₦airaland Forum

Buhari and most Northern leaders are very dull and not fit to rule a complex nation like Nigeria.

By the time, another Northern president takes over, Nigeria will slide again to ruin.

Their philosophy about leadership is always about sharing the Southern Loots among their people and among some southern accomplices.

Fidelity Bank: A Stellar Performance in Q3 2024 – Doubling Gross Earnings and Surging Profitability

Fidelity Bank Plc has delivered an impressive performance in the nine months leading up to Q3 2024, marking a transformative period for the bank. Its gross earnings saw a remarkable increase, doubling from N388.8 billion in 2023 to N772.5 billion in 2024, signaling its robust growth trajectory. This surge in earnings was bolstered by an outstanding performance in key revenue streams, most notably in fees and commission income, which rose substantially from N36.4 billion to N56.3 billion.

The most striking figure in the bank's Q3 performance is its Profit After Tax (PAT), which skyrocketed by an impressive 2.5 times to N224.7 billion. This surge reflects a combination of operational efficiency, strong market positioning, and an ability to leverage favourable economic conditions.

A closer look at Fidelity Bank’s financial performance reveals a heavy tilt toward net interest income (NII), which constituted a dominant 83.0% of operating income. This highlights the bank’s ability to capitalise on the higher yield environment, with a keen focus on managing interest expenses effectively. Despite challenges posed by rising interest rates, the bank’s strategy has allowed it to contain the negative impact on interest expenses, resulting in a strong net interest margin (NIM) expansion of 3.5 percentage points, reaching 11.9%.

The favourable interest rate environment has played a crucial role in the bank’s performance. The growth in NII indicates that Fidelity Bank has successfully maximised its interest-earning assets, thereby driving operating income growth even amid rising rates. This performance underscores the bank's impressive capability to navigate complex macroeconomic conditions.

On the other hand, non-interest revenue (NIR) showed a modest improvement, contributing 17.0% to the bank's operating income, reinforcing the diversified nature of its earnings. While NIR growth is important, the bank’s ability to rely heavily on NII showcases its strong foundation in the core banking business.

Earnings Per Share (EPS) also saw a notable jump, rising from N286.7 to N701.8 in Q3 2024. This upward movement in EPS reflects the bank's exceptional profitability and its successful execution of strategies designed to boost shareholder value.

Looking ahead into 2025, the bank’s strategic focus will be on maximising higher asset yields in the first half of 2025 and expanding its interest-earning assets (IEA) to sustain the momentum in NII growth. Given that NII has been the primary contributor to operating income over the past five years (around 77.2%), maintaining growth in this area will be pivotal for Fidelity Bank.

Despite an anticipated 200 basis points (bps) moderation in yields across the yield curve, the outlook for the bank remains optimistic. The firm is well-positioned to achieve a 50.9% increase in PAT, which is forecasted to reach N421.9 billion by the end of financial year 2025, driven by its strong fundamentals and capacity to adapt to changing market conditions.

As a result of these stellar performance metrics, Fidelity Bank has a 12-month Target Price (TP) upward to N18.91, from the previous TP of N14.80. This will be primarily driven by an improvement in the bank's return on equity (ROE), which is expected to average 40.1% over the forecast horizon, a significant increase from its 5-year historical mean of 14.7%. The new TP reflects a promising upside potential of 18.2%, based on a reference price of N16.00.

However, it is important to note that the upside is tempered by the dilutive impact of the additional 27,343,589,744 shares issued via a rights issue and public offer, which has led to a larger share base. Despite this dilution, Fidelity Bank's robust performance and solid growth trajectory make it an attractive investment.

In light of these developments, our recommendation for Fidelity Bank's stock is a BUY. With strong fundamentals, continued growth prospects, and a promising financial outlook, Fidelity Bank is positioned to maintain its upward trajectory, offering significant returns for investors.

Peter Odili started the attack on Wile first.... Nobody cried but now that Wike has replied him, people are accusing Wike of talking too much.

Hypocrites

I knew it will be an Anambra man. This is how most of them build big houses in the village.

90% of drug related crimes in South Africa are done by Igbos.

Streetinvestor2:
I hope they have not changed thr mind for the share redistribution. This new media hipe is for a purpose. I hope it is not bad news they believe could affect the share price

I feel that the share redistribution thing wasn't thought out properly once the delay or possible cancellation.

Raider76:
https://africa.businessinsider.com/local/markets/oandos-strategic-choices-driving-financial-performance-and-shaping-africas-energy/szkw4s0

They are always hyping themselves in the media... They need to focus on managing the great assets they recently acquired.

They are yet to even give details of their share bonus or redistribution... They moves are always opaque and drags...

What is the price of Oando right now?

