceChivita1 litre550550600550562.50550550600550562.5
GasRefilling12.5kg40004000390040003975040004000390040003975
GasRefilling5kg17001800180017001750017001800180017001750
TomatoesBig Basketround shaped4000400038.46153846153865006500
TomatoesMedium Basketround shaped150015005030003000
TomatoesSmall Basketround shaped110011005625002500
TomatoesBig BasketOval ShapedNANA
TomatoesSmall BasketOval ShapedNANA
FishKote (Horse Mackerel)1 kg650600600600612.50650600600600612.5
FishTitus (Mackerel)1 kg600650650650637.50600650650650637.5
PepperBig bag7500700072506.4516129032258800075007750
PepperMedium bag3500350035006.6666666666667400035003750
MaizeYellow2500025000235002500024625-5.535714285715825000220002300023333.333333333
MaizeWhite2500025000235002450024500-5.755395683451725000225002200023166.666666667
MelonBig bag4400043000435003.3333333333333450004500045000
OnionsBig bagDry Onions18000150001650023.255813953488260001700021500
OnionsBig bagNew Onions13000120001250024.242424242424200001300016500
Bush mango seed(Ogbono)1 big bag120000120000-14.285714285714105000105000
Frozen foodFull chickenCarton140001450014000140001412501400014500140001400014125
Frozen foodChicken lapCarton135001400014000140001387501350014000140001400013875
Frozen foodTurkeyCarton18000185001900018500018000185001900018500
CrayfishNylon145001500014750-3.5087719298246140001450014250

About Nairametrics Food Price Survey

Nairametrics Food Price Watch is a bi-weekly Household Market Survey that covers the prices of major food items in Nigeria, with emphasis on five major markets in Lagos – Mushin market, Daleko market, Oyingbo market, Idi-Oro market, and Mile 12 market.

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Sigma Pensions

Nairametrics Research team tracks, collates, maintains and manages a rich database of macro-economic and micro-economic data from Nigeria and Africa. Our analysts share some of the data collated on Nairametrics, using formats such as docs, tables and charts etc. The team also publishes research based analysis as articles on a regular basis.

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    Blurb

    Is something fishy going on at Custodian Plc?

    Custodian stock hit a year high just as it announced a Convertible Loan Instrument set to be approved at its AGM.

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    Custodian Investment Plc. announces board meeting and closed period, Custodian Investment Plc. announces board meeting and closed period

    Custodian Plc, one of the largest insurance companies in Nigeria is currently trading at a new year high of N7.10 and is up 21% year to date. Nairametrics Blurb team has in recent days noticed an upsurge in its share price especially since the company announced its AGM.

    As we pen this article, about 2.9 million units have exchanged hand at a share price of N7.

    The stock is included in the Pension Index and by some measure quite illiquid. It is also one of the stocks recommended in our Premium Service Stock Select Newsletter thus the need for further introspection.

    READ: Buy what? GTBank vs Zenith Bank

    Custodian Investment AGM

    Typically, when companies announce AGMs we are keenly curious as this is where decisions that can ultimately affect shareholders (especially smaller retail investors) are approved.

    In its recent filings, the company stated as follows in item 10.

    That the Board of Directors of the Company be and is hereby authorised to:

    (a) raise the Naira equivalent of up to $15,000,000.00 (Fifteen Million US Dollars), as additional capital through a convertible loan instrument;

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    Sigma Pensions

    (b) convert the loan in the Naira equivalent of up to $15,000,000.00 (Fifteen Million US Dollars) into shares in the Company (the “Conversion Shares”) at a conversion price, being the higher of N6 per share or the 12-month historical average daily share price of the Company derived from the Daily Official List of The Nigerian Stock Exchange (for the period ending on March 23, 2021), subject to adjustment upon the occurrence of certain adjustment events;

    (c) allot the Converted Shares to the Lender upon the exercise by the Lender of its right to convert the Loan into shares in the Company, subject to applicable law; and

    (d) take steps necessary or reasonably desirable to give effect to the foregoing resolutions and for effecting any transactions pursuant thereto, including the appointment of professional advisers, and the obtention of relevant regulatory approvals.

    READ: Notore Chemicals is swimming in debts – company to access equity market in Q2 2021

    What this means?

    In simple English, the directors of Custodian are seeking the approval of its shareholders to borrow $15 million (N6.1 billion) in convertible loan instrument.

    Stanbic 728 x 90

    A convertible loan instrument is simply a loan that you can convert into shares if the lender so wishes. The share price for conversion are predetermined and in this case, they stated N6 per share or the 12-month historical average daily share price of the company’s stock.

    If the lender does decide to convert the loans to shares at the current share price of N6 per share, it means about 1 billion shares will be offered to the lender, an equivalent of 17.4% of the total outstanding shares of the company. This loan is in effect, a potential dilution of existing shareholders of the company if it is approved at the AGM.

