emmanuelewumi:


Sustainability is very important. They had to pay N2.70k in order to justify the price difference with Zenith.

GTB is planning to adopt the Holdco structure with a plan to buy a pension fund management firm, asset management firm, fintech firm, Insurance company etc between now and 2022. With these expected acquisition will they be able to pay N3.00 dividend. How will they finance the acquisitions, will the bank use equity or debt?

UBA recentky had a 55% reduction in dividend, are we sure GTB won't do something similar in the future. Time will tell

I can't agree less. Strategically, they will need to be conservatively efficient

I just love the model


NB. I'm biased towards this stock as it is my largest holding in NSE, and only behind TESLA globally

emmanuelewumi:


Sustainability is very important. They had to pay N2.70k in order to justify the price difference with Zenith.

GTB is planning to adopt the Holdco structure with a plan to buy a pension fund management firm, asset management firm, fintech firm, Insurance company etc between now and 2022. With these expected acquisition will they be able to pay N3.00 dividend. How will they finance the acquisitions, will the bank use equity or debt?

UBA recentky had a 55% reduction in dividend, are we sure GTB won't do something similar in the future. Time will tell

One thing to note sir, Out of over 200 billion naira profit, GT is paying us 88+ billion.. There is still cash in retained earnings..

These acquisitions will make gtbank more profitable going forward.. Agbaje is a guru in this game. I am happy with his model and how he is already thinking about diversification..

I see him as the Elon Musk of Nigerian banking

Indeed, time will tell!

emmanuelewumi:


Sustainability is very important. They had to pay N2.70k in order to justify the price difference with Zenith.

GTB is planning to adopt the Holdco structure with a plan to buy a pension fund management firm, asset management firm, fintech firm, Insurance company etc between now and 2022. With these expected acquisition will they be able to pay N3.00 dividend. How will they finance the acquisitions, will the bank use equity or debt?

UBA recentky had a 55% reduction in dividend, are we sure GTB won't do something similar in the future. Time will tell

I don't get it.This banks sold off this arms which made them more profitable as a bank.Why do they now want to buy them back through the Holdco idea as most of this arms whr only making loses

zimams:
Nothing major..
I've assumed 'per chance' reduction in dividend from 70k to 50k going fwd which is a 20k drop (with recent experience with UBA & Afriprud in mind) .
This amounts to approx. 28.57% reduction. Working out Div yield at current price with this provision will be 11%. If you work it out with 70k div, then Div Yield = 14% approx which is still below 15%.
In my books UCap will need to trade at 3.30 for me to expand my holding, giving me 15% Div Yield with my risk provision. And I'm patient... it's a long game...
If they repeat 70k dividend for 2021 FYE , that will put me at 21% Div Yield with my risk provision.


These are strictly my permutations for UCap.... DD is advised as usual.

Thank you Chief.

I appreciate

emmanuelewumi:



2020 was a good year for fund managers, that might not happen in 2021. It is prudent to under estimate your expected gains

Thank you Chief.

I appreciate

Important Qualities and Features to Look for When Choosing an Online Trading Broker
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Luno Engages CBN to Enable Customers Withdraw Funds
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Kwik Delivery Secures $1.7m to Conquer New Markets
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Can You Make a Living Trading Forex?
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GTBank Offers N2.70 Dividend After Profit Grows in FY 2020
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One-Year Treasury Bills in Nigeria Clears at 7%
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Airtel Eyes Mobile Money Business Listing After Sale of $200m Shares
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DMO Lists N162.6bn Sovereign Sukuk on Stock Exchange
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IBEDC Introduces Bills on Demand for Better Service Delivery
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Most MSMEs Can’t Withstand Shocks—Olurotimi
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Q4 2020: Airtel Loses 2,988 Subscribers, 9mobile Gains 1,734
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Investors Pump Fresh $25m into Nigeria’s Kuda Bank
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Christianity: Fake Philosophy, Social Media and Present Psychology
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How Has the COVID-19 Pandemic Changed the ATM and Cash Trends?
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I recently started an experiment, a podcast, titled "Value Nigeria with Ajibola"... Its a platform that I hope will be educational both for the listeners and me..

I hope to share things I've learnt about value investing as it relates with the Nigerian Market...

