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UBA, Intercontinental, Access Bank increase investors’ returns
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The capital market year ended December 31, 2007 saw most of the stocks listed on the Nigerian Stock Exchange (NSE) dropping in share prices. Some other stocks like United Bank for Africa Plc, Access Bank Plc and Intercontinental Bank Plc made the year beautiful for investors through bounty returns on their investments.
The banks made great lifts during the month of November 2007 with investors that staked their money in them smiling home with pockets filled with profits from their investments. During the month under review, Intercontinental Bank resumed trading at N27.00, appreciated N4.50 or 16.67 percent to close at N31.50. The same month, Access Bank appreciated by N1.32 or 6.88 percent from N19.19 to close at N20.51 while UBA Plc closed at N50.15 from N50.11 after gaining 4 kobo or .08 percent.
During the month, United Bank for Africa (UBA) recorded a total supplementary listing of 2,709,851,409 billion additional shares through its Right Offering and Initial Public Offering while Intercontinental Bank listed 549,452,531 million shares through Right Offering and Initial Public Offering.
Intercontinental Bank was the most capitalized stock listed on the exchange during the month with a total of 18,536,774,979 units that value N583.908 billion at N31.50 per share. United Bank for Africa (UBA) followed behind 11,290,-279,980 units that worth N566.207 billion at N50.15 per share.
The report of the stock market for the week ended December 14, 2007 indicated a total turnover of 2.4 billion shares worth N39.62 billion in 55,435 deals in contrast to a total of 3.5 billion that was exchanged the preceding week in 59,639 deals.
Although, the Insurance sub-sector led other sub-sectors in activities that was measured by turnover volume, with 1.12 billion shares worth N3.22 billion that changed hands among investors in 10,840 deals.
Trading in the shares of International Energy Insurance Plc, Lasaco Assurance Plc and NEM Insurance Co. Plc accounted for 563.9 million shares, representing 50.5 percent of the sub-sector’s turnover.
As in the preceding week, the Banking sub-sector, boosted by activity in the shares of Intercontinental Bank Plc, Unity Bank Plc and Guaranty Trust Bank Plc followed on the week’s activity chart with a turnover of 775.23 million shares valued at N21.7 billion in 25,346 deals.
During the week ended Friday, January 4, 2008, the banking sub-sector took over the lead of sector turnover, recording a total of 1.32 billion shares worth N39.5 billion exchanged by investors in 19,704 deals. Intercontinental Bank Plc, Access Bank Plc activities in collaboration with the activities of Unity Bank Plc and Oceanic Bank International Plc accounted for 667.91 million shares which represents 50.45 percent of the sub-sector’s total turnover.
As at January 7, 2008, the price of Access Bank Plc had risen to N25.50; I meaning that those who entered the bank early last year when it was selling at N6.50 may have made more than 408 percent gain. Intercontinental Bank Plc on the other hand also recorded maximum profit because the share which was selling at N17.00 as at May 2007 now sells for N40.50 which is about 225 percent from its previous price. In a similar manner, United Bank for Africa (UBA) has remained the banking industry leader in terms of share price selling presently at N48.79 per share.
International rating of Nigerian Banks
Proshare Board of Analysts, the approving body of Nigeria’s online public investor education platform, last year announced the release of its analyst report on the share offer of United Bank for Africa (UBA). The report revealed that UBA had performed above average in all the indices used in rating companies and organisations’ growth.
The analysis examined the risk and mitigating factors related to the investment, and found it applicable to firms operating in the sub-sector of the Nigerian Stock Exchange (NSE), save for firm-specific risk related to UBA’s operations - rapid growth and expansion plans, loans portfolio and credit risk management. This could result in higher non-performing loan loss provisioning, and the managements’ ability to navigate the business of banking in the fiercely competitive market place.
The report, a direct response mechanism of the online service is a product developed to provide factual response to public offers that average investors may benefit from.
The report looks at the fundamental, technical and market sentiments influencing the stock and through the use of analytical tools, reviews the performance, position and prospect of the stock (shares held in the company) from an investment perspective.
This approach ensures that using predictive modeling, the shares of a company can be evaluated as to whether it is at a fair price relative to its true worth. The report reviewed the stock valuation by relying on the assumption that market data, such as price charts, volume, and interest can help predict future (usually short-term) market trends.
