Vanguard Markets - August 11, 2014 Edition

5/21/2018 Vanguard Markets - August 11, 2014 Edition

1/8

A disputed

legacy5 years on!page VM2

AST WEEK, POLITI-

cal and businessleaders from across

the African continent gath-ered in Washington D.C. atthe behest of President Barack

Obama. They were in the UScapital for the inaugural US-

Africa Leaders Summit.The 3-day event was supposedto provide an opportunity forthe US to win commercial in-uence in Africa, where pri-vate- and state-backed Chi-nese investment have madesignicant inroads over thelast decade. It was also an at-tempt to erase concerns thatthe US was more interested

in Africa from a security anglein its ght against global ter-ror groups as against a com-mitment to build mutuallyrewarding economic relation-ships.

While they sleptAmerican businessmen and

policy makers are alarmed atthe inroads made by China onthe continent. For example,Chinese investment on thecontinent has risen more than20-fold over the last decade to$200 billion in 2013. This ismore than double the US in-vestment in sub-Saharan Af-rica. Another informative sta-

tistic is that while China hasover 150 commercial attachson the continent, the UnitedStates has only 8.

Separately, as the Chinesehave gained ground, the pre-

viously important culturaland economic ties that boundAfrican countries to their Eu-ropean colonisers have weak-ened. Economic stagnancy inthe European Union, coupledwith anti-immigrant policieshave created the impressionof a Europe self-absorbed withresolving its decit and iden-tity problems.

Beginning in the last dec-ade, Chinese companies and

nanciers began an aggres-sive push to gain ground inAfrica. They invested in ar-eas that received paltry inter-est from Western companieswith few exceptions. Notably,in infrastructure, transport,mining, and energy Chinesecompanies with the backingof Beijing started to win con-tracts and concessions at arate that must have shockedWestern companies. The Chi-nese governments policy ofrefraining from imposing thetypes of conditionalities set

by the Bretton Woods institu-tions before lending assistancewon it yet more friends on thecorridors of power and boardrooms in Africa.

In actual factIt is technically inexact to

accuse the United States ofignoring the continent oncommercial matters. US com-panies like Exxon Mobil aremajor investors in the Africas

extractive industries. The realissue is that Africans feel thatthe current US administra-tion, because it is led by a per-son of African descent, shouldhave done a lot more. In fact,a few would argue that his twoimmediate predecessors inoce, Presidents Bill Clintonand George W. Bush did morefor the continent during theirtime in oce.

In fairness, PresidentObama has some achieve-ments under his belt. In 2013he launched the Power Af-

rica initiative. It will pool $8billion in investments for thecontinents underdevelopedelectricity generation sectorled by companies like Gen-eral Electric.

Behind the scenes, he hasalso led eorts for the renewalof the Africa Growth andOpportunity Act, a non-reciprocal trade preference

VanguardMarkets | Monday, August 11, 2014 | Issue 005

INTERNATIONAL TRADE

Fixed Income & Forex

Inside

Big, strong,

and reliable again

Under the leadershipof Emeka Emuwa,Union Bank is re-establishing itself as aheavyweight con-tender after a longturnaround

!Page VM7

CAR dealers

The Central Bank an-nounced changes tohow financial insti-tutions calculate thecapital adequacy ratio(CAR) and decreedthat Tier 2 capitalmust not exceed33.3% of Tier 1 capital

!Page VM3

US seeks top spot

in African trade

0B 10.0 10.0

23/07 24/07 24/0704/08 05/08 05/0807/08 08/08 08/0830/07 31/07 31/07

120B 11.6 15.0

14.090B 11.213.0

60B 10.812.0

30B 10.4 11.0

FGNBonds &TBills NITTY NIBORFGN BondsTreasury Bills

O/N

1M

3M

6M

2009 BANK RESCUE

Dr. Sanusi Lamido Sanusi,former CBN governor

160.5

24/07 05/08 08/0831/07

163.0

162.5162.0

161.5

161.0

FX ($/N)

Source: FMDQ

Bid

Ask

1M

2M

3M

6M

9M

12M

L

Tony Elumelu, chairman of the HEIRS Group, exchanges greetingswith President Barack Obama at the 2013 launch of Power Africa initiative

Source: HEIRS Capital

!Page VM3

FOREIGN EXCHANGE TABLE(AUGUST 8, 2014)

Currency C entral Rate

US DOLLAR 155.23

POUNDS

STERLING 260.9416

EURO 207.8374

SWISS FRANC 171.1844

YEN 1.5219

CFA 0.3063

WAUA 236.9358

YUAN/

RENMINBI 25.2127

RIYAL 41.3891

DANISH

KRONA 27.8749

SDR 237.7968

Source: Brookings Africa Growth Initiative from International Monetary Fund data

Trade with Sub-Saharan AfricaTotal exports and imports with each partner

$0B

00 01 02 03 04 05 06 07 08 09 10 11 12 13

$20B

$40B

$80B

$60B

$100B

$140B

$120B

$160B

$180B

China U.S.

Data visualisation by Publican Media


2/8

Obiora [email protected]

HIS WEEK WOULD

mark the fth an-niversary of Act One

of Bloody Friday. On August

14, 2009, Lamido Sanusi, ex-governor of the Central Bankof Nigeria, announced the sack-ing of the chief executives ofthe defunct Afribank, Finbank,Intercontinental Bank, Oce-anic Bank and Union Bank. Sixweeks later, he would completethe excision with the sacking ofthe heads of Bank PHB, Equa-torial Trust Bank, and SpringBank. The CBN quickly injectedN620 billion to rescue the tenbanks. Over the next two years,it would spend more than N3trillion to resolve the crisis.

None of these banks remainas a standalone institution, andonly Union Bank has retainedits name. In two fell swoops,the central banker decapitatedthese leaders of a sector thatmany had considered untouch-able until then. Despite thesignicance of those headymonths no authoritative ac-count that gives both sidesof the story has appeared onbookstands.

Altogether, the following ex-ecutives lost their jobs and hardearned reputations: SebastianAdigwe, Okey Nwosu, Eras-tus Akingbola, Cecilia Ibru,Bartholomew Ebong, FrancisAtuche, Ike Oraekwuotu, andCharles Ojo. That is not all.Thousands of families faced anuncertain future as breadwin-ners lost their jobs due to theright-sizing and cost-cutting

that followed their exits.It was natural that a lot of the

narrative in the media focusedon the governance, manage-ment, and moral failures of thedeparted CEOs. That is onlyhalf of the tale though. Too lit-tle of the human story that cap-tures the impact of wave afterwave of abrupt dismissals hasbeen told.

