Stock Market Extends Bullish Run, As NSE-ASI Surges By 0.43%

GTI
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Stock Market Extends Bullish Run, As NSE-ASI Surges By 0.43%

The Nigeria Local Bourse today (Tuesday) closed trading activities on a positive note to extend its bullish run to three consecutive trading sessions, as the market performance indicators grew by 0.43%. The price appreciation was sustained by investors buy-interests in bellwethers stocks.

Consequently, the market breadth closed positively, recording 24 gainers and 12 losers.

In summary, the All-Share Index (ASI) grew by  16.56 absolute points, representing a growth of 0.43% to close at 39,015.58 points. While the overall Market Capitalization value gained N87.69 billion, representing an increase of 0.43% to close at N20.42 trillion.

PZ and HONYFLOUR emerged as the joint-top gainer (by percentage points) for today, with a maximum price appreciation of +10.00%, while ROYALEX emerged as the top loser (by percentage points) with a maximum price depreciation of -10.00%.

Today’s market gain was driven by price appreciation in large and medium capitalized stocks amongst which are; SOVRENINS (+8.00%), NEM (+7.50%), STERLINGBANK (+4.90%), UCAP (+3.85%), FIDELITY (+3.81%), ETI (+3.09%), ZENITH (+2.77%), ARDOVA (+2.45%), INTBREW (+1.79%), GUARANTY (+1.69%) DANGSUGAR (+1.49%), MTNN (+1.04%), AFRIPRUD (+0.95%), and UBA (+0.71%).

MARKET STATISTICS

CAP N20,418,663,676,029.80 One Day (ASI CHG) +0.43%
Index 39,015.58 One Week (ASI CHG) +1.07%
Volume 339,018,342.00 One Month (ASI CHG) +1.65%
Value N2,703,177,525.43 Six Months (ASI CHG) +36.10%
Deals 4,203.00 52 Weeks (ASI CHG) +70.22%
Gainers 24 Losers 12
Unchanged 67 Total 103
YTD Returns -3.12%

Source: Ngxgroup.com, GTI Research 

FOREIGN EXCHANGE

The Naira at the official rate remains unchanged to close at N379.00/$1 as against Monday’s position.

The Investors and Exporters (I&E) FX window opened at N409.50 traded high at N437.41 and eventually closed at N410.67, which depreciated by 0.08% against Monday’s position. Also, a total of $69.71 million was transacted through the I&E window today.

MONEY MARKET

The overnight (O/N) rate closed at 12.50%, representing a 0.00% change against Monday’s position, while Open Buy-Back (OBB) rate closed at 12.25%,  representing a 0.00% change against Monday’s position.

Sector Performance

Security Change Percent
NSE30 0.52
NSEBNK 1.75
NSECNSMRGDS 0.38
NSEINDUSTR 0
NSEINS 1.12
NSELOTUSISLM 0.36
NSEOILGAS -0.03

Top 7 Gainers

Security Previous Close Open Price Close Price Change Price % Change
HONYFLOUR 1.3 1.3 1.43 0.13         10.00
PZ 4.5 4.5 4.95 0.45         10.00
SOVRENINS 0.25 0.25 0.27 0.02           8.00
NEM 2 2 2.15 0.15           7.50
JOHNHOLT 0.51 0.51 0.54 0.03           5.88
STERLNBANK 1.43 1.43 1.5 0.07           4.90
CUSTODIAN 5.75 5.75 6 0.25           4.35

Top 7 Losers

Security Previous Close Open Price Close Price Change Price  % Change 
ROYALEX 0.4 0.4 0.36 -0.04 –      10.00
PORTPAINT 2.93 2.93 2.64 -0.29 –        9.90
FTNCOCOA 0.45 0.45 0.41 -0.04 –        8.89
CHAMS 0.22 0.22 0.21 -0.01 –        4.55
LIVESTOCK 1.85 1.85 1.8 -0.05 –        2.70
UACN 10.85 10.85 10.6 -0.25 –        2.30
JAIZBANK 0.61 0.61 0.6 -0.01 –        1.64

Top 7 Traders By Volume

Security Close Price  Daily Volume   Daily Value
FIDELITYBK 2.18      125,256,521            265,641,111.15
ZENITHBANK 22.25         26,177,765            574,955,589.30
UACN 10.6         25,824,378            280,336,181.85
GUARANTY 30         22,762,238            683,072,247.00
FBNH 7.65         21,123,660            161,578,456.70
ACCESS 7.5         20,401,729            152,983,831.00
TRANSCORP 0.78         12,390,137                 9,654,434.96

Top 7 Traders By Value

Security Close Price  Daily Volume   Daily Value 
GUARANTY 30         22,762,238            683,072,247.00
ZENITHBANK 22.25         26,177,765            574,955,589.30
UACN 10.6         25,824,378            280,336,181.85
FIDELITYBK 2.18      125,256,521            265,641,111.15
FBNH 7.65         21,123,660            161,578,456.70
ACCESS 7.5         20,401,729            152,983,831.00
MTNN 165               605,639              99,978,312.50