Kindly find the link to the first 2 episodes below... Forgive the poor audio quality of the first episode.. It was greatly improved on in the second episode...

Thanks for listening and for giving me your feedback...

https://anchor.fm/ajibola-oladele-awolowo/episodes/Welcome-to-Value-Nigeria-esir3g

https://anchor.fm/ajibola-oladele-awolowo/episodes/10-commandments-of-wealth-and-living-a-fulfilled-life-Part-1-et4ms1

...

VOLUME SPIKE! who can explain this and its possible effects on the broad market?

By Dipo Olowookere

Shareholders of Guaranty Trust Bank (GTBank) Plc will receive a higher dividend for the 2020 financial year despite the harsh challenges faced by the business environment in the year.

On Thursday, the lender released its much-awaited audited results for 2020 full-year and the board recommended the payment of N2.70 final dividend, higher than N2.50 paid in the same period of last year.

The GTBank dividend would be paid to shareholders whose names appear on the register of members at the close of business on Wednesday, March 31, 2021, while the payment would be made on Friday, April 9, 2021, after approval at the Annual General Meeting (AGM) fixed for the same day at the Oriental Hotel, Lagos by 10.00am.

Review of GTBank 2020 results
A look into the results showed improved performance across all key financial metrics in the face of the unprecedented challenges brought on by the COVID-19 pandemic, reflecting the quality of past decisions and reaffirming its position as one of the best managed financial institutions in Africa.

GTBank reported profit before tax of N238.1 billion, 2.8 per cent higher than N231.7 billion recorded in the corresponding year ended December 2019, while the profit after tax marginally grew by 2.3 per cent to N201.4 billion from N196.9 billion a year earlier.Also, the net loan book of the lender grew by 10.7 per cent from N1.502 trillion recorded as at December 2019 to N1.663 trillion in December 2020, while customers’ deposits increased by 38.6 per cent from N2.533 trillion in December 2019 to N3.509 trillion in December 2020.

Its balance sheet remained well structured, diversified and resilient with total assets and shareholders’ funds closing at N4.945 trillion and N814.4 billion respectively.

Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 21.9 per cent, while asset quality was sustained as NPL ratio and Cost of Risk (COR) closed at 6.4 per cent and 1.2 per cent in December 2020 from 6.5 per cent and 0.3 per cent in December 2019 respectively.GTBank MD/CEO comments
Commenting on the financial results, the Managing Director/CEO of GTBank, Mr Segun Agbaje, said, “2020 was arguably the most challenging year that the world has faced in decades.

“In such unprecedented times, we sought to live out the full extent of our values; safeguarding lives and livelihoods for our people, our customers and across the communities where we operate “We were on solid footing going into 2020; the strength, scale and liquidity of our balance sheet, coupled with the quality of our past decisions and the efficacy of our digital-first customer-centric strategy gave us the resilience and flexibility to navigate the economic shocks and market volatility that dominated the year.”

He further stated that, “Amidst the many challenges that persist, we remain ardent believers in Africa’s growth potential. Our world is increasingly digital, and we see it opening new and exciting opportunities for empowering people and uplifting our communities.“With our commitment to deepening customer relationships and intense focus on delivering innovative financial solutions, we enter 2021 well-positioned to lead this new world.”

GTBank financial ratios
GTBank continues to post the best metrics in the Nigerian banking industry in terms of all financial ratios i.e. Post-Tax Return on Equity (ROAE) of 26.8 per cent, Post-Tax Return on Assets (ROAA) of 4.6 per cent, Full Impact Capital Adequacy Ratio (CAR) of 21.9 per cent and Cost to Income ratio of 38.2 per cent.

Renowned for its forward-thinking approach to financial services and customer engagement, GTBank was recently ranked Africa’s Most Admired Finance Brand in the 10th-anniversary rankings of Brand Africa 100: Africa’s Best Brands, the pre-eminent survey and ranking of the Top 100 admired brands in Africa. The Bank was also awarded the Best Bank in Nigeria by Euromoney Magazine for a record-extending tenth time and the Euromoney Excellence in Leadership Africa Award for its swift reaction in responding to the COVID-19 crisis and for addressing the impact of the pandemic on its customers and communities.

