The Nation Newspaper

Category: Money

  • CSCS grows net profit by 41.4% to N6.93b

    CSCS grows net profit by 41.4% to N6.93b

    The Central Securities Clearing System (CSCS) Plc recorded significant growths in turnover and profitability last year with net profit rising by 41.4 per cent to N6.93 billion during the period.

    The audited report and accounts of CSCS for the year ended December 31, 2020 released at the weekend showed that the market infrastructure company braced the unprecedented economic and financial market conditions occasioned by COVID-19 pandemic to sustain impressive growths across key performance indices.

    Turnover rose by 31.3 per cent from N9.21 billion in 2019 to N12.09 billion in 2020. Investment income had risen by 61.4 per cent from N4.61 billion to N7.44 billion. Profit before tax increased by 22.3 per cent from N6.04 billion to N7.39 billion. Profit after tax rose from N4.90 billion to N6.93 billion. With this, earnings per share increased from 98 kobo in 2019 to N1.39 in 2020. Return on average equity improved to 20.3 per cent in 2020 as against 15.3 per cent in 2019.

    The balance sheet of the company also improved with total assets rising by 13 per cent from N36.61 billion in 2019 to N41.42 billion in 2020. Shareholders’ funds increased by 7.9 per cent to N35.49 billion in 2020.

    The board of the company has recommended distribution of N5.85 billion as cash dividends for the 2020 business year, representing a dividend per share of N1.17, a growth of 36 per cent over 86 kobo paid for the 2019 business year.

    Chief Executive Officer, CSCS Plc, Mr Haruna Jalo-Waziri, said last year’s performance showed that the company outperformed its projections despite COVID-19 twin threat to lives and livelihoods as well as the challenges in economic and business environment.

    According to him, the results reinforce the company’s commitment to delivering superior value to its shareholders, irrespective of the odds.

    “These impressive results reflect our enhanced collaboration with different stakeholders and their unflinching support and loyalty to CSCS, as the core infrastructure for the capital market. Hence, my colleagues and I are excited to dedicate this performance to our esteemed participants, regulator and the board of directors, whose support kept us stronger through the pandemic,” Jalo-Waziri said.

    He said the CSCS would continue to invest in its collective objective of deepening the capital market and broader financial system, even as it seeks new and efficient ways of enhancing its partnerships for mutual prosperity.

    He assured that having laid a solid foundation over the past three years, the CSCS is more than ever optimistic on the prospect of its business, especially as it diversifies its business for enhanced resilience against macro and market volatilities.

    “We will sustain our disciplined cost efficiency culture, in our commitment to delivering sustainable value to shareholders over the long term. We are excited at the 39.0 per cent cost-to-income ratio, despite the impact of exchange rate volatilities and rising headline inflation on our cost base. The years ahead look challenging, albeit more promising than ever, as we reinforce our commitment to leveraging best-in-class technologies and our continuous investments in human capital in delivering value to all stakeholders,” Jalo-Waziri said.

    Chairman, CSCS Plc , Mr Oscar Onyema said the directors were upbeat  about the growth trajectory of CSCS, having made considerable progress in repositioning its business to efficiently play a more active and leading role in deepening the capital market.

    According to him, it was exciting to report the stellar results, defying the unprecedented challenges that characterised 2020 financial year to emerge stronger, delivering outstanding growth in top and bottom-lines, and executing far-reaching initiatives that would sustainably strengthen the competitiveness and resilience of the business.

    “With continuous investments in new technologies, talent, and work environment, we are optimistic on the productivity of CSCS going forward,” Onyema said.

    Chief Financial Officer, CSCS Plc, Mr Peter Medunoye said the company recorded decent growth in income from its central securities depository (CSD) and ancillary services while also leveraging its ingenuity in effectively positioning the proprietary investment portfolio for growth.

    “Delivering 17.7 per cent and 20.3 per cent return on average assets and return on average equity, we are excited at the capacity of the business in generating internal capital to fund the exciting growth ahead,” Medunoye said.

    He pointed out that the company recorded impressive double-digit growth in revenue and profitability as well as continuous improvement across all key performance indicators.

     

     

     

  • Jaiz Bank deploys more flexible payment solutions

    Jaiz Bank deploys more flexible payment solutions

    Nigeria’s premier non-interest bank, Jaiz Bank Plc, has deployed the new  Quick Response Code (NQR) to ease transactions for her customers and merchants.

