- Welcome once again to Nairametrics’ Corporate News Roundup.
- This roundup is for the week ended May 6, 2023 and it’s brought to you courtesy of Quidax.
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We will begin today’s corporate news roundup with some deals news. First, Access Bank is set to acquire yet another bank, even as it has consolidated its stakes in E-tranzact. Meanwhile, fintech firm Nomba (formerly Kudi) raised $30 million. Let’s get to the details.
Access Bank’s new deal
Access Bank received regulatory approval from the Central Bank of Angola to go ahead and acquire a majority equity stake (about 80%) in Finibanco Angola S.A. Nairametrics reported that the bank has already signed agreements with the minority shareholders of Finibanco Angola S.A. Final approval from the Angolan Competition Authority is expected in a matter of days.
Commenting on the development, Dr. Herbert Wigwe who serves as Group CEO of Access Holdings, Access Bank’s parent company, expressed his delight at the acquisition. He noted that the bank’s expertise and value-added services would act as a positive catalyst to foster greater innovation and promote the deepening of the financial sector in Angola.
Access Holdings consolidates stake in E-tranzact
Still on Access Holdings, Nairametrics reported that the financial services group acquired more shares in E-tranzact, increasing its stake in the fintech firm to 37.56% as of December 2022 from 23.8% in 2021.
Information contained in Access Holdings’ Q1 2023 financial statement noted that it now holds an equity interest of 3.45 billion ordinary shares of 50k each in E-tranzact International Plc.
Nomba’s $30 million pre-series B funding round
Nomba, a Nigerian fintech startup, raised $30 million in a Pre-Series B funding round led by San Francisco-based Base10 Partners. The funding round would help Nomba to deliver payment solutions that enable businesses to take advantage of all that is possible in their payment processes to support their continued growth and success.
Since launching in 2016, Nomba has evolved into a profitable, omnichannel payment service provider supporting over 300,000 businesses with a wide range of payment solutions.
Nigerian banks’ customer loans
A special report by Nairametrics showed that Nigerian banks grew their customer loans by 18.2% to N21.17 trillion in 2022, marking a net increase of N3.26 trillion in twelve months. This growth was due to the contractionary monetary policy employed by the Central Bank of Nigeria (CBN) in the second half of 2022, which led to an increase in interest income for banks.
Note that Access Bank recorded the highest customer loans during the period under review, followed by Zenith Bank and UBA. Meanwhile, Stanbic IBTC and Fidelity Bank recorded the highest growth in their loan books. Wema Bank also experienced significant growth.
BUA Foods’ impressive Q1 result
BUA Foods reported an 85% increase in profit before tax for Q1 2023, with earnings per share rising from N1.27 to N2.25. Its sugar division, which contributes 64.6% to revenue, saw revenue surge by 71.7% to N93.2 billion in the same quarter due to increased sales volume, price adjustments, and export sales. The pasta division and flour division also saw revenue growth, but the production volume for pasta decreased by 9%.
The company said it remains committed to its strategic business model to minimize the negative impact of Nigeria’s challenging economic conditions whilst creating long-term value for stakeholders.
Nestle Nigeria’s Q1 2023 financial report
Nestle Nigeria’s unaudited financial statements for Q1 2023 showed a 9.86% decline in profit after tax due to high finance costs from intercompany and bank loans. Despite this, the company’s operating profit increased by 16%, and it plans to pay a dividend of N36.50 per share for the 2022 fiscal year.
The increase in operating profit was due to a rise in sales from its Food and Beverages Strategic Business Units, although operating expenses rose due to inflation and exchange rates. The company plans to focus on revenue generation and innovation to improve its net cash flow from operating activities.
Dangote Cement unveiled plans to start using alternative fuels such as compressed natural gas, amid skyrocketing energy costs. A statement contained in the company’s Q1 2023 earnings report noted that the cost of production rose sharply due to high energy costs.
To combat the situation, Dangote Cement said it will improve its energy efficiencies by improving its energy mix. Specifically, it would use CNG to operate its trucks.
GTCO’s fintech business is booming
Squad by GTCO’s fintech arm, HabariPay, achieved a milestone earlier this year by crossing N200 billion in monthly transactions in January. A statement by the bank further noted that Squad also became profitable in January.
Note that the product was launched in June 2022 and targets micro-merchants, SMEs, large corporates, and Techstars. HabariPay has so far onboarded over 30,000 merchants and counting, with more opportunities to onboard in newer markets on the continent.
Standard Chartered Bank Nigeria Limited appointed Olukorede Adenowo as its new Chief Executive Officer. Adenowo, who has over 35 years of experience in banking, finance, and consulting, was previously the Executive Director of Standard Chartered’s Corporate, Commercial, and Institutional Banking business in Nigeria. Before his recent appointment, he served as the CEO of Standard Chartered Bank, The Gambia, and also held various senior positions in Standard Chartered Bank Group for 24 years.
Adenowo played a significant role in building and managing key strategic financial institution relationships across West Africa in his previous role as Africa Co-Head of Financial Institutions and Public Sector business for SCB. He also served as Head of Origination and Client Corporates for Standard Chartered, West Africa, and Deputy Managing Director of Standard Chartered Bank Cameroon.
UAC Foods’ new CEO
UAC Foods Limited appointed Oluyemi Oloyede as its new Managing Director and Chief Executive Officer, effective March 2023. Oloyede has over 16 years of experience in leading multinational teams and has worked at companies such as Procter & Gamble, Kellogg, and Kerry Group, where he served as General Manager for West Africa.
He holds a First Class Honours degree in Mathematics from Obafemi Awolowo University, Ile Ife, Nigeria, and an MBA from the same institution. Oloyede’s leadership style values growth mindset, grit, diligence, and integrity.
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