Seunn11:
OANDOO

The deal!
The real deal!!
The very real deal!!!

please carry us along ooo

aj8:



Too many red flags…. Inventories and receivables.

Do you mind shedding more light on this, please?

Would really appreciate it Sir

Are you good at joining a moving train?

Princkez:
please carry us along ooo

KarlTom:
Are you good at joining a moving train?

I'm in already...

What's the current value of PROVIDUS?

Omooloriredade:


If I'm not mistaken, your rationale for investing in Unity bank was because of your belief that the bank is on its way to profitability. Judging by the profit forecast released by the bank, we can safely assume this will eventuate.

However, I think you may be misinterpreting the Providus bank vs Unity bank "merger". Technically, the CBN has just bailed Unity bank or saved Unity from going under by selling it to Providus bank with some extra cash bonus to keep the enlarged entity going. Providus is the winner here not Unity. Enlarged entity is 80% Providus and 20% Unity. What is Providus history as a bank sef? Unity bank shareholders will be issued new shares equivalent to a quarter (or 25%) of the current value of Providus bank. I hope for your sake that CBN and Providus intend to have the enlarged entity listed. Otherwise, I'm not sure there is much to get excited about here. I'm just a bit confused about the excitement here. Maybe I'm missing something.

megawealth01:
What's the current value of PROVIDUS?

Providus is a growth stock. One of the innovative bank that transformed from a mortgage bank in 2016 with a regional license. They are listed on NASD and I have been trying to buy their shares a while back cos I see them going far because of their innovation and strategy. They can be said to be digital bank in Nigeria. They were the pioneers of fintech integration to banks in Nigeria. While many people were opening fintech accounts, they were actually banking with Providus because their funds were digitally housed and settled in the bank. Great number of fintech partners including major ones like Monnify, Jumia, Fairmoney, Bet9ja (CFO is related to Bet9ja owner) etc were integrated to the bank. The integration boosted them with good liquidity at clearing house and they broke even in 2019. Since then they have been in profit unlike some of their mates. They made around N8Billion in 2022. But their cost to income ratio is high due to expansion drive. Going by their books they couldn't have been able to purchase Unity.

I guess the merger was strategic for them because instead of paying to upgrade their license to national they killed two birds with one stone with the help of CBN.CBN also pumped in bailout funds of over N600Billion to clear Unity bank obligations. If owning a share of Unity bank means automatically becoming a shareholder of Providus, I will grab it immediately. Imagine a bank that broke even just 3 years after they started and by 2022 was making profit that is about 42% of what Sterlingbank that have been in the business for long made in the same year. That is aggressive growth and I want to be part of it. Their niche used be the affluent and HNIs while they serve retail through fintech. I guess they have changes now since they are going national.

.

Most of the things you are saying here also applies to Wema Bank that is if they are not better with the digital banking component of their banking.

Heishere:


Providus is a growth stock. One of the innovative bank that transformed from a mortgage bank in 2016 with a regional license. They are listed on NASD and I have been trying to buy their shares a while back cos I see them going far because of their innovation and strategy. They can be said to be digital bank in Nigeria. They were the pioneers of fintech integration to banks in Nigeria. While many people were opening fintech accounts, they were actually banking with Providus because their funds were digitally housed and settled in the bank. Great number of fintech partners including major ones like Monnify, Jumia, Fairmoney, Bet9ja (CFO is related to Bet9ja owner) etc were integrated to the bank. The integration boosted them with good liquidity at clearing house and they broke even in 2019. Since then they have been in profit unlike some of their mates. They made around N8Billion in 2022. But their cost to income ratio is high due to expansion drive. Going by their books they couldn't have been able to purchase Unity.

I guess the merger was strategic for them because instead of paying to upgrade their license to national they killed two birds with one stone with the help of CBN.CBN also pumped in bailout funds of over N600Billion to clear Unity bank obligations. If owning a share of Unity bank means automatically becoming a shareholder of Providus, I will grab it immediately. Imagine a bank that broke even just 3 years after they started and by 2022 was making profit that is about 42% of what Sterlingbank that have been in the business for long made in the same year. That is aggressive growth and I want to be part of it. Their niche used be the affluent and HNIs while they serve retail through fintech. I guess they have changes now since they are going national.

ojesymsym:
Most of the things you are saying here also applies to Wema Bank that is if they are not better with the digital banking component of their banking.