    NQR Code is an indigenous payment platform designed by the Nigeria Interbank Settlement Scheme (NIBSS) to provide a reliable and enhanced payment experience with the aim of lowering transaction costs for customers.

    Managing Director, Jaiz Bank Plc, Mr. Hassan Usman said the solution is one of the most innovative and exiting products of the payment systems in Nigeria.

    He said the deployment of NQR by the bank is in line with its strategy of growing its retail business, deepening digital financial inclusion, and lowering transaction cost for its customers.

    “The bank is deploying NQR payment system as part of its growing digital solutions to retain and attract merchants that require efficient but cheap payment solutions due to their relatively small profit margins,” Usman said.

    Head, Corporate Communication, Jaiz Bank Plc, Halima Ishaq stated that the NQR Code, being the newest addition to the bank’s e-banking products, would be leveraged upon to ensure quick and convenient means of payments for goods and services.

    She explained that the NQR service is designed for merchants and individuals to receive or make payments for goods and services.

    According to her, NQR is a flexible digital and contactless payment solution that is convenient with an integrated process that leverages on Application Programming Interface (APIs). It enhances the scanning to pay mode, fast-track the process for receiving money in real-time, and facilitates quick payments.

    She explained that the platform is integrated with the bank’s mobile banking application to support retail payment and cardless ATM withdrawal.

    “The payment system will only require customers to log into the app, scan the NQR code, authenticate the transaction with a PIN and merchants are instantly credited with the value. The NQR code are barcode-like tokens that mask data. These tokens are then used for the transmission of data used for the authentication of payments. It could be static and reusable or dynamic which can be scanned only once,” Ishaq stated.

    Jaiz Bank yesterday deployed the NQR to Fraser Suites in Abuja as part of the bank’s efforts to drive contactless payment solutions in the country.

    Usman presented the platform to the Managing Director of Fraser Suites, M.G Nasreddin.

    During the presentation, Usman explained that the indigenous payment platform provides a reliable and enhanced payment experience that would lower transaction costs for customers.

    He assured Fraser Suites that the NQR Code would ensure quick and convenient means of payments for goods and services.

    Nasreddin appreciated Jaiz Bank for the deployment of the NQR, saying the platform would assist in easing payment for customers.

     

     

     

  • U.K., Stock Exchange to deepen partnership for growth

    U.K., Stock Exchange to deepen partnership for growth

    By Taofik Salako, Deputy Group Business Editor

    The United Kingdom (UK) and the Nigerian Stock Exchange (NSE) have reiterated their commitment to improved partnership towards the development of the Nigerian capital market and the economy.

    Nigeria is the second largest destination for investments and U.K. businesses in Sub-Saharan Africa.

    Deputy British High Commissioner, Lagos, Mr. Ben Llewellyn-Jones was at the NSE, now known as Nigerian Exchange (NGX) Limited, at the weekend, as part of the efforts to deepen relationship between the U.K. and NGX. Llewellyn-Jones was given the privilege to ring the closing bell for the market.

    Llewellyn-Jones said his priority was to continue to create enabling environment for the growth of business relations between U.K. and Nigeria, especially through the Nigerian capital market.

    He noted that U.K. and NSE have historically been partners, pointing out that the U.K. has continued to build on the shared history between the U.K. and the Exchange, with the U.K. still very active in the Nigerian market.

    “My role is to not only celebrate that but also to grow, encourage and sustain this level of participation. Although it has been a difficult year economically and financially, I am encouraged by the resilience, creativity and positive performance of British businesses and investments here in Nigeria and I am grateful for this opportunity to talk about how much the U.K. will continue to do to support Nigeria and British businesses in Nigeria,” Llewellyn-Jones said.

    Chief Executive Officer, Nigerian Exchange (NGX) Limited, Mr Temi Popoola said it was historic that the British Deputy High Commissioner was the first person to beat the closing gong since the unbundling of the NSE and the renaming of its securities trading business as NGX.

    According to him, since the birth of the Lagos Stock Exchange, the British High Commission has remained a partner and supporting institution throughout its journey.

    “In the spirit of continued partnership, I welcome Mr. Llewellyn-Jones to the NGX as I look forward to deepening the partnerships between both organisations to further drive sustainable economic development for Nigeria and Africa as a whole,” Popoola said.

    He noted that partnerships are a critical element of the NGX’s strategy as it will continue to engage stakeholders whose support is essential to the achievement of its aspirations in the post-demutualisation period.