Oando seem to be getting some attention in the market. Price is gradually climbing back to ₦70 per share.

A lot of Northerners are not Nigerians. It is funny how foreigners from Niger, Chad, Mali and other countries enter Northern Nigeria easily and start kidnapping and terrorising Nigerians.

Our immigration and Border control is zero. Also the Northerners also aid these immigrants from Niger, Mali and Chad.

Bulk of the terror activities in the North are done by non-Nigerians

Streetinvestor2:
Oando I was expecting announcement earlier than this time.wale you want to carry this onado fight into next yr.Try do us new yr bonanza..lol

Wale never get shareholder time yet...

Transcorp: Evaluating HH Capital Limited’s Mandatory Tender Offer and Future Prospects


Transnational Corporation Plc (Transcorp), a diversified conglomerate with interests spanning energy, hospitality, and other sectors, has recently made headlines due to a mandatory tender offer (MTO) from HH Capital Limited. This offer, in compliance with regulatory requirements, pertains to 0.02% of Transcorp’s fully paid ordinary shares, amounting to 2,032,399 shares. HH Capital Limited has proposed a 0.25% premium over the current market price for these shares, which will effectively raise HH Capital’s ownership stake in Transcorp to 35.94%, considering both direct and indirect holdings. This acquisition signals HH Capital’s growing influence in Transcorp and its potential strategic implications for the company moving forward.

In light of this MTO, it is crucial to analyse the company’s recent performance, particularly its impressive growth trajectory in 2024, and assess the outlook for investors. This will provide insight into whether shareholders should hold or sell their shares as the company continues to evolve under its new ownership structure.

Transcorp’s performance in Q3 2024 has been nothing short of remarkable. The company reported a total revenue of N297.664 billion for the nine months ended September 30, 2024, reflecting a staggering 133% year-on-year growth. This surge in revenue was largely driven by the energy segment, which remains the backbone of Transcorp’s operations. Energy revenue alone accounted for 57.6% of the total nine-month revenue, showcasing the sector's critical importance to the company’s overall performance.

Within Q3 2024, Transcorp achieved a record revenue of N122.327 billion, a 166% increase compared to N45.903 billion in Q3 2023. This dramatic rise underscores the company’s ability to capitalise on favourable market conditions, expand its operational footprint, and diversify its revenue streams. Such growth is further reflected in the company’s profit before tax (PBT), which surged by an astonishing 352% year-on-year, totaling N34.5 billion for the quarter. For the full nine-month period, PBT reached N105.4 billion, a remarkable 303% increase compared to the same period last year, and 79% higher than the full-year 2023 PBT.

These figures clearly indicate that Transcorp is not only navigating the challenges of a volatile market but is also emerging as a strong contender in its various business sectors. The company’s diversification strategy, particularly the growth of its energy, hospitality, and other business lines, has placed it in a favourable position to capitalise on future opportunities.

Impact of HH Capital’s Increased Ownership

HH Capital Limited’s mandatory tender offer to acquire additional shares of Transcorp will likely have significant implications for the company’s future. By raising its ownership stake to 35.94%, HH Capital will likely gain a more influential role in the company’s decision-making processes, potentially leading to shifts in governance and strategy. Such increased control also pave the way for more aggressive expansion plans, operational efficiencies, and deeper financial investments.

Given that HH Capital is a major shareholder, investors will need to monitor any changes in corporate governance that will arise from this new holding structure. It is possible that this change will lead to improved operational synergies, especially if HH Capital brings in new strategic partnerships or capital to support Transcorp’s diverse business lines. However, it also raises questions about the balance of power within the company, which have implications for minority shareholders.

Stock Price Surge: Is Now the Right Time to Hold or Sell?

Transcorp’s share price has experienced an extraordinary surge in 2024. Starting the year at N8.66, the stock has surged over 400%, currently trading at N44.00 per share. This impressive rally has been fueled by the company’s stellar financial performance and a favourable market environment. The substantial growth in share price reflects investor optimism surrounding the company’s prospects, particularly as it continues to outperform expectations across revenue and profitability metrics.

However, the rapid rise in share price begs the question: Is this the right time for investors to hold onto their shares or to take profits by selling? While Transcorp’s fundamentals remain strong, the substantial increase in its stock price suggests that much of the good news may already be priced in growing on the backdrop share reconstruction, having multpler effect on the company price. For investors who have seen significant gains in 2024, selling could be an attractive option to lock in profits. On the other hand, those with a longer-term investment horizon may choose to hold, given the company’s robust growth trajectory and potential for further expansion under the leadership of HH Capital.