Wema bank came into the picture when Providus temporarily shut down their NIP services to the fintech partners due to too many fraud related issues with fintech. Fraudsters were opening accounts using victims' details without their knowledge on the fintech platform due to poor regulatory framework from CBN and moving funds with them. I remember the incident vividly on twitter because all fintech customers could not make transfers then. Monnify had to issue a public statement and switched to Wema bank. By the time Providus revamped the service, they had already switched to Wema. So I am correct when I say they are the pioneer. Wema took advantage of a situation to play in that space. What Wema bank had then as a digital product was Alat which is quite different.

megawealth01:
What's the current value of PROVIDUS?

Please be reminded that my post may be factually incorrect and misleading. No malicious intent please just sharing my opinion.

2022 FYE Report as reference:
Providus has a share capital of N18B translating to #36,036,786,000 ordinary shares of 50kobo each. Latest available financial result is the 2022FYE where the bank achieved EPS of 22k (23k in 2021FYE).
You can use a discounted PE to work out the MCAP - PE x EPS (I'll use the same EPS from 2022 as there's no guarantee the bank achieved any growth in 2023FYE). 2021 FYE EPS was 23k.


You're looking at #11,689,338,000 shares of Unity bank being converted to #9,009,196,500 units of the enlarged entity representing 20% of the entity. Providus bank shareholders will hold the remaining 80%. Providus is considered the dominant partner.

Let's use the last audited EPS of Wema bank to derive a suitable PE ratio.
2023 EPS = N2.80
Price = N6.15
PE = 2.19

Apply PE to derive Providus(old bank) SP.
2.19 x N0.22 = N0.48k
MCAP = N17,297,657,280.00
Caveat : The market sometimes ascribes an unjustifiably high PE to a stock. So valuation could be considerably higher.

The enlarged or combined entity should have a higher PE and if owners decide to list on the NGX, the new shares will be LISTED BY INTRODUCTION on the NGX.

Disclaimer- My post could be misleading so please don't make any financial decision based on my post. Please consult your financial adviser.

Heishere:


Providus is a growth stock. One of the innovative bank that transformed from a mortgage bank in 2016 with a regional license. They are listed on NASD and I have been trying to buy their shares a while back cos I see them going far because of their innovation and strategy. They can be said to be digital bank in Nigeria. They were the pioneers of fintech integration to banks in Nigeria. While many people were opening fintech accounts, they were actually banking with Providus because their funds were digitally housed and settled in the bank. Great number of fintech partners including major ones like Monnify, Jumia, Fairmoney, Bet9ja (CFO is related to Bet9ja owner) etc were integrated to the bank. The integration boosted them with good liquidity at clearing house and they broke even in 2019. Since then they have been in profit unlike some of their mates. They made around N8Billion in 2022. But their cost to income ratio is high due to expansion drive. Going by their books they couldn't have been able to purchase Unity.

I guess the merger was strategic for them because instead of paying to upgrade their license to national they killed two birds with one stone with the help of CBN.CBN also pumped in bailout funds of over N600Billion to clear Unity bank obligations. If owning a share of Unity bank means automatically becoming a shareholder of Providus, I will grab it immediately. Imagine a bank that broke even just 3 years after they started and by 2022 was making profit that is about 42% of what Sterlingbank that have been in the business for long made in the same year. That is aggressive growth and I want to be part of it. Their niche used be the affluent and HNIs while they serve retail through fintech. I guess they have changes now since they are going national.

Providus bank was delisted on 21-03-2022 according to the NASD website.
Reason for delisting - converted to a private Limited Liability Company.

Heishere:


Providus is a growth stock. One of the innovative bank that transformed from a mortgage bank in 2016 with a regional license. They are listed on NASD and I have been trying to buy their shares a while back cos I see them going far because of their innovation and strategy. They can be said to be digital bank in Nigeria. They were the pioneers of fintech integration to banks in Nigeria. While many people were opening fintech accounts, they were actually banking with Providus because their funds were digitally housed and settled in the bank. Great number of fintech partners including major ones like Monnify, Jumia, Fairmoney, Bet9ja (CFO is related to Bet9ja owner) etc were integrated to the bank. The integration boosted them with good liquidity at clearing house and they broke even in 2019. Since then they have been in profit unlike some of their mates. They made around N8Billion in 2022. But their cost to income ratio is high due to expansion drive. Going by their books they couldn't have been able to purchase Unity.