     

  • AMCON to float Holding Company for aviation assets

    AMCON to float Holding Company for aviation assets

    By Collins Nweze

     

    The Asset Management Corporation of Nigeria (AMCON) is floating a Holding Company (HoldCo) structure that will enable it warehouse and sell aviation assets for strategic exit from the sector.

    A top executive of the company said yesterday that the corporation has applied for Air Operating License (AOL) that would enable it commence the HoldCo structure once the license is approved.

    The corporation said Arik Air, Aero Contractors, Afrijet, and two other undisclosed airlines will come under the HoldCo structure to be managed collectively, instead of managing them separately.

    “The strategic exit plan, was to float a holding company, warehousing all aviation assets s for easy sale,” the corporation said.

    The corporation said NG Eagle, one of its airlines, is  branded and on ground at the airport waiting for the AOL licence to begin operation. “We have already Air Operating License, and once its granted, every other thing is in place for the HoldCo plan to take off,” it said.

    AMCON Managing Director/CEO, Ahmed Kuru said the corporation  saved Arik Airlines (the largest local carrier) and Aero Contractors (the oldest carrier) from shutting its operations at the nick of time, among others.

    Kuru said AMCON has also done very well, especially in the aviation and manufacturing sectors. “Our intervention efforts in Arik Air with the support and collaboration of the Federal Government did a great service to the growth of the sector.

    “A similar intervention in Aero Contractors also saved the airline from collapse. As a matter of fact, the Nigerian Civil Aviation Authority (NCAA) certified Aero, which is under AMCON receivership to commence C-check maintenance services on Boeing series in Nigeria. This is a commendable feat in Nigeria’s aviation industry and there are several other companies that we have saved,” he said.

    He said that in an attempt to focus its resources on the recovery mandate, AMCON has identified about 6,000 loans with outstanding balances below N100 million, which constitute only 20 per cent of our current portfolio.

    “This portfolio has been outsourced to debt recovery agents under the Asset Management Partners (AMP) scheme, which has created huge employment opportunity for others. This has enabled the Corporation to focus on fewer accounts, which make up 80 per cent of the portfolio,” he said.

    Continuing, Kuru said that in its reckoning, if AMCON is able to resolve the nearly 2,000 accounts it would have achieved more than 80 per cent of its recovery mandate.

    “In line with our sunset period, we are tinkering with the idea of increasing the threshold of the AMP scheme to N1billion. We have also classified 350 accounts with current exposure of over N3.2 trillion into a category referred to as Criticized Assets,” he said.

    He said the  resolution of these accounts will be germane to the success of AMCON’s recovery mandate.

    “We give special attention to these accounts at top management level and develop strategies for resolving them. The largest concentration is in the energy sector, which constitutes 27 per cent. As we have always stated, one of the major challenges to AMCON’s recovery mandate is the slow pace of our judicial processes. However, we have continued to engage with the judiciary, and we believe that there is now greater awareness about the role of AMCON amongst the Judges at the trial courts as well the Justices of the appellate courts and they have been supportive,” he said.

    Kuru explained that  AMCON is fighting for the good of all Nigerians because recovery of these monies and its judicious application to the Nigeria economy will improve critical infrastructure such as roads, rail lines, security, power generation and distribution, mass housing and a whole lot of others.

     

     

  • FBNQuest Mutual Funds returns 104%

    FBNQuest Mutual Funds returns 104%

    By Collins Nweze

     

    FBNQuest Asset Management, a subsidiary of FBN Holdings, has held yearly general meetings for five mutual funds managed by the firm.

    The funds are the FBN Balanced Fund, FBN Smart Beta Equity Fund, FBN Eurobond Fund, FBN Bond Fund and the FBN Money Market Fund.

    The Fund Manager continues to deliver commendable results, as demonstrated by strong performance across all its funds.

    The FBN Bond Fund was the best performing of the mutual funds, returning 104.20 per cent over five-year while its US Dollar fund, the FBN Eurobond, returned 48.43 per cent in US dollars over the same period.

    The Managing Director of  FBNQuest Asset Management, Ike Onyia,  said:   “Our strong performance track record is premised on the research capabilities, insights and experience of our portfolio management and research teams. Our mutual funds serve as useful investment options useful in formulating unique and value-adding investment strategies for various client segments. This is because our range of mutual funds cut across various asset classes including equities, bonds and money markets.”