    So why is the company seeking a convertible loan or even diluting its shareholders?

    READ: Gains on quoted investment stocks rescued Custodian Investment Plc from loss in Q3 2020

    Fishing around for why

    Typically when a company decides to raise money via a convertible loan instrument, they are looking for lower interest rates, debt that avoids the burden of periodic repayment, and/or looking to delay when the actual equity is issued. There are also tax considerations at play but not as significant as the ones mentioned above.

    Except, Custodian is looking to purchase another asset, after it bought UPDC, we do not understand why it will be looking to raise capital huge enough to dilute existing shareholders. It also did not explain why it is seeking to raise the said capital in its AGM Notice, a slight departure from the norm in cases like this.

    • Custodian is also highly capitalized with a Net Asset of about N46 billion and a balance sheet size of N176.1 billion (after the acquisition of UPDC) as of 2020.
    • Suffice to add that the company recently paid shareholders about N2.6 billion in dividends, making us wonder why it is seeking to dilute shareholders when it could have just ploughed that amount to its capital raising needs.
    • In fact, the dividends paid in 2020 was just 21% of profits, meaning it had retained about N10 billion in profits made during the year. Again, why does it need N6.1 billion in loans?
    • Custodian also has a thriving insurance business which fetched it about N58 billion in gross premium income out of which N32 billion was from non-life. Again, why does it need N6.1 billion on convertible loans?
    • The company currently carries a debt of about N5.5 billion which was inherited from its acquisition of UPDC. The debt is mostly a bond issued at an interest rate of 16% per annum and due for full liquidation in 2023.
    • There is no rush to pay down this debt.

    READ: NPF Microfinance vs C&I Leasing: A tale of two rights offer

    What then?

    We are lost as to why the company is looking to raise this capital and can only now think of two reasons. Firstly, could it be the existing shareholders looking to tighten their stake in the company? Custodian’s majority shareholders are Gratitude Capital Limited and Mikeade Investments Limited with 22.48% and 15.72% respectively.

    • The company CEO Oluwole Oshin represents Gratitude Capital while Business Mogul Micheal Ade (Elizade) owns Mikeade Investments Limited. Could it be either of these two investors looking to up their stakes?
    • There could also be a reason for this back door approach. About 74.5% of the company is owned by just 20 shareholders so it is clear that increasing majority stake will be difficult to achieve.
    • The other reason is perhaps an institutional investor looking to acquire a significant stake in the company through the backdoor. Is this plausible?

    READ: Investors react to Fidelity’s bond listing, as it gains N1.74 billion

    Well, these are speculations that only Cusdotian can confirm. We hope they do so as soon as possible.

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    Continue Reading

    Exclusives

    EXCLUSIVE: Best performing banks in Nigeria judging by the numbers

    Nairametrics analysed the best banks in Nigeria based on their performance in 2020.

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    Nigerian banks, Banks with the Highest Social Media Followers

    The year 2020 was a remarkable year for the Nigerian banking industry as different policies such as the GSI policy, loan restructuring, etc., were issued in the industry’s favour. The industry became more competitive in the year, with each of the banks striving to increase its market size and revenue.

    Tracking the public information of listed banks on the NSE, we analysed them based on popular metrics to determine the leading players in the industry. For the analysis, the full year 2020 results of the following banks were tracked: Access, FBN, FCMB, Fidelity, GTB, Jaiz, Stanbic IBTC, Sterling, Union, UBA, Wema, and Zenith Bank. Ecobank was not considered in the analysis as the bank operates efficiently in other markets besides Nigeria.

    The key metrics considered in these analyses are Total Assets, Net Assets, Total Deposits, Profit After Tax, Return on Equity, and Return on Total Assets.

    READ: Banks spend N12.2 billion on travel expenses in 2020

    Leading Banks by Total Assets

    An analysis of the combined assets of the 12 listed banks that have released their full-year (2020) results (Ecobank excluded) showed that the total assets increased by 27.9% from N38.7 trillion to N49.4 trillion. The increase indicates the stronger financial position of the banks.

    Among the 12 banks listed in Nairametrics tracker, the following are the leading banks.

    First position – Access Bank: N8.7 trillion
    Second position – Zenith Bank: N8.5 trillion
    Third position – UBA: N7.7 trillion
    Fourth position – FBN Holdings: N7.7 trillion
    Fifth Position – GTB: N4.9 trillion

    Upshots – Access Bank and Zenith Bank maintained their positions as the banks with the highest total asset in 2020. UBA however, overlooked FBN to stand in the third position, while FBN declined to fourth on the list. Among the leading banks (FUGAZ), UBA had the highest year-on-year growth of 36.95% in 2020, while in the industry generally, Jaiz bank had the highest growth in total assets of 39.3%.

