The Nation Newspaper

Category: Equities

  • Sterling Bank outlines long-term strategic growth plan

    Sterling Bank Plc yesterday outlined a long-term strategic plan that will drive the bank to a globally competitive financial institution that delivers good returns to investors and other stakeholders.

    Chief Executive Officer, Sterling Bank Plc, Mr. Abubakar Suleiman yesterday at the Nigerian Stock Exchange (NSE) laid out the underlying fundamentals of the bank to the investing public, with an assurance that the bank would continue to consolidate its growth.

    Sterling Bank had recorded considerable growths in key performance indices in 2017 and first quarter 2018. This appeared to have quickened investor’s appetite for the stock, with the bank’s share price recording year-to-date return of more than 52 per cent.

    Key extracts of the audited report and accounts for the year ended December 31, 2017 showed that Sterling Bank reported a profit after tax of N8.5 billion in 2017 as against N5.2 billion in 2016, representing an increase of 65 per cent. Gross earnings increased by 19.8 per cent to N133.5 billion in 2017 compared with N111.4 billion in 2016. The bank sustained the upwardly performance with 65.2 per cent growth in profit in the first quarter ended March 31, 2018.

    Suleiman noted that the bank has continued to grow across key financial indices as it continues to implement its long-term strategy aimed at making the bank a globally competitive ûnancial services franchise by ûnancial and non-ûnancial measures.

    According to him, with the 2017-2021 mid-term strategy, the bank plans to grow market share of deposits to five per cent, diversify its retail funding base, record non-performing loans below its peer group average as well as Return on Average Equity (ROAE) above peer group average.

    He added that the bank is also looking to achieve diversiûed income streams with top quartile position in all its operating areas, double digit revenue growth on yearly basis and reduce cost of funds to less than five percent.

    He also reiterated the bank’s commitment to its primary role of financial intermediation through intervention in sectors that will create jobs, improve living standard and bring about economic growth for the country. Abubakar Suleiman identified the priority sectors as health, education, agriculture, renewable energy and transportation.

    He assured that the bank would continue to operate a fully sustainable business model with institutionalized processes that would outlive the stewardship of current owners and managers.

    Speaking on the bank’s strategic initiatives, Executive Director, Operations and Services, Sterling Bank Plc, Yemi Odubiyi said the bank would manage risk, balance sheet and capital to deliver superior returns to shareholders.

    He said the bank would create a learning organisation to optimise productivity as well as operations and technology to drive better control, manage costs, complexity and risk.

    He said all these would enable the bank to deliver excellent customer service and drive efficiency and sales through robust digital and payments capability.

    According to him, Sterling Bank intends to become a consumer banking franchise of choice for Nigerians through the provision of customer-centric and disruptive solutions such as Farepay, Specta, Switch, Snapcash, Social Lender, Saf Retail and i-invest, among other products that are changing the ways they access financial services.

    He noted that the bank of the future must understand the consumer of the future and address their needs, adding that the bank will adopt agile methodology and journey thinking to improve speed to market and the customer’s experience.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, noted that in over 50 years of operations, Sterling Bank has evolved from the nation’s preeminent investment banking institution to a fully-fledged commercial bank; and completed a merger with four other banks as part of the 2006 consolidation of the Nigerian banking industry to become a financial institution of choice.

    He commended the performance of the bank, assuring that the Exchange will continue to provide a platform to support listed companies to meet their strategic business objectives.

    In his closing remarks, Doyen of Stockbrokers, Sam Ndata also commended Sterling Bank for providing insights into facts behind the figures in its financial statements to stakeholders in capital market.

    “The CEO of Sterling Bank has spoken to the numbers and we are hopeful that he will continue to provide the market with useful information. The solutions you have highlighted explain the increased customer growth recorded by bank. We are sure the bank will deliver value to all stakeholders going forward,” Ndata said.