Stocks Investors Can Buy, Sell, Hold This Week
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Unity Bank, GTBank, Others Drive N19bn Investment in Domestic Stocks
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Nigeria Needs Trade Policy to Protect Ailing Economy—Agbakoba
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Three Stocks Increase NASD Market Capitalisation by N2.38bn
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A Simple Way to Reduce Financial Effect of Loss of Employment on Everyday Nigerians
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Anambra Governorship Poll 2021: Ruminating over Solude’s Candidacy
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Succession Planning: Big News for Family Businesses and SMEs
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Ebenezer Onyeagwu GMD/CEO Zenith Bank Dumps N112 Million on Zenith Shares

https://investorsking.com/2021/03/22/ebenezer-onyeagwu-gmd-ceo-zenith-bank-dumps-n112-million-on-zenith-shares/

Daily Naira Exchange Rates; Monday, March 22, 2021

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Nigerian Stock Exchange Depreciates Further Last Week

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Saudi Aramco Pays Dividend Despite 44% Drop in Profit in 2020

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Oil Steadies on Demand Recovery Expectation Despite European Lockdowns

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Binance-backed Xend Finance Launches DeFi Platform for Credit Unions in Africa

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Gtbank, Union Bank Announced Dividends Last Week

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FG Lists N162.6 Billion Worth of FGN Roads Sukuk Company 1 Plc’s Bond on NSE

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Dangote to Open $2 billion Fertiliser Plant Next Week

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Seplat to Raise Fund to Redeem Existing Notes, Finance Credit Facility

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Looks like Katanga has gotten themselves a strong fire service company
The waiting for good entry positions continues

http://www.nse.com.ng/Financial_NewsDocs/198_ZBPLC_Notification_of_Share_Dealing_by_Insider.pdf

Zenith Bank CEO Ebenezer Onyeagwu just spent N110 million buying an additional 5 million Zenith Bank shares at N22.30 and N22.65.

What more assurance do you need?

Buhari might be horrible, and the economy might be shit. But these tier-1 banks especially Guaranty and Zenith will always eat good no matter how terrible the global economy is. If Nigerian banks could make big money in 2020, they WILL always make big money. I see Zenith Bank getting to N35 this year, and GTBank to N45...inasmuch as I want them both to come down so that I can pick up at bargain prices.

http://www.nse.com.ng/Financial_NewsDocs/32644_CHEMICAL_AND_ALLIED_PRODUCTS_PLC%20OUTCOME_OF_BOARD_MEET.pdf

STOCK RECOMMENDATIONS FOR THIS WEEK:

Below attached for your info and possible use.

CAVEAT (by me): This is NOT a solicitation for purchase or sale of shares. Public securities are not risk-free and you are thus advised to exercise caution and due diligence before making any investment decision.

SOURCE: https://gtigroupblog.com

prof2007:
STOCK RECOMMENDATIONS FOR THIS WEEK:

Below attached for your info and possible use.

CAVEAT (by me): This is NOT a solicitation for purchase or sale of shares. Public securities are not risk-free and you are thus advised to exercise caution and due diligence before making any investment decision.

SOURCE: https://gtigroupblog.com

For comparison, here are the recommendations from ARM Securities Limited....

Lion123:
http://www.nse.com.ng/Financial_NewsDocs/198_ZBPLC_Notification_of_Share_Dealing_by_Insider.pdf

Zenith Bank CEO Ebenezer Onyeagwu just spent N110 million buying an additional 5 million Zenith Bank shares at N22.30 and N22.65.

What more assurance do you need?

Buhari might be horrible, and the economy might be shit. But these tier-1 banks especially Guaranty and Zenith will always eat good no matter how terrible the global economy is. If Nigerian banks could make big money in 2020, they WILL always make big money. I see Zenith Bank getting to N35 this year, and GTBank to N45...inasmuch as I want them both to come down so that I can pick up at bargain prices.

This is a good sign for what’s to come! Man paid an average of N22.40 and some people are still waiting for Zenith to crash to N12. I’ve been singing it and will continue to sing it, invest in these banks for the income alone! 11-15% in annual payment is not easy to come by these days. Buy when it is up, buy more when it comes down! The income (dividends) is what really matters!

Sold off Guinness today and will be buying hella Zenith! At current, higher or lower prices.

