Mastercard Small Business Cardholders Gain Access To Business Tools From Microsoft

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Mastercard Small Business Cardholders Gain Access To Business Tools From Microsoft

Mastercard is giving small business owners tools and technology to help them take their business to the next level with the addition of Microsoft solutions to its’ ever-growing suite of small business benefits. Now available across Mastercard Business and Mastercard Business World Elite offerings in the U.S., small business owners can fuel their hustle with Microsoft services including Microsoft 365 best-in-class productivity apps, and powerful cloud and marketing services.

“We’re committed to delivering a solid foundation of benefits and offerings for our small business cardholders that help them thrive in their day to day business operations,” said Ginger Siegel, head of North America small business, Mastercard. “As a result, we’re continuing to bring together our smartest solutions with transformational offerings from strategic partners like Microsoft to enable the rapid delivery and design of best-in-class solutions that simplify and enhance small business owners’ lives.”

Mastercard Small Business cardholders can now leverage specific tools and benefits to assist in productivity and business growth with the integration of Microsoft offerings including:

  • Microsoft 365: More than just Office apps like Word, Excel, and PowerPoint, Microsoft 365 brings together powerful cloud services like professional email, online meetings, chat, file storage and intelligent security. At no additional cost, Mastercard small business cardholders are eligible for a special Microsoft offer:  first-time Microsoft 365 Business or Office 365 Business Premium subscribers can get a complimentary first four months with a one-year subscription – up to 5 users. Terms and conditions apply.
  • Microsoft Advertising: Microsoft Advertising makes it easy for you to reach customers who are interested in your product or service. With the power of Microsoft’s audience targeting capabilities, drive more leads, visits or purchases to your small business. Mastercard will also be running campaigns throughout the year that make available to select groups of small businesses an exclusive offering of $125 in advertising credit after spending only $10. Benefits are subject to terms, conditions and limitations.

“We believe in the power of the cloud to help business owners reach their objectives,” said Jared Spataro, CVP, Microsoft 365. “We’re excited to extend the power of Microsoft 365 and Microsoft Advertising to make it easier than ever for small business owners to run and grow their businesses.”

Mastercard continues to provide seamless digital resources and partner discounts including: Salesforce’s customer relationship management solution Salesforce Essentials, an all-in-one app that includes sales and customer support tools built specifically for companies of their size, as well as Intuit’s QuickBooks® and TurboTax®, access to 24/7 Business Assistant, Mastercard ID Theft Protection™, Mastercard Easy Savings®, Cell Phone Insurance and Mastercard Receipt Management powered by Itemize, which is officially available to download and activate for free using a valid Mastercard Small Business card in the Apple and Android app stores. Small business needs continue to evolve every day and Mastercard is committed to ensuring that we continue to provide the solutions that help them get ahead of their needs tomorrow.

Suncity Group Participates in Japan’s IR GAMING EXPO 2019

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Suncity Group Participates in Japan’s IR GAMING EXPO 2019

Showcasing the concept of IR 2.0 in Wakayama Prefecture

 

MACAU, CHINA
– Media OutReach – 28 October 2019 – Since its establishment in
2007, Suncity Group is resolute in adhering to the spirit of “Innovation with
diversity, strive for success”, while dedicated to achieve a flourishing
development of integrated VIP entertainment, covering 6 core sectors including
VIP services, entertainment, global tourism, food and beverage, luxury fashion and
hotel and integrated resorts management, expanding its presence to 16 countries
and over 26 cities around the globe.

Suncity Group Participated in Japan’s IR GAMING
EXPO 2019
Suncity Group’s Wakayama IR2.0 Concept
Mr. Alvin Chau, Chief Executive Officer and Director of Suncity Group  

This year,
as Suncity Group plans to expand its hotel and resorts management business to
Japan, the Group participated in the “IR GAMING EXPO 2019” held from October 24
to 27 at INTEX OSAKA, showcasing its proposed project IR 2.0 in Wakayama.

