Despite plummeting shares’ prices, firms post impressive results

Contrary to equities’ market analysts’ expectations that the challenging business climate prevailing in the country may constrain quoted firms’ yields, available reports have shown that most of the companies, especially the banks, recorded impressive outing in their 2015 financial results.

For instance, Bank Plc recorded a profit after tax of N10.3 billion in its 2015 operations, against N9 billion achieved in the corresponding period in 2014.

Specifically, the bank’s audited result for the year ended December 2015 showed a profit after tax of N10.3 billion, representing an increase of 14.3 per cent, over N9 billion achieved in 2014.

The bank’s profit before tax also rose from N10.7 billion to N11.0 billion during the year under review. Non-interest income grew by 13.7 per cent from N25.7 billion in 2014 to N29.3 billion largely due to a 57 per cent increase in trading income.

Similarly, Access Bank Plc recorded a Profit Before Tax (PBT) of N75 billion in its 2015 operations against N52 billion achieved in the corresponding period in 2014.

An analysis of the companies audited result for the year ended December 30, 2015, showed a PBT of N75 billion, representing 44 per cent growth over N52 billion posted in the corresponding period in 2014 with significant contribution from the bank’ s securities trading business while profit after tax also rose from N30 billion to N66 billion during the year under review.

Based on the improved performance, the directors of the bank recommended a final dividend of 30 kobo per share of 50 Kobo bringing the total dividend for the year to 55 kobo.

The Group Managing Director of the bank, Herbert Wigwe explained that the result reaffirms the bank’s resolve to add value to shareholders’ investment even amid harsh operating environment.

For Guaranty Trust Bank Plc, its result showed gross earnings of N301.9 billion, against N278.5 billion achieved in the corresponding period in 2014.

The bank’s audited result for the year ended December 31, 2015, showed gross earnings of N301.9billion, an increase of 8.4 per cent from the N278.5 billion recorded in the same period of 2014.

The Group Profit Before Tax stood at N120.7billion, an increase of N4.3billion or 3.7 per cent over the N116.4billion posted in December 2014.

Its profit after tax also rose from N94.4 billion in 2014 to N99.4 billion during the period under review.According to the bank, its balance sheet remained strong with 7.2 per cent growth in total assets, from N2.36trillion in 2014 to N2.52trillion in the year under review.

The Bank’s Non-Performing Loans (NPL) ratio remained low at 3.21per cent; up slightly from 3.15 per cent in the comparative period of 2014.

Against this backdrop of strong financial showing, the Bank proposed Total-Year Dividend of N1.77k per share (inclusive of the 25kobo interim dividend paid at half year 2015).

Dangote Sugar Refinery (DSR) Plc recorded a profit before tax of N16.55 billion for the year ended December 31, 2015, showing an increase of eight per cent compared with N15.27 billion recorded in 2014. The company’s profit after tax fell slightly to N11.64 billion to N11.54 billion.

According to DSP, the profit was made from revenue of N101 billion in 2015, up seven per cent from N94.8 billion recorded in 2014.The directors of the company recommended N6.0 billion dividend for the shareholders for 2015 financial year.

Reacting to the 2015 performances of the companies, the Managing Director of crane Securities Limited, Mike Ezeh said:
“The reason is obvious. Our companies are doing well not necessarily because our economy is buoyant but because the companies are under prudent managements not proper regulatory supervision. Nothing more nothing less.”

The President, Renaissance Shareholders Association of Nigeria, Timothy Olufemi said: “The cash dividends from Companies showed that the nation’s economy was okay, at least, as at 2015. The companies were strong. It tells us that what is happening to the shares’ prices at NSE are not a reflection of our economy. NSE prices are not fair value and true prices of stocks. Many companies are under-valued while some are over-valued. My advice is that investors should buy more of under- valued shares now.”

The National President Constance Shareholders Association of Nigeria,
Shehu Mallam Mikail said: “The dividends declared by the board of Nigerian Breweries plc is welcome at this period, adding,

“This is the right time for our local investors to seize the opportunity to invest more so as to increase their holdings but they also need to study the trend of the companies’ performances.”