Recommendation: Hold for Long-Term Growth

Based on Transcorp’s exceptional financial performance in Q3 2024, coupled with the increased ownership stake of HH Capital, the company appears well-positioned for sustained growth in the long term. With strong revenue growth, impressive profitability, and a diversified business model, Transcorp’s prospects are promising.

For investors, the current surge in share price present a temptation to sell, especially for those seeking to take profits after the significant year-to-date increase. However, for those with a long-term outlook, holding onto shares seems to be a more prudent strategy. The growing influence of HH Capital will usher in further operational efficiencies and strategic initiatives that may continue to drive Transcorp’s growth. Given the company’s strong fundamentals and diversified portfolio, it is likely that Transcorp’s value will continue to rise over time, making it a solid hold for investors looking to benefit from future gains.

Thus, the recommendation for shareholders is to hold their Transcorp shares, provided they are willing to adopt a long-term investment perspective and take advantage of potential future gains driven by both operational improvements and strategic investments.

A lot of Northerners are not Nigerians. It is funny how foreigners from Niger, Chad, Mali and other countries enter Northern Nigeria and immediately act as Nigerians.

Bulk of the terror activities in the North are done by non-Nigerians

SEC Mandates Public Quoted Companies to Publish Periodic Returns on Their Websites: A New Era of Transparency and Investor Engagement

In a significant move aimed at enhancing corporate transparency and bolstering investor trust, the Securities and Exchange Commission (SEC) has issued a directive requiring public quoted companies to publish their periodic returns on their corporate websites. This requirement, set to take effect in January 2025, comes as part of the SEC’s ongoing efforts to foster a more open and accessible investment environment.

The SEC has observed a growing concern among investors regarding the accessibility of financial and operational information about public companies. While companies dutifully file their periodic returns with the SEC and the relevant regulatory authorities, they often neglect to make this crucial information available on their own websites. This gap, according to the SEC, undermines the spirit of transparency and accessibility, which are central tenets of efficient capital markets.

In its recent circular, the SEC highlighted that the omission of such disclosures from public quoted company websites constitutes a violation of Rules 39 and 41 of the Commission’s Rules and Regulations. These rules are designed to ensure that critical financial information is not only submitted to regulatory bodies but is also made readily accessible to the public in real time. By mandating the publication of these returns on company websites, the SEC aims to close this gap, enabling investors, analysts, and other stakeholders to access timely and accurate data that guide sound investment decisions.

The SEC’s directive underscores the importance of providing seamless access to corporate disclosures. Timely and accessible financial information is essential for maintaining investor confidence and ensuring that the market functions effectively. Public companies are now reminded that making periodic returns available on their websites is not just a regulatory obligation, but a fundamental part of fostering better engagement with shareholders and the broader investment community.

The SEC’s move is a reflection of the growing global emphasis on corporate governance and the need for transparency in the financial sector. In a world where information is power, investors demand access to real-time, accurate data to inform their decisions. Public companies, as custodians of shareholder interests, must recognise their role in ensuring that such data is readily available.

The periodic returns—such as quarterly and annual financial reports—offer critical insights into a company’s financial health, business strategy, and future prospects. These reports play an essential role in shaping investor sentiment and influencing market trends. Without timely access to this information, investors are left in the dark, potentially leading to poor decision-making and market inefficiencies. By publishing periodic returns on their websites, companies will provide a valuable service to their investors, allowing them to make well-informed decisions based on the most up-to-date data.

Moreover, the SEC’s directive aligns with global best practices in corporate transparency. Many leading markets, including the United States, the European Union, and Asia, have long mandated the publication of financial disclosures on corporate websites. By adopting a similar stance, the SEC is aligning with international norms, reinforcing the credibility of the local market, and enhancing its attractiveness to global investors.

The Penalty for Non-Compliance

Effective from January 2025, the SEC will enforce strict penalties for companies that fail to comply with this new requirement. Public quoted companies that neglect to simultaneously publish their periodic returns on their websites, alongside filing with the SEC and relevant securities exchanges, will be subject to penalties. This penalty will serve as a deterrent and send a clear message that the SEC is serious about its commitment to investor protection and market transparency.

The introduction of these penalties is designed to ensure that public companies take the SEC’s directive seriously and adhere to the new rules. Companies that are non-compliant will be forced to take corrective actions, which involve reputational damage, financial fines, or other regulatory sanctions. In the long run, this could also lead to a loss of investor trust and a decline in market value.

The Path Ahead: A New Era of Corporate Responsibility

As we move toward the January 2025 deadline, public quoted companies will need to ensure that they have the necessary infrastructure in place to comply with the SEC’s directive. This includes updating their websites to facilitate the easy publication and retrieval of periodic returns. Companies will also need to streamline their internal processes to ensure that returns are filed and published in a timely manner, ensuring no delays in providing the public with crucial financial data.