Danone Aims For Positive Second Half, Following Weak Q1 Results

Esan Bolaji
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Danone Aims For Positive Second Half, Following Weak Q1 Results

Danone Q1 sales: last quarter of decline before returning to like-for-like growth

  • First-quarter consolid ated sales of € 5,657m, down -3.3% on a lik e -for-lik e (LFL) basis, reflecting Covid-related headwinds and lapping high Q1 2020 base of comparison
  • Sharp -7.0% impact of FX, resulting in a -9.4% decline in c onsolid ated sales
  • 2021 guidance reiterated:
    • Back to like-for-like growth as of Q2; return to profitable growth in H2
    • FY recurring operating margin expected to be broadly in line with 2020

Véronique Penchienati–Bosetta and Shane Grant: interim co-CEOs statement 

“Our first quarter landed in line with expectations and we continue to expect a return to like-for-like sales growth in the second quarter, and to profitable growth in the second half of 2021.

We have now experienced over a year of Covid and the pandemi c continues to impact our markets. Though this resulted in an overall decline in sales, -3.3% on a like-for-like basis, this first quarter has confirmed many of Danone’s strengths and ability to win in key areas. EDP sustained i ts performance momentum in key developed markets, especially in Probiotics, Protein and Plant–based. Growth in Adult Medical Nutrition remained strong, maintaining last years’ momentum. Waters continued to be impacted by out of home trends but showed sequential improvement compared to previous quarters.

Danone partners Ogun State on dairy development through backward integration program

Our focus is on delivery and execution, and so it is to our highly motivated and engaged Danoners that we send our thanks for their resili ence and hard work during these unprecedented times. Through them, together, we will drive Danone back to profitable growth  and winning in the market.”

In the first quarter of 2021, consolidated sales stood at €5.7 bn, down -3.3% on a like-for-like basis, with a -3.7% decline in volume and a +0.3% increase in v alue .

On a reported basis, sales w ere down – 9.4%, mainly driven by the negative impact of exchange rates (-7.0%) that resulted from currency devaluations against the euro in the United States, Latin America, Indonesia, Turkey and Russia. Reported sales also included a slightly positiv e scope effect (+0.4%)  as well as a +0.4% organic contribution from hyperinflation geographies such as Argentina.

In terms of regional dynamics, Europe and North A merica sales declined by -2.8% on a like-for-like basis, from a high base of comparison that was driven by the pantry loading that benefited the se regions in March 2020 for Specialized Nutrition and, to a lesser extent, Essential Dairy and Plant – based. Rest of the World sales decreased -4.2%, with China, Latin America, and Africa experiencing continued pressure in the quarter.

Performance by reporting entity

ESSENTIAL DAIRY AND PLANT-BASED (EDP)

In the first quarter, net sales w ere up + 1.6% on a lik e -for-lik e basis, including a + 0.5% increase in v olume and +1.1% in v alue, sustaining momentum despite  an exceptional first quarter last year  marked by pa nic buying a nd pantry loading . Europe and North America delivered solid growth, driv en by the Probiotics, Protein and Plant – based . Europe deliv ered another quarter of growth .

This performance w as driv en by  the continued strength of the Plant – based portfolio, growing w ell into double – digits, while the Probiotics and Protein platforms posted another quarter of solid growth.

The Essential Dairy portfolio registered broad – based market -share gains led by Actimel, Danette and YoPro. North America recorded the l argest absolute net sales quarter ever despite  a high base of comparison, sustaining a solid growth momentum, notably in Coffee Creamers and Plant – based, which deliv ered strong and high single- digit growt h respectiv ely.

In the Rest of the World, sales w ere flat, with soft dynamics in CIS , while Latin A merica and Africa started to show the first signs of improvement compared to previous quarters.

SPECIALIZED NUTRITION

In the first quarter, net sales declined by -7.7% on a lik e -for-lik e basis, with a decrease of -7.0% in volume and -0.7% in value, from a high base of comparison driven by  the pantry loading of March 2020. Adult Medical Nutrition deliv ered another quarter of strong growth, driven by Chin .

Infant Nutrition remained penalized by C ovid -related channel disru ptions in China, whith cross – border channels sales down around -45%. Domestic channels confirme d their growth momentum. All in all, China sales d ecreased at a steep double – digit rate.

In Europe, sales declined at a mid -teens rate, but market shares held up w ell amid continued soft category dynamics.  In the Rest of the World, Danone continued to register a solid performance a nd market -share gains , led by South-East Asia and Middle East.