In the days and weeks thatfollowed their dismissal accu-sations, counter-accusations,conspiracy theories, and in-trigue lled the air. It wascloak-and-dagger drama ex-cept that trillions of depositorsfunds were involved. There wasa story that Erastus Akingbolahad got wind of his impendingdismissal and had informedIntercontinentals executivedirectors that their jobs wereon the line before disappear-ing. Cecilia Ibru went missingfor a number of days, while herkinsmen threatened to cast aspell on the banking regulator.Francis Atuche handed in hisresignation a few hours beforehis removal was announced.Then for months, Akingbolasmoles at the CBN kept him andhis allies au courant of plots by

the governor, smuggling inter-nal memos and letters to himin his London address, wherehe had taken refuge. Thenthere was the case of UnityBank, a largely northern-con-trolled nancial institution. Itescaped the wrecking ball be-cause while it was adjudged tohave insucient capital, it wasnot in grave situation becauseit has a healthy liquidity posi-tion. The most lethal arm inthe arsenal of conspiracy theo-rists has been that no one todate, outside the CBN, has seenthe damning reports of stresstests prepared by its examin-ers. So much for transparency.

On his part, the CentralBank governor courted pressattention. He seemed to enjoyevery minute of it. He was onCNN, Bloomberg, CNBC, BBC,Channels, NTA and severalother stations. He found timeto grant interviews and pressconferences for the print me-dia. Also, a steady stream ofpress releases were made avail-able. Labelled as a reformerhis actions were celebratedas akin to cleaning the Au-gean stables. He would go onto win a plethora of awards,

and have his face plastered onsome of the most prestigiousnance-focused magazines inthe world.

Nigerians were treated toseveral pages in newspaperslisting names of recalcitrantdebtors. They were invited tothe Awolowo Road, Ikoyi of-ce of the Economic and Fi-nancial Crimes Commissionto explain how and when theyplanned to repay. In the endit was discovered that severalcompanies and individualsnames were wrongly included.Many others featured on thelist because they had failed topay back loans taken to delivergoods and services to state andfederal governments that wereyet to pay.

The lawsuits came fast andthick. Sunny Nwosu, BonifaceOkezie, and other shareholderrepresentatives challengedthe apex banks power to takeover the banks. RenaissanceProfessionals, a faceless butdeep pocketed group, ran fullpage adverts on most days withscreaming headlines rejectingthe public intent of the sack-ings and involuntary takeovers.

For a long time, no public of-

cer spoke out about the non-intended consequences of theCBN governors actions. Therst one with the courage to doso was General Aliyu Gusau.He was the National SecurityAdviser at the time. The inu-ential former intelligence of-cer warned that the mannerin which the banking reformswere being executed could im-peril the broader economy. Ifthat happened, he interjected,it could quickly transmutefrom a purely economic di-mension to become a nationalsecurity issue.

All this time, not a singlejournalist, former ocial orsenior executive at any of theaected banks has written adetailed account of events sur-rounding their removal, andthe subsequent evolution of theNigerian banking sector duringSanusis tenure.

In the United States, Timo-thy F. Geithner, PresidentObamas rst Treasury Secre-tary released Stress Test: Re-ections on Financial Crisesin May this year. Before him,Henry Hank M. Paulson Jr.,who had served in the samerole under President George

W. Bush, wrote On the Brink.In the book, he defended therescue of Bear Stearns by JPMorgan, the decision to letLehman Brothers fail, the sal-vage of AIG, as well as the $700billion Troubled Asset ReliefProgram (TARP) to save thenancial sector.

A random search on Ama-zon.com shows that tens ofother publications by reporters,bankers, consultants, lawyers,and researchers have appearedsince the crisis exploded.

It is tempting to dissect thestory about the two Acts ofBloody Friday as one of heroesand villains. It is a more nu-anced and complex story. Onone side, cheerleaders of theSanusi Fan Club drown out anycriticism of the former chiefexecutive of First Bank. Onthe other, his opponents claimthat his self-declared missionto expose the rot in the bank-ing system was inspired byego, ethnic self-interest, or anamateurish-overzealous ap-proach to intervention depend-ing on whom you listen to. Allthe more reason why ve yearslater the complete story needsto be told. ;

INTERVIEWVM2

BANK RESCUE

SPOTLIGHT

VM| Monday, August 11, 2014 | Issue 005

Five years after, nota single journalist,

former official or

senior executive at any

of the affected banks

has written a detailed

account of events

surrounding

their removal

Contested discretion

Critics such as the Renaissance Professionals (right) accused the ex-CBN governorof mishandling the rescue of the banking sector in 2009 and conjuring a phantom crisis in the process

Tony Elumelu

Source: HEIRS Holdings

T

Source: bbc.com

Tony Elumelu, Businessman, Philanthropist, VisionaryHE US-AFRICA SUM-

mit has been calledthe summit that Tony

Elumelu, CON, 51, inspired.The chairman of HEIRS Hold-ings, a pan-African investmentrm, has led calls for a new en-trepreneurial mindset on thecontinent, which he christensAfricapitalism.

Born in Jos, Nigeria on

March 22, 1963, Elumelu is afervent champion for home-grown solutions that leverageon external technologies andnetworks. His idea of charity isrmly rooted at home.

Since he left United Bank forAfrica (UBA) in 2010, Elumelu

has undergone what mustcount as the fastest transfor-mation in Nigerian corporatehistory. He has transmutedfrom a hard-nosed capitalist toa restless philanthrocrat hob-nobbing with the likes of BillClinton, the former US presi-dent, and billionaires WarrenBuett, Bill Gates, RichardBranson, and Patrick Motsepe.

He admits that in his lastincarnation as a nancier, hisobjective was to democratizebanking at the time, it was aneconomic, not a social act. Thisis not to say that the economicinstinct is extinct. He has onlygrafted on social responsibility

to produce fruits of impact.MBA students around the

world are familiar with thestory of how he turned a $5million investment in the ail-ing Crystal Bank in 1997 intothe behemoth that UBA be-came after its merger with theStandard Trust Bank under hisleadership.

At UBA, T.O.E., as he is

fondly called, was known forhis marathon strategy sessionswhere his managers mappedout how they would conquerNigeria, and later, Africa.

The rest, as they say, is his-tory.

These days Elumelu is more

likely to be found at high-levelgatherings pondering globalproblems that aect Africansfrom food and power to educa-tion and investment.

His message diverges fromthose that appeal only to altru-ism.

Here is what he has to say:I do not suggest that entre-

preneurs should build compa-

nies in Africa or that capitalistsshould invest in Africa out ofgoodwill. I suggest that Africaoers compelling economicand business opportunitiesthat can, at the same time,meet a range of social objec-tives.

He describes it as doing wellby doing good.

In an op-ed he wrote in theWall Street Journal at the endof July, the economics gradu-ate invited summit attendeesto move beyond the usualconversations on aid and in-stead to explore new oppor-tunities to collaborate andco-invest in initiatives that

generate value on both sidesof the Atlantic.