The report goes on to present the investments, the entry and exit price range, using the usual analysis published weekly on the website. This was done with the aid of market timed-based information and predicated on the belief that technical analysis could be applied just as easily to the market as a whole, as to an individual stock.
More investors are beginning to appreciate and rely on technical analysis in reviewing stocks on the NSE because of the proven fact that market psychology influences trading in a way that helps predict when a stock will rise or fall.
Proshare developed a quantitative measure of price action using a unique and practical means of easily gauging, buying and selling pressure in mind. The report will help investors read the report and consult with their fund managers and professional advisers.
The capital market of which the report focuses has experienced consistent growth and baring any unforeseen events, is expected to continue to grow during the period under review.
The Proshare report concluded that the nature of this investment decision was best suited to long term investor type persons. Even as it expects that UBA will be coming up strong in managing the sentiments that should drive the stock based on clearly measurable strides undertaken by the management.
Also, in what is best defined as extraordinary performance, Intercontinental Bank Plc has made history in the annals of international finance, having been rated as the second fastest growing bank in the world by The Banker Magazine, the influential and leading international business magazine. Intercontinental is also ranked by the Magazine as the biggest bank in Nigeria, number five in Africa and the 355th biggest bank in the world by first tier capital making it the first Nigerian bank to be rated among the world’s top 500 banks.
The Banker Magazine, a subsidiary of the Financial Times of London, in its 2007 edition of the “Top 1000 World Banks” rating released last week, described Intercontinental Bank’s outstanding growth as symbolic of the massive impact of the Nigeria’s banking reform. The Magazine noted that: “Nigeria’s Intercontinental bank reflects the huge consolidation and regulatory change that has taken place in Nigerian banking in the past two years,” adding that, “the bank rose by a record 522 places to be ranked at 355, with capital ballooning to $1277 million at the end of February 2007.”
The bank was ranked 877th last year but with its capital increasing almost fivefold to $1.3 billion from $273 million last year, it easily made it to the elite top 500 banks in the world. The Magazine noted: “Following a merger with three other banks, Intercontinental bank’s capital increased by 4.6 times, making it easily the largest bank in the country by capital.”
The bank also made strong showing in other financial indicators listed in the rankings. It emerged as the 31st bank in the world by Capital Assets Ratio indicating capital soundness, the 56th bank in the world by Real Profits Growth and 74th strongest in the world by Return on Assets.
The emerging global outlook of the bank and partnership with reputable international organizations has started to yield fruits with remarkable improvements in the bank’s processes and service delivery consistent with global best practices. Intercontinental Bank recently raised an unprecedented amount of about N100 billion through a public offering on the Nigerian Capital Market. Also five reputable foreign financial institutions recently invested $161 million (N20.25 billion) in the bank through preferred equity stock, indicating strong local and global investor confidence.
Intercontinental Bank also recently declared the highest ever profit before tax (N22.6 billion) by any quoted company in the history of the Nigerian Stock Exchange. The bank surpassed all its projections for its financial year ending February 2007. Its profit before tax grew by 121 percent, profit after tax by 105 percent, Gross revenue by 113 percent while total assets climbed by 101 percent.
Analysts have described the financial performance of Intercontinental Bank as meteoric; noting that the bank is redefining the scope of competition in the country’s banking landscape with many Nigerian Banks scurrying to the capital market and seeking international partnerships to accelerate their growth strategies.
Intercontinental Bank is currently working with world class consultants to ensure that its processes and service delivery are of international best practice as it now directs great attention to competing with the best banks in the world. The bank’s shareholders at its annual general meeting (AGM) held recently in Abuja hailed the cheering news of the bank’s new international ranking and declared it a global endorsement of Intercontinental Bank as an emerging global banking powerhouse.
Access Bank ranks amongst Africa’s fastest growing banks; consistently achieving a triple digit growth rate in the past 5 years. Following its just concluded successful public offer in Nigeria, Access Bank is poised to have a shareholders fund in excess of USD 1 billion placing it amongst the 5 most capitalized banks in Nigeria
Possessing an excellent management team, strong risk rating (GCR AA- and Agusto & Co A-), competent work force and enabled by a world-class IT platform/banking application (Flexcube 6.2), the presence of Access Bank in Sierra Leone will no doubt redefine the way banking is done in that country.