    Sigma Pensions

    Net Assets

    The net asset represents the remainder when all liabilities have been subtracted from the bank’s total asset. It indicates the shareholders’ funds in the banks. Due to the depository nature of commercial banks and the ability of banks to greatly increase their liabilities, the metric is adopted by the CBN in assessing the banking sector’s ability to withstand credit losses.

    The combined net asset of our 12 analysed banks increased by 17.9% in 2020 with the largest growth of 25.3% coming from Stanbic IBTC.
    The leading banks based on net assets are:

    First Position – Zenith Bank: N1.1 trillion
    Second Position – Guaranty Trust Bank: N814.4 billion
    Third Position – FBN Holdings: N765.2 billion
    Fourth Position – Access Bank: N751.0 billion
    Fifth Position – UBA: N724.1 billion

    Upshots: It is observed that all the banks had significant increases in their net asset in 2020 while the top ones also maintained their positions. However, Union Bank and Wema Bank recorded the least growth in net assets with a 4.75% and 5.9% increase respectively. Zenith Bank’s net asset grew by 18.6%, Guaranty Trust Bank by 18.5%, FBNH by 15.7%, Access bank by 23.8%, and UBA by 21.1%.


    Customer Deposits

    Customer deposits remain one of the most competitive items in the banking sector since it is from deposits that loans are issued out and other investments are made.

    Stanbic 728 x 90

    The total customer deposits of the tracked banks increased by 32.1% in 2020. The bank with the highest growth in customer deposits during the period was UBA growing by 48.1%, from N3.8 trillion at the end of 2019 to N5.7 trillion as of April 31st, 2021.

    The leading banks based on Customer Deposits are:

    First Position – UBA: N5.7 trillion
    Second Position – Access Bank: N5.6 trillion
    Third Position – Zenith Bank: N5.3 trillion
    Fourth Position – FBN Holdings: N4.9 trillion
    Fifth Position – GTB: N3.5 trillion

    Upshots: UBA grew significantly in 2020, moving from fourth place in 2019 to the bank with the highest customer deposits at the end of 2020. Generally, all the banks recorded customer deposits growth higher than 20% in 2020 with the exemption of Jaiz bank and sterling bank which grew by 7.2% and 6.5% respectively.


    Profits After Tax

    Due to the increased capacity seen in the growth of total assets of the banks, the banks under our radar delivered improved PAT except for Fidelity, and Wema Bank.

    Banks that declared the most profits are;

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    First Position – Zenith Bank: N230.6 billion
    Second Position – Guaranty Trust Bank: N201.4 billion
    Third Position – UBA: N113.7 billion
    Fourth Position – Access bank: N106 billion
    Fifth Position – Stanbic IBTC: N83.2 billion

    Upshots: Zenith Bank and GTB outperformed their peers as done in previous years. Also, UBA again outgrew its 4th position in 2019 moving up the ladder to the third position at the end of 2020. However, in terms of growth in PAT, UBA also grew highest by 27.7% in the period under review.


    Return on Equity

    The return on equity is an important metric that shows the percentage of profit made on every N1 of the shareholders’ fund. It is used to measure the performance and efficiency of the banks.

    This metric will show how well banks have maximised the increase in shareholders’ wealth they enjoyed in 2020.

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    The leading banks based on ROE are

    First Position – Guaranty Trust Bank: 26.8%
    Second Position – Stanbic IBTC Holdings: 24.4%
    Third Position – Zenith Bank: N22.4%
    Fourth Position – Jaiz Bank: N17.4%
    Fifth Position – UBA: 17.21%

    Upshots- Sequel to the increase in total assets and PAT of GTB, the bank was able to achieve the greatest efficiency in the industry delivering a return rate of 26.8% to its shareholders.


    Return on Assets

    This metric measures the ability of a bank to sweat its assets and deliver the highest possible profits. In the earlier section of the report, we stated that banks recorded significant increase in their assets, however, the ROA was lower. The ROA is a better measure of efficiency since it takes into cognition the bank’s usage of customer’s deposits.

    Best banks based on ROA are:

    First Position – Guaranty Trust Bank: 4.6%
    Second Position – Stanbic IBTC Holdings: 3.8%
    Third Position – Zenith Bank: 3.1%
    Fourth Position – UBA: 1.7%
    Fifth Position – Jaiz Bank: 1.5%

    Upshots: A similar result is seen in ROA just as seen in ROE. The average industry ROA was 2.05% and Access (1.3%), FBN (1.1%), FCMB (1.1%), Fidelity Bank (1.2%), Sterling bank (0.9%), Union bank (1.2%) and Wema bank (0.6%) all performed below the industry average.

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