    “Our funds remain easily accessible, as our goal is to continue to drive financial inclusion and democratise wealth creation, by supporting the financial security aspiration of investors”. he added.

    Increasingly, financial markets are becoming complex to navigate and as a result, it will not be out of place for investors to actively seek the inclusion of mutual funds in their investment portfolio, which will serve as the structured gateway to such markets. Seeking the help of experienced financial planners to assist you in establishing your risk tolerance levels and advise on suitable options is highly recommended.

  • Growth gains momentum

    Growth gains momentum

    By Collins Nweze

     

    Growth in the private sector gained momentum last month with business conditions improving to the greatest extent in five months at the end of the first quarter.

    Output and new order growth strengthened for the second month, which led to a high rise in purchases.

    Employment rose marginally, and firms continued to reduce their backlogs at near-record rates. Looking forward, firms remain hopeful that their output levels will increase over the next one year, but there were signs of optimism moderating as sentiment fell to the lowest in three months.

    Input price inflation remained robust with material shortages driving a sharp increase in purchase costs. In turn, firms raised their selling prices at a faster pace.

    The headline figure derived from the survey is the Purchasing Managers’ Index™ (PMI®), a property of Stanbic IBTC Bank PLC.

    Readings above 50 signal an improvement in business conditions on the previous month, while readings below 50 show a deterioration.

    At 52.9 in March, up marginally from 52. in February, the headline seasonally adjusted PMI signalled expansion, and one, which extended the sequence of growth to nine months.

    Higher customer numbers led to a rise in new orders with the rate of growth the strongest since last October. This supported another expansion in output, and one which was solid overall. Sub-sector PMI readings indicated that manufacturing posted the fastest rise in output in March, followed by services and agriculture.

    Wholesale and retail recorded a decline in activity. Rising  output encouraged firms to increase their purchases and employment in March.

    Higher staffing allowed firms to complete outstanding work. The rate of reduction was the second-fastest in the series, surpassed only by that seen in February.

  • Sterling Homes unveils payment scheme

    Sterling Homes unveils payment scheme

    By Okwy Iroegbu­Chikezie

     

     

    Sterling Homes has introduced a structured payment scheme as the company restructured its operations to serve its customer better.

    At an event to mark the unveiling of the new face of the organisation and 11th Anniversary, Chief Executive Officer, Sterling Homes, Dr. Kunle Adeyemi, said the firm operated in the middle-to-upper property market, especially among Nigerians in Diaspora.

    “We are committed to helping individuals, Nigerians in Diaspora become landlords and at no extra cost, our process is seamless. We realise that anybody buying into our property whether the land or houses have a plan of moving into them in a short period or even those individuals that buy for speculative purposes. We deliver within the maximum time frame as captured in the contract.  We have set a standard for excellence.

    “We are playing in the prime and developed sectors in the market and in Lagos area such as Lekki, Ogudu, Surulere, Ikeja GRA and in few months, we will launch our brand in Port Harcourt and, indeed, the six geopolitical zone of the country to deliver exquisite homes for Nigerians.

    “We are also set to deliver to the upscale community in Ogudu 100 units of exquisite houses in 90 days. Indeed our new logo represents our new conviction to serve, deliver quality housing in record time. We have a flexible payment option that is structured according to our client’s income, so they pay with ease,” Adeyemi said.

    He noted that prior to the latest development, Sterling Homes has been involved in the development of estates such as Hebron Garden in Lekki, Havilah Park and Garden, Mowe, Oguin State, Moriah Park and Garden, Agbowa, Ikorodu,  Lagos State Government Housing Estate Agbowa, Lagos State Resettlement Centre Agbowa Industries and Caleb University, among others.

    On the challenges, Adeyemi decried government’s policy inconsistency  and the non-regulation of the sector.

    “We are struggling with policy inconsistency of government and poor regulation that make manufacturers for instance of cement a primary product in the sector increase their price causing upsets in our pricing and accounting system. Turn ­around time for titling and documentation is a major issue, poor infrastructure such as roads, electricity, water is a major issue as we ourselves providing such in all our estates, even though we pay tax to government,” Adeyemi said.

  • Coronation Merchant Bank posts N5.78b profit

    Coronation Merchant Bank posts N5.78b profit

    By Collins Nweze

    Coronation Merchant Bank has announced N5.78 billion Profit Before Tax (PBT) for the full year ended December 31, 2020. The performance came despite the Covid-19 pandemic, which disrupted businesses through the year.