His message struck a chordwith business and politicalleaders. By the end of thesummit more $14 billionworth of transactions hadbeen agreed. ;

T


3/8

INTERVIEW VM3

REGULATION

INTERNATIONAL TRADE


US seeks to claim top spot

in African commerce and tradeprogram, which was signedunder President Clinton in2000. Its current authoriza-tion expires on September 30,2015. However, countries likeAngola, Gabon, and Nigeria,whose main exports to the USare crude oil do not benetvery much from AGOA due tolow taris on the resource asthe table below shows.

Follow the moneyIn an op-ed written in the

Wall Street Journal, Tony

Elumelu, chairman of theHEIRS Group and founderof the Tony Elumelu Foun-dation, observed that theUnited States is nally andformally recognizing the stra-tegic importance of Africa ina multipolar world to its ownfuture growth.

Underscoring his points,Penny Pritzker, the USCommerce Secretary, speak-ing at the US-Africa BusinessForum, held on the side-linesof the summit spoke sometruths to US citizens and Con-gress. Investing in Africa willspur job growth in Cincinnatithrough Proctor & Gambles$300 million investment in a

new manufacturing plant nearLagos because when P&Gexpands in Nigeria and else-where, it supports thousandsof jobs at home. Make no mis-take: our economic and com-mercial partnership is a two-way street. Goods and services

exports from the United Statesto African markets supportroughly 250,000 jobs here athome.

We are a country of values,but we are also a country that

wants to promote the eco-nomic interests of our people,summed up the CommerceSecretary. When asked by theWall Street Journal if the sum-mit was about helping U.S.businesses catch up with com-panies from Europe, China or

other Asian countries that arealready well-established inAfrica? Pritzker vehementlydenied this. Not at all, shedenied.

But playing catch up is the

name of the game. We gaveit to the Europeans rst andto the Chinese later, but todayits wide open for us, said JeImmelt, chief executive ofGeneral Electric.

His company announcedthat it would spend $2 billion

by 2018 to boost infrastruc-ture, worker skills and accessto energy.

For the US this summit wasabout gaining attractive re-turns for US investors, jobs forUS citizens, and ring-fencingChinese commercial expan-sion in Africa. With Europe indecline, and increasing Chi-nese competition in emergingmarkets, Africa presents thelast great contest for globalcommercial hegemony. A newscramble for Africa is playingout.

Wallets are good, butlivelihoods mattertoo

In his WSJ letter, Elumelu,a former chief executive ofUnited Bank of Africa thatoperates in 19 African coun-

tries, explained that the PowerAfrica initiative sends a clearmessage that America meansbusiness with Africa, facilitat-ing billions of dollars of invest-ment and ultimately generat-ing value both for Americanstockholders and African con-sumers. More to the point,Africas one billion consumersare an increasingly compellingmarket.

The point is not lost onAmerican companies. Ford,the second biggest US car-maker, plans to set up a new

plant in Nigeria, expand itsdealership network acrossthe continent, and tie in -nancing packages to enticebuyers. It will also introducebrands like the Mustang, Fu-sion, and Focus to appeal tothe rising middle class. Jim

Benintende, Fords head ofoperations in the Middle Eastand Africa, said that We atFord are taking a long-termview in places like Nigeria. Itsthe biggest economy in Africa.You cant ignore that. Its gotabundant natural resources,its got a burgeoning middleclass. Theres a lot of real goodreasons to look at Nigeria forfuture investment.

The risk of investmentwithout local prosperity ashas been the case in the pastlooms large. Joseph Stiglitz,a past winner of the NobelPrize in economics, writingin the Financial Times cau-tioned against an excessiveemphasis on mineral exportsthat provide foreign exchangeand scal revenue but notjobs, especially for frustratedyouth in urban areas. Rather,

he advocates for foreign di-rect investment into intensivelight manufacturing and agro-processing industries, whereAfricas large pool of unskilledlabour could be used.

Some CEOs are listening.One company that has takenthe lead in the direction of jobcreation is General Electric.The Faireld, Connecticut-based company announcedthat it plans to double thenumber of employees on itspayroll in Africa to 4,000 overthe next 4 years. Jay Ireland,GEs Africa chief executive hasgiven assurances that all thoseinvestments need people, sowell be adding. As details of

other agreements reached atthe summit become known itis expected that no fewer than15,000 new jobs will be addedby US companies and their Af-rican partners across the con-tinent in coming years. ;

AGOA and GSP Eligibility,U.S. Imports, and GSP/Capita, by Country

Country GSP AGOAAGOA/GSP

(thousand $s,2013)

GDP/Capita($s, 2012)

Angola 66 5,485

Botswana 5,929 7,191

Cameroon 21,560 1,151

Cape Verde 159 3,838

Cote dIvoire 84,670 1,244

Ethiopia 35,310 470

Gabon 224 11,430

Ghana 34,673 1,605

Kenya 342,502 862

Lesotho 320,879 1,193

Malawi 51,238 268

Mauritius 199,268 8,124

Nigeria 5,403 1,555

Rwanda 782 620

Senegal 625 1,032

South Africa 3,667,783 7,508

Tanzania 10,986 609

Uganda 1,578 547

Zambia 3,999 1,469

Source: Analysis by Congressional Research Office.

Data from USTR, ITC, and Commerce Department

Source: agoa.info

US-Nigeria bilateral goods trade

-$0.4B00 01 02 03 04 05 06 07 08 09 10 11 12

-$0.3B

-$0.2B

$0.0B

-$0.1B

$0.2B

$0.1B

$0.3B

$0.4B


US Imports US Exports US-Nigeria Trade balance

WContinued from Page VM1

N WEDNESDAY,

the Central Bank ofNigeria released a

new set of guidelines for thecalculation of banks capi-tal adequacy ratios. The newrules had become necessaryfor the domestic banks tocomply with the regulationscontained in the Bank of In-ternational Settlements In-ternational Convergence of

Capital Measurement andCapital Standards (Basel II).In eect, it would improve thequality and loss absorbencyof the nancial institutions.

Under the title GuidanceNotes on the Calculation ofRegulatory Capital, the regu-lator spelled out that hence-forth, reporting institutionsshall exclude non-distribut-able regulatory reserves and

other reserves in the compu-tation of regulatory capital.

One vital innovation thathas got bankers and marketsabuzz is the 33.3 per cent ofTier 1 capital maximum limitset on Tier 2 capital. Accord-ing to analysts atAfrinvest,it would place a restrictionon banks that intend to raisefurther Tier-2 capital in thesecond half. Hence, they may

be forced to explore the Tier-1 capital, that is, equity raiseoption.