I guess the merger was strategic for them because instead of paying to upgrade their license to national they killed two birds with one stone with the help of CBN.CBN also pumped in bailout funds of over N600Billion to clear Unity bank obligations. If owning a share of Unity bank means automatically becoming a shareholder of Providus, I will grab it immediately. Imagine a bank that broke even just 3 years after they started and by 2022 was making profit that is about 42% of what Sterlingbank that have been in the business for long made in the same year. That is aggressive growth and I want to be part of it. Their niche used be the affluent and HNIs while they serve retail through fintech. I guess they have changes now since they are going national.

This is the first strong enough reason I've read to buy shares in unity bank...but upon acquisition (or merger), will the emerging entity be on NASD or NSE or simply choose to buy out unjty bank shareholders and be a private company just as providus currently is ?

Omooloriredade:


Providus bank was delisted on 21-03-2022 according to the NASD website.
Reason for delisting - converted to a private Limited Liability Company.

Omooloriredade:


Please be reminded that my post may be factually incorrect and misleading. No malicious intent please just sharing my opinion.

2022 FYE Report as reference:
Providus has a share capital of N18B translating to #36,036,786,000 ordinary shares of 50kobo each. Latest available financial result is the 2022FYE where the bank achieved EPS of 22k (23k in 2021FYE).
You can use a discounted PE to work out the MCAP - PE x EPS (I'll use the same EPS from 2022 as there's no guarantee the bank achieved any growth in 2023FYE). 2021 FYE EPS was 23k.


You're looking at #11,689,338,000 shares of Unity bank being converted to #9,009,196,500 units of the enlarged entity representing 20% of the entity. Providus bank shareholders will hold the remaining 80%. Providus is considered the dominant partner.

Let's use the last audited EPS of Wema bank to derive a suitable PE ratio.
2023 EPS = N2.80
Price = N6.15
PE = 2.19

Apply PE to derive Providus(old bank) SP.
2.19 x N0.22 = N0.48k
MCAP = N17,297,657,280.00
Caveat : The market sometimes ascribes an unjustifiably high PE to a stock. So valuation could be considerably higher.

The enlarged or combined entity should have a higher PE and if owners decide to list on the NGX, the new shares will be LISTED BY INTRODUCTION on the NGX.

Disclaimer- My post could be misleading so please don't make any financial decision based on my post. Please consult your financial adviser.

What would then be the probable listing price on NSE ?
What if the emerging entity chooses to buy off unity bank shareholders and be a private company as providus currently is?

Omooloriredade:


Please be reminded that my post may be factually incorrect and misleading. No malicious intent please just sharing my opinion.

2022 FYE Report as reference:
Providus has a share capital of N18B translating to #36,036,786,000 ordinary shares of 50kobo each. Latest available financial result is the 2022FYE where the bank achieved EPS of 22k (23k in 2021FYE).

@bolded. Noted
It still offers insight.

Thanks for this selfless breakdown.🙏

Heishere:


Wema bank came into the picture when Providus temporarily shut down their NIP services to the fintech partners due to too many fraud related issues with fintech. Fraudsters were opening accounts using victims' details without their knowledge on the fintech platform due to poor regulatory framework from CBN and moving funds with them. I remember the incident vividly on twitter because all fintech customers could not make transfers then. Monnify had to issue a public statement and switched to Wema bank. By the time Providus revamped the service, they had already switched to Wema. So I am correct when I say they are the pioneer. Wema took advantage of a situation to play in that space. What Wema bank had then as a digital product was Alat which is quite different.

Wema Bank is the pioneer of fintech banking in Nigeria with ALAT since 2017.

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www./overview-fintech-evolution-nigeria-samuel-muoto&ved=2ahUKEwjF9PPm0u6HAxWVUkEAHUgOKEEQjjh6BAgdEAE&usg=AOvVaw3yNTYZxSeFevZqKdYA1Opr

Nataba:
Please, I have a question.
I'd like to invest in dividend-paying stock such as presco.
Please, how do I claim my dividend when it's being issued?
Do I need to fill any form or it will be automatically sent to my bank account?

In addition or alternative to Registering on Registrars portals for E-Dividend mandate, you can also register on the E-DMMs portal launched by SEC in July to mandate your E-Dividends.