When IR
stands for Integrated Resorts, IR 2.0 is something more than the usual “Las
Vegas style” integrated resorts. Incorporating traditional Japanese culture and
features of Wakayama Prefecture, Suncity Group hopes to create the world’s
first IR 2.0, a unique project combining Wakayama Prefecture’s historical
tradition, natural landscape and cultural essence.

 

With its
business footprint across the globe, Suncity Group has a clear understanding of
integrated resorts in various countries, which enables the Group to utilize its
resources and experiences in resorts management and present to the world the
diversity of Wakayama. To turn the project of IR 2.0 into reality, the Group
joined hands with the world-renowned architectural firm AEDAS to create the
integrated resort, tailor-made for Wakayama.

 

In addition
to the construction of hardware facilities, Suncity Group will also transform
the prefecture into a hub for entertainment and traditional culture. With its
experience in film production, concerts and cultural events in Mainland China,
Macao and Hong Kong, Suncity Group brings the power of entertainment promotion
to Wakayama. Entertainment events, various shows and exhibitions, combined with
local traditions, presenting to the world the unique charm of Wakayama.

 

Moreover,
Wakayama City is easily accessible from Kansai International Airport, which is
only a 45-minute drive from the city and a 1-hour drive from Osaka. With
Wakayama as a hub for cultural performance and entertainment, and Osaka as a
city with a wide range of facilities and support for conventions and exhibitions,
the two cities can serve as a key driving force in the development of the
entire Kansai region. This is what Alvin Chau, Chief Executive Officer and
Director of Suncity Group, describes as “The Greater Kansai Synergy”. In
addition, Suncity Group’s affiliate “Sun Travel” can also cooperate with
neighbouring regions to develop Wakayama-based high-end tourism products,
invigorating the growth of tourism in the area.

 

Suncity
Group will combine its experience and unique ideas to create an IR 2.0 that is first
of its kind, realizing its vision for Wakayama Prefecture and leading the
tourism industry of Japan to a whole new era.

 

High-resolution images can be
downloaded in the gallery:

https://dropbox.suncity-group.com/url/irexpojapan

About Suncity Group

Suncity Group was
founded in 2007. Since establishment, Suncity Group has been striving to
provide the extraordinary VIP entertainment service for our guests, and we then
opened a number of VIP Clubs in various 6-star hotels and resorts throughout
Macau with the rapid growth of our business. Meanwhile, we successively set up
exclusive VIP Clubs in Manila, Seoul, Incheon, Phnom Penh and Da Nang, etc.

 

Adhering to the
spirit of “Innovating With Diversity, Striving For Success”, Suncity Group
spared no effort to develop high-end entertainment services and products as
well as roll out global VIP loyalty program for the selected members to enjoy
entertainment, travel, catering services, luxury shopping and motion picture.
Today, the scope of our business covers most sectors, especially in the fields
of global travel, film production, concert and event planning, catering and
luxury goods.

 

As a Macau born and
bred enterprise, Suncity Group is not only devoted to develop the Asian market,
but also oriented to expand the global network. In the future, we will surely
continue to diversify our VIP entertainment services, attract more exclusive
members and make every effort to promote our business in every corner of the
world.

Official website | www.suncity-group.com/en

Microsoft CEO for start-ups North Asia James Chou, keynote speaker for MIPIM PropTech Asia in Hong Kong

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Microsoft CEO for start-ups North Asia James Chou, keynote speaker for MIPIM PropTech Asia in Hong Kong

HONG KONG, CHINA – Media OutReach – October 28, 2019 – Reed MIDEM brings the highly
anticipated MIPIM PropTech to Hong Kong. This event gathers key international
real estate and technology decision leaders around the world to fuel
conversations, share ideas and network with like-minded professionals.

 

MIPIM PropTech Asia will take
place on November 27, 2019 at the Grand Hyatt Hong Kong.

 

Proptech encompasses all technology innovations that have an impact on
buildings and more generally on the urban environment and living space. MIPIM
PropTech Asia will consist of a one-day conference programme that will tackle
current technological trends, delivering actionable insight.