In 2013, the CBN set a min-imum capital adequacy ratioof 15 per cent for the coun-trys 8 systemically importantbanks. These are banks thatcontrol at least 5 per cent ofnationwide deposits each,and 75 per cent as an aggre-gate. The banks are Access

CBN resets

regulatorycapital

Source: Central Bank of Nigeria

Categories of bank capital


Banks Capital

Paid-up share capital/

common stock

Disclosed reserves:

Share premia

Retained profits

General reserves

SMEEIS reserves

Regulatory risk reserves

Statutory/ legal reserves

Revaluation reserves

Provisions and

loan-loss reserves

Hybrid capital

instruments

Subordinated debt

Tier 1 Tier 2

O

Capital adequacy ratio of Nigerian banks: 2012-2013

Source: Central Bank of Nigeria

-16

-8

0

8

16

24

32

Capitaladequacyratio


A

ccessBankPlc

DiamondBank

Ecob

ankTrans.Inc.

FBNHoldings

FCMBGroup

FidelityBank

Guara

ntyTrustBank

SkyeBank

StanbicIBTCHoldings

SterlingBank

UnionBank

UnitedBankforAfrica

UnityBank

WemaBank

ZenithBank

15%, the minimum CAR

for non-systemically

important banks

16%, the minimum CAR for

systemically important banks

Banks CAR in 2013

Banks CAR in 2012

Bank, Diamond Bank, Eco-bank Nigeria, First Bank, GTBank, Skye Bank, UBA, and

Zenith Bank.Recently, FBN Holdingsand Diamond Bank com-pleted Eurobond oerings,raising $450 million and$200 million respectively.FCMBhas announced plansto raise up to $350 millionby issuing Eurobonds. Dur-ing a half year presentationto analysts and investors,Sola David, Borha, chief ex-

ecutive of Stanbic IBTC,disclosed that the Nigerianunit of South Africas Stand-

ard Bank plans to raise up toN30 billion in Tier 2 capital.Last week it emerged thatEcobank Transnationalhas successfully issued $200million of dated subordinatednotes that would qualify asTier 2 capital. Skye Bankhas also announced that itplans to conclude a $200 mil-lion Tier 2 capital raising bythe end of September. ;


4/8

MARKET DATAVM4

TRADING UPDATE


DASHBOARD

Ticker

Friday 5-day 4-Week52-Week

Hi52-Week

LoYtD PE EPS

LastChange,

%Volume Start Week Hi Week Lo

Change,%

Volume StartChange,

%Volume

7UP 126.78 4.99 241 112.35 126.78 112.35 12.84 8,088 107.35 18.10 17,922 126.78 64.80 77.49 25.79 4.46

ABCTRANS 0.85 -1.16 9,551 0.85 0.88 0.81 0.00 49,695 0.90 -5.56 163,310 1.07 0.69 -1.16 4.05 0.21

ACCESS 9.80 -2.00 206,107 9.98 10.00 9.66 -1.80 1,771,224 9.80 0.00 6,314,735 11.10 7.22 2.08 6.30 1.57

AGLEVENT 1.45 0.00 1,001 1.40 1.48 1.40 3.57 1,778 1.39 4.32 17,932 1.87 1.25 -11.04 6.22 0.23

AIICO 0.80 0.00 16,277 0.81 0.82 0.80 -1.23 169,296 0.83 -3.61 708,974 1.03 0.74 -13.04 5.26 0.15

ASHAKACEM 34.20 0.86 15,571 33.00 34.20 31.53 3.64 85,989 32.55 5.07 301,150 34.20 13.87 56.31 42.50 0.80

BETAGLAS 17.70 -1.12 253 17.11 17.90 17.11 3.45 912 17.00 4.12 2,982 22.10 10.69 22.66 5.06 3.38

CADBURY 70.54 0.00 57 70.54 70.54 70.54 0.00 1,783 72.15 -2.23 16,511 110.00 67.80 -27.42 47.29 1.57

CAP 39.91 -2.54 204 40.00 40.95 39.51 -0.23 4,355 39.15 1.94 22,791 51.66 35.96 -16.82 23.30 1.67

CCNN 15.00 -1.25 15,147 13.99 15.98 12.05 7.22 114,138 11.38 31.81 418,060 15.98 8.00 25.10 13.41 1.12

CONOIL 75.73 10.23 25,775 61.98 75.73 58.66 22.18 31,387 67.90 11.53 46,708 79.80 25.92 23.50 22.69 3.34

CONTINSURE 1.00 -2.91 18,829 1.12 1.14 0.96 -10.71 124,799 1.16 -13.79 505,404 1.33 0.93 -16.67 6.25 0.16

COURTVILLE 0.55 -1.79 370 0.51 0.58 0.51 7.84 42,461 0.58 -5.17 123,055 0.90 0.50 -15.38 5.18 0.11

CUSTODYINS 3.94 -0.76 3,692 4.00 4.00 3.76 -1.50 65,429 3.71 6.20 256,290 4.03 1.30 80.73 16.42 0.24CUTIX 2.00 0.50 2,201 1.99 2.07 1.90 0.50 40,144 1.90 5.26 73,876 2.27 1.59 2.56 10.53 0.19

