₦airaland Forum

RabbiDoracle:
The message is for international portfolio investors on this thread. It is for them to trade over there (and anywhere) else with caution.

On NSE front, there could be a possibility of a contagion effect. Our market is already low though.

Are you one of us?

One of you

Who are you people pls?

Coolcash1:
Wapco gradually moving away from bargain hunters.

To hit N20 by December 2020.

Its a hold from me.

It still closed at 0% change me I no just understand that stock o

Mcy56:
Dividend: 25kobo
Qualification date: Thur Sept 17, 2020
Payment date: Mon Sept 28, 2020

Is UBA not paying interim as well?

onegentleguy:
This is why I've always respected u.
U are one of those mature enough to engage constructively, and I like that.

Now to the crux of the matter;
I once wrote an article( https://www.booksie.com/604507-p2p-analysis-weighing-in-on-the-value-accretion-between-access-bank-uba) on these 2 banks drawing an inference post the comparison of which is better.
At the time, ACCESS despite their huge cost line and associated risk from asset detoriaration still managed to deliver more NPM than UBA.
Before I continue, permit me to correct an impression u might be having, considering that part of ur post in bold.
Banks derive earnings from either their CORE or NON-CORE banking line. ...so in retrospect, a bank must either be broadly INVESTMENT DRIVEN or LOAN DRIVEN or seek to strike a PROPER BALANCE in both lines. Where it is more investment driven, u'd expect the non-core banking line/channels to contribute the bulk of net margin, and where it is more loan driven, u'd expect the core banking line to do so.
For emphasis, the extent or degree of weighting a bank decides to attach to either of the 2 lines WILL ALWAYS depend on which way the economic indicators play out within a specified period.
To put things in context, at the height of activities and boom in the fixed income space btw 2016-2018, the banks(including uba) diverted funds therein and as expected, made far more from their non-core banking lines compared to their core lines.
The goal, at any given time is to grow, so NONE of these lines is as in important as delivering a positive in NET MARGIN/INCOME or at the very least, maintaining previous growth track. This is especially true of the Nigerian terrain where unfortunately, the real sector is given little or no consideration... no thanks to the many structural deficiencies in the system. The banks are there to grow and make money for their stakeholders. ...how it is made, is of very little importance here.
Hence, EFFICIENCY in this case is broadly defined by that part in italics and NOT whether ur growth margin had come from the core or non-core banking line.
By implication, of what use is UBA' higher growth in NIM if NPM went down?
We already know they had it good in that line(core banking). I mentioned it here then(see 1st post above)
But after that what happened? NIM is just one part of a banks profitability line. What does the other KEY indicators like NPM, EM, ROE, ROA, AER(asset efficiency ratio), CGPR, EFIR(external financing index ratio), PEG ratio and ETERPRISE VALUE say?

At the time I wrote that article above, this was also one of the issue that UBA had.(delivering higher NIM without a corresponding improvement in NPM). Fast forward to YE, 2019 and Q1, 2020, and they did improve on it. The bank had the best loan book portfolio ahead of even GTB and ZENITH and was well weighted in its investment income streams.(I remember mentioning it over a pchat with u then) And after that? ...well, the parts in bold from 2nd post above happened.

Historically,(look at the past 10 yr financial prints), UBA has often had this off and on growth. The bank, given its pedigree and African spread, ought to have moved past this stage.
That bank is supposed to be way bigger than ACCESS and near the class of GTB and ZENITH by now.
2 things; its either the management haven't managed to set up an entity that can maintain the needed growth trajectory.(inflow to outflow/expense in view) or there are some persons playing occasional pranks.

With all the net positive at the income front, the bank still couldn't maintain its last growth track. Look at the statement of CF and u'll understand what played out bro.
Some of the items I've noticed in UBA recently, are a bit similar to the ones that played out with the gross mismanagement of funds in FBNH under the former GMD.


In all, there is no doubting the fact that ACCESS is better than UBA for now !! All key profitability, efficiency and growth indicators points to this.
And the statement of CF and BS lends even more credence to it.

I'll see if I can erk out the time to do an article on this later.

Cheers bro !!

U are a definition of talent.

Cheers !

Coolcash1:
Wapco gradually moving away from bargain hunters.

To hit N20 by December 2020.