 

Mr. James Chou, Managing Director & CEO, Microsoft for start-ups
North Asia will headline the event and explore “How
developers can work with Proptech startups to innovate more.” The event
aims to power the digital transformation of the real estate industry with the overarching theme of “Matching User
Expectations” this year. Other industry related hot topics covered are
developers’ perspective on PropTech in the region, human centered real estate
and regional and global investment opportunities amongst many others.

 

The event will also host the MIPIM Startup Competition,
celebrating innovative ideas from the most promising startups. Winning entrants
will be invited to compete in the global MIPIM Startup Competition finals, at
the flagship MIPIM summit which will take place on 10-13 March 2020 in Cannes,
France.

 

MIPIM PropTech Asia will be organized in parallel of MIPIM Asia
Summit. This year’s MIPIM Asia Summit will be held at
the Grand Hyatt Hong Kong on 26-27 November. The summit will highlight industry
trends in the Asian market imparting valuable knowledge to industry leaders,
empowering them to plan ahead and strategize to maximum their presence in the
Asia region.  

For additional information about the MIPIM PropTech and programme, please
visit here.

For additional information about the MIPIM Asia Summit and programme, please
visit here.

For press registration, please contact MIPIM Asia local PR partner.

For more details,
please follow MIPIM: Facebook Twitter LinkedIn

About Reed MIDEM:

Founded in 1963, Reed MIDEM is an organiser of professional,
international markets that are essential business platforms for key players in
the sectors concerned. These sectors are MIPTV, MIPDOC, MIPCOM, MIPJUNIOR in
Cannes, MIP China in Hangzhou and MIP Cancun in Mexico for the television and
digital content industries; MIDEM in Cannes for music professionals; Esports
BAR in Cannes and in Miami for the esports business; MIPIM in Cannes, MIPIM UK
Summit in London, MIPIM Asia Summit in Hong Kong SAR, MIPIM PropTech NYC in New
York, MIPIM PropTech Europe in Paris, MIPIM PropTech Asia in Hong Kong SAR for
the tech and real estate industry; MAPIC in Cannes, MAPIC Russia in Moscow,
MAPIC Italy and MAPIC Food in Milan, and MAPIC India in Mumbai for the retail
real estate sector. www.reedmidem.com

About Reed Exhibitions:

Reed Exhibitions is the world’s leading events organiser, with over 500
events in 30 countries. In 2018 Reed brought together over seven million event
participants from around the world generating billions of dollars in business.
Today Reed events are held throughout the Americas, Europe, the Middle East,
Asia Pacific and Africa and organised by 38 fully staffed offices. Reed
Exhibitions serves 43 industry sectors with trade and consumer events. It is
part of RELX Group, a global provider of information and analytics for
professional and business customers across industries.  www.reedexpo.com

Taiwan MV Hot in ASEAN Malaysian Talent of Musical Creation Echoes with Asian Drumming Queen

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Taiwan MV Hot in ASEAN Malaysian Talent of Musical Creation Echoes with Asian Drumming Queen

TAIWAN – Media OutReach –
25 October 2019 – Taiwan-In the wake of the hot pursuit of the New
Southbound Policy by the government of Taiwan, the Bureau of International
Trade, Ministry of Economic Affairs commissioned the Commerce Development
Research Institute (hereinafter referred to as “CDRI”) this year to
launch the “New Southbound Market Innovation Marketing Development Plan —
Wow! Taiwan” overseas. The marketing project aims at the youth groups of
Malaysia, the Philippines and other ASEAN countries in a series of Internet
events. Tan Vui Chuan, known as the “Talent of Musical Creation” in
Malaysia, and S. White, the renowned Asian Drumming Queen, to participate in
the filming of a good qualify MV. Round trip tickets for four between Taipei
and Kuala Lumpur, Ho Chi Minh, Manila, and New Delhi were offered to attract
the youths in these countries to Taiwan to experience the beautiful scenes and
taste the exotic products of Taiwan.