CWG 4.75 0.00 4 4.75 4.75 4.75 0.00 920 4.75 0.00 992 5.83 4.75 -18.52

DANGCEM 230.00 0.00 11,674 224.10 230.03 224.10 2.63 36,079 240.00 -4.17 950,201 250.02 185.00 6.40 10.53 11.80

DANGFLOUR 7.70 -0.90 2,249 7.55 7.77 7.37 1.99 11,311 8.09 -4.82 100,139 10.76 7.25 -24.73

DANGSUGAR 9.00 0.00 15,884 9.01 9.20 8.77 -0.11 118,194 9.09 -0.99 315,140 12.49 8.67 -20.35 11.09 0.81

DIAMONDBNK 6.33 -1.09 13,584 6.35 6.68 6.24 -0.31 414,678 6.24 1.44 1,204,856 8.20 5.86 -15.60 3.87 1.65

ETERNA 3.89 -2.51 25,410 3.80 4.20 3.66 2.37 66,459 4.45 -12.58 140,174 5.73 2.48 -17.76 6.23 0.61

ETI 18.49 0.87 57,461 16.87 18.60 16.00 9.60 328,697 17.03 8.57 630,425 18.60 12.40 12.81 5.00 3.67

FBNH 15.48 1.24 88,129 14.40 15.50 14.30 7.50 671,798 16.23 -4.62 4,246,633 17.29 11.50 -5.03 7.14 2.16

FCMB 4.25 -1.16 270,459 4.23 4.45 4.10 0.47 873,885 4.15 2.41 1,745,684 4.59 3.01 10.68 4.83 0.88

FIDELITYBK 2.02 -0.49 46,692 2.01 2.05 1.98 0.50 484,278 2.00 1.00 3,740,356 2.95 1.85 -25.19 2.97 0.68

FIDSON 3.13 2.62 14,446 3.00 3.13 3.00 4.33 45,906 3.09 1.29 130,689 3.25 1.80 13.82 12.50 0.24

FLOURMILL 79.00 -0.63 1,872 77.67 79.79 70.29 1.71 41,686 76.00 3.95 104,542 92.00 63.91 -12.22 23.48 3.38

FO 240.00 0.42 4,127 228.90 240.01 218.31 4.85 11,285 234.06 2.54 44,234 259.94 35.00 158.43 51.81 4.63

FORTISMFB 6.00 1.69 100,000 6.00 6.00 5.70 0.00 100,036 6.00 0.00 100,174 6.66 5.70 -4.31 5.08 1.18

GLAXOSMITH 62.41 -0.27 664 65.85 65.85 62.41 -5.22 4,434 68.00 -8.22 43,753 74.97 58.50 -10.84 21.68 3.00

GUARANTY 30.44 0.13 114,911 28.61 30.80 28.61 6.40 629,748 29.98 1.53 3,748,885 31.80 22.67 9.69 9.31 3.27

GUINNESS 196.20 -1.30 283 190.10 200.86 190.10 3.21 19,978 205.00 -4.29 42,272 266.70 162.00 -16.87 25.38 7.88

HONYFLOUR 4.14 2.22 9,528 4.18 4.24 4.05 -0.96 28,859 4.27 -3.04 294,628 4.50 2.56 7.53 12.18 0.34

INTBREW 27.12 -1.38 1,725 26.10 27.50 25.70 3.91 4,181 29.20 -7.12 28,771 31.50 17.98 -4.24 43.63 0.63

JBERGER 66.65 -0.12 274 63.39 66.95 63.00 5.14 2,307 68.00 -1.99 52,647 76.45 59.18 5.67 9.64 6.74

LINKASSURE 0.50 0.00 2 0.50 0.50 0.50 0.00 51 0.50 0.00 23,569 0.50 0.50 0.00 12.57 0.04

MANSARD 2.54 1.60 236 2.55 2.55 2.50 -0.39 8,544 2.51 1.20 113,849 2.73 1.95 1.60 16.35 0.15

MAYBAKER 1.62 -2.99 1,634 1.64 1.72 1.61 -1.22 5,918 1.72 -5.81 54,926 2.67 1.58 -36.47 18.00 0.09

MOBIL 173.00 1.13 221 160.22 178.00 160.00 7.98 7,460 136.50 26.74 26,119 178.84 102.00 49.14 16.66 10.44

MRS 57.00 -5.00 1,670 58.90 61.50 57.00 -3.23 5,987 60.03 -5.05 12,631 70.00 32.53 10.21 57.21 1.04

NAHCO 5.02 -0.59 2,462 4.95 5.25 4.95 1.41 93,011 4.98 0.80 270,627 6.80 4.56 -20.94 15.43 0.32

NASCON 10.36 0.39 28,359 10.12 10.94 10.07 2.37 69,958 11.49 -9.83 842,551 15.10 10.07 -30.24 9.94 1.05

NB 185.00 -0.05 18,083 185.00 187.90 180.00 0.00 163,339 174.50 6.02 385,631 189.00 140.00 12.11 35.16 5.24

NEIMETH 1.08 0.00 2,513 1.18 1.18 1.08 -8.47 10,973 1.19 -9.24 41,030 2.08 0.79 -1.82

NEM 0.80 1.27 105,790 0.76 0.82 0.76 5.26 200,263 0.81 -1.23 887,956 0.97 0.55 -1.23 0.41 1.96

NESTLE 1,110.00 -0.36 3,903 1,105.10 1,114.00 1,105.00 0.44 7,597 1,105.00 0.45 40,236 1,250.01 916.00 -6.09 38.51 28.82

NIGERINS 0.50 0.00 521 0.50 0.50 0.50 0.00 22,757 0.54 -7.41 150,859 0.54 0.50 0.00 25.00 0.02

NNFM 21.68 4.84 1,590 18.77 21.68 18.00 15.50 16,355 19.70 10.05 31,218 32.67 18.00 -1.50

OANDO 27.30 2.25 49,242 27.00 27.80 26.00 1.11 276,615 27.99 -2.47 2,704,248 36.89 9.32 2.13 24.49 1.11

OKOMUOIL 35.98 4.29 2,615 33.76 35.98 32.16 6.58 35,921 32.90 9.36 80,124 48.05 32.15 -19.74 15.71 2.29

PAINTCOM 1.51 0 1.54 1.54 1.51 -1.95 148 1.41 7.09 4,873 2.30 1.33 -22.56 4.20 0.35PORTPAINT 5.50 2.42 726 5.75 5.75 5.00 -4.35 10,006 5.13 7.21 31,853 6.25 4.00 4.76 8.97 0.60

