Tag: earnings

  • Odu’a hits N4 billion in earnings

    Odu’a Investments Company Ltd. has declared  N4.068 billion and a profit before tax of N698 million as its earnings for the 2017 fiscal year.

    The Chairman, Board of Directors of the conglomerate, Olusola Akinwumi and its Group Managing Director (GMD), Mr Adewale Raji, disclosed this while addressing reporters after the company’s 36th Annual General Meeting at its Cocoa House, Ibadan headquarters, yesterday.

    Consequently, following the approval at the AGM, the company declared N277.78 million dividends for its shareholders.

    The earning is a 3.8 per cent increase over the previous year’s N3.918 billion.

    Akinwumi said the company was able to achieve the feat in spite of the 16.5 per cent inflation rate for the year which raised costs. He added that the conglomerate’s ‘skewed assets in real estate’ adversely affected its business as many clients and tenants in rented commercial, retail and residential properties defaulted in rent payments.

     

  • Senators’ earnings as mere symptoms

    Sanusi Lamido Sanusi, back in 2010, as CBN governor was the first to alert the nation of the danger the consumptive pattern of a National Assembly that cornered 25% of the national budget posed to the well-being of Nigerians and the growth of the economy. The National Assembly denied Sanusi’s claim but for over seven years refused to make public the breakdown of its budget despite public demand for transparency.

    We have however now been told that our senators, widely rumoured as the highest paid lawmakers in the world, only earn a modest N750,000, monthly and another N13.5m to be receipted for. Individual senators, we also now know, presides over how N200m constituency projects are executed annually.  Credit for these facts goes to Senator Shehu Sani, a very credible source whose claim that President Buhari was fighting corruption among his close allies with deodorant while using insecticides to wage the same crusade among his political foes was validated when the president, after initial vacillation was forced to sack Babachir Lawal, his secretary to government who was to be later recommended for prosecution over alleged corruption and abuse of office.

    But long before Shehu Sani finally laid to rest the controversy surrounding what our lawmakers pay themselves, suspended House of Representative Appropriation Committee chairman, Abdulmumin Jibrin had revealed  the 2016 budget was inflated by as much as N4b to fund constituency projects of members. However, his allegation that principal officers of the lower house including the Speaker, benefitted from such illegal diversion, did not throw much light on what the lawmakers pay themselves. Jibril himself suffered from credibility deficit as his allegations came after his suspension over his committee’s alleged unilateral removal or diversion of budgeted funds for Lagos-Calabar coastal railway.

    That what the lawmakers pay themselves was shrouded in secrecy was not the only source of worry to Nigerians. Consensuses among all those who have dealings with the upper and lower houses seem to confirm the two as houses of deals. Minister Raji Fashola disclosed how allocations in the 2017 budget to important federal projects including the Lagos-Ibadan Expressway which is critical to the development of the economy was slashed to accommodate lawmakers’ constituency borehole projects. President Buhari had also taken his frustration with the lawmakers to the court of public opinion by calling attention to how, in spite of his advice, the lawmakers frittered away public funds on state of the art expensive toys even after collecting personal car loans often retired through earned allowances. And finally, worried by the level of larceny going on the National Assembly, ex-President Obasanjo who was instrumental to the removal of about three senate presidents in quick succession over corruption charges described our legislators as ‘armed robbers’. Of course Obasanjo, now out of office should, from the benefit of hindsight, know better. He is not expected to have kind words for those who during his administration, deployed the instrumentality of government policy thrust to defraud the nation,  derail his energy sector reforms as well as the rural electrification contracts which they awarded to their own companies.

    But no matter how much we rail against thieving members of the National Assembly, they are mere symptoms of our crisis of nationhood. The fundamental question we have failed to address is why members of the governing elite have waged endless war against Nigeria since 1962. Since studies have shown people are indifferent and in fact work for the collapse of a system in which they have no stake, the most plausible explanation is lack of faith in Nigeria as a corporate entity by Nigerian critical stakeholders. Ahmadu Bello’s “the mistake of 1914 has come to play” following disagreement over Enahoros 1953 motion for “independence in 1956” more than captured this. And before him, Obafemi Awolowo had also admitted Nigeria was a geographical expression while Balewa was to later describe Nigeria as a British intention. In other words, Nigeria was nothing but an idea, first nurtured by the colonial masters and later by representative of nationalities that