Access Bank is the 8th largest bank in Nigeria by asset and was recently voted the “Most Innovative Bank in Africa” at the African Banker Awards in Washington DC , United States of America on October 18, 2007 by the African Banker Magazine. Similarly, its website was recently rated the overall winner of the 2007 edition of the annual Web Jurist website rating conducted by Philips Consulting, a reputable Pan – African consulting firm
The banks made great lifts during the month of November 2007 with investors that staked their money in them smiling home with pockets filled with profits from their investments. During the month under review, Intercontinental Bank resumed trading at N27.00, appreciated N4.50 or 16.67 percent to close at N31.50. The same month, Access Bank appreciated by N1.32 or 6.88 percent from N19.19 to close at N20.51 while UBA Plc closed at N50.15 from N50.11 after gaining 4 kobo or .08 percent.
During the month, United Bank for Africa (UBA) recorded a total supplementary listing of 2,709,851,409 billion additional shares through its Right Offering and Initial Public Offering while Intercontinental Bank listed 549,452,531 million shares through Right Offering and Initial Public Offering.
Intercontinental Bank was the most capitalized stock listed on the exchange during the month with a total of 18,536,774,979 units that value N583.908 billion at N31.50 per share. United Bank for Africa (UBA) followed behind 11,290,-279,980 units that worth N566.207 billion at N50.15 per share.
The report of the stock market for the week ended December 14, 2007 indicated a total turnover of 2.4 billion shares worth N39.62 billion in 55,435 deals in contrast to a total of 3.5 billion that was exchanged the preceding week in 59,639 deals.
Although, the Insurance sub-sector led other sub-sectors in activities that was measured by turnover volume, with 1.12 billion shares worth N3.22 billion that changed hands among investors in 10,840 deals.
Trading in the shares of International Energy Insurance Plc, Lasaco Assurance Plc and NEM Insurance Co. Plc accounted for 563.9 million shares, representing 50.5 percent of the sub-sector’s turnover.
As in the preceding week, the Banking sub-sector, boosted by activity in the shares of Intercontinental Bank Plc, Unity Bank Plc and Guaranty Trust Bank Plc followed on the week’s activity chart with a turnover of 775.23 million shares valued at N21.7 billion in 25,346 deals.
During the week ended Friday, January 4, 2008, the banking sub-sector took over the lead of sector turnover, recording a total of 1.32 billion shares worth N39.5 billion exchanged by investors in 19,704 deals. Intercontinental Bank Plc, Access Bank Plc activities in collaboration with the activities of Unity Bank Plc and Oceanic Bank International Plc accounted for 667.91 million shares which represents 50.45 percent of the sub-sector’s total turnover.
As at January 7, 2008, the price of Access Bank Plc had risen to N25.50; I meaning that those who entered the bank early last year when it was selling at N6.50 may have made more than 408 percent gain. Intercontinental Bank Plc on the other hand also recorded maximum profit because the share which was selling at N17.00 as at May 2007 now sells for N40.50 which is about 225 percent from its previous price. In a similar manner, United Bank for Africa (UBA) has remained the banking industry leader in terms of share price selling presently at N48.79 per share.
International rating of Nigerian Banks
Proshare Board of Analysts, the approving body of Nigeria’s online public investor education platform, last year announced the release of its analyst report on the share offer of United Bank for Africa (UBA). The report revealed that UBA had performed above average in all the indices used in rating companies and organisations’ growth.
The analysis examined the risk and mitigating factors related to the investment, and found it applicable to firms operating in the sub-sector of the Nigerian Stock Exchange (NSE), save for firm-specific risk related to UBA’s operations - rapid growth and expansion plans, loans portfolio and credit risk management. This could result in higher non-performing loan loss provisioning, and the managements’ ability to navigate the business of banking in the fiercely competitive market place.
The report, a direct response mechanism of the online service is a product developed to provide factual response to public offers that average investors may benefit from.
The report looks at the fundamental, technical and market sentiments influencing the stock and through the use of analytical tools, reviews the performance, position and prospect of the stock (shares held in the company) from an investment perspective.
This approach ensures that using predictive modeling, the shares of a company can be evaluated as to whether it is at a fair price relative to its true worth. The report reviewed the stock valuation by relying on the assumption that market data, such as price charts, volume, and interest can help predict future (usually short-term) market trends.
The report goes on to present the investments, the entry and exit price range, using the usual analysis published weekly on the website. This was done with the aid of market timed-based information and predicated on the belief that technical analysis could be applied just as easily to the market as a whole, as to an individual stock.