 

Malaysian Singer Tan Vui Chuan feat. Taiwanese Drummer S. White to
introduce Taiwan Products.NATURE _ Taiwan’s natural cosmetic products are
trending in ASEAN

 

“Nature, Beauty,
Flash” are the 3 pillars of the theme to promote the products of Taiwan.
From music to style, almost 30 kinds of Taiwanese products were interpreted
through lively music exclusively customized for Taiwan, including the famous
souvenirs of: pineapple cake, egg yolk cake, skincare products of masks and
hand cream. These items will enter the minds of the consumers in ASEAN
countries through their daily lives. CDRI has undertaken the study of the
markets of ASEAN and India, and discovered that the trendy mode of business
opportunity of Taiwan is in the fermentation process in ASEAN countries. As
such, showing that Taiwan is a creative item in itself and also has one selling
point, including the organic packed foods, snacks with nutritional ingredients,
cute and innovative little toys, cosmetics and healthcare products with natural
ingredients, which are all hot items that the youths of ASEAN would like to
recommend to friends. For further information on Wow! Taiwan, visit the
official website at https://www.wowtaiwan.org. For online viewing of
MV, visit https://reurl.cc/XXLZOR,
or call the New Southbound Market Innovative Marketing Development Project
Office at 02-7707-4921.

 

WOW _ CDRI activates the Wow! Taiwan project

 

Remarks:

Wow! Taiwan Project: Win
Free Flights to Taiwan in 3 steps:

 

1. Press Like + share: On
Wow! Taiwan Facebook fans page (https://www.facebook.com/wowtaiwan2019/)
Press like and share the messages to your site and make it available to the
public.

 

2. Choose my favorite:
Enter Wow! Taiwan official website (https://www.wowtaiwan.org/) choose your most
preferred item from Taiwan.

 

3. Message: On the Wow!
Taiwan fans page, in the section of Wow! Taiwan Project, leave a message under
the Win Free Flights to Taiwan heading, the content includes 1. Preferred
brands; 2. Product name; 3. City to take off (Kuala Lumpur, Ho Chi Minh, Manila
or New Delhi), and anything else you want to say to us.

 

※. Event period:
2019/10/21-11/21, Winner list will be unveiled on 11/22 at Wow! Taiwan Facebook
fans page.

 

Click the page from Facebook

Click the page from Facebook

Click the page from Facebook

Click the page from Facebook

Mobil 9M – 2019: Thinning margins amid Stronger Volumes

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Mobil 9M – 2019: Thinning margins amid Stronger Volumes

Recently, 11 Plc (MOBIL) released its 9M-19 results, sustaining a 5-year increase in its Revenue (+13.2y/y). The positive effect of the introduction of LPG volumes into its product basket was seen, coupled with larger revenues from its other products. However, Cost of Sales grew at a faster rate, offsetting an uptick in Revenue. With lower-income from rent and other sources, Profit before Tax declined -19.3y/y, as the negative effects of the rising cost of goods sold (COGS) trickled further down into final performance. Further details of performance are explained in this report.

Sustained Revenue Growth capped by increased sales costs

For the period under review, MOBIL recorded a 13.2%y/y growth in Revenue, riding on increased sales across all product segments. Its major drivers recorded double-digit growth, as Fuels moved +11.8%y/y to N114.0bn and Lubes by 14.9%y/y to N26.5bn. We also saw sustained momentum in sales of its new product line, LPG, by a whopping 59.2%q/q to N967.2mn, likely to touch N1.0bn by FY: 2019. Despite efforts at driving revenue, evident by a 5-yr CAGR of 25.4%, high costs remained problematic, as growth in Cost of Sales (+15.8y/y) caused a -10.2%y/y decline in Gross Profit to N11.5bn.