PREMPAINTS 10.39 0 10.39 10.39 10.39 0.00 11 10.39 0.00 12 10.39 9.84 0.00

PRESCO 36.01 0.00 1,079 36.83 38.01 35.90 -2.23 7,536 38.09 -5.46 73,227 49.00 32.00 -7.67 4.42 8.38

PRESTIGE 0.51 2.00 279 0.53 0.55 0.50 -3.77 54,177 0.53 -3.77 121,390 0.81 0.50 -19.05 1.99 0.25

PZ 37.12 -1.67 1,569 38.00 38.00 37.12 -2.32 17,406 36.74 1.03 342,379 43.98 30.08 0.33 28.34 1.34

ROYALEX 0.57 7.55 10,509 0.52 0.57 0.50 9.62 13,522 0.52 9.62 41,791 0.69 0.50 5.56 5.69 0.10

RTBRISCOE 0.95 -6.86 2,099 1.04 1.04 0.95 -8.65 10,816 1.15 -17.39 39,383 1.60 0.95 -32.62

SEPLAT 699.47 1.08 3,063 643.00 708.75 643.00 8.78 10,078 675.00 3.63 19,752 735.00 590.00 15.65

SKYEBANK 3.17 -0.31 50,749 3.01 3.18 2.99 5.32 324,114 3.27 -3.06 1,862,062 4.67 2.99 -29.71 3.79 0.84

STANBIC 30.01 2.28 38,078 31.00 31.40 29.00 -3.19 83,243 27.13 10.62 295,650 31.50 15.51 34.33 15.61 1.92

STERLNBANK 2.20 0.00 26,013 2.30 2.42 2.19 -4.35 173,324 2.30 -4.35 656,568 2.92 2.09 -12.00 3.49 0.63

TOTAL 180.00 2.16 434 172.00 180.00 171.48 4.65 2,093 172.09 4.60 13,937 195.50 146.26 3.87 13.86 12.91

TRANSCORP 5.59 0.36 66,934 5.51 5.71 5.48 1.45 820,408 5.80 -3.62 6,214,985 6.03 1.17 28.80 63.71 0.09

UAC-PROP 16.70 -1.76 3,243 16.61 17.40 16.61 0.54 11,725 17.20 -2.91 56,755 21.31 12.00 8.61 7.73 2.20

UACN 62.00 1.64 26,581 60.02 62.00 59.99 3.30 38,739 60.07 3.21 98,726 67.85 42.58 10.73 28.47 2.14

UBA 7.90 0.13 111,731 7.49 7.91 7.40 5.47 767,442 7.90 0.00 2,413,048 9.60 6.65 -13.66 4.65 1.70

UBCAP 2.16 1.41 19,260 2.08 2.22 2.08 3.85 116,779 2.19 -1.37 789,267 3.04 1.05 -4.85 7.45 0.29

UBN 8.94 3.83 14,699 8.45 9.00 8.18 5.80 47,214 9.65 -7.36 104,771 11.62 8.00 -6.97 48.14 0.19

UNILEVER 49.85 2.15 1,191 49.25 49.85 48.55 1.22 28,408 50.75 -1.77 312,782 65.00 42.50 -5.94 35.76 1.37

UNITYBNK 0.50 0.00 3,593 0.50 0.50 0.50 0.00 65,457 0.50 0.00 3,136,197 0.72 0.50 0.00 4.65 0.11

VITAFOAM 4.25 -0.70 1,878 4.33 4.33 4.01 -1.85 11,389 4.38 -2.97 72,551 5.70 3.66 -11.64 5.99 0.71

WAPCO 119.94 -1.69 1,096 120.00 124.98 1 19.94 -0.05 47,774 112.36 6.75 130,291 136.73 87.50 4.30 14.80 8.10

WAPIC 0.82 -1.20 13,680 0.88 0.90 0.82 -6.82 174,290 0.87 -5.75 1,813,551 1.48 0.66 -27.43 11.71 0.07

WEMABANK 1.00 -0.99 11,285 1.01 1.05 0.98 -0.99 54,376 0.98 2.04 2,554,248 1.40 0.89 -21.88

ZENITHBANK 25.00 0.04 97,784 25.05 25.45 24.78 -0.20 1,075,118 25.10 -0.40 2,477,488 27.40 19.23 0.00 7.22 3.46

Market review August 4-8, 2014.The Nigerian equity market gained 1.6 per cent last week lifting the All Share Index to a YtD gain of 3.1 per cent.Total market capitalization increased by N219.3 billion, while aggregate volume advanced by 30.2 per cent.

The weeks top gainers were CONOIL: 10.23%, ROYALEX: 7.55%, NNFM: 4.99%, PHARMDEKO: 4.76%, UBN: 4.53%, OKOMUOIL: 4.47%, IKEJAHOTEL: 4.23%, NPFMCRFBK: 4.17%, CUTIX: 4.17%, and PREMBREW: 3.90%.

The following companies led in price declines. RTBRISCOE: -5.00%, AGLEVENT: -4.76%, ETERNA: -4.76%, JOSBREW: -4.65%, NEIMETH: -4.42%, AIRSERVICE: -4.07%, REDSTAREX: -2.73%, COSTAIN: -2.54%,

WAPCO: -2.49%, and INTENEGINS: -1.96%.


5/8


6/8

MARKET DATAVM6 VM| Monday, August 11, 2014 | Issue 005

MARKET SNAPSHOT

# TICKER WTD YTD

1 DANGCEM 2.63 6 .40

2 NB 0.00 12.11

3 GUARANTY 6 .40 9 .69

4 NESTLE 0.44 -6.09

5 ZENITHBANK -0.20 0.00

6 FBNH 7.50 -5.03

7 WAPCO -0.05 4.30

8 STANBIC -3.19 34.33

9 GUINNESS 3 .21 -16.87

10 ETI 9.60 12.81

11 UBA 5.47 -13.66

12 FO 4.85 158.43

13 OANDO 1.11 2.13

14 ACCESS -1. 80 2.08

15 TRANSCORP 1.45 28.80

16 UNILEVER 1 .22 -5.94

17 FLOURMILL 1.71 -12.22

18 UBN 5.80 -6.97

19 PZ -2.32 0.33

20 CADBURY 0 .00 -27.42

21 UACN 3.30 10.73

22 DANGSUGAR -0.11 -20.35

23 DIAMONDBNK -0.31 -15.60

24 INTBREW 3 .91 -4.24

25 JBERGER 5.14 5 .67

26 FCMB 0.47 10.68

27 7UP 12.84 77.49

28 ASHAKACEM 3.64 56.31

29 MOBIL 7.98 49.14

30 TOTAL 4.65 3.87

31 GLAXOSMITH -5.22 -10.84

32 FIDELITYBK 0.50 -25.19

33 CONOIL 22.18 23.50

34 STERLNBANK -4.35 -12.00

35 SKYEBANK 5.32 -29.71

36 PRESCO -2. 23 -7. 67

37 OKOMUOIL 6.58 -19.74

38 CAP -0.23 -16.82

39 NEIMETH -8.47 -1.82

40 MAYBAKER -1.22 -36.47

WEEK-TO-DATE RETURN

-10% -5%

-40%

-20%

-30%

-10%

0%

+10%

+20%

+30%

+40%

+50%

+60%

+70%

+80%

+100%

+90%

+120%

+130%

+150%

+140%

+110%

+160%

0% 5% +25%+20%+15%+10%

YEAR-TO-DATERETURN

LAGGING

SLIPPING LEADING

IMPROVING

1

2

3

4

56

7

8

9

10

11

12

1314

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

The relative size of each individual stocks bubblechart is determined by its market capitalization.For indices, the relative size of each bubble chartis the total value of the capitalization modifiedvalues of each constituent stock.

TRADING BREAKDOWN

BY SECTOR

Sector %

Financial Services 75\76

Conglomerates 6\8

Oil & Gas 6\6

Others 13\10

04/08 08/0806/0812.5

12.6

12.7

12.8

12.9

2906

2912

2918

2924

2930

FGNBond Index

Market ValueYTD Return

INDEX PERFORMANCE

IndexWeek

Opening

Week

CloseChange WtD MtD QtD YtD

1 All Shares Index 41,801.51 42,598.46 796.95 1.58 1.19 0.27 3.07

2 NSE 30 Index 1,909.01 1,946.39 37.38 1.73 1.30 0.76 2.06

3 NSE Banking Index 427.85 441.52 13.67 3.28 1.87 2.00 -1.414 NSE Insurance Index 146.18 144.4 -1.78 -2.28 -2.29 -1.65 -5.54