     

  • Nigerian Breweries records N10.2b profit in Q1

    Nigerian Breweries Plc started 2018 on a low note as sales and profit contracted within the first quarter.

    Key extracts of the interim report and accounts of Nigerian Breweries for the three-month period ended March 31, 2018 showed that sales dropped by nine per cent from N91.3 billion in first quarter 2017 to N83 billion in first quarter 2018. Operating activities declined by eight from N19.2 billion to N17.7 billion. Profit before tax also dropped by 12.6 per cent from N17.4 billion to N15.2 billion. Profit after tax declined by 11.8 per cent to N10.2 billion in first quarter 2018 compared with N11.4 billion recorded in the corresponding period of 2017.

    The brewing giant attributed the slowdown sluggish consumer spending, noting that though there are some signs of improvement in the macroeconomic conditions, these are yet to reflect on consumer spending.

    The board of the company said it remained confident that it has a clear strategy to deliver a good return on investment to shareholders.

    Nigerian Breweries recently paid N25 billion as final cash dividend to the shareholders, raising the total cash dividend for the 2017 business year to N32.9 billion. This represented the entire profit after tax for the year.

    A breakdown of the final dividend recommendation indicated that shareholders received a dividend of N3.13 on every share held as at the close of business on March 6, 2018. Nigerian Breweries had distributed N7.9 billion as interim dividend, representing interim dividend per share of N1. The total dividend per share stood at N4.13.

    Key extracts of the audited report and accounts of the company for the year ended December 31, 2017 showed that total sales rose by 10 per cent from N313 billion in 2016 to N344 billion. Profit before tax increased from N39.67 billion in 2016 to N46.63 billion in 2017. Profit after tax grew by 16 per cent from N28.4 billion in 2016 to N33 billion. Earnings per share stood at N4.13 in 2017 as against N3.58 in 2016.

  • Nahco increases dividend payout to N406m

    The Nigerian Aviation Handling Company Plc (Nahco) Board of Directors has increased dividend payout to shareholders by 13.6 per cent to N406 million. Shareholders of the aviation handling company will receive a dividend per share of 25 kobo for the 2017 business year as against 22 kobo paid the previous year.

    Key extracts of Nahco‘s audited report and accounts for the year ended December 31, 2017 showed that the company improved its margins, despite a lull in the top-line. Turnover stood at N7.926 billion in 2017 compared to N7.956 billion in 2016. Finance cost reduced from N545 million in 2016 to N213 million in 2017. Profit after tax increased by 33.6 per cent to N776 million in 2017 as against N581 million in 2016. Earnings per share improved from 36 kobo to 48 kobo.

    Also, the interim report and accounts of the company for the first quarter ended March 31, 2018 indicated that the company started the 2018 business year on a strong footing. Turnover rose to N2.188 billion in first quarter 2018 as against N1.786 billion in the corresponding period of 2017. Finance income improved from N30.916 million to N64.495 million while the company was able to reduce finance cost to N44.536 million as against N55.715 million in first quarter 2017. With these, profit before tax jumped to N117.405 million in first quarter 2018 compared with N1.026 million in first quarter 2017 while profit after tax leapt from N1.026 million in first quarter 2017 to N97.566 million in first quarter 2018.

    The first quarter 2018 results are the first set of results produced by Mr Idris Yakubu, who took over as the company’s Managing Director  in November 2017.

    Market analysts said with the first quarter 2018 performance,  Yakubu, a former banker, who  has an extensive experience in delivering agreed strategic business imperatives, is bringing his experience to bear on the company to the delight of all stakeholders.

  • Stakeholders mull plan for Exchange-based commodities trading

    CAPITAL Market stakeholders have outlined plans for Nigerian commodities trading system development through regular Exchanges.

    A report on commodities ecosystem development underscored the importance of concerted efforts by the public and private sectors to promote a viable commodities trading ecosystem in Nigeria.

