Connect with us
Paramount
Advertisement
Ican
Advertisement
IZIKJON
Advertisement
Polaris bank
Advertisement
Binance
Advertisement
Esetech
Advertisement
Patricia
Advertisement
Fidelity ads
Advertisement
Stallion ads
Advertisement
app

Market Views

PayPal’s crypto users spend more time on its platform

PayPal had an addition of 16 million in net new active accounts and processed $277 billion in total payment volume.

Published

on

Paypal drops out of partnership with Facebook’s Libra 

In Q4, 2020, the leading online payment juggernaut, PayPal, had an addition of 16 million in net new active accounts and processed $277 billion in total payment volume.

PayPal’s earnings result is coming out since it started allowing its clients to buy and sell crypto in 2020. It removed the waitlist for Bitcoin, Ethereum, Bitcoin Cash, and Litecoin to all of its 350 million users on November 12, 2020.

Customers who bought such digital assets through its online platform have been spending twice as much time as they were before buying crypto, Paypal said in its investor update.

READ: PayPal acquires shopping browser extension company for $4 billion

“The volume of crypto traded on our platform greatly exceeded our projections,” PayPal CEO Dan Schulman said on the company’s Q4 earnings call. “We’re excited to build on this early success by allowing customers to use their crypto balance as a funding source… We hope to launch our first international market in the next several months.”

PayPal’s transaction revenue surged by around 12% from Q3 to $5.7 billion. It also stated it would categorically recognize transaction revenue from its crypto sales and purchases, but it would not include such transactions related to crypto in its total payment volume.

READ: $70 billion lost in Crypto market amid rising U.S dollar

“PayPal has been working with regulators and central banks to shape the “next generation of the financial system,” Schulman said. “PayPal is also investing in its crypto business unit,” he added.

In response to an expert’s question on possible acquisitions while digital asset prices are high, Paypal Chief Financial Officer, John Rainey, said that the firm’s appetite for acquisitions is a “multi-year” strategy, but that it’s in a good position to make one.

READ: World’s biggest asset fund manager says Bitcoin has a bright future

“We are unique in the fintech ecosystem as we enjoy outsized growth rates and are profitable,” Rainey said. “That allows us the ability to have this asset where we can look at inorganic opportunities to complement what we’re doing.”

bitcoin train

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Follow Olumide on Twitter @tokunboadesina or email [email protected] He is a Member of the Chartered Financial Analyst Society.

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Financial Services

Jim Ovia is set to earn N9.58 billion in dividend for FY 2020

The highly revered banker is the single majority shareholder of Zenith Bank as he directly owns 3,546,199,395 units of the fast-rising bank stock.

Published

on

Jim Ovia: From a clerk to founder of Nigeria's most profitable bank

The founder and Chairman of Zenith Bank Plc, Mr. Jim Ovia is expected to earn a massive sum of N9.575 billion in dividend for the financial year ended December 2020

The highly revered banker is the single majority shareholder of Zenith Bank as he directly owns 3,546,199,395 units of the fast-rising bank stock out of the 31,396,493,787 ordinary shares available. This gives him an 11.29% direct interest in the Tier -1 bank.

It’s however important to note that such dividend is subject to a 10% withholding tax in Nigeria.

READ: Is Zenith Bank thriving on the strength of sound financial indices?

Recall that about a day ago, the Board of Directors of the bank in a statement released via the Nigerian Stock Exchange proposed a final dividend of N2.70, amounting to a total payout of N3.00 per share for the financial year 2020 (interim: N0.30).

This proposal reflects the past year’s robust performance and appears to signal that Zenith bank remains well-positioned to perform in the current financial year. However, there was a lower payout ratio at 40.9% compared to FY’19 (42.1%).