5 NSE Consumer Goods Index 1,056.28 1,070.19 13.91 1.36 1.15 1.13 -2.73

6 NSE Oil/Gas Index 468.13 493.37 25.24 4.63 5.01 5.37 45.16

7 NSE Lotus Islamic Index 2,777.80 2,805.84 28.04 0.53 0.25 -2.39 -2.00

8 NSE Industrial Index 2,711.50 2,736.06 24.56 0.40 0.84 2.60 7.44

MARKET SNAPSHOT

Date DealsTurnover

VolumeTurnover Value Traded Stocks

Advanced

Stocks

Declined

Stocks

Unchanged

Stocks

All Shares

Index Value

1 04.08.2014 5,480 287,650,341 4,936,264,068.76 113 29 26 58 41,801.51

2 05.08.2014 5,788 257,005,662 3,635,951,100.93 117 35 13 69 42,292.93

3 06.08.2014 5,736 323,913,132 4,874,077,861.67 117\119 19\29 38\29 60\61 42,339.84

4 07.08.2014 4,637 201,385,464 3,012,919,333.14 123\118 34\24 18\34 71\60 42,612.33

5 08.08.2014 4,648 360,020,617 3,725,588,006.50 129\103 30\19 25\36 74\48 42,598.46

The\arrow signifies week-on-week change in value. This weeks value is shown on the left of the \sign, and last weeks value on the right.

GLOBAL INTEREST RATES & INFLATION TARGETS

Central

BankRate

Last Date

Change

%

Change

Inflation

Target

China 6.00% 05.07.2012 -0.31 4.00%

Japan 0-0.10% 05.10.2010 -0.20 2.00%

UK 0.50% 05.03.2009 -0.50 2.00%

USA 0-0.25% 16.12.2008 -0.75 2.00%

Eurozone 0.15% 05.06.2014 -0.10


7/8

CORPORATES

COMMENTARIAT VM7VM| Monday, August 11, 2014 | Issue 005

Bisi Onasanya, CEO, First Bank, (left) shakes handswith Efi Dahan, PayPal regional director at signing of partnership

Union Bank head office, Marina

MTN vendor standSola David-Borha,Stanbic IBTC CEO

PayPals second bounce of the ball

T IS NO LONGER

news that PayPal hasstarted operations

in Nigeria. At a big launchin July, Ef Dahan, regionaldirector for Israel and Af-rica at PayPal, announced apartnership with First Bankand urged global paymentsprocessing companies to endthe online discriminationagainst purchase orders thatoriginate from Nigerian IPaddresses.

Where many have not con-nected the dots is that eBay,the online auction company,which owns PayPal is prep-ping to launch its services inNigeria. With the payments

channel in place, all that re-mains is the logistics angle.That is being looked into.

Malvina Goldfeld, Pay-Pals head of business de-velopment for sub-SaharanAfrica, observed that whileNigeria has 63 million activeInternet users, only 1 per centof that number make onlinetransactions, which are ex-pected to reach $1 billion thisyear. This would translate to630,000 customers making$1,590 in online purchases.The opportunity for growth isvast in both the buyer popu-lation and total spend perbuyer.

She went on to say that

though challenges remain -including abysmal infrastruc-ture, port delays, other sup-ply chain woes and the task ofpersuading shoppers to trustwebsites with their bank de-tails, a lot of the merchantsthat we work with alreadyship to Nigeria. I think thatthe growth of e-commercewill push the logistics cus-tomers to up their game.

It does not take genius tosee that DHL, FedEx, andthe other courier companieswould be deep in discussionswith eBay to nalise logisticsfor global online purchasesfrom Nigeria on the auctionsite. ;

I

O

Small print at Stanbic IBTCs H12014 investor presentation

Company in the News:Diamond Bank

LMOST HIDDENaway as the last bul-let point of slide 31

(Moving forward) of StanbicIBTCs half year presenta-tion to analysts and investorsis a single line mention that

the bank would raise Tier IIcapital of up to N30 billion.No further details are given.

Whichever way one looks atit N30 billion is not chumpchange.

All the more reason why in-vestors are asking why SolaDavid-Borha, the chief ex-ecutive of the South African

banks Nigerian operations,included it almost as an after-thought. ;

MTN to sell towers

TN GROUP, THEtelecom operator,has revealed that it

is in an advanced stage to sellits tower business in Nigeria.Siso Dabengwa, MTNs chiefexecutive, announced that itwould be disposing of 8,640existing and 543 towers-un-der construction at a presen-tation of the companys H1results.

MTN would subscribe to51% controlling equity in thenew externally managed ven-ture.

The company has beenaggressively pursuing costreduction in Nigeria. It hasfocused these on two areas:reduction in dealer commis-sions and marketing expens-es, as well as reviews of rentsand utility bills. ;

Union Bank leaps again

N HIS RESUMPTIONas chief executiveof Union Bank in

2013, Emeka Emuwa de-clared that: When you men-tion the name Union Bank,one of the rst things thatcome to peoples minds isBig, Strong, Reliable. In-deed, Union Bank was onceall these. Our long-term goalis that Union Bank will be allthree again big, strong andreliable. But for today, our fo-cus is on being reliable.

Since then the former Citi-

bank Nigeria chief executivehas led the bank on an ar-duous, steady crawl up thebanking league tables. Asbanks non-interest incomehas come under pressurefrom regulatory restrictions,they are turning back to goodold loan book expansion. Un-ion Bank is not left behind.

According to OyinkanAdewale, the banks chiefnancial ocer and CitibankNigeria alum, Union Bankwould grow its loan portfolioby 30 per cent in the second

half of 2014. It grew loansby 10 per cent in the rst sixmonths.

In April, Atlas Mara, theinvestment vehicle of BobDiamond, ex-Barclays BankCEO, bought 9.1 per cent of thebank. Ke Group, foundedby Jide Zeitlin, a formerglobal chief operating ocerof Goldman Sachs is anotherprominent investor. He waspart of the Union GlobalPartners Limited consor-tium to invest $750 million inthe bank in July 2011. ;

Consensus detail DIAMONDBANK PLC


Source: Dailypost.ng

A

M

Source: Thomson Reuters

4

BuyConsensus Sell Buy

Outperform

Hold

Underperform

Sell

Unchanged

7

0

0

0

0

Mean consensus OUTPERFORM

Number of Analysts 11

Average target price 9,66 NGN

Last Close Price 6,40 NGN

Spread / Highest target 77%Spread / Average Target 51%

Spread / Lowest Target 25%

Source: UNION BANK and CUSTOMS STREET ADVISORS

Net Loans (% Assets)

02009 2010 2011 2012 2013 TTM

10%

20%

40%

30%

50%

60%

70%


UBN-NG Peer

Source: MTN.com

MTNExpenses in Nigeria

0Dec 2012 Dec 2013 Jun 2014

50M

100M

200M

150M

250M

300M

350M


H1

H2

313,904

58.3%

EBITDA margin

58.3% 58.3%

312,473

154,042 131,440 165,121

165,121


8/8

ART AS AN ALTERNATIVE INVESTMENT

EDITOR: MIDENO BAYAGBONGROUP BUSINESS EDITOR:

OMOH GABRIEL

CONTENT DIRECTION:OBIORA TABANSI ONYEASO

DESIGN & ILLUSTRATION:PUBLICAN MEDIA

Vanguard Markets features unbiased, in-depth coverage of corporateand market developments across a wide range of business sectors.