    The report by the Technical Committee set up by the Capital Market Committee (CMC) stated that the public sector should principally focus on providing the enabling environment, such as physical infrastructure, legal and regulatory framework and the right policies, including access to finance, which supports the market.

    The CMC, chaired by Securities and Exchange Commission (SEC) Director-General, consists chief executives of all registered capital market operators, including stockbrokers, solicitors, custodians, fund managers, issuing houses, rating agencies, registrars, reporting accountants, trustees and consultants among others.

    Other members included chief executives of the Chartered Institute of Stockbrokers (CIS); Nigerian Stock Exchange (NSE); Abuja Securities and Commodity Exchange (ASCE) and Central Securities Clearing System (CSCS), among others.

    “Government should not be involved in the ownership and operations of commodity exchange. It has not worked in Nigeria. The private sector on the other hand should drive commodity exchange development; investing in and operating the exchanges like commercial ventures,” the report stated.

    According to the report, for an organised commodities market to thrive, there must be large demand and liquidity, evidenced by good quality network of physical and market infrastructure such as an efficient standard and grading system, price transparency and effective risk management tools, collateral management system and logistics services, among others.

    The report noted that in order to build investors’ confidence in the market, there must be an efficient trading and delivery system, clearing and settlement infrastructure and a good legal and regulatory environment to ensure equity and fairness in all dealings on the exchange.

    The committee came up with recommendations on how to develop a thriving ecosystem and assigned responsibilities to relevant stakeholders. The recommendations are grouped into four phases for effective implementation. In the first phase, the objective is to ensure food sufficiency and security, price discovery and market development while in the second phase, focus should include developing strong trades in export commodities. The third phase should see the introduction of solid minerals, energy and derivatives while the last phase should be geared towards ensuring strong international presence in the local exchanges.

    As part of the committee’s recommendations, there is a need to commence advocacy for macro-economic stability and policies, which will promote the commodity market; advocacy for amendment of existing legislations such as the Land Use Act and Bankruptcy Law, which impede the development of the market; review SEC rules and regulations relating to commodity exchanges, especially rules on the spot market, and make rules on collateral management.

    The report pointed out that one major impediment towards having a vibrant commodities market is the financial exclusion of farmers, especially smallholder farmers, who produce most of the commodities traded, though in small individual units.

    “These farmers should be organised into cooperatives to aggregate produce and be encouraged to become members of the exchange. Introduction of the Electronic Warehouse Receipts (EWRs) and the enactment of a warehouse receipt bill into law will go a long way in ensuring that farmers can access credit easily and affordably,” the report stated.

    Stakeholders called for deliberate efforts to be made to develop public enlightenment and education roadmaps for the commodities market to improve understanding and encourage participation.

    The report added that it was also vital to encourage investment in the entire requisite supportive infrastructure such as warehouses and storage facilities by exchanges and the private sectors.

    According to the report, in order to enlarge the scope of participation, existing commodity merchants and other relevant stakeholders should be encouraged into the exchanges either as traders or investors.

    The report noted that high value export commodities such as cocoa, sesame and ginger should be designated as flagship products and trading of such commodities through the Exchange should be incentivised.

    The report added that Exchanges should install traceability system for Nigeria’s flagship and other export commodities that are traded through their platform.

    The report identified about 20 benefits of promoting commodity exchanges and the ecosystem in general, which include provision of a transparent pricing mechanism, assist in moderating consumer prices, promote attractiveness of agribusiness, foster financial inclusion and improve industrial output and profitability as well as government revenue.

    Also, commodities exchanges enhance the wellbeing of the farming community and help reduce rural – urban drift while they also provide risk management tools and promote quality and standards for Agro-based export commodities.

    Viable commodities exchanges create opportunity for investment in the commodities value chain with multiplier effect on socio-economic development.

    Attempt to establish a commodity exchange in Nigeria began in 1989, when an Inter-Ministerial Committee was established to examine the possibility of setting up a commodity exchange, following the abolishment of the commodities marketing board.