WATERS

In the first quarter, net sales were down -11.6% on a like-for-like basis, with a decline of -11.2% in volume and -0.4% in v alue , once again severely penalized as consumer mobility remained below pre-Covid levels.

In Europe, sales declined at a high single- digit rate, improv ing sequentially compared to recent quarters, on the back of improving mobility, the continued resilien ce of at-home formats, and market share gains in key markets such as France, Germany, Spain and Poland.

In the Rest of the World, sales in La tin A merica and Indonesia continued to decline at a steep double – digit rate, while Mizone registered another quarter of growth  in China, in line with the last quarter , and enter ing the high season with innovative product offerings as w ell as strong activ ation plans .

Macro – economic outlook

Despite short-term uncertainties, a gradual reopening of economies  is assumed to start from H2, as vaccination programs are rolled out. Meanwhile, abroad – based acceleration of inflation in milk, ingredients, packaging and logistics is expected.

2021 guidance reiterated

Danone expects to be back to like-for-like growth in Q2, and to return to profitable growth in H2. FY recurring operating margin is expected to be broadly in line with 2020.

First Bank Of Nigeria – Mixed Performance In Interest And Non-Interest Income Sources

Meristem
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First Bank Of Nigeria – Mixed Performance In Interest And Non-Interest Income Sources

…Mixed Performance in Interest and Non-Interest Income Sources

In line with the industry trends, First Bank of Nigeria Holding Plc (FBNH)’s 2020FY financial performance was supported mainly by non-interest income.

Higher transaction volumes from its enlarged agency and digital platforms, increased credit-related fees, as well as elevated prices of investment securities, were instrumental in providing respite for gross earnings, which dipped marginally by 1.92% YoY to NGN578.95bn.

We highlight the impressive growth (+45.87% YoY) of trading gains, credit-related fees, and E-banking fees, which now constitute c.75% of total non-interest income. On the other hand, reduced interest income (-10.91% YoY), on the back of low yield on investment securities, was the source of the drag in the topline.

Our outlook for interest income is positive, fueled by the upward repricing of yields on investment securities. We think that Management’s intention to replicate the agent banking strategy in other African subsidiaries would support transaction volumes and potentially sustain non-interest income growth.

However, we do not expect much from trading gains in 2021FY, given that the factors which contributed to its strong performance in 2020FY are beginning to reverse.

Higher Profitability Despite Elevated Regulatory Cost

There was a further decline in the cost of funds by c.80bps YoY to 2.30%, which benefitted from the improvement in CASA mix and reduction of interest on savings deposits. However, this partially offset the significant drop in asset yield (c.-210bps YoY to 9.40%), as Net Interest Margin (NIM) slowed to 6.10% from 7.40% in 2019FY.

We were pleased to see that the bank reported only a marginal increase in operating expenses (+0.45% YoY), despite inflationary pressures. (Moreover, elevated regulatory cost by +16.32% YoY was the primary source of the increase in expenses). Operating income, on the other hand, rose faster (+2.23% YoY), aided by lower interest and fee-related expenses.

This translated into a decline in Cost-to-Income Ratio by 122.80bps YoY to 69.20%. Meanwhile, we note that nonrecurring gains from the disposal of the insurance subsidiary supported bottom line. Also (and against industry trend), lower impairment charges during the year had a trickle-down effect to elevate Profit After Tax (PAT), which recorded a +21.81% growth to NGN89.73bn.

We anticipate a sustained improvement in the bank’s CASA mix, aided by the deepening of its agent banking footprint, which should keep funding costs subdued. Also, the uptrend in yield on investment securities is expected to bode well for asset yield.

Therefore, we expect NIM to expand in 2021FY. In addition, we project a further reduction of impairment charges, which would have a pass-through effect to the bottom line. Ultimately, we project a 17.72% growth in PAT to NGN105.63bn.

Asset Quality Strengthens

We like the sustained turnaround in the bank’s asset quality, though we acknowledge that there is still room for improvement. With limited exposure to sectors most affected by the pandemic (Hospitality and Aviation), a restructuring of c.15% of its loan book and write-off of NGN60.24bn impaired loans, the group’s Non-Performing Loan (NPL) ratio reduced to 8.39% from 10.20% in 2019FY.

Similarly, stage 2 loans reduced to 23.52% of gross loans (vs 35.24% the previous year). Its Capital Adequacy Ratio strengthened to 17.01%, from 15.45% in 2019FY following capital injection from proceeds of sale of the group’s insurance subsidiary.

With a substantially higher effective CRR (at 27.02% vs 20.98% in 2019FY), the bank’s Liquidity Ratio came in lower at 34.80% (vs 38.20% in 2019FY), although still above regulatory minimum.

