₦airaland Forum

I know. I only asked the probing question to make you think about your post. The assumption should be that they’d maintain the payout ratio they’ve been maintaining prior the reconstruction. Your initial post that I quoted would be interpreted like the bank now has to pay 10x dividend with unchanged OS, whereas they now have 10x less shares to pay out the same amount to.

mikeapollo:
Theoretically, you are correct.
EPS is very important, but the Dividend paid (eventually out of the EPS) and received by investors would have bigger impact on the price, because they will be comparing it amongst other bank stocks.

Some companies report high EPS, but the dividend paid may be very low, which affects the price.

No be “EPS” be the basis of dividend payout again? If they do share reconstruction, won’t the number of shares reduce by a factor of 10 and the allottable amount also increase by the same order of magnitude, given that profitability is maintained in the same proportion?

mikeapollo:
Yes, but what about the dividend payout that would help sustain it at that price, going by what other banks are paying?

Anyhow e go be, CBN go sha allow ZENITHBANK to release their H1 result by Friday. Cardoso’s șakara don too much.

Okay. No long-drawn argument, knowing how you’re.

On the bolded, I didn’t refer to a specific past government. I wrote “previous governments”. I want to believe you know the difference between “government” and “governments” and won’t be willing to twist that again. 😆🤣

Ire oooo. ✌️

mikeapollo:
You gave the answer to yourself. Your ''answer'' is not an answer to me.

They are using TBs to support the recurrent, annual budget. FACT!
They are using foreign loans and bonds for capital budget. FACTS!

So far, they are not able to explain where savings from subsidy removal is being used for.

And then, here you go again: always trying to rubbish a previous govt that this current govt campaigned for, promoted, defended, praised and hailed as very successful when they were in power.


''I took over from myself'' - Tinubu;
''I succeeded myself'' - Tinubu.

So which one is the ''previous'' or ''current'' govt?

You like dancing in circles. I’ve given you the answer more than once. How do you think they’ve been able to stabilize the exchange rates and raise the external reserves to the high level it currently is at? Previous governments were borrowing, paying subsidy and unable to pay workers’ salaries, all that with minimal capital project execution. This current government has been consistent with salary payment, is executing projects, and breaking the country away from the downward spiral.

Note: I’m not defending the government (let them pay for my services if they want me to defend them). I’m only stating my personal views. You, on the other hand, are known to want to tear down this government no matter what.

Enough of this tangential topic on this thread, although this is a highly related topic to the theme of the thread.

mikeapollo:
The point is this: heavy TB issuance(which you prefer, apparently because you want to defend the govt). would still produce similar negative effects that you ascribed to high CRR.

Bottom line:
They are using TB to fund the budget; using external loans and bonds for capital projects.

So where are the savings from subsidy removal? (the govt itself is unable to answer, so don't bother to out-do yourself by trying to provide an answer)

The CRR sets the minimum proportion of deposits that the banks must keep, and indirectly how much they must avail to borrowers (done by the CBN through Loan-to-Deposit Ratio, LDR, penalties), so Nigerian banks can’t arbitrarily lend all the remaining deposits (after removing CRR portion) to the government.

mikeapollo:
And you don't see that heavy TB borrowing can also have same detrimental effects on the real sector, as the same banks could easily invest in govt TBs instead of lending to manufacturers, farmers, businesses, thereby causing all the negative effects including unemployment, crowding-out effect etc.?

There is no evidence anywhere or anything to suggest that the TBs are being used for construction or capital projects.

They are using foreign and domestic debts (loans, bonds) for capital projects, and borrowing domestically (TBs) to finance recurrent budget deficits.

So where are the savings from the subsidy removal?

If you have dirt-cheap loans (borrowed money) it’s always good to take them to procure developmental projects. Your borrowed money is now not used to service subsidy but for constructions, development, and all, so its will be beneficial in the long run.

They’re borrowing externally, yet the foreign reserves are also rising to multi-decades high levels and the exchange rates ($, €, £) are dropping. That should confirm the “cheapness” of the foreign loans.

Increasing the CRR will likely have detrimental effects on the real sector—manufacturers, farmers, and businesses generally. Unemployment may result from that, when companies and businesses slow down due to shortage of funds (loans). That leaves government mopping up liquidity through debt instruments (bonds and treasury bills) the most viable option available.

mikeapollo:
Yes, I know what TBs are used for, including meeting shortfalls in revenue to support the budget, especially with the subsidy overhang.
Subsidy is now gone, and we are still borrowing more via TB.
But even apart from TBs, the govt has borrowed huge foreign loans and the debt stock is increasing
If there is still too much cash, the CBN may also raise the CRR to pull in more cash.