More investors are beginning to appreciate and rely on technical analysis in reviewing stocks on the NSE because of the proven fact that market psychology influences trading in a way that helps predict when a stock will rise or fall.
Proshare developed a quantitative measure of price action using a unique and practical means of easily gauging, buying and selling pressure in mind. The report will help investors read the report and consult with their fund managers and professional advisers.
The capital market of which the report focuses has experienced consistent growth and baring any unforeseen events, is expected to continue to grow during the period under review.
The Proshare report concluded that the nature of this investment decision was best suited to long term investor type persons. Even as it expects that UBA will be coming up strong in managing the sentiments that should drive the stock based on clearly measurable strides undertaken by the management.
Also, in what is best defined as extraordinary performance, Intercontinental Bank Plc has made history in the annals of international finance, having been rated as the second fastest growing bank in the world by The Banker Magazine, the influential and leading international business magazine. Intercontinental is also ranked by the Magazine as the biggest bank in Nigeria, number five in Africa and the 355th biggest bank in the world by first tier capital making it the first Nigerian bank to be rated among the world’s top 500 banks.
The Banker Magazine, a subsidiary of the Financial Times of London, in its 2007 edition of the “Top 1000 World Banks” rating released last week, described Intercontinental Bank’s outstanding growth as symbolic of the massive impact of the Nigeria’s banking reform. The Magazine noted that: “Nigeria’s Intercontinental bank reflects the huge consolidation and regulatory change that has taken place in Nigerian banking in the past two years,” adding that, “the bank rose by a record 522 places to be ranked at 355, with capital ballooning to $1277 million at the end of February 2007.”
The bank was ranked 877th last year but with its capital increasing almost fivefold to $1.3 billion from $273 million last year, it easily made it to the elite top 500 banks in the world. The Magazine noted: “Following a merger with three other banks, Intercontinental bank’s capital increased by 4.6 times, making it easily the largest bank in the country by capital.”
The bank also made strong showing in other financial indicators listed in the rankings. It emerged as the 31st bank in the world by Capital Assets Ratio indicating capital soundness, the 56th bank in the world by Real Profits Growth and 74th strongest in the world by Return on Assets.
The emerging global outlook of the bank and partnership with reputable international organizations has started to yield fruits with remarkable improvements in the bank’s processes and service delivery consistent with global best practices. Intercontinental Bank recently raised an unprecedented amount of about N100 billion through a public offering on the Nigerian Capital Market. Also five reputable foreign financial institutions recently invested $161 million (N20.25 billion) in the bank through preferred equity stock, indicating strong local and global investor confidence.
Intercontinental Bank also recently declared the highest ever profit before tax (N22.6 billion) by any quoted company in the history of the Nigerian Stock Exchange. The bank surpassed all its projections for its financial year ending February 2007. Its profit before tax grew by 121 percent, profit after tax by 105 percent, Gross revenue by 113 percent while total assets climbed by 101 percent.
Analysts have described the financial performance of Intercontinental Bank as meteoric; noting that the bank is redefining the scope of competition in the country’s banking landscape with many Nigerian Banks scurrying to the capital market and seeking international partnerships to accelerate their growth strategies.
Intercontinental Bank is currently working with world class consultants to ensure that its processes and service delivery are of international best practice as it now directs great attention to competing with the best banks in the world. The bank’s shareholders at its annual general meeting (AGM) held recently in Abuja hailed the cheering news of the bank’s new international ranking and declared it a global endorsement of Intercontinental Bank as an emerging global banking powerhouse.
Access Bank ranks amongst Africa’s fastest growing banks; consistently achieving a triple digit growth rate in the past 5 years. Following its just concluded successful public offer in Nigeria, Access Bank is poised to have a shareholders fund in excess of USD 1 billion placing it amongst the 5 most capitalized banks in Nigeria
Possessing an excellent management team, strong risk rating (GCR AA- and Agusto & Co A-), competent work force and enabled by a world-class IT platform/banking application (Flexcube 6.2), the presence of Access Bank in Sierra Leone will no doubt redefine the way banking is done in that country.
Access Bank is the 8th largest bank in Nigeria by asset and was recently voted the “Most Innovative Bank in Africa” at the African Banker Awards in Washington DC , United States of America on October 18, 2007 by the African Banker Magazine. Similarly, its website was recently rated the overall winner of the 2007 edition of the annual Web Jurist website rating conducted by Philips Consulting, a reputable Pan – African consulting firm
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