  • Key earnings drivers to the financial year performance under review were a 90 basis points drop in the cost of funds to 2.1%, which propelled net interest income (+12.2% YoY) and a 3.8x jump in revaluation gains to N43.4 billion.
  • These offset pressures from operating costs (the cost to income ratio rose 1.2ppts to 50.0%) and impairment charges (cost of risk rose 40basis points to 1.5%)

READ: Jim Ovia: From a clerk to founder of Nigeria’s most profitable bank

Described as the ‘Godfather of banking in Nigeria’ by Forbes Africa, Jim Ovia is quite popular for his business dexterity and leadership skills, especially in the banking sector.

His early interest in technology was the reason Zenith Bank became the first Nigerian company to have a functional website in 1995 and was able to smoothly migrate its operations from analog times to a digital era.

From a single branch in a residential building, Zenith Bank now has hundreds of branches all over Nigeria and several subsidiaries in other countries. The bank became a Public Limited Company in 2001 and was listed on the Nigeria Stock Exchange (NSE), and later on the London Stock Exchange (LSE).

On the 27th of April 2007, Zenith Bank Plc became the first Nigerian bank in 25 years to be licensed by the UK Financial Services Authority (FSA), giving rise to Zenith Bank UK Limited.

Continue Reading

Market Views

Zenith Bank’s stellar earnings pause bearish trend at Nigerian bourse

Zenith Bank had earlier released its audited financial year 2020 results showing impressive growth on the back of a stellar Q4 outing.

Published

on

Zenith Bank GMD Ebenezer Onyeagwu, Central Bank of Nigeria, CBN's loan-to-deposit ratio policy, Nigerian Stock Exchange NSE stocks, Banks in Nigeria, Deposit Money Banks in Nigeria, Zenith Bank collaborates with fintechs, but insists it is not scared to compete with them, Zenith Bank sets withdrawal limit for customers, as dollar sells for N400, NIGERIA| ZENITH BANK: Revaluation gains support marginal profit growth

The Nigerian bourse ended the second trading session slightly positive amid impressive gains from Zenith Bank. The All Share Index improved by 0.03% to 40,164.86 index points. Year-to-date return and market capitalization settled at -0.26% and N21.01 trillion respectively.

A total volume of 337.9 million units of shares, valued at N3.84billion exchanged hands in 4,164 deals.

The most traded stocks by volume were FBNH (64.58 million units), ZENITHBANK (52.67 million units), TRANSCORP (41.98 million units) and while ZENITHBANK (N1.34 billion), FBNH (N471.80 million) and UBA (N128.22 million) topped the value chart.

AIICO (+7.14%) led the gainer’s chart today, while SUNUASSUR (-9.88%) was the top loser. However, the market breadth index was negative with 16 gainers against 24 losers.

Top gainers

  1. AIICO up 7.14% to close at N1.2
  2. LIVESTOCK up 7.14% to close at N2.25
  3. FLOURMILL up 6.16% to close at N31
  4. ZENITHBANK up 4.84% to close at N26
  5. CUTIX up 4.65% to close at N2.25

Top losers

  1. SUNUASSUR down 9.88% to close at N0.73
  2. LASACO down 9.87% to close at N1.37
  3. AFRIPRUD down 9.85% to close at N5.95
  4. ABCTRANS down 8.57% to close at N0.32
  5. UPL down 8.53% to close at N1.18

Outlook

Nigerian stocks ended Tuesday’s trading session on a slightly positive note amid stellar performance for Nigeria’s top tier-1 bank.

  • Zenith bank, some hours ago had earlier released its audited financial year 2020 results showing impressive growth on the back of a stellar Q4 outing.
  • In FY’20, the tier1 bank recorded a 10.4% YoY jump in profit after tax to N230.6 billion (vs N211.6 billion expected).

That being said, the Nigerian Stock Exchange consumer goods and insurance indices fell by 1.61% and 0.92% respectively. On the flip side, the NSE banking index closed as the lone gainer, up by 1.68%, while the industrial and energy indexes remained unchanged.

Nairametrics recommends you seek the advice of a stockbroker amid price volatility presently prevailing at medium and low capitalized stocks.

Continue Reading
Advertisement




Advertisement

Nairametrics | Company Earnings