This place is looking like Nairaland politics section.

megawealth01:
For Atiku and others to fight Oando this tells me that when Oando wants to fly eh even JAGABANOMICS won't be able to stop it.

Wetin make Wale do big party this year eh. OANDO go occupy even international news media because of the hype in its prices?

This is deeper than anyone can imagine, This time around E pass Wale factor?
DYOR

My 200,000 Oando shares dey wait... Universal has been doing wonders...

UBA heading to ₦40...

I have finally made both my account 100k shares each with an average entry price of ₦60.

I am done with Oando now, might exit at ₦80-₦85. I usually don't stay on a stock too long.

Crude price is controlled by international forces not local.

You can't just arbitrarily wish lower prices. The fall of petrol prices will be gradual and will also greatly depend on the Forex policy of the FG.

If Dollar to Naira can drop to ₦1,200 we will see major drops in the price of a litre of petrol.

Jagaban till 2031

Streetinvestor2:
It is now obvious that many on this thread are oando disciples. The thread is quite because oando went south even with all the green many stocks closed on .
This place is filled with traders and gamblers oh...lol

My IB is showing green for the first time in a long time.Sanu is really performing magic. If I bought at 1.20 for my 1 million challenge. Na how many % I for dey now

The Oando share redistribution details is likely to be announced by 2025. No Christmas bonus from Oando to shareholders.

My Universal Insurance and UACN don do my Christmas 🎄 for me.

Oando no send their shareholders.... They are still partying with Wizkid, Davido and Burnaboy while shareholders are angry and hungry.

Cowboy Wale can never change.

Harvestock01:
That should be the golden opportunity to add to your existing 200k units 🤣

I bought another 10k today.

Oando heading to the ₦50+ zoom. We might see the ₦50+ zoom by tomorrow. There is something the big investors are seeing we are not seeing.

The selloff continues amid a possible bonus....

Nigerians engineers only likes government jobs where they can cut corners and take a lot of corrupt money.

They are least innovative

Oando and Wale still not up from the party hangover.

Mpeace:
But they are only taking 2million shares. I think they only want to comply with the provisions of the law.

Yes. They are not delisting.

mikeapollo:
Go and read your own post. It was about Oando, not Aradel!
If you say there is nothing or good advice that he can offer, how and what does it mean to you?
Accepting a mistake does not reduce your stature, it does not make you weak or poor. It only shows courage and integrity.

I repeat again, I don't need advice from anyone here. It doesn't matter who it is coming from.

Telling people not to advise me is not an insult please. Stop mentioning my handle.

Please rest this matter. Make everybody do theit thing why I do mine. It is a public forum and we all can't believe same thing.

I no dey take unsolicited advise, please stay off

Panadee:
'Apollo' no gree my eye see this one

Was that an insult... Asking people to stay off, is that an insult?

I bought Aradel at ₦370 and many here said I was unwise and taking unnecessary risk and I asked them to mind their business... Is that an insult?

What is the value of Aradel today? I made almost 100% from that decision.

I no dey take advise so make una no advise me...

mikeapollo:
Thank you. Behaving true to type once again.
You claim you don't talk down on anyone, yet you are saying I am ''talking nonsense''.

@Mega himself will be smiling at your self-denials.
Anyway, I wish you the best of luck. We are all learning!
Thank you, once again

You don't just accuse someone without proof. Show proof.

I am even wondering why you keep stalking me. On this thread I don't give advise or recommend any stock to anyone. I just do my thing and focus on myself so why are you vexed?

Try to stay off me... I don't really have time for anyone, I mean anyone here.

Dey your dey make I dey my dey is that too hard to do?

mikeapollo:
Listen to good advice from experienced and well-meaning elders, and you will not regret.!
I remember the day you dey yab and yawn anyhow when Uncle Mega gave you an advice!

You are talking nonsense... Can you point to such post. It is not in my character to talk down on anyone as I hardly have such time.

I do my thing and move on. Like I said, ignore me and focus on your portfolio.

I don't take advise easily and I prefer to take my own advice, my own risks and stick to my gains or losses.

megawealth01:
You don dey enjoy my universal insurance

I swear massive returns from Universal. My 10million units is doing beautifully right now.

Thanks, you are the best.

megawealth01:
WALE wey dey sleep from last night's parry

He better no sleep ooo

I don run 50,000 more Oando this morning. Making my total Oando 185,000 on 2 different stock trading accounts.

Wale better pay the Bonus Cash or shares. Once paid, I will sell off 135k units and more on.

It is a gamble I am willing to take. I no still too trust Wale. I am only capturing the prospect of the Bonus share (Share redistribution) issue.