    Although the Committee recommended the establishment of a commodities exchange, nothing came to fruition until August 8, 2001 when the Federal Government directed the conversion of the then Abuja Stock Exchange to a commodity exchange, which is now called Nigeria Commodity Exchange (NCX). NCX was the only commodity exchange in Nigeria for more than a decade when in 2014, the Securities and Exchange Commission registered AFEX Commodities Exchange, the first private sector commodities exchange.

  • Our financials still undergoing review, says Diamond Bank

    Diamond Bank Plc has sought for another extension of the timeline for the submission of its audited report and accounts for the immediate past business year after the commercial bank failed to meet the initial extended deadline of April 30, 2018.

    In a regulatory filing yesterday at the Nigerian Stock Exchange (NSE), Diamond Bank stated that it was unable to issue its audited financial statements for the year ended December 31, 2017 within the extended deadline of April 30, 2018 as earlier indicated to the investing public.

    The bank stated that the audited financial statement “is still undergoing review” and expressed optimism that “the review process will be concluded within May 2018”.

    “Thereafter, this will be transmitted to the Exchange and made available to the public. We will also like to notify you that the release of 2018 first quarter financial statement will follow the transmission of 2017 audited financial statement in short order,” the filing signed by Company Secretary and Legal Adviser, Diamond Bank, Uzoma Uja, stated.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than three months or 90 calendar days after the expiration of the period. The deadline for submission of annual report for companies with Gregorian calendar business year ended December 31, 2017 was March 31, 2018.

    Diamond Bank had sought extension till April 30, 2018 but failed to meet the extended deadline. The Nation had reported exclusively that Diamond Bank was one of the companies already marked out by the NSE for regulatory sanctions following delay in the submission of the audited report and accounts of the companies for the immediate past business year.

    Under the rules at the Exchange, a late submission attracts a fine of N100,000 per day for the first 90 calendar days of non-compliance, another N200,000 per day for the next 90 calendar days and a fine of N400,000 per day thereafter until the date of submission.

    Diamond Bank recently signed a preliminary agreement to sell its United Kingdom (UK)’s banking operations, Diamond Bank UK, in another major divestiture aimed at narrowing down the commercial bank’s operations to its domestic Nigerian market.

    Diamond Bank signed a Share Sale and Purchase Agreement with a member of GFG Alliance, for the disposal of its entire shareholding in Diamond Bank UK. Completion of the transaction is subject to approval from the Financial Conduct Authority and Prudential Regulatory Authority – the regulators responsible for banking in the UK.

    The bank stated that the disposal was in line with its “objective of streamlining its operations to focus resources on the significant opportunities in the Nigerian retail banking market”. The latest transaction follows the bank’s divestment from its West African business, Diamond Bank S.A., which was completed in November 2017. Diamond Bank SA’s operations covered Benin, Togo, Cote d’Ivoire and Senegal.

     

  • Shareholders laud Transcorp’s turnaround

    Shareholders of Transnational Corporation of Nigeria (Transcorp) Plc have commended the board and management of the conglomerate for the turnaround of the group from a loss position to profitability. Transcorp witnessed considerable growths in turnover and profitability in 2017, pulling back from a pre-tax loss of N5.93 billion in 2016 to a pre-tax profit of N12.31 billion in 2017.

    At the annual general meeting in Lagos, shareholders unanimously approved the payment of N812.96 million as cash dividend for the 2017 business year, as recommended by the board of the conglomerate. Shareholders will receive a dividend per share of 2.0 kobo.

    National President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, said the leadership of the company has shown strong commitment to wealth creation for shareholders.

    According to him, the management of the conglomerate has kept to their words of delivering superior returns to the shareholders as promised at the previous general meeting.

    “We are very pleased with this turnaround, and we trust that the company will do all it can to uphold this,” Umar said.

    Chairman, New Dimension Shareholders Association, Mr. Patrick Ajudua also commended the management for returning the company to profitability and deciding to pay dividend to shareholders.