Recommendation

We arrived at our 2021FY target price of NGN9.02 from our target P/E of 3.16x and expected EPS of NGN2.85. This suggests an upside of +18.71%. Thus, we recommend a BUY on the ticker

Berger Paints Soaring Costs Undermines Topline Growth

Meristem
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Berger Paints Soaring Costs Undermines Topline Growth

…Topline Maintains Growth Momentum

In 2020FY, Berger Paints Plc sustained its growth momentum despite the challenges faced during the year. The company was able to manage the situation through a combination of initiatives.

According to management, key production raw materials and components previously sourced from China and other high-risk (COVID-19 risk) countries were sourced from alternative suppliers during the year. Other initiatives include the deliberate improvement in production and outbound logistics processes. Thus, the paint maker only suffered minimal impact on its operations in the second half of the year and was able to realize a total revenue of NGN3.87bn at the end of the year – an improvement of 7.05% YoY.

By segment, sales of paints remain a key contributor to top line, accounting for 94.61% of total revenue for the year (NGN3.60bn) while contract services and lease of Investment property made up for the rest (NGN206.79mn).

For 2021FY, we expect the company’s operations to remain stable as the environment becomes more conducive for economic activities (due to progress in combating COVID-19). Also, we note the company’s drive to capture market share through its aggressive marketing and discounting initiatives as a key tailwind. We thus project revenue of NGN4.18bn for 2021FY – an increase of 8.89% YoY.

Profitability Buckles Under Cost Pressure

The FX devaluations during the year had dire cost consequences for the paint maker. Raw materials and consumables cost were notably higher (+23.20%) and thus pushed cost-to-sales ratio to 63.02% (vs 53.57% in 2019FY). Hence, the company’s gross profit slid by 14.74% to NGN1.42bn (vs NGN1.66bn in 2019FY).

In a similar vein, an uptick in operating expenses (+8.65%), mainly caused by higher personnel expenses (+17.71%), added to the cost pressures and pushed operating profit to a record low of NGN194.95mn (a decline of 61.99% from NGN512.93mn recorded in 2019FY). Furthermore, Interest obligations on lease liabilities and payment of accrued interest on its Bank of Industry loan resulted in an interest expense of NGN61.95mn in 2020FY (244.30% higher than NGN17.99mn in 2019FY).

Consequently, the company’s bottom-line took a beating, with Profit before tax declining by 61.59% YoY to NGN211.85mn and profit after tax down by 67.46% YoY to NGN146.03mn. The persistent FX devaluation pressures remain a key risk to raw material cost and we envisage that this will keep the cost-to-sales ratio elevated (should there be further devaluations during the year).

However, in our view, a 40.10% decline in finance cost (following matured debts and payments of accrued interests in 2020) will be the major driver of earnings in 2021. We thereby project a 56.58% growth in profit after tax to NGN228.65mn for 2021FY.

Shareholder’s Return at Record Low

The decline in net margin vividly pared returns to shareholders. At the end of the year, ROE stood at 4.64%% (its lowest in 6 years). While Net margin tanked to 3.81% (vs 12.52% in 2019FY), the moderation in Financial Leverage (1.58x vs 1.65x in 2020FY) exacerbated the deterioration in ROE. However, there was an improvement in asset turnover from 0.71x in 2019 to 0.77x in 2020.

Recommendation

For 2021FY, we project an EPS of NGN0.79 and P/E ratio of 10.47x to arrive at our December 2021 target price of NGN8.27, an upside potential of 27.23% when compared to its opening price of NGN6.50 on April 15, 2021. Hence, we rate the counter as a BUY

Access Bank Expanding To Leverage The AfCTA

United Capital Research
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Access Bank Expanding To Leverage The AfCTA

Access Bank Plc released its FY-2020 results earlier, showing a 14.7%y/y growth in Gross Earnings (GE) to N764.7bn despite the challenging operating environment.

PBT and PAT also grew by 12.5% and 12.7% to N125.9bn and N106.0bn, respectively. Similarly, Loans and deposits expanded by 17.8% and 20.3% to N3.6tn and N5.6trn.

We update our estimates and review our expectations.

Net Trading Income Explosion Counteracts Weaker Interest Income:

ACCESS reported a 14.7% y/y expansion in GE despite an 8.9%y/y decline in Interest Income to N489.2bn amid pressure on asset yields (which slid to 9.0% from 12.8% in 2019) and increased uncertainties in the macroeconomic environment.

Specifically, the increase in GE was driven by Non-interest income (NII) which jumped 112.1% to N275.5bn, essentially boosted by a 743.0% y/y surge in net trading income to N114.3bn (vs. -N17.8bn in 2019), traceable to Net gain on derivatives, FX and treasury activities.

Also, with expansion in its retail banking services, payments, remittance, and aggressive customer acquisition, Fees and commission income increased 27.1% to N116.7bn, significantly supported by an upsurge in E-banking charges. Net Interest Margin (NIM) declined 170bps to 4.9% despite a reduction in funding cost to 3.3% (vs. 5.0% in 2019) amid an industry-wide decline in interest expense.