Elsewhere, benefits from MOBIL’s property business weakened, on the back of lower rental income, as Other Income declined 7.6%y/y to N6.0bn. Thus, lower OPEX (-1.1%y/y) was unable to support profitability. As such, Operating Profit decreased by 15.2%y/y to N9.5bn. In all, with lower realized income from investment property and marginal Net Finance costs (N133.4mn), Profit before Tax fell by 19.3%y/y to N9.4bn, with Profit after Tax the following suit to N6.3bn.

Stronger Cash balances in 9M-19

Similar to H1-19’s performance, MOBIL retained its cash-generating ability, with larger cash flows generated from operations (3.6x to N15.9bn). With room to fund investments in CAPEX, which was N3.1bn for the period and reduced outflows from trade creditors, Cash & cash equivalents were robust, growing by 2.3x to N10.9bn. Additionally, liquidity remains above average, as our estimates of MOBIL’s current ratio of 1.6x, is well above the industry average of 1.1x. Notably, no borrowings were recorded during the period, with a completely deleveraged capital structure.

MOBIL rated a BUY at current price:

In spite of the current tepid dynamics of the downstream segment, we are comfortable with MOBIL’s business operations. In the near term, we might see continued growth in sales, with LPG volumes likely to gain traction. Additionally, incomes from investment properties could continue to downplay volatilities associated with petroleum products marketing and shoring up overall profitability. Hence, we maintain our BUY rating on the stock, with a year-end target price of N197.6, implying a 33.6% upside from its current price of N147.9/share.

United Capital Research

Nigeria’s October Manufacturing PMI expands to 58.2 points

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Nigeria’s October Manufacturing PMI expands to 58.2 points

The Manufacturing PMI in the month of October stood at 58.2 index points, indicating expansion in the manufacturing sector for the thirty-first consecutive month. The index grew at a faster rate when compared to the index in September. Thirteen of the 14 surveyed subsectors reported growth in the review month in the following order: petroleum & coal products; cement; electrical equipment; furniture & related products; fabricated metal products; printing & related support activities; textile, apparel, leather & footwear; food, beverage & tobacco products; nonmetallic mineral products; plastics & rubber products; primary metal; chemical & pharmaceutical products; and transportation equipment. The paper products subsector recorded decline in the review period.

The October 2019 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period October 7-11, 2019. The respondents were purchasing and supply executives of manufacturing and non-manufacturing organizations in all 36 states in Nigeria and the Federal Capital Territory (FCT). The Bank makes no representation regarding the individual companies, other than the information they have provided. The data contained herein further provides input for policy decisions.

Production Level

At 59.3 points, the production level index for the manufacturing sector grew for the thirty-second consecutive month in October 2019. The index indicated a faster growth in the current month when compared to its level in September 2019. Eleven of the 14 manufacturing subsectors recorded an increased production level, while 3 recorded decline

New Orders

At 57.9 points, the new orders index grew for the thirty-first consecutive month, indicating an increase in new orders in October 2019. The index grew at a faster rate when compared to its level in September 2019. Nine subsectors reported growth, 2 remained unchanged, while 3 contracted in the review month.

Supplier Delivery Time

The manufacturing supplier delivery time index stood at 58.6 points in October 2019, indicating faster supplier delivery time. The index has recorded growth for twenty-ninth consecutive months. Nine of the 14 subsectors recorded improved suppliers’ delivery time, while 5 remained unchanged in the review period.

Employment Level

The employment level index for October 2019 stood at 56.8 points, indicating growth in employment level for the thirtieth consecutive month. Of the 14 subsectors, 11 reported increased employment level, 1 reported unchanged employment level while 2 reported decreased employment in the review month.

Raw material Inventories

The Manufacturing sector inventories index grew for the thirty-first consecutive month in October 2019. At 58.6 points, the index grew at a faster rate when compared to its level in September 2019. Ten of the 14 subsectors recorded growth, 2 remained unchanged, while 2 reported declined raw material inventories in the review month.