    The bank made this known during its Sixth Annual General Meeting (AGM) at its head office in Lagos.

    Its Chairman, Babatunde Folawiyo, said the huge profit represents a 15 per cent increase from the N5.024 billion made by the bank the previous year. He said the bank will pay N33 kobo dividend to shareholders.

    He announced that the bank’s total assets “grew by 63 per cent from N253.35 billion in 2019 to N412.36 billion in 2020’’.

    Read Also: STI grows profit after tax by 37%

    “Earning assets reached N269 billion, representing a 62 per cent rise from the 2019 position. Customer’s deposits and funds grew by 41 per cent from N138 billion in 2019 to N195 billion in 2020.

    “Loans to customers also increased from N72.2 billion in 2019 to N122 billion in 2020. Non-interest income grew by 23 per cent to N7.4 billion and net interest income closed at N4.68 billion.

    “Overall the bank maintained healthy prudential ratios above regulatory thresholds, with loan to funding ratio of N67.86 per cent, capital adequacy ratio of 19.87 per cent and liquidity ratio of 50.93 per cent as at December 2020.

    “We also continued to record zero per cent non-performing loans while maintaining our credit discipline and a fortified balance sheet,” he added.

    The shareholders have approved  the proposal of the directors, a final dividend payment of 33 kobo per share be made to shareholders whose names are registered in the register of members by April 5, 2021.

    The bank’s Managing  Director/Chief Executive Officer (CEO), Banjo Adegbohungbe, attributed its successes to improved technology and digital infrastructure, hard work, training, and staff members’ dedication.

    He said: “Recognising the impact of remote working on our operations, we improved our technology and digital infrastructure to adapt more readily to emerging trends and protect the bank against cyber-attacks.

    “Also, we modelled our business model to adapt to the “new normal” by proactively protecting and equipping our people to work remotely and deliver superior banking services to our customers.”

  • PurplePay unveils app

    PurplePay unveils app

    By Collins Nweze

    A digital payment solution provider, PurplePay has launched its mobile pay solution Application for the world, with Nigeria as the pioneer leading country.

    The Managing Director/CEO of PurplePay, Patrick Atuche, said the app is good for all.

    According to him, this move is to aid the Central Bank of Nigeria’s (CBN’s) cashless police adoption more than ever and with the Covid-19 pandemic, it has made it imminent to help prevent transmission of the virus.

    Read Also: Wema Bank, MOD unveil scheme for foreign students

    He explained that with PurplePay’s cross-border payments and multicurrency wallet (local and USD), it would help the users connect with their loved ones and by doing so, bring them closer to each other.

    According to him, at verified purplePay vendor outlets, its users can pay for goods and services from their purplePay app by scanning vendor QR codes at checkout points and pay with single click.

    Atuche explained that the platform provides virtual accounts for its  users to send and receive money from any bank with their PurplePay Account number.

    He noted that the platform will serve people from various social strata on the society, irrespective the nature of their businesses once cash transfers are involved.

  • Stanbic IBTC CEO seeks support for youths

    Stanbic IBTC CEO seeks support for youths

    By Collins Nweze

    The Chief Executive, Stanbic IBTC Holdings, Demola Sogunle has said  youths constitute over 50 percent of Nigeria’s population hence the need to prioritise harnessing their potential for sustained growth.

    He spoke at the Youth Leadership Series (YLS) in Lagos.

    He said the youth required support, guidance and empowerment to take them to the top of their fields.

    “The innovative projects and tech disruptions championed by the youth in virtually every sector are proof of their ingenuity, skill, brilliance and resourcefulness. At Stanbic IBTC Holdings PLC, we believe in breaking boundaries, hence our tagline, IT CAN BE, which is hinged upon the premise that everything is possible as long as we are dedicated and put in requisite effort to make it work,” he said.

    The theme of the event is: ‘Winning’.

    Sogunle reiterated the financial institution’s dedication to creating opportunities for future leaders.

    He said: “It is important to ensure that the youth are adequately empowered to excel. This is why we have decided to continue to empower them with the knowledge required to prepare them for the long and possibly strenuous journey ahead.

    “This year’s line-up of speakers will engage the younger generation on various issues that concern business ownership and entrepreneurship, as well as what it takes to ‘win’, especially in the ever-changing business landscape.”