Its a hold from me.

can you give more insight on Wapic.
aside the change of name/ownership, i dont understand why its not moving with the insurance train

dgitrader:
can you give more insight on Wapic.
aside the change of name/ownership, i dont understand why its not moving with the insurance train

OBAGADAFFI:
Aigboje Aig-Imoukhuede's company Coronation Asset Management Ltd

https://nairametrics.com/2020/02/28/wapic-chairman-aig-imoukhuede-increases-stake-in-the-insurance-firm/

It should be recalled that in September 2019, WAPIC, through its stockbrokers, Coronation Securities Limited sought approval from the Nigerian Stock Exchange to list a Rights Issue of 15,613,194,623 ordinary shares of 50k each at 38k per share, on the basis of 7 new ordinary shares for every 6 ordinary shares held. This was in compliance with the deadline set by the National Insurance Commission (NAICOM) for insurance companies to recapitalize.


Also, Aig-Imoukhuede FCIB, CON is the former Managing Director of Access Bank Plc. He is the founder and Chairman of Coronation Capital Nigeria Limited and the Africa Initiative for Governance. He is the Chairman of Associated Discount House Limited, Chairman, Board of Trustees of the Financial Market Dealers Association, former President of the Nigerian Stock Exchange, first African Co-Chairman of the Global Business Coalition on Health and so on.

WAPIC is now Coronation Insurance Plc.

ojesymsym:
I though more people try to drink away their sorrows when depressed and have no money, has the economy made more people repent?

Not necessarily the case, in a depressed economy the purchasing power of consumers also decline. If someone could do serve them round with 10 bottles of Heineken in the past he may not be able to afford more than 2 bottles now due to job loss or what have you.

Secondly most of the people who try to drink away their sorrow may resort to all those cheap and herbal alcohol because of their affordability.

I think Guinness will be most affected under the current economic climate because they don't sell the common man drink like Nigerian Breweries does.

Mcy56:
Dividend: 25kobo
Qualification date: Thur Sept 17, 2020
Payment date: Mon Sept 28, 2020

Gracias

ojeysky:
It still closed at 0% change me I no just understand that stock o

It's not normal for Wapco to trade over 3M shares and no price movement. I think a big player was trying to play smart.

Buying below the 100k unit on the offer side for price change thinking that people will start bidding higher then selling to back . But e no work.

Anyway I see it retesting #11 again b4 q3 comes out. We patiently wait.

nna777:
It's not normal for Wapco to trade over 3M shares and no price movement. I think a big player was trying to play smart.

Buying below the 100k unit on the offer side for price change thinking that people will start bidding higher then selling to back to. But e no work.

Anyway I see it retesting #11 again b4 q3 comes out. We patiently wait.

I think it was an obvious error on NSE site...it actually closed 12.50... I followed the price movt till closing time today

If u're a Morgan capital customer, check the market price or check investing.com or other investment site.

The volume it was trading at 2:20pm was same volume it closed the market for today. And at that time, the price was 12.50.

meine:
Not necessarily the case, in a depressed economy the purchasing power of consumers also decline. If someone could do serve them round with 10 bottles of Heineken in the past he may not be able to afford more than 2 bottles now due to job loss or what have you.

Secondly most of the people who try to drink away their sorrow may resort to all those cheap and herbal alcohol because of their affordability.

I think Guinness will be most affected under the current economic climate because they don't sell the common man drink like Nigerian Breweries does.

Guiness stout is my sister's favourite drink, I also know a couple of people who only drink stout and Guiness in particular. Guiness will pull through, na since 1759 o, no be today matters o.

nna777:
It's not normal for Wapco to trade over 3M shares and no price movement. I think a big player was trying to play smart.

Buying below the 100k unit on the offer side for price change thinking that people will start bidding higher then selling to back to. But e no work.

Anyway I see it retesting #11 again b4 q3 comes out. We patiently wait.

Lol is it today you noticed. Somebody is buying and he wants to buy low. They just fixed a single offer of 10million units at the end of the table to bring up the number of units on offer and prevent the stock from going on full bid. We are inside and just watching.

veecovee:
U are a definition of talent.

Cheers !

Cheers to u too pastor V.
...I am humbled by ur show of eulogy.
Thanks for the compliments though.

Regards

Calebbold:
I think it was an obvious error on NSE site...it actually closed 12.50... I followed the price movt till closing time today

If u're a Morgan capital customer, check the market price or check investing.com or other investment site.