Here's the SEC link:
https://sec.gov.ng/revamped-e-dividend-mandate-management-system-portal/

You can contact them if you need more clarifications or you have enquiries.

aj8:
Too many red flags…. Inventories and receivables.

I understood that your "Common Sense" strategy is FA based somehow....
I however will say, SA wise this stock CWG and Ikeja Hotels are promising, may not be now, but there's something that will come up along the line to make them attractive to investors.
Financial wise, there are lots of improvements Q-on-Q

For CWG, from 5 and below, I think it should be good for accumulation.......barring any unforeseen circumstances.

aj8:
Can anybody please educate me on how to check mails on this platform . Some may actual feel I am ignoring them. Ndo!

Simply check your mail and reply the person....
Or, click on the notification (that someone has sent you msg) on top of the NL page once you login, it will link you to the mail.
You can dismiss the msg thereafter on NL page by clicking "dismiss".

Omooloriredade:


Please be reminded that my post may be factually incorrect and misleading. No malicious intent please just sharing my opinion.

2022 FYE Report as reference:
Providus has a share capital of N18B translating to #36,036,786,000 ordinary shares of 50kobo each. Latest available financial result is the 2022FYE where the bank achieved EPS of 22k (23k in 2021FYE).
You can use a discounted PE to work out the MCAP - PE x EPS (I'll use the same EPS from 2022 as there's no guarantee the bank achieved any growth in 2023FYE). 2021 FYE EPS was 23k.


You're looking at #11,689,338,000 shares of Unity bank being converted to #9,009,196,500 units of the enlarged entity representing 20% of the entity. Providus bank shareholders will hold the remaining 80%. Providus is considered the dominant partner.

Let's use the last audited EPS of Wema bank to derive a suitable PE ratio.
2023 EPS = N2.80
Price = N6.15
PE = 2.19

Apply PE to derive Providus(old bank) SP.
2.19 x N0.22 = N0.48k
MCAP = N17,297,657,280.00
Caveat : The market sometimes ascribes an unjustifiably high PE to a stock. So valuation could be considerably higher.

The enlarged or combined entity should have a higher PE and if owners decide to list on the NGX, the new shares will be LISTED BY INTRODUCTION on the NGX.

Disclaimer- My post could be misleading so please don't make any financial decision based on my post. Please consult your financial adviser.

Thanks

https://nairametrics.com/2024/08/11/we-cannot-sabotage-dangote-refinery-after-investing-billions-of-naira-in-it-nnpc/

We cannot sabotage Dangote refinery after investing billions of naira in it — NNPC


Dangote Group purchases $105.33 million from latest CBN’s Retail Dutch Auction 


https://nairametrics.com/2024/08/10/dangote-group-purchases-105-33-million-from-latest-cbns-retail-dutch-auction/

megawealth01:
https://nairametrics.com/2024/08/11/we-cannot-sabotage-dangote-refinery-after-investing-billions-of-naira-in-it-nnpc/

We cannot sabotage Dangote refinery after investing billions of naira in it — NNPC


Dangote Group purchases $105.33 million from latest CBN’s Retail Dutch Auction 


https://nairametrics.com/2024/08/10/dangote-group-purchases-105-33-million-from-latest-cbns-retail-dutch-auction/

Alhaji and this FG dey same WhatsApp group... Believe all these media noise at your own financial risk...

If you haven't loaded Alhaji stocks better do so at this their rate of #30s at your own risk anyways

10 things you need to know about the proposed Providus-Unity Bank merger

https://nairametrics.com/2024/08/10/10-things-you-need-to-know-about-the-proposed-providus-unity-bank-merger/

megawealth01:
10 things you need to know about the proposed Providus-Unity Bank merger

https://nairametrics.com/2024/08/10/10-things-you-need-to-know-about-the-proposed-providus-unity-bank-merger/

I will definitely load up more UNITY immediately after the suspension without announcing it here as I ain't done buying...

Soon you won't see UNITY at #5... One day UNITY will be dragging things with my FIDELITY

Screenshot this for future references

megawealth01:


I will definitely load up more UNITY as I haven't finishing buying...


you won't see UNITY at #5... One day UNITY will be dragging things with my FIDELITY

Screenshot this for future references

Pre merger or post merger ?

