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Fitch Affirms UBA’s Viability Rating As Agusto Upgrades Rating To “Aa”

Published

6 years ago

on

-as UBA stock now best performing on the exchange

 

 

 

Fitch International, one of the foremost global rating agencies has affirmed United Bank for Africa (UBA) Plc’s viability rating at “B”, as the pan-African banking group continue to sustain its benchmark asset quality and strong profitability amidst industry and macroeconomic challenges.

 

 

UBA is one of the few banks with strong risk management framework, which has helped keep non-performing loans ratio at a moderate level of 1.74% as at the end-March 2016, as against industry average of over 6%, as reported by Fitch in its recent report on Nigerian banks.

 

 

 

Fitch also upgraded UBA’s outlook to stable from Negative, thus reinforcing the strong outlook on the Bank, especially as its diversified network across eighteen other African countries make it relatively immune  against the potential cyclical volatilities in any of its country of operations.

 

Also, the foremost local rating agency in Nigeria, Agusto & Co,  at its rating review of UBA Plc, upgraded the Bank’s rating from “A+” to “Aa-“, with a stable outlook. According to Agusto & Co, “the rating of United Bank for Africa Plc (UBA) is upheld by the Bank’s improved capitalization, good liquidity and large pool of stable deposits, strong domestic presence supported by the Bank’s extensive branch network and growing alternative banking channels.

 

 

 

“We note improvement in profitability and the Bank’s good asset quality. The Rating takes into cognizance the weak macroeconomic climate on the banking industry’s asset quality, which we do not expect UBA to be excluded. Nonetheless, we note positively its diversified geographical reach, which will cushion to an extent the impact of the weak Nigerian economic climate,” Agusto & Co stated in its credit rating report.

 

 

 

Just as the credit rating agencies are strong on the fundamentals of UBA Plc, equity analysts have also affirmed the asset quality, profitability and broad investment case of the Bank, particularly as UBA has maintained an average return on equity of over 20% in the past three years, bucking the challenging economic environment and dwarfing peer performance track.

 

 

 

Following the strong financial performance of UBA in the first quarter of 2016, improved transparency and disclosure, which is now seen as benchmark for Nigerian banks, analysts at Renaissance Capital and CSL Stockbrokers (a part of the FCMB Group) upgraded the rating on UBA stock to “Buy,” with target prices of N9.40 and N7.21 respectively.

 

 

 

Reflecting investors’ conviction in the strong fundamentals of the Bank and the appetite for the stock, the share price has gained 39% thus far in 2016 to rank as the best performing banking stock on the Nigerian Stock Exchange. Closing at N4.70 on Wednesday, 13 July, 2016, UBA still trades at significant discount to analysts’ consensus valuation of the shares, which is put at N8.50 for the 2016 calendar year.

 

 

 

The Bank paid N0.20 interim and N0.40 final dividend in 2015 financial year and should currently be auditing its 2016 half year results in line with the Group’s governance culture of auditing results twice in a year. UBA is audited by PricewaterhouseCoopers, one of the global big-4 audit firms, which subjects clients to a rigorous international best audit practice.

 

 

 

United Bank for Africa Plc (UBA) is the third largest lender in Nigeria and a leading provider of financial services across 19 African countries, and with presence in New York, London and Paris. The Bank serves almost 11 million customers across expansive brick and mortal branches as well as diversified alternative electronic banking channels.

 

 

UBA has a diversified shareholder base of over 270,000, with some of the greatest global fund managers as well as multilateral institutions like the International Finance Corporation (IFC) and African Development Bank (AfDB) being shareholders of the Bank.

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Asiko deepens gas penetration, unveils 300 metric tonnes LPG/CNG depot in Benin

Published

2 days ago

on

September 21, 2023

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… to grow in geometric progression- Alex Ogedegbe

… We are going to expand into CNG, LNG Gas Station- Abubakar Folami 

 

 

Asiko, a leading provider of clean energy solutions operating in Nigeria’s energy sector, has continued to contribute to the economic development of the country with its sterling efforts to ensure in-country utilisation and deepening of gas penetration in the nation, as it unveils 300 Metric Tonnes Liquefied Petroleum Gas (LPG) and Compressed Natural Gas (CNG) depot in Utesi, Ikpoba Okha local government area of Edo state.

 

This project invariably aligns with the federal government’s priority objective to attain 5 million MT of LPG consumption by 2023.

 

Speaking at the official commissioning of the gas depot, the Chairman of the Asiko Group, Engr Alex Ogedegbe, expressed that the gas potential of Nigeria is enormously huge and the LPG/CNG depot is designed to provide much-needed energy solution to Nigeria and beyond.

 

“Today, we are excited to launch our 300MT LPG and CNG depot. The multi-product gas depot, promises to improve gas availability and distribution in the region.”

 

According to him, “The LPG/CNG depot is poised to become a hub for a wide range of gas products. Under its licensing agreement, the depot is authorised to store Propane, LPG (Liquefied Petroleum Gas), CNG (Compressed Natural Gas) and Liquefied Natural Gas (LNG). Currently, it stores LPG and CNG, with plans for future development to enable the storage of LNG in the near future. The 300MT depot, the biggest in Benin, marks an added step towards contributing to a clean energy future and the realisation of the Federal Government’s decade of gas initiative.”