    He urged the directors of the conglomerate not to relent in their efforts to ensure that the conglomerate continues to surpass targets every year.

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu, said the improvement in the performance of the conglomerate reflected the underlying improvement in the Nigerian economy.

    According to him, Transcorp is a gauge of Nigeria’s economy as it was setup to drive the nation’s economy in a positive direction by investing in catalytic sectors, capable of improving lives and Transforming Nigeria.

    “When Transcorp is doing well, you don’t have to check to see if Nigeria is also doing well. Their journeys are intertwined,” Elumelu said.

    He assured shareholders that strategic initiatives implemented in 2017 have laid firm foundation for continuous growths in the years ahead.

    He pointed out that achieving excellence in the execution of the group’s identified strategic imperatives remains critical to its success as an organisation as this continues to position it for several opportunities in the economy and adequately insulate it from any challenges within the operating environment.

    He said the group would explore its oil & gas assets to enhance performance in the years ahead while also leveraging on the oil and gas assets to maximize Transcorp’s potential in the power generation space.

    “The plan is for Transcorp Power to continue expanding its generating capacity and contribute even more to the national grid despite already emerging as Nigeria’s highest generator of Power,” Elumelu said.

    He noted that the group has successfully obtained NNPC’s approval for extension of the Phase 1 Exploration Period for its OPL 281 PSC, which has given it additional time to fulfill work commitments, including drilling of the appraisal wells, under the first Phase of the PSC.

    “We are positive that further engagement with investors will lead to effective execution of OPL 281work obligations, as approved under the PSC,” Elumelu said.

     

  • Shareholders laud Transcorp’s turnaround

    •Approve N813m dividend

    Shareholders of Transnational Corporation of Nigeria (Transcorp) Plc have commended the board and management of the conglomerate for the turnaround of the group from a loss position to profitability. Transcorp witnessed considerable growths in turnover and profitability in 2017, pulling back from a pre-tax loss of N5.93 billion in 2016 to a pre-tax profit of N12.31 billion in 2017.

    At the annual general meeting yesterday in Lagos, shareholders unanimously approved the payment of N812.96 million as cash dividend for the 2017 business year, as recommended by the board of the conglomerate. Shareholders will receive a dividend per share of 2.0 kobo.

    National President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, said the leadership of the company has shown strong commitment to wealth creation for shareholders.

    According to him, the management of the conglomerate has kept to their words of delivering superior returns to the shareholders as promised at the previous general meeting.

    “We are very pleased with this turnaround, and we trust that the company will do all it can to uphold this,” Umar said.

    Chairman, New Dimension Shareholders Association, Mr. Patrick Ajudua also commended the management for returning the company to profitability and deciding to pay dividend to shareholders.

    He urged the directors of the conglomerate not to relent in their efforts to ensure that the conglomerate continues to surpass targets every year.

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu, said the improvement in the performance of the conglomerate reflected the underlying improvement in the Nigerian economy.

    According to him, Transcorp is a gauge of Nigeria’s economy as it was setup to drive the nation’s economy in a positive direction by investing in catalytic sectors, capable of improving lives and Transforming Nigeria.

    “When Transcorp is doing well, you don’t have to check to see if Nigeria is also doing well. Their journeys are intertwined,” Elumelu said.

    He assured shareholders that strategic initiatives implemented in 2017 have laid firm foundation for continuous growths in the years ahead.

    He pointed out that achieving excellence in the execution of the group’s identified strategic imperatives remains critical to its success as an organisation as this continues to position it for several opportunities in the economy and adequately insulate it from any challenges within the operating environment.

    He said the group would explore its oil & gas assets to enhance performance in the years ahead while also leveraging on the oil and gas assets to maximize Transcorp’s potential in the power generation space.

    “The plan is for Transcorp Power to continue expanding its generating capacity and contribute even more to the national grid despite already emerging as Nigeria’s highest generator of Power,” Elumelu said.