SonofElElyonRet:


Pre merger or post merger ?

I can't answer that as Mr Time has that answer but it won't be long

My brother if you have spare funds just leave it in UNITY at #1+ you won't regret it if you play your games well...

This government means it this time on UNITY as they won't want to offend the north

DD always

yMcy56:

I understood that your "Common Sense" strategy is FA based somehow....
I however will say, SA wise this stock CWG and Ikeja Hotels are promising, may not be now, but there's something that will come up along the line to make them attractive to investors.
Financial wise, there are lots of improvements Q-on-Q

For CWG, from 5 and below, I think it should be good for accumulation.......barring any unforeseen circumstances.

Good morning Myc. You are up early and working as usual. I wish I can learn to do that.

Please what is causing the low liquidity of CWG compared to others like CHAMS?

yMcy56:

I understood that your "Common Sense" strategy is FA based somehow....
I however will say, SA wise this stock CWG and Ikeja Hotels are promising, may not be now, but there's something that will come up along the line to make them attractive to investors.
Financial wise, there are lots of improvements Q-on-Q

For CWG, from 5 and below, I think it should be good for accumulation.......barring any unforeseen circumstances.

I wish IKEJA will come down to my entry so I can mop up what I can

I need a news that will bring it down so I can enter comfortably just like I did with DS and NS

SonofElElyonRet:


What would then be the probable listing price on NSE ?
What if the emerging entity chooses to buy off unity bank shareholders and be a private company as providus currently is?

I wish I had an answer for you. However, a successfully recapitalised bank should fetch a premium to the value of the old bank. Reason for that is that negative equity is wiped, debt paid off and balance is used as Tier-2 capital. Please don't get me wrong. I'm not suggesting Unity bank shareholders will be worse off post-merger, of course not. My point is that Providus, a relatively new private bank on the scene is getting the better deal. Providus shareholders are the ultimate winners based on the merger ratio reported. CBN has given us an indication of how it values Unity bank in comparison to Providus. Why didn't they just bail out Unity separately?

Also note that, the enlarged entity will tap the market/existing shareholders/institutions for extra funds to meet the recapitalisation requirement. There may well be a SP pump post merger......wait is it going to be listed?

I hope I'm well understood. I wouldn't celebrate the merger but wait to see how it pans out except you already knew CBN had flagged the financial state of the bank and you're now relieved the worst is behind you. Then happy days ahead. I don't believe Unity bank shareholders will lose money. I question the merger ratio.

If I have managed to dribble my way out of answering your question directly, no vex o.

megawealth01:


I can't answer that as Mr Time has that answer but it won't be long

My brother if you have spare funds just leave in UNITY at #1+ you won't regret it if you play your games well... This government means it this time on UNITY as they won't want to offend the north

DD always

Was this why CBN didn't bail out Heritage bank?

Omooloriredade:


I wish I had an answer for you. However, a successfully recapitalised bank should fetch a premium to the value of the old bank. Reason for that is that negative equity is wiped, debt paid off and balance is used as Tier-2 capital. Please don't get me wrong. I'm not suggesting Unity bank shareholders will be worse off post-merger, of course not. My point is that Providus, a relatively new private bank on the scene is getting the better deal. Providus shareholders are the ultimate winners based on the merger ratio reported. CBN has given us an indication of how it values Unity bank in comparison to Providus. Why didn't they just bail out Unity separately?

Also note that, the enlarged entity will tap the market/existing shareholders/institutions for extra funds to meet the recapitalisation requirement. There may well be a SP pump post merger......wait is it going to be listed?

I hope I'm well understood. I wouldn't celebrate the merger but wait to see how it pans out except you already knew CBN had flagged the financial state of the bank and you're now relieved the worst is behind you. Then happy days ahead. I don't believe Unity bank shareholders will lose money. I question the merger ratio.

If I have managed to dribble my way out of answering your question directly, no vex o.

You have "maradonad" yourself out
Thanks

Omooloriredade:


Was this why CBN didn't bail out Heritage bank?

You are shaking tables

Zagee:



I like the initiative. I think Osita does something like this, but with that his <can't remember> technique he uses.😁

I'm guessing you'd be running a sentimental analysis on the forum? If yes, me I just want to see your code block. Please....

I am just starting to look at it. Thanks for indicating that it is a useful idea.