Expectedly, impairment charges jumped 211.5% to N62.9bn due to COVID-19 worries, pushing the cost of risk to 1.8%. Similarly, OPEX increased by 26.9% to N326.5bn. As such, the Cost to income Ratio ticked northwards to 63.4% (vs. 66.1% in 20-19).

An inspection of the OPEX component indicated a jump in regulatory levy – AMCON (up 56.0% to N35.4bn), Outsourcing costs (+50.0% N25.bn) and IT & E-business expenses (+92.0% to 18.7bn), accounted for the pressure on OPEX.

Against this backdrop, PBT and PAT growth improved by over 12.0% to N125.bn and N106.0bn respectively, with ROE and net margin settling at 15.6% and 13.9% respectively.

Asset Quality Remains Intact:

ACCESS’s total assets stood at N8.7trn as of FY-2020, up 21.5% from N7.1trn in Dec-19. Loans and advances represented N3.6trn, up 18.8%, while Investment Assets surged by 61.3% to N1.7trn. Cash balances, however, stood flattish at 0.1% to N723.9bn, a sharp contrast to peers. Also, deposits expanded by 21.5% to 6.5%.

Also worthy of note, derivative assets expanded 75.0% to N251.1bn, buttressing the jump in non-interest income.

Loan to funding ratio stood at 50.7%. Despite asset quality issues across the market, ACCESS’ NPL ratio improved to 4.3% (previously 5.8%), thanks to a well-diversified loan book, though the loan to funding ratio came in at 50.7% (from 62.9% in 2019). Overall, Capital Adequacy Ratio (CAR) was flattish at 20.6% while liquidity ratio settled at 46.0% for the period.

Update On Recent Acquisitions And Business Reorganization

In a string of acquisitions/expansion across the African continent – including Cameroon (operating license), Kenya (Transnational Bank), Zambia (Cavmont Bank) and the latest being South Africa’s Grobank – management hinted that the group intends to leverage the African Continental Free Trade Area agreement to expand its footprint to 20 countries across Africa.

As such, in addition to the already concluded acquisitions, plans are currently in place to enter Morocco, Algeria, Egypt, Ivory Coast, Senegal, Angola, Namibia and Ethiopia. A sum of $60.0mn was paid to acquire south Africa’s Grobank, a major milestone in the Bank’s foray into the south African market and a critical factor in driving intra-African trade by widening its trade finance operations. On the proposed reorganization into a HoldCo, management noted that the bank would also accomplish an expansion plan outside Africa by setting up representative offices in China, India and Lebanon, using its London operation as an “anchor for growth.”

Furthermore, the Group will be organized into Access Bank Group (divided into Nigeria, Rest of Africa and international), Payment Business, Consumer Lending/Agency Banking and Insurance Brokerage.

The overall objective of the structure will be to create new revenue lines at minimal risk, diversify earnings, and support international expansion.

Outlook & Valuation:

We expect ACCESS to sustain top and bottom-line expansion in 2021.

While non-interest income growth should taper going forward, as the economy stabilizes, we imagine that rebounding asset yields, supported by massive balance sheet size and gains from expansion activities, should spur interest income growth.

Again, the well-diversified nature of the loan book is expected to sustain asset quality and thus keep NPL and COR within prudential limits. Accordingly, we expect PBT and PAT to remain broadly stable in FY-2021. By valuation, ACCESS’s PB and PE ratio currently stands at 0.36x and 2.5x, below peer averages at 3.1x and 0.6x.

However, we revise our TP for ACCESS from prior N10.5/share to N8.6/share, amid retracement in the yield environment which has resulted in a significant spike in our risk-free rate assumption thus reducing the appetite for riskier assets such as equities. Accordingly, this translates to a 13.9% upside compared to market price of N7.6 as of April 16th 2021, thus we maintain a BUY rating on ACCESS.

New Report Highlights COVID-19 Impact On African Trade Finance

Brand Spur
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New Report Highlights COVID-19 Impact On African Trade Finance

The report is the first of its kind, surveying 185 banks from across Africa, representing more than 58% of total assets held by African banks.

In his opening remarks, Professor Benedict Oramah, President of Afreximbank, highlighted how the tightening global financial conditions triggered massive capital outflows from Africa, exceeding $5 billion in the first quarter of 2020. “These massive capital outflows strained African banks, many of which recorded sharp drops in their net foreign assets. This further exacerbated liquidity constraints and undermined the capacity of banks to finance African trade”, said Professor Oramah.

As a result of the pandemic and inherent tightening financing conditions, heightening balance of payment pressures and liquidity constraints, the supply of trade finance was affected between January and April 2020, the period covered by the survey. According to the report, the number of correspondent banking relationships fell across the region, and the rejection of L/C requests increased, with about 38% of local/privately-owned banks and 30% of foreign banks reporting an increase in rejection rates, respectively.