    He noted that the group has successfully obtained NNPC’s approval for extension of the Phase 1 Exploration Period for its OPL 281 PSC, which has given it additional time to fulfill work commitments, including drilling of the appraisal wells, under the first Phase of the PSC.

    “We are positive that further engagement with investors will lead to effective execution of OPL 281work obligations, as approved under the PSC,” Elumelu said.

    In his remarks, Chief Executive Officer, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Adim Jibunoh assured shareholders that the conglomerate will deliver better returns in the years ahead.

    He outlined that the company has been involved in a number of projects which will ensure that shareholders begin to enjoy real value for their investment in the next few years.

    “We will continue to be driven by our values of execution, enterprises and excellence and will ensure optimal maximisation of opportunities in our operating sectors, and indeed other sectors with openings for opportunistic investments,” Jibunoh said.

    Key extracts of the audited report and accounts of Transcorp for the year ended December 31, 2017 showed that turnover rose by 35 per cent from N59.42 billion in 2016 to N80.28 billion in 2017. Gross profit increased by 21 per cent to N36.42 billion in 2017 compared with N30.17 billion in 2016. Operating profit increased by 25 per cent from N20.72 billion in 2016 to N26.03 billion in 2017.

    Foreign exchange loss reduced to N4.55 billion in 2017 as against N18.7 billion in 2016 while net finance cost also improved from N26.64 billion to N13.73 billion.

    The company made provisions for N1.7 billion taxes in 2017 compared with tax credit of N4.80 billion received in 2016. With these, it reversed from a loss before tax of N5.93 billion in 2016 to profit before tax of N12.3 billion in 2017. After, taxes, net profit stood at N10.61 billion in 2017 as against net loss of N1.13 billion in 2016.

    The balance sheet position of the conglomerate also improved in 2017 as total assets rose by 23 per cent to N285.52 billion in 2017 as against N232.16 billion in 2016. Shareholders’ funds rose by 11 per cent from N86.45 billion in 2016 to N95.71 billion in 2017.

     

     

     

  • Shareholders laud Transcorp’s turnaround

    Shareholders of Transnational Corporation of Nigeria (Transcorp) Plc have commended the board and management of the conglomerate for the turnaround of the group from a loss position to profitability. Transcorp witnessed considerable growths in turnover and profitability in 2017, pulling back from a pre-tax loss of N5.93 billion in 2016 to a pre-tax profit of N12.31 billion in 2017.

    At the annual general meeting yesterday in Lagos, shareholders unanimously approved the payment of N812.96 million as cash dividend for the 2017 business year, as recommended by the board of the conglomerate. Shareholders will receive a dividend per share of 2.0 kobo.

    National President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, said the leadership of the company has shown strong commitment to wealth creation for shareholders.

    According to him, the management of the conglomerate has kept to their words of delivering superior returns to the shareholders as promised at the previous general meeting.

    “We are very pleased with this turnaround, and we trust that the company will do all it can to uphold this,” Umar said.

    Chairman, New Dimension Shareholders Association, Mr. Patrick Ajudua also commended the management for returning the company to profitability and deciding to pay dividend to shareholders.

    He urged the directors of the conglomerate not to relent in their efforts to ensure that the conglomerate continues to surpass targets every year.

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu, said the improvement in the performance of the conglomerate reflected the underlying improvement in the Nigerian economy.

    According to him, Transcorp is a gauge of Nigeria’s economy as it was setup to drive the nation’s economy in a positive direction by investing in catalytic sectors, capable of improving lives and Transforming Nigeria.

    “When Transcorp is doing well, you don’t have to check to see if Nigeria is also doing well. Their journeys are intertwined,” Elumelu said.

    He assured shareholders that strategic initiatives implemented in 2017 have laid firm foundation for continuous growths in the years ahead.