Biafran4life:
I don't get it.This banks sold off this arms which made them more profitable as a bank.Why do they now want to buy them back through the Holdco idea as most of this arms whr only making loses

The banks didn’t sell off the ‘subsidiaries’ on account of loss making but in compliance with the regulatory directives.

CBN directed that stand-alone bank cannot have investments in those finance companies except such bank adopts holding company structure (holdco).

First Bank, FCMB, Stanbic adopted holdco model and retained the subsidiaries while GTB, Access, Zenith adopted stand-alone model and divested from the subsidiaries. GTB and Access have reversed their model to holdco now.

UBA also doesn’t adopt holdco but have common ownership with UCAP, Afriland, African Prudential through Heirs holdings owned by Elumelu.

prof2007:



For comparison, here are the recommendations from ARM Securities Limited....

Which one is overweight o

klas:


The banks didn’t sell off the ‘subsidiaries’ on account of loss making but in compliance with the regulatory directives.

CBN directed that stand-alone bank cannot have investments in those finance companies except such bank adopts holding company structure (holdco).

First Bank, FCMB, Stanbic adopted holdco model and retained the subsidiaries while GTB, Access, Zenith adopted stand-alone model and divested from the subsidiaries. GTB and Access have reversed their model to holdco now.

UBA also doesn’t adopt holdco but have common ownership with UCAP, Afriland, African Prudential through Heirs holdings owned by Elumelu.

Why sell few years ago only to buy back at a premium

When is UCAP dividend landing ?

debostar:
When is UCAP dividend landing ?

tomorrow

Right now in the USA stocks/crypto are sustained because of the stimulus making traders/newbies pump more money inside it.
I believe something similar is happening in Nigeria either somehow we got some of that cash or our govt made its own secret stimulus or a loan approved was finally released

If an economy is bad no way stocks keep going up. Something is going on be vigilant

This is no assurance ...
These MD's have been buying shares of their companies for as long as i've been exposed to the stock market (and that's quite a while...)
For all you know this could also be a form of 'employee engagement incentives' we know performance bonuses for C-suite folks could come in stock options. (Just saying... i dont know for certain that this is the same thing).

I think Ultimately, market forces will determine how Zenith shares and all the others will be priced irrespective of how much the MD invests. This time in 2019, we wouldn't have believed it will 'tank' in 2020.... and sell for N10.90/Unit. In that same way, non of us here can see what the next quarter holds. It will take one decision from CBN's Monetary Policy Committee to scatter all our permutations here.....

however, I agree with you though, that Zenith is a star performer and is a stock to hold.

Lion123:
http://www.nse.com.ng/Financial_NewsDocs/198_ZBPLC_Notification_of_Share_Dealing_by_Insider.pdf

Zenith Bank CEO Ebenezer Onyeagwu just spent N110 million buying an additional 5 million Zenith Bank shares at N22.30 and N22.65.

What more assurance do you need?

Buhari might be horrible, and the economy might be shit. But these tier-1 banks especially Guaranty and Zenith will always eat good no matter how terrible the global economy is. If Nigerian banks could make big money in 2020, they WILL always make big money. I see Zenith Bank getting to N35 this year, and GTBank to N45...inasmuch as I want them both to come down so that I can pick up at bargain prices.

How are you guys able to give a SELL recommendation when you do not know the person's entry point?

prof2007:
STOCK RECOMMENDATIONS FOR THIS WEEK:

Below attached for your info and possible use.

CAVEAT (by me): This is NOT a solicitation for purchase or sale of shares. Public securities are not risk-free and you are thus advised to exercise caution and due diligence before making any investment decision.

SOURCE: https://gtigroupblog.com

Lol! the Man paid 22.40 and you are wondering why some people are waiting? Bros spread out your 5 fingers and see if they are all the same length.... There is Capacity and there is capacity Its not necessarily a function of what you know. waiting for it at 12 may be far fetched.. but trying to get in at sub 22 and even 21 is possible.
When you are large you are large.. to one man... 40k may make no difference ...but to another it makes a difference. So the the fellow to whom it makes a difference will wait for it at 22. doesnt mean he doesn't see value.

Ades1:


This is a good sign for what’s to come! Man paid an average of N22.40 and some people are still waiting for Zenith to crash to N12. I’ve been singing it and will continue to sing it, invest in these banks for the income alone! 11-15% in annual payment is not easy to come by these days. Buy when it is up, buy more when it comes down! The income (dividends) is what really matters!