The volume it was trading at 2:20pm was same volume it closed the market for today. And at that time, the price was 12.50.

There was no error dear.
..the price closed flat @ N12.05
We know why. It's part of the many "melodies in the NSE room"
...just learn to dance to it, and adjust ur steps when necessary.

When that dude will rise, its pattern will likely take up the form of an escape velocity !!
If ur in, just relax with a cup of holix and be watching them on TV.

It is well.

Stocks with new 52 week lows
Ubn #4.90k
Arbico #1.03k

OBAGADAFFI:
WAPIC is now Coronation Insurance Plc.

Thanks.
But I thought besides the name change, some other fundamentals are holding it down in comparison to its sector pairs.

dgitrader:
market discounts everything
you should know better and be matured in response

Won le ba e sere abi?

Ma binu!

Mpeace:
Lol is it today you noticed. Somebody is buying and he wants to buy low. They just fixed a single offer of 10million units at the end of the table to bring up the number of units on offer and prevent the stock from going on full bid. We are inside and just watching.

It's today I really noticed . I will set my trap below 11 so that when him vex offload that offer, I will partake of the overflow

RabbiDoracle:
I think there are powerful underG people wey no want DT. Even DT dey use im mouth talk am. So they want his presidency to be with a negative record (2 crashes in a year, many deaths due to covid, allies running away, US citizens banned globally and ultimately collapse of USD). All under one man. History books will be filled with it.

What of those dudes(megamart247, stcool) wey dey spam here with how US stocks is better than slice bread?

No doubt, foreign stocks are great form of diversification. But once you enter at a high, you are in for a severe capital loss.

. They have moved to Treasury Bill thread. Chaiii . My waist oo

onegentleguy:
Good one dear !!
Hello people, meet a fellow who understands the fine lines in a financial print.
...someone who knows that ACCESS is better off than UBA at the moment. H1 result clearly defined those fine lines.

Which was one the reasons I advised for a higher portfolio weighting in ACCESS ahead of UBA. ...a 70/30% or 65/35% funding allocation given the likelihood of a higher return in the former ahead of the latter.
And some dumb a** who can't even interpret an INCOME STATEMENT, which by the way is the most simple part of a company's financial print, was busy arguing "with common sense".

There is nothing some of us will not see on this street.

It is well.

OBAGADAFFI:
Aigboje Aig-Imoukhuede's company Coronation Asset Management Ltd

https://nairametrics.com/2020/02/28/wapic-chairman-aig-imoukhuede-increases-stake-in-the-insurance-firm/

Oh Ok...for a minute there i thought you meant AIG Group of US.

That entity is controlled by Aig and Herbert. I guess that's where Herbert will retire to as well if he leaves next year as is rumoured.

CashDiMkpa:
Oh Ok...for a minute there i thought you meant AIG Group of US.

That entity is controlled by Aig and Herbert. I guess that's where Herbert will retire to as well if he leaves next year as is rumoured.

Aig and Herbert just collected the remaining change from Intercontinental bank.

You know WAPIC was intercontinental subsidiary

CashDiMkpa:
Oh Ok...for a minute there i thought you meant AIG Group of US.

That entity is controlled by Aig and Herbert. I guess that's where Herbert will retire to as well if he leaves next year as is rumoured.

is he up to 10yrs as CEO?

RabbiDoracle:
In this context, the two banks considered are commercial banks and not investment banks. So I expect more of net Interest income than net trading in them.

Do you know that investors will wonder and ask questions on the reduce net interest income (for Access bank) to know if there is any issue with the loan books? If there is any issue, how bad is it? How are the provisions going to be? Did they make lower provision for losses which in turn made the PAT look good? These are the questions that can arise from just seeing that lower net interest income.

Investors can ask questions on non-core items but it will not be like the core items. Core item is the life of the bank. Just like Japaul having gross profit of less than N1b in its core operations but declaring N42b in non-core profit. Wetin be that? That tells you that the Japaul can't function after that one off gains.

Now back to UBA, investors will not ask questions on the core function because they can see growth even during this pandemic. However they will ask questions about the 'other expenses'. And you will agree with me that those other expenses can be easily controlled. Like the covid donations, it is within the management prerogative not to donate and if they don't, this adds to the PAT. So you will see that while management can control this line items, but you can't easily control current loan losses.