    He pointed out that achieving excellence in the execution of the group’s identified strategic imperatives remains critical to its success as an organisation as this continues to position it for several opportunities in the economy and adequately insulate it from any challenges within the operating environment.

    He said the group would explore its oil & gas assets to enhance performance in the years ahead while also leveraging on the oil and gas assets to maximize Transcorp’s potential in the power generation space.

    “The plan is for Transcorp Power to continue expanding its generating capacity and contribute even more to the national grid despite already emerging as Nigeria’s highest generator of Power,” Elumelu said.

    He noted that the group has successfully obtained NNPC’s approval for extension of the Phase 1 Exploration Period for its OPL 281 PSC, which has given it additional time to fulfill work commitments, including drilling of the appraisal wells, under the first Phase of the PSC.

    “We are positive that further engagement with investors will lead to effective execution of OPL 281work obligations, as approved under the PSC,” Elumelu said.

    In his remarks, Chief Executive Officer, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Adim Jibunoh assured shareholders that the conglomerate will deliver better returns in the years ahead.

    He outlined that the company has been involved in a number of projects which will ensure that shareholders begin to enjoy real value for their investment in the next few years.

    “We will continue to be driven by our values of execution, enterprises and excellence and will ensure optimal maximisation of opportunities in our operating sectors, and indeed other sectors with openings for opportunistic investments,” Jibunoh said.

    Key extracts of the audited report and accounts of Transcorp for the year ended December 31, 2017 showed that turnover rose by 35 per cent from N59.42 billion in 2016 to N80.28 billion in 2017. Gross profit increased by 21 per cent to N36.42 billion in 2017 compared with N30.17 billion in 2016. Operating profit increased by 25 per cent from N20.72 billion in 2016 to N26.03 billion in 2017.

    Foreign exchange loss reduced to N4.55 billion in 2017 as against N18.7 billion in 2016 while net finance cost also improved from N26.64 billion to N13.73 billion.

    The company made provisions for N1.7 billion taxes in 2017 compared with tax credit of N4.80 billion received in 2016. With these, it reversed from a loss before tax of N5.93 billion in 2016 to profit before tax of N12.3 billion in 2017. After, taxes, net profit stood at N10.61 billion in 2017 as against net loss of N1.13 billion in 2016.

    The balance sheet position of the conglomerate also improved in 2017 as total assets rose by 23 per cent to N285.52 billion in 2017 as against N232.16 billion in 2016. Shareholders’ funds rose by 11 per cent from N86.45 billion in 2016 to N95.71 billion in 2017.

  • Access Bank grosses N137.5b in three months

    Access Bank Plc grew its top-line by 19 per cent to N137.5 billion in the first three months of this year as the commercial bank continued the implementation of a new five-year plan aimed at making it Africa’s gateway to the world by 2022.

    Key extracts of the interim report and accounts for the first quarter ended March 31, 2018 showed that gross earnings rose by 19 per cent to N137.5 billion compared with N116 billion recorded in first quarter last year. Interest income and non-interest income contributed 70 per cent and 30 per cent respectively to the top-line in first quarter 2018. The report showed a steady bottom-line performance. Pre and post tax profits stood at N27.44 billion and N22.12 billion respectively in first quarter 2018 compared with N27.6 billion and N22.41 billion posted respectively in corresponding period of last year. Earnings per share stood at 77 kobo in 2018 as against 79 kobo in 2017.

    Access Bank’s balance sheet remained strong with a seven per cent growth in total assets to N4.38 trillion by March 2018 as against N4.10 trillion recorded at the beginning of this year. Group capital adequacy ratio (CAR) and Liquidity Ratio (LR) stood at 19.3 per cent and 41.3 per cent, exceeding the minimum regulatory requirement.

    The bank’s Group Managing Director, Mr. Herbert Wigwe said the gross earnings of N137 billion and profit after tax of N22 billion in first quarter 2018 underscored the resilience of the bank and its ability to deliver sustainable earnings.