 

Ogedegbe said, “Nigeria is endowed with up to 183 trillion cubic feet of gas deposit, and we have not consumed up to 5% of that deposit in Nigeria today. Imagine how much we can distribute to Nigerian society and beyond if we have installations and facilities like this that we are commissioning today.

 

 

Also speaking to newsmen at the event, Mr Abubakar Folami, a Director at Asiko, said that the company has similar inland depots and plants across Nigeria, with an impressive inland Propane and LNG terminal currently under construction in Ijora, Lagos.

 

Similarly, the Utesi Community head, (Okaighele) Mr Monday Edo, said he was very happy about the project commissioning.

 

This LPG/CNG depot is not just a beacon of progress for the energy sector; it also carries a profound impact on the local community. The depot is expected to generate over 100 job direct and indirect job opportunities, contributing significantly to the economic welfare of the region. The creation of these jobs underscores Asiko’s commitment to empowering and uplifting the economic activities of its host communities.

 

Asiko is a leading provider of clean energy solutions in Nigeria, dedicated to delivering a comprehensive network of sustainable, accessible, and innovative clean energy solutions. With a focus on LPG, LNG, CNG, propane, and renewable energy, Asiko drives the region’s clean energy transition and ensures energy security.

 

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Tingo Media CEO Agbonwaneten to bury mum in PH

Published

6 days ago

on

September 17, 2023

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It will be a carnival of sort as the Chief Executive Officer of Tingo Media, Mr. Ebuwa Martins Agbonwaneten has concluded plans to hold the funeral of his mother, Princess Karina Namikpoh who passed away at 68.

A statement by Agbonwaneten, who is also the CEO to The Dozy Mmobuosi Foundation, a non-governmental organisation owned by billionaire technology entrepreneur, Dozy Mmobuosi on behalf of the family, said their matriarch will be laid to rest in Port Harcourt, Rivers State on September 29- October 1, 2023.

A service of songs and tributes hold in her honour on Friday, September 29 at Azny Place, No 2 Louis Drive, opposite Nextime supermarket, GRA Phase 3, along Abacha Road, Port Harcourt.
Funeral service hold on Saturday, September 30 at Vaults & Gardens, Aggrey Road, off Cemetery Road Port Harcourt.

An interment reception will take place at The Palacios Event Centre, 63 Woji Road, Phase 2 Port Harcourt.

On Sunday, Oct 1, thanksgiving service will take place at Hilltop International Christian Centre, 7 Hilltop Drive Waterlines/Elekahia Link Road Port Harcourt.

Agbonwaneten extended invitations to colleagues, associates and business partners, saying interesting activities have been lined up for their unforgettable experiences.

“As you may already know, my mother’s burial is scheduled for the 29th – 30th of September, 2023, in Port Harcourt. This event is not just a somber occasion; it’s a celebration of a remarkable life and a chance to bid farewell to an extraordinary woman.

“I want you to be a part of this grand celebration. It’s an opportunity to join me in giving my mother the dignified and joyous send-off she deserves. I assure you; we have prepared an unforgettable experience for all who attend!

“Transportation will be seamless, with arrangements and adequate security in place for those traveling from Lagos, Benin, Abuja and all all over the world to Port Harcourt—all free of charge.

“We’ve secured top-notch hotel accommodations to ensure your stay is comfortable and convenient. Our event planning team and funeral directors rank among the industry’s finest, ensuring that every detail is meticulously attended to.

“You may already know my reputation as a gracious host, and I promise you won’t be disappointed. Our menu boasts a delectable array of cuisine, from continental delights to local favorites like ‘nkwobi,’ ‘pepper soup,’ ‘bolé,’ ‘starch and banga’, and more. The drink selection is equally impressive, featuring a range of choices from Champagne, Hennessy, Glenfiddich, Jack Daniels, cocktails, assorted wines, both alcoholic and non-alcoholic, and more,”he stated.

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News and Report

Nationwide Blackout As National Grid Collapses Again…

Published

1 week ago

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September 14, 2023

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Nigeria has again been thrown into darkness after the national grid system, operated by the Transmission Company of Nigeria (TCN) from Osogbo in Osun State collapsed.
A check by The Guardian in the early hour of today showed that the grid plummeted to a meagre 273 megawatts of electricity coming from two out of the over 27 electricity generation.
This comes barely a week after TCN, rolled out the drum to celebrate a questionable 400 days of grid stability.
A number of Distribution Companies confirmed to The Guardian that the grid went down at 00:41 AM, disclosing that most of their feeders are out.
As of 4:00 a.m. on Thursday, five generating plants were on the grid. Afam VI had 0.70MW, Dadinkowa was generating 0.00MW, Ibom Power had 32.90MW, Jebba had 240MW and Olorunsogo was on the grid with zero generation.
At about 1AM midnight, the total power on the grid was 35MW, indicating that the country experienced a total collapse.
The grid went to 193MW at about 3AM before climbing to 273MW when this report was filed.
The TCN has not responded to inquiries by our correspondent about the development.

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