So if you see decline in Net interest income as nothing, bro, it is a big deal o. This means that some of the loans aren't performing.

Thank you Sir RabbiDoracle

You have said it all.

Coolcash1:
Wapco gradually moving away from bargain hunters.

To hit N20 by December 2020.

Its a hold from me.

Is it in the dream?

Anyway, am with you Sir.....

TLAX:
A good place to get more insights on areas of doubt is the Investor Conference call of companies. Access bank call details is below. When UBA call details are available i will share if i lay my hands on it. Lets ask the CEOs directly. No need to trade insults.

Zenith Bank Conference Call Details for H1 2020 Audited Results
Zenith Bank Plc (Bloomberg: ZENITHBA : NL) Management will hold a teleconference call on Wednesday, September 9th, 2020 at 2pm Lagos Time (2pm London/ 3pm Johannesburg/ 9am New York) to announce Zenith Bank Plc’s audited financial results for the half year ended June 30th, 2020. There will be an opportunity at the end of the call for management to take questions from investors and analysts.
The presentation to investors and analysts will be available on Zenith Bank’s website before the conference call on Wednesday, September 9th, 2020.
The teleconference call facility can be accessed by dialing:
Nigeria Toll: +234 1 903 0080
United Kingdom Toll: +44 3333 000 804
South Africa Toll: +27 21 672 4118
United States Toll: +1 631 913 1422
Then quoting the following access code: 99502256#

Access Bank Plc Conference Call
Access Bank Plc (“Access Bank” or the “Bank”) has released its audited report for the Half Year ended 30 June 2020. The accompanying Financial Statement and Press Release are available for download on the Investor Relations (“IR”) portal of the Bank’s Website.
We are pleased to invite you to join the audio conference call with the Bank’s Executive team. The details of the event are as follows:
• Date: Friday, September 11, 2020
• Time: 1400hrs Lagos (0900hrs New York, 1400hrs London, 1500hrs Johannesburg)
Click here to pre-register https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=6622053&linkSecurityString=8bc012605

A confirmation e-mail with the dial-in details will be sent to your registered e-mail as soon as the registration process is completed.
Ahead of the earnings call, the H1 2020 Investor Presentation will be available for download on the IR portal of the Bank’s website. Following the call, the transcript will be made available on the IR portal of the Bank’s website.

Weldone Sir.

Please could you send the audio recordings of these conference calls here for those of us that may miss it.

Thanks

RabbiDoracle:
I looked at:

interest income - interest expense.

And compared between 2020 H1 and 2019 H1. There was a decline here even before factoring in impairment charges. You factor impairment charges, there was still decline. This shows there is problem with the loan book. If they are having conference call, try and listen in and see areas where callers will question.

I agree with you there are many areas where Access did better than UBA. But if I'm to choose, I will bet that UBA management will improve on the other expenses because they can control it or stop it (because it is a one-off charge) Unlike having loan issues.

Nwanna, oso Abiola ebidogo na US na EU o. Inafu ife anazu n'afia na obodo ndia? Umuaka Robinhood ha ga fu nke ka ose nsukka

TLAX:
Audio playback for those interested

https://www.gtbank.com/uploads/financial-information/2020-Half-Year-Investor-Conference-Call.mp3

Thank you Sir

Please more of this playback from other equities

ositadima1:
Guiness stout is my sister's favourite drink, I also know a couple of people who only drink stout and Guiness in particular. Guiness will pull through, na since 1759 o, no be today matters o.

Past performance does not guarantee future returns.....

Any business can go down....It's a constellations of many factors

Mpeace:
Lol is it today you noticed. Somebody is buying and he wants to buy low. They just fixed a single offer of 10million units at the end of the table to bring up the number of units on offer and prevent the stock from going on full bid. We are inside and just watching.

Once you know what you bought.....forget the daily movements

The heards will soon start to rush us.....

onegentleguy:
Cheers to u too pastor V.
...I am humbled by ur show of eulogy.
Thanks for the compliments though.

Regards

You too like eulogy Sir....

You know am a trouble maker

onegentleguy:
There was no error dear.
..the price closed flat @ N12.05
We know why. It's part of the many "melodies in the NSE room"
...just learn to dance to it, and adjust ur steps when necessary.

When that dude will rise, its pattern will likely take up the form of an escape velocity !!
If ur in, just relax with a cup of holix and be watching them on TV.

It is well.

Well said