Dr Vera Songwe, Executive Secretary at the ECA, commended Afreximbank for the counter-cyclical measures it took to help countries deal with the economic and health impacts of the COVID-19 pandemic. “The Bank has also played a major role in putting together a $2 billion facility to help African member states purchase up to 400 million doses of the COVID-19 vaccines”, she added.

Dr Songwe also urged African leaders, especially Central Bank Governors and Ministers of Finance and other development partners to further support institutions such as Afreximbank through capital increases as such banks can leverage this capital five or six times and deploy more resources towards Africa’s recovery.

The report highlighted the role trade finance can play in overcoming the social and economic fallout of the COVID-19 pandemic to quicken the process of economic recovery through trade and investment growth.

For H.E. Mr Ebson Uanguta, Deputy Governor of Bank of Namibia, the crisis was deep and government interventions needed to be bold and swift to help banks support businesses and limit insolvencies. “Most sectors of the economies were severely impacted, and we took several measures to support the broader economy and trade finance in particular, including easing of monetary policy, relaxation of regulatory requirements and institution of loan repayment moratoriums to the tune of $619 million”, said Mr Uanguta.

According to Ms Mervat Soltan, Chairperson and Managing Director at the Export Development Bank of Egypt, the bank had seen a big uptake in its digital services during the pandemic downturn. Egypt is one of the few countries where output expanded in the face of a synchronized global downturn. “Digitalisation which sustained business and trade growth during the pandemic offers a great opportunity to help reduce costs and increase the use of trade finance facilities and should become an integral part of the strategy to boost African trade post-COVID-19”, she added.

The report pointed out that African trade amounts to $1,077 billion but that banks intermediate $417 billion of this, approximately 40%, whilst the global average is 80%. Ms Bola Adesola, Senior Vice Chairman for Africa at Standard Chartered stressed the need to increase businesses on the continent, to help drive trade both extra- and intra-African trade and banks’ intermediation. The African Continental Free Trade Agreement (AfCFTA), she added, can provide a platform to help drive greater businesses.

Mr Amr Kamel, Executive Vice President, Business Development and Corporate Banking at Afreximbank, highlighted the role of Development Finance Institutions during downturns, pointing out that “Afreximbank’s Pandemic Trade Impact Mitigation Facility (PATIMFA) has provided timely support to banks, helping to clear payments falling due and avert payment defaults.”

He also shared some of the key initiatives the Bank is pushing through to address the challenges of liquidity constraints and boost African trade such as the Pan-African Payment and Settlement System (PAPSS) and Afreximbank Trade Finance and Trade Facilitation (AFTRAF) programme to increase the provision of correspondent banking services to African banks.

One of the Bank’s longstanding partners, Eng. Hani Salem Sonbol, CEO of the International Islamic Trade Finance Corporation (ITFC) reiterated the importance of international collaboration even if the initial instinct in a crisis is to look inwards. Their response in Africa to the crisis has been anchored on three Rs: assist to help Respond to the pandemic; help with the Recovery; and contribute to Restart the economy.

The report made numerous recommendations. These include a greater engagement between central banks and industry; push for increased digitalization and take-up of technologies; and better data, which will help better understand and price risk.

In his closing remarks, Dr Hippolyte Fofack, Chief Economist at Afreximbank, reiterated the need to sustainably grow the supply of trade finance across the region. “Trade finance is the lifeblood of commerce and will play a key role in the recovery and structural transformation of African economies to better prepare the region to future global crises”, he added.

AXA Mansard Insurance Records 56% Growth in PAT in 2020 Results

Brand Spur
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AXA Mansard Insurance Records 56% Growth in PAT in 2020 Results

AXA Mansard Insurance plc, a member of the AXA Group announces its audited financial results for full-year 2020.

Financial Highlights and Ratios – Income Statement Highlights
  • Gross Written Premium of N47.58bn, up 9% from N43.62bn in December 2019
  • Net Premium Income of N31.72bn, up 21% from N26.29bn in December 2019
  • Investment and Other Income of N7.09bn, up 25% from 5.67bn in December 2019
  • Operating Expenses of N7.7bn, up 3% N7.51bn in December 2019
  • Profit before Tax of N6.04bn, up 58% from N3.83bn recorded in December 2019
  • Profit after Tax of N4.54bn, up 56% from N2.91bn in December 2019

 Statement of Financial Position Highlights

  • Total Assets of N94.44bn, up 2% from N92.29bn as at December 2019
  • Insurance Liabilities of N29.59bn, up 18% from N25.16bn as at December 2019
  • Group Shareholders’ Funds of N33.940bn, up 34% from N25.26bn as at December 2019
  • Insurance Shareholders’ Funds of N29.37bn, up 27% from N23.09bn as at December 2019