    “We have begun the implementation of key elements of our strategy and I am excited at the prospects in the coming months. A vital part of this is the continued execution of our retail market penetration initiatives, as it remains a strong catalyst to the sustainability of non-funded income growth. In addition, we remain focused on consolidating our market position in the corporate and commercial banking segment,” Wigwe said.

    He outlined that the bank’s priority for the rest of the year will be to focus on its retail offerings as it continues to see the benefits of the initiatives intensify over the next few months.

    Access Bank had last week distributed N18.8 billion as cash dividend for the 2017 business year. Shareholders received a final dividend of 40 kobo, in addition to interim dividend of 25 kobo, bringing the total dividend per share for 2017 to 65 kobo.

  • FCMB promises better returns as shareholders get N1.98b dividend

    The board and management of FCMB Group Plc at the weekend assured shareholders that the group is stronger to add value and increase returns to shareholders.

    The assurance came as shareholders at the annual general meeting in Lagos approved the payment of N1.98 billion as cash dividend for the 2017 business year. They will receive a dividend per share of 10 kobo, the same amount for the 2016 business year.

    FCMB Group Plc Chairman, Mr. Oladipupo Jadesimi said though the company met with a number of challenges last year, it was able to surmount them due to the commitment of all the personnel of the group.

    The directors of the company, he said, have continued to take proactive measures to ensure that the group remains strong and in a better position to withstand regulatory and economic headwinds.

    ‘’We will continue to shore up the capital of the bank through profit retention in preparation for the growth opportunities that we expect as the economy recovers,’’ Jadesimi said.

    In his remarks, Group Chief Executive, FCMB Group Plc, Mr. Ladi Balogun, noted that in spite of the reduction in headline numbers, the group performance in 2017 was an improvement over the previous year after adjusting for the significant foreign exchange revaluation income booked in 2016.

    According to him, the key drivers of the group’s performance include increase in income from non-banking activities, lower impairment charges from the bank and its subsidiaries, and improved operating efficiencies through more pervasive use of technology.

    He added that the FCMB Group’s successful acquisition of the 88.2 per cent majority stake in Legacy Pension Managers Limited will go a long way to help achieve further diversification of service offerings and consequent earnings within the FCMB Group.

    “We see significant growth opportunities in the pension management industry in Nigeria as it is yet to achieve maturity and will support and facilitate strategic organic and inorganic growth initiatives that will position Legacy in the top-tier of its industry over the next few years,’’ Balogun said.

    He pointed out that companies within the group have shown improvements and are well-positioned to deliver more cutting-edge solutions that will provide the best customer experience in their respective target markets.

    Key extracts of the audited report and accounts of FCMB Group for the year ended December 31, 2017 indicated that the financial services holding group struggled with constrained top-line and bottom-line in 2017, but its underlying fundamentals remained strong.

    Group deposits grew to N689.9 billion in 2017, an increase of five per cent on N657.6 billion recorded in 2016. The Group’s capital adequacy ratio also improved to 16.9 per cent in 2017 as against 16.7 per cent in 2016. Asset base also increased to N1.19 trillion in 2017 compared with N1.17 trillion in 2016. Non-interest income stood at N32 billion in 2017 while loans and advances totalled N649.8 billion during the year.

    Headline figures, however, showed a top-down decline in actual figures. Gross earnings dropped from N176.35 billion in 2016 to N169.88 billion in 2017. Profit before tax declined from N16.25 billion to N11.46 billion. Profit after tax also dropped from N14.34 billion to N9.41 billion. Consequently, earnings per share dropped from 72 kobo in 2016 to N48 kobo in 2017.

    FCMB Group comprises eight subsidiaries including First City Monument Bank Limited, FCMB Capital Markets, CSL Stockbrokers Limited, CSL Trustees Limited, Legacy Pension Managers Limited, FCMB (UK) Limited, First City Asset Management Limited and Credit Direct Limited.