Download the full Purchasing Managers’ Index (PMI) Survey Report

British Airways Becomes the First UK Airline To Offer Youngsters Paid Internships To Help Them Become The Next Generation Of Aviation Leaders

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British Airways Becomes the First UK Airline To Offer Youngsters Paid Internships To Help Them Become The Next Generation Of Aviation Leaders
  • British Airways is the first UK airline to offer a summer internship programme with a competitive salary
  • Carrier is offering world-class opportunities to learn more about data science, analytics and leadership
  • Internships cement airline as a leader in emerging talent space with graduate, apprentice, business placement and work experience opportunities also up for grabs

From summer 2020 British Airways will become the first UK airline to offer a paid internship programme to encourage more young people from a range of backgrounds to experience the aviation industry and develop sought-after workplace skills that will ensure they stand out in the ever-competitive graduate market.

The airline is offering ten places across two three-month internship programmes; A Future Leaders Internship, offering real responsibility in areas such as sales strategy and customer service innovation, and a Data Science and Analytics Internship, giving applicants an insight into how British Airways is using data to transform its business.

Data science and analytics interns will be tasked with producing actionable insights and strategic forecasts for the business, from using machine learning models to anticipate opportunities for maintenance to be completed ahead of schedule to identifying how airport teams can get planes away even quicker, so customers arrive on time, every time. The complexity of the airline business means that, for analytics professionals, it is one of the most varied and interesting places they can apply their skills.

Hazel Cochrane, British Airways’ Principal Analytics Consultant, said: “British Airways has unparalleled size, scale and ambition and data scientists at the airline have real influence; our insights are relied upon for delivering the quality customer experiences the airline prides itself on, so it’s a hugely rewarding role. We use the most advanced analytical techniques and interns will be equipped to tackle complex challenges right from day one.”

Ambitious undergraduates keen to find out more and apply for this unique opportunity should visit www.careers.ba.com.

Internships are just one of many routes into the airline, with work experience, award-winning apprenticeship opportunities and business placements all on offer and British Airways’ popular graduate scheme are still open for applications from the brightest talent.

WPP releases its reported revenue growth in Q3, PR Firms Down 0.9%

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WPP releases its reported revenue growth in Q3, PR Firms Down 0.9%

British multinational advertising and public relations company, WPP has released its reported revenue for quarter three of 2019. Its reported revenue from continuing operations – which excludes Kantar – saw a 5.2% increase, valued at £3.291bn.

Geographically, like-for-like revenue growth in the third quarter was stronger in the Asia Pacific, Latin America, Africa & the Middle East and Central & Eastern Europe, with Western Continental Europe and the United Kingdom up strongly, partly offset by North America. South-East Asia, Latin America and the Middle East were particularly strong with Africa and ANZ more difficult.

Mark Read

By sector, the group’s global integrated agencies were up strongly, but public relations and the group’s specialist agencies performed less well. In the third quarter, there was an improvement in revenue less pass-through costs from continuing operations, with constant currency and like-for-like growth of 0.5%, the first quarter of growth since the second quarter of 2018, and significantly stronger than the -2.5% in the first half.

Mark Read, Chief Executive Officer of WPP, said:

“WPP’s performance in the third quarter is another important step in the strategy we outlined in December 2018 to return the Company to sustainable growth in line with our peers in 2021. 

“Our growth in Q3 is encouraging but we are focused on delivering these longer-term goals and know there will be twists and turns along the way. Our guidance for 2019 remains unchanged.

“It continues to be a successful year for new business, with major wins in the quarter including Mondelez and eBay, but just as importantly we are growing and retaining longstanding clients, such as the US Marine Corps and Centrica, who value the depth of our understanding and the longevity of the relationship.

“Yesterday, WPP shareholders voted to approve the Kantar transaction, which will further simplify our business and significantly strengthen our balance sheet, while creating a new partnership for Kantar’s future growth and development.

“In the last 12 months, WPP has taken decisive action and made substantial progress on many fronts: we have fewer, stronger agency brands; new leadership in many of our companies; enhanced central teams supporting our companies; and a renewed commitment to creativity, powered by technology. We have cemented our position as the largest partner to the world’s leading technology firms and, most importantly, the work we do continues to be highly valued by our clients as we adapt to their changing needs in a dynamic marketplace.”