Sold off Guinness today and will be buying hella Zenith! At current, higher or lower prices.

zimams:
Lol! the Man paid 22.40 and you are wondering why some people are waiting? Bros spread out your 5 fingers and see if they are all the same length.... There is Capacity and there is capacity Its not necessarily a function of what you know. waiting for it at 12 may be far fetched.. but trying to get in at sub 22 and even 21 is possible.
When you are large you are large.. to one man... 40k may make no difference ...but to another it makes a difference. So the the fellow to whom it makes a difference will wait for it at 22. doesnt mean he doesn't see value.

why not wait for the mad bear to be over b4 buying

uba wont be that low for too long. take position while you can

jideflash:
uba wont be that low for too long. take position while you can

Really? in this market? I laugh in Swahili

I am inclined to believe that you have been around for a while, you may wish to visit the intervening years before the pandemic of last year.

We have seen worse! (and I don't meant pandemic induced worse).

The point I am making is that anything can happen, especially in NSE

25% South Africa, 40% Kenya and 38% Nigeria's Kaspersky Users Are Attacked by Malware Hiding Within Their Devices

https://investorsking.com/2021/03/23/25-south-africa-40-kenya-and-38-nigerias-kaspersky-users-are-attacked-by-malware-hiding-within-their-devices/

Healthcare Startups Raised $38B in a Year; Total Investments Jumped to $135.5B

https://investorsking.com/2021/03/23/healthcare-startups-raised-38b-in-a-year-total-investments-jumped-to-135-5b/

Canada and African Development Bank Sign CAD 133 Million Gender Lens Climate Fund for Africa

https://investorsking.com/2021/03/23/canada-and-african-development-bank-sign-cad-133-million-gender-lens-climate-fund-for-africa/

Ecobank Profit Plunges by 66 Percent in 2020

https://investorsking.com/2021/03/23/ecobank-profit-plunges-by-66-percent-in-2020/

World’s Five Highest Paid Football Players Lost $173M in Market Value, Messi Tops with a $66M Drop

https://investorsking.com/2021/03/23/worlds-five-highest-paid-football-players-lost-173m-in-market-value-messi-tops-with-a-66m-drop/

Despite N12.508bn Tax Credit, International Breweries Loses N12.37bn in Profit in 2020

https://investorsking.com/2021/03/23/despite-n12-508bn-tax-credit-international-breweries-loses-n12-37bn-in-profit-in-2020/

Airtel Signs Agreements to Sell Telecommunications Facilities in Madagascar, Malawi

https://investorsking.com/2021/03/23/airtel-signs-agreements-to-sell-telecommunications-facilities-in-madagascar-malawi/

Julius Berger, Stanbic, Others Drag Nigerian Stock Exchange Out of Red Zone

https://investorsking.com/2021/03/23/julius-berger-stanbic-others-drag-nigerian-stock-exchange-out-of-red-zone/

Naira Exchange Rates; Tuesday, March 23, 2021

https://investorsking.com/2021/03/23/naira-exchange-rates-tuesday-march-23-2021/

zimams:
This is no assurance ...
These MD's have been buying shares of their companies for as long as i've been exposed to the stock market (and that's quite a while...)
For all you know this could also be a form of 'employee engagement incentives' we know performance bonuses for C-suite folks could come in stock options. (Just saying... i dont know for certain that this is the same thing).

I think Ultimately, market forces will determine how Zenith shares and all the others will be priced irrespective of how much the MD invests. This time in 2019, we wouldn't have believed it will 'tank' in 2020.... and sell for N10.90/Unit. In that same way, non of us here can see what the next quarter holds. It will take one decision from CBN's Monetary Policy Committee to scatter all our permutations here.....

however, I agree with you though, that Zenith is a star performer and is a stock to hold.

...


GTB is about the only bank with stock options for their workers. Management and workers of other banks use their salaries or allowances to buy shares for themselves. If not the outstanding shares of the banks will be increasing, whenever new shares are allocated to workers. This is a major issue, I have with Seplat


With stock option the bank will need the approval of SEC, they will also inform SEC and NSE when the option are exercised, it won't be through purchases in the floor of the stock exchange