Every week, Vanguard Markets delivers essential business analysis andcommentary on Nigerian companies, regional economies, and globalmarkets.

Vanguard Markets is published by Vanguard Media Limited in associa-tion with Customs Street Advisors Limited, a specialist communicationsconsultancy.

Vanguard Media Limited,

Vanguard Avenue, Kirikiri Canal,

P.M.B.1007, Apapa.

Website: www.vanguardngr.com

ISSN 0794-652X

Published by

In Association With

AST WEEK, WEan-alyzed auction results

for celebrated Nige-rian artist, Yusuf Grillo, takinga look at indications of futurevalues for his paintings. In thepast we have also looked atphotography as a good invest-ment asset in the collectorsportfolio.

This week, we will explorethe life and work of one of themost iconic gures in Africanphotography, Malick Sidib.In achieving our objectives,results of auction sales of hiswork from major internationalauction houses such as Bon-hams, The Auction Room andChristies will be examined.

Malian photographer, Mal-ick Sidib is best known forhis black-and-white studiesof popular culture in Bama-ko. Born in 1935 into a Peul(Fulani) family in a small vil-lage in Soloba, he graduatedfrom school in 1952. He latercompleted his studies in De-sign and Jewelry at the coledes Artisans Soudanais inBamako. In 1955, he served anapprenticeship at Grard Guil-

latGuignards Photo ServiceBoutique, known famously asGg la Pellicule. The follow-ing year, he took up photogra-phy as a profession.

In 1958, he opened his ownstudio called Studio Malick inBamako, specializing in docu-mentary photography andfocusing on the youth cultureof the Malian capital. By the1970s, he had turned his at-tention towards studio por-traiture.

Sidib gained increasedphotography recognitionthrough the rst meeting onAfrican photography held inMali in 1994. His work hassince been exhibited exten-sively across Africa, Europe,the United States and Japan.

Sidib has also received sev-eral awards including the Has-selblad Award for photography(2003), 52nd Venice Bien-nales Golden Lion (2007), andthe ICP Innity Award for Life-time Achievement (2008). Hisworks are in the collection ofseveral prominent institutionsand museums and form part ofthe Jean Pigozzi ContemporaryAfrican Art Collection (CAAC).

In a tting tribute, in 2006,Tigerlily Films made a docu-mentary, Dolce Vita Africanaon him at work in his studioin Bamako. The documentaryalso features him discussinghis work at a reunion withmany of his friends and for-mer photographic subjects.

Close observations of prices

for photographs on the inter-national market by MalickSidib reveal an increasing in-terest from collectors. In No-vember 2002, Christies Paris,Photographies included LesNouveaux Circoncisby Sidibin its sale, which realized thesum of 1,880 (N183,227).

This rise in interest fromcollectors has led to grow-ing prices for the photogra-phers work. In April 2010,Christies New York sale ofSelections from the BaioCollection of Photographyincluded Sidibs Les VraisLycennes, Bal Fin dAnne,Lyce de Filles (1966). It soldfor $2,500 (N372,165) againstits presales estimate of $2,000(N297,732).

Subsequent sales of Sidibswork include Le deux amis(1971) which fetched a princelysum of 3,250 (N654,403) atChristies Paris October 2012sale, Rendez-vous Interieurscontemporains. The photo-graph was previously estimat-ed at 2,500 (N503,387).

The year 2013 was also aneventful one for Malick Sidibon the auction market. Someof the highlights include Bon-hams May 22, 2013 AfricaNow sale, where a set of threesigned photographs, Yokoro(1970), Danseur Mrengu(1964) and Les deux soeursen mme tenue (1977), eachmade in gelatin print, sold for2,250 (N534,850, includ-ing buyers premium). An-

other important highlight isthe sale of Hercule Africain(1970), silver gelatin print, at2,233 (N530,809) previouslyestimated between 2,000 -3,000, (N475,422 - 713,133).The photograph was sold atThe Auction Room with al-most all the photographs sell-ing approximately 20% abovetheir initial estimates.

In 2014, Sidibs Yokoro(2006), gelatin silver print wassold for $5,000 (N804,760,including buyers premium).This result underscores thegrowing appreciation forSidibs life work, which spansabout 6 decades, as well as anincreasing global interest inphotography from the conti-nent. ;

Artist dossier: Malick Sidib

ARENAVM8 VM| Monday, August 11, 2014 | Issue 005

Oliver Enwonwuis the director of leading Lagos

gallery, Omenka and president of

the Society of Nigerian Artists.

[email protected]

L

Malick Sidib, Yokoro, (2006), gelatin silver printMalick Sidib, Hercule Africain (1970), silver gelatin print

UDE FEJOGWU,principal analystat Thaddeus In-

vestment Advisors & Re-search, has a dierent takeon bankers compensation. Hewrites that in Nigeria there isno direct relationship betweenwage increases for bank em-ployees and increased produc-tivity, earnings, and return onequity. This ies in the face ofpopular wisdom.

In Europe and NorthAmerica the debate has beenmainly around salaries and

bonuses paid to top bankers.It has never dipped down toquestion the take-home payof the rank-and-le.

But Fejogwu has the num-bers to back up his argument.Admittedly, he uses an arcanesystem, proprietarily namedthe Thaddeus employee val-ue added ranking (TEVAR).They are worth looking at.

In 2013, First Bank de-creased its average salaryper head by 12 per cent, andproductivity climbed up by3 per cent. In the same year,

GT Bankcut its average sal-ary per head by 26 per cent,while increasing head countby 24 per cent. There wereno adverse consequencesbecause sta at the bank in-creased productivity by 14per cent. Sterling Bankhasranked the lowest paying bankfor two years in a row thoughit made a slight increase inaverage salaries by 7 per centin 2013. Its employees raisedproductivity by 14 per cent.

On the other side of thecoin, Access Bank increased

its average employee salaryby 34 per cent during the pe-riod while TEVAR dropped 8per cent. On the same note,Zenith Bank raised averagesalary per head by 29 percent, and saw its sta produc-tivity decline by 10 per cent.Fidelity Bank raised salaryper head by 12 per cent andexperienced a whopping 63per cent slide in employeeproductivity.

The moral of the story mustbe that you can pay premiumand still get monkeys. ;

HUMAN RESOURCES

Team spirit. The female football team ofAnsar-Ud Deen Girls High School, Itire huddle togetherat the GT Bank sponsored Heritage Cup, Season 2

Source: gtbank.com

Counterintuitive compensation scalesJ

Documents

Vanguard Markets - August 11, 2014 Edition