Cement Company of Northern Nigeria Plc – Higher Volumes Buoy Earnings

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Cement Company of Northern Nigeria Plc – Higher Volumes Buoy Earnings
CardinalStone Research
Cement Company of Northern Nigeria Plc (CCNN: TP 12.97) filed its 9M’19 results on the stock exchange late Friday. The company recorded an over two-fold YoY surge in earnings after tax that was largely driven by increased volumes.
Some positives:
  • We note the strong growth in revenue in Q3’19 (+38.5% YoY), buoyed by a ramp-up in volumes as capacity utilization increased at the Kalambiana plant. In addition to this, industry cement price was increased by an average of N150/bag in April 2019, providing further support to top-line in Q2’19 and Q3’19.
  • Net cash flow from operations improved to N14.6 billion in 9M’19 from the N10.9 billion in H1’19. The improvement on this front was primarily supported by cash proceeds from sales of cement in Q3’19.
  • The company’s result implies a debt to equity ratio of 0.1% compared to 18.5% for Lafarge
Some concerns:
  • Gross margin declined by 2.8 ppts to 39.5% in Q3’19 on higher energy cost.
  • We are concerned by the acceleration of distribution cost (+81.7% YoY), which was significantly ahead of sales growth in Q3’19. On the back of this, operating margin declined by 8.1 ppts YoY to 19.5% in the three month period
  • EPS came in significantly lower at N0.67/share (-78.9% YoY), reflecting the earnings dilutive impact of the CCNN and Kalambaina merger
9M’19 results

Please click here for the full result.

Access Bank Plc – Huge FX gains buoy Q3 performance

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Access Bank Plc – Huge FX gains buoy Q3 performance

CardinalStone Research

Access Bank Plc (ACCESS: TP 8.74 – BUY) reported a 28.0% YoY increase in EPS to N2.74 for 9M’19 in its latest filing with the Nigerian Stock Exchange (NSE). The growth in earnings was supported by a 71.0% YoY jump in net interest income.

**Earlier today, ACCESS disclosed to the Nigerian Stock exchange its proposed acquisition of controlling equity interest in Transnational Bank of Kenya (TNB) Plc**

Some positives:

  • Non-interest income came in strongly during the quarter at N50.6 billion compared to N363 million in Q2’19. The jump largely reflects strong FX gains (N24.1 billion in Q3’19 vs FX losses of N25.2 billion in Q2’19)
  • Gross loans grew 3.8% during the quarter from the level as at Q2’19 to c. N3.0 trillion. We note that ACCESS was one of the few banks that met the CBN’s loan to funding requirement as at September 2019.
  • Notwithstanding the 4.7% QoQ increase in operating costs, we note the improvement in efficiency as the cost to income moderated by 200 bps during the quarter. Year-to-date, cost to income has declined by 80 bps to 63.1% despite the one-off integration costs incurred. We believe the moderation in cost to income ratio suggests that the bank is already reaping synergies from its merger with Diamond.

Some concerns:

  • Despite the combination of Diamond Bank’s huge retail deposits, cost of funds (at 5.2%) remains relatively high compared to an average of c.3.1% for the other Tier 1 banks. This may be due to the 15.0% growth inexpensive term deposits from the post-combination level in Q1’19. While deposits have grown 8.1% since the business integration, over 79.0% have come from expensive deposits. In contrast, low-cost deposits account for just 54.4% of total deposits, 2.7ppts lower than the post-combination level in Q1’19
  • Likewise, the net interest margin weakened to 6.8% during the period compared to 7.6% in H1’19. This possibly reflects the impact of funding cost pressure (9M’19: 5.2%; H1’19: 4.8%) previously highlighted

Net impairment charges rose more than 3-fold to N5.7 billion during the quarter, though the cost of risk moderated 20bps QoQ, supported by the 3.8% growth in gross loans

Please click here for the full result.

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