This week on Market Watch, Zenith Bank and UBA came through like “We no just dey talk, we dey show workings” as host Frank Fagbo, Mukhtar Muhammad, and Idika Aja took a close look at the Nigerian market, helping investors understand what’s really happening.
The show began with a focus on the first half (H1) results of Zenith and UBA, as Mukhtar pointed out a positive surprise in dividends.
Many people thought banks wouldn’t pay dividends until 2027 or 2028 due to regulatory restrictions, but Zenith sent a strong signal by increasing its dividend by 25%, showing confidence in its earnings.
Idika added that both banks’ core earnings were solid and impressive, with net interest income reaching about N1.3 trillion.
However, he noted that losses from foreign exchange transactions affected the final figures.
For his part, Mukhtar stayed optimistic, stressing that Zenith’s second half of the year has been known to outperform the first, thus there’s reason to expect good things ahead.
However, he noted that losses from foreign exchange transactions affected the final figures. Mukhtar stayed optimistic, saying Zenith’s second half of the year usually performs even better than the first, so there’s reason to expect good things ahead.
Next, Sterling Bank announced plans to raise N87 billion by offering 12.8 billion new shares at N7 each. Idika mentioned that this price is below the current market value. At the same time, Mukhtar expressed confidence, saying the Nigerian banking sector is strong and “I don’t think any bank will struggle to raise capital.”
Additionally, Seplat also shared an ambitious five-year growth plan as Idika explained that the company expects $5–6 billion in cash flow from operations and aims to reach 200,000 barrels of oil per day by 2030.
On the global front, the US Federal Reserve’s decision to cut rates is viewed as positive for both stocks and fixed-income investments, which could encourage more international capital to flow into Nigeria.
Idika ended the conversation by noting that Treasury Bills attracted more buyers than were available, which indicates strong demand from investors eager to secure current returns before any potential interest rate cuts.
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