 Key Ratios

  • Operating Expense Ratio of 17% (December2019: 18%)
  • Underwriting Expense Ratio of 8% (December2019: 8%)
  • Loss / Claims Ratio of 47% (December2019: 45%)
  • Re-Insurance Cost Ratio of 25% (December2019: 30%)
  • Return on Average Equity of 20% (December2019: 17%)
  • Return on Average Asset of 6% (December2019: 5%)
  • Earnings per Share of 14k (December2019: 11k)
Commenting on the results, Mrs. Ngozi Ola-Israel, the Chief Financial Officer said, “It was a challenging year, but we achieved strong growth in PAT (56%) and Underwriting profits (22%). We managed operating costs at a low level of growth of 3% despite COVID headwinds and inflation. We remain committed to delivering excellent underwriting, investment and operating performance while focusing on the satisfaction of our customers and stakeholders.

Commenting on AXA Mansard’s financials at the end of December 2020, Mr. Kunle Ahmed, the Chief Executive Officer, AXA Mansard Insurance, said “The 2020 full Year financial record is proof of our ability to continually support our customers to achieve their goals even in the midst of difficult and challenging times. With the support of our partners and through the harnessing of our distribution network, we achieved remarkable growth on our Health and P & C lines throughout the year. We are pleased that our continued effort to build a resilient non-bank financial services institution is yielding positive results”.

Kantar Acquires Numerator, Creating Global View Of Shopper Behaviour

Esan Bolaji
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Kantar Acquires Numerator, Creating Global View Of Shopper Behaviour

Kantar, the world’s leading data analytics and brand consulting group, today announces the company has reached a definitive agreement with Vista Equity Partners to acquire Numerator, a Chicago-based, tech-driven consumer and market intelligence company.

Numerator blends proprietary data, including a digital panel of over one million U.S. consumers, with advanced technology to create unique insights that help companies understand their customers in real-time and identify growth opportunities.

Kantar moves to single brand Brand Spur Nigeria

Consumer behaviour is transforming radically, and a detailed understanding of these changes is fundamental to strategic decision making for brands. Kantar is committed to remaining at the cutting edge of technology to deliver those critical data-driven insights.

Today, the Worldpanel division of Kantar provides currency grade data in more than 45 countries outside of North America. With Numerator’s world-class data breadth, depth, methodology and delivery platform in the U.S. and Canada, the combined dataset will provide insights into the shopping habits of almost five billion consumers globally.

The acquisition is also complementary to the company’s U.S. Ad Intelligence business and exemplifies the role Kantar is increasingly playing at the intersection of brand and technology.

Eric Belcher, CEO of Numerator, commented,

“In Kantar, we have found a natural home. This is a smart, strategic move by Kantar as they expand their global influence. This combination will create even more value for our customers and for the industry overall.”

In the near term, Numerator will continue to operate as a stand-alone business. Longer-term, the combination of complementary geographies, technologies, methodologies and data is expected to create a step-change in global consumer insights for brands and retailers.

The transaction is expected to complete by Q3 2021, subject to the relevant legal and regulatory processes.

Cenfura Limited Announces a New Subsidiary Opening in Nigeria

Esan Bolaji
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0
Cenfura Limited Announces a New Subsidiary Opening in Nigeria

Cenfura’s Nigerian subsidiary will provide 24/7 renewable energy in Nigeria and provide a bridge to the digital economy for efficient payments

CenfuraⓇ Ltd. is delighted to announce a new subsidiary with local partners in Nigeria to provide needed 24/7 Green Power to communities and businesses.

CENFURAⓇ LIMITED ANNOUNCES A NEW AFRICAN SUBSIDIARY OPENING IN NIGERIA Brandspurng
CEO, Nello Cafcules meets with our local Nigerian partners, Taiwo Sanusi and Habib Aliyu | Brand Spur Nigeria

Cenfura’s focus in Nigeria will be twofold — firstly, providing renewable energy to residential communities and businesses in a sustainable and economically viable manner, and secondly, providing an integrated digital platform for billing and payments.

The Cenfura team is very excited to work with our partners at Cenfura Nigeria Ltd to deliver blockchain-based renewable energy solutions throughout Nigeria.

Pasi Nieminen, Founder and Chairman, said,

“A new subsidiary in Nigeria allows us to not only grow our business but also provide an excellent service to the Nigerian people in the energy and Fintech areas. We look forward to growing together with them.”

Cenfura is a Smart Energy Services company developing and operating renewable energy assets globally. We deploy distributed energy grids with dynamic load handling systems powered by AI to dramatically increase efficiency over traditional renewable energy providers.