You posted this yesterday. The P/E is forward looking. The ongoing capacity expansion has been priced in. Even then, I think it’s currently hovering around 38x, not 165x as you’ve shown.

essentialone1:
Neimeth Plc has:

Return on Equity: 7.32%
Price to Earnings Ratio: 164.61x
Debt to Equity Ratio: 3.89x
Current Ratio: 1.65x
Net Profit Margin: 5.67%
Dividend Yield: 0.00%

Government borrowings through treasury bills and bonds are for controlling the economy, especially inflation—by mopping up excess liquidity and money in circulation. It’s also cheaper than some other external “loans”, the terms of which the government cannot control.

mikeapollo:
Good observation.
The other leg is, why the huge borrowing by govt after they told us that subsidy has been eradicated?
Have they created other schemes and loopholes to blow the savings from subsidy removal?

James Onanefe Ibori, especially under Yar’Adua.

Time always reveals who the bigger fool is. 👌

popoolaRofiat:
Even if its Dumping no be people buying it.Those dumping it have reason of doing that and those buying are not fool

You mean aka money-miss-roads?

kintus:
Maybe a mistake.

We have some investors that don't follow the news or trend. They just want to invest and tell people that they're active on NGX as an investor/trader.

Jesu!

essentialone1:
Legend Internet Plc has:

Return on Equity: 0.48%
Price to Earnings Ratio: 553.03x
Debt to Equity Ratio: 0.50x
Current Ratio: 1.20x
Net Profit Margin: 1.20%
Dividend Yield: 1.64%

The current opposition parties are really good at comedy. Like Dino, like Amaechi:

https://www.nairaland.com/8759122/tinubus-policies-killed-mother-rotimi

Facts only (see the attached image)—a delay is a delay and always a bad omen, based on the content of your initial post.

It’s good to know that you have the Zee chicken in your farm as well, though. Time will tell how big and fertile an egg it will lay this season.

jonnysessy:
Hmmmmmm. I can see you are aware of my location. I bet to disagree with you that GTCO and Zenith Bank FY'25 result were delayed. NB, Ucap, Geregu, Transcorp Power, MTNN etc are always amongst the early filiers. If you say Zenith Bank and GTCO FY'25 was delayed, what then will you say about UBA, Access Bank, Fidelity Bank, FCMB ?

If Zenith Bank pays the bumper package you predicted, the better for me. I can tell you for free that Zenith Bank is a quarter of my entire portfolio. So, you see we are actually on the same side . Don't see my realistic views as pessimistic.

It has always been a seasonal performer. More so now that the price is no longer sub-1000.

Agbalowomeri:
Presco has always been an illiquid stock

This Osogbo man, a hen that has consistently layed high-quality eggs will not start laying infertile eggs because a new farm manager took over the farm without a change in the quality of management (feeds, water, and medication used).

When the FY ‘25 results were delayed for both GTCO and ZENITHBANK, people said many things along the line of your thought. Nonetheless, the duo still paid sumptuous dividends. So, it’s not new hearing your pessimistic view. 😆✌️

jonnysessy:
Don't count your chicks before they are hatched. There might be nothing in the egg shell

In the history of the NGX, a delayed result doesn't portray something potentially good about the company, irrespective of whoever is causing the delay.

Don’t worry, it’s a matter of time. We’ll see who needs to wake up to reality. The delay suggests that ZENITHBANK is proposing something big, but the regulator (CBN) is attempting to hack it down. While I’m not expecting a N5.00 interim dividend (but nothing is impossible), I believe they will definitely outperform last year’s pay, in proportion to what STANBIC did.

ppogba:
Banger when it is not Christmas day or New Year eve?

You better wake up before train leave you behind.

The result released by GT will justify the "cockroach theory". Just as I predicted after the YE results of the last time.

What if ZENITHBANK dropped a banger and declared N5.00 interim dividend?

unite4real:
How pls.

as of this moment, total units transacted is less than 50k

We’ll see soon enough. The 52-week high price is N188.55.

jonnysessy:
The price may not move. It is already on the high side.

STANBIC may just be heading to N250.

Hot 🥵 on fire 🔥!

Slammmmmmmm:
STANBIC INTERIM DIVIDEND #4.50

https://doclib.ngxgroup.com/Financial_NewsDocs/47981_STANBIC_IBTC__HOLDINGS_PLC-_QUARTER_2_-_FINANCIAL_STATEMENT_FOR_2026_FINANCIAL_STATEMENTS_SEPTEMBER_2026.pdf

Definitely. GTCO is the elder brother.

jonnysessy:
Until their H1 results is out, interim dividend will be a factor.

ZENITH is officially trading above GTCO.

It’s a lie. It’s one coward who reported posts that reveal his lameness. The highly irrelevant posts still pervade this thread.

KarlTom:
The moderators are back in full force!

Na how to buy more and make even more money be that. LoL

They are seeing the back end and buying the future.

ppogba:
After Dem don nack the shares enough ponpo on the floor of the NGX?

NEIMETH insiders are BUYING:

https://doclib.ngxgroup.com/Financial_NewsDocs/118_DEALING_IN_SHARES_DAMITOP_PURCHASE_17_September_2026.pdf


https://doclib.ngxgroup.com/Financial_NewsDocs/118_DEALING_IN_SHARES_OKORUWA_ERIC_17_September_2026.pdf