TECNO Mobile Launches The New-Gen Spark 7P For Gen Z With Cutting-Edge Innovations (Photos)

Esan Bolaji
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TECNO Mobile Launches The New-Gen Spark 7P For Gen Z With Cutting-Edge Innovations (Photos)

Equipped with 16MP AI Triple Camera, mighty Helio G70 chipset, the Super Night Mode and blazing-fast 90Hz/ 6.8-inch edge-to-edge display the Spark 7P will be available at retail store soon

April 20, 2021 – TECNO mobile, a global premium mobile brand, has freshly launched the innovative Spark 7P smartphone for Gen Z. Packed with the dynamic 16MP AI Triple Camera and new Helio G70 chipset, the Spark 7P delivers the most captivating cinematic experience simulated through its BIGGER and BETTER 6.8-inch edge-to-edge display with an unprecedented Super Night mode.

TECNO Mobile Launches The New-Gen Spark 7P For Gen Z With Cutting-Edge Innovations (Photos) Brandspurng2

TECNO Mobile Launches The New-Gen Spark 7P For Gen Z With Cutting-Edge Innovations (Photos) Brandspurng2

Enabled through its micro intelligence integrant which grants the rising generation access to an innovative tool, allowing them to streamline many imperative tasks, creating the most rewarding experience yet. The Spark 7P will be welcomed in the global market soon.

Stephen Ha, General Manager of TECNO Mobile, commented on the launch, “TECNO is always bearing the young generations’ demands in mind to provide them with the best of contemporary technologies in artistic designs. With the popularity in over 60 markets, TECNO showcases its mastery of serving the youth-generation consumers who are “young at heart”, and inspires them to never stop pursuing excellence.

TECNO Mobile Launches The New-Gen Spark 7P For Gen Z With Cutting-Edge Innovations (Photos) Brandspurng2

TECNO SPARK 7 series are the ones that reflect our promise to the Gen-Z the most with the most advanced technologies like the BIGGER and BETTER display to bring them immersive cinema experience at the fingertips, and the ungraded 16MP AI Triple Camera for them to embrace a clearer world.”

TECNO Mobile Launches The New-Gen Spark 7P For Gen Z With Cutting-Edge Innovations (Photos) Brandspurng2

The Spark 7P brings comprehensive updates on its exceeding visual performance. Users can enjoy the smooth, snappy, and refreshing experience with a 6.8-inch clear screen at a blazing-fast 90Hz refresh rate. The 6.8-inch edge to edge display is also equipped with ample room to navigate through multiple applications with prompt accessibility to different functions, that too within paramount time. Users also earn the privilege of experiencing the new technology of the 90Hz refresh rate at this accessible price.

Spark 7P’s ingenious 16MP AI Triple Camera is an additional compelling feature that will enable the new breed of innovational youth, to capture every minute detail of their busy lives through acute technological advances ensuring no occasion goes a miss be that day or night. The newly added AI lens enables users to take striking portraits even in the dimmest of surroundings.

With its shallow depth of field, the super night mode helps capture exclusive moments most effortlessly with exemplified images, enabling the users to always see their world in the brightest of lights. The 16MP AI Triple Camera is also accompanied by Smile Snapshot, powered by the AI Portrait which incorporates facial recognition intelligence allowing the users to capture that perfect smile or a glimpsing moment in an instant.

Meanwhile, Video Bokeh, natural Video Beautify and a Slow Motion shooting at 240fps provide the current, technologically savvy generation with the chance to channel their inner photographer through these intelligently adapted and enjoyable features.

An all-new 2.0GHz, Octa-core processor and dedicated 820MHz graphics unit, SPARK 7P benchmarks at twice the speed of the previous generation. Animations are smoother, Apps load quicker, and photos are sharper, helping connect with the world around Gen Z faster than ever before.

128/64GB ROM + 4GB RAM memory and 5000mAh battery enable the Spark 7P long-lasting storage and power. It promises fewer lags, fewer prompts about “Storage Almost Full” and more space for snapping as many photographs as you need.

The 5000mAh battery holds the exceptional capability of retaining power on your phone for 14 days without any recharging. Gone are the days when the users have to run around the street panicking and trying to find a charging station because SPARK 7P just never goes off easily.

Other highlighted features packed the competitive smartphone including:

  • Bluetooth Audio Share 2.0: With the newly updated Bluetooth Audio Share 2.0, users will be able to share their music and get the party started whenever and wherever it’s convenient for their friends and family to join in the fun.
  • Dirac Stereo Sound Effect: Meticulous acoustic measurement allows users to play audios and video with acute clarity alongside providing them with a unified and much more enjoyable cinematic experience where both sound and picture are of optimal quality.
  • The new HiOS 7.5: the Auto Dark Theme peculiarity allows users to customize settings so as to transition from bright to dark theme once night falls. With the help from Instant Chat Bubble, users don’t need to switch between Apps. All one would do is, press the bubble to start a conversation with a friend and continue communicating to another. With App Twin, social media fans can run two social accounts simultaneously and switch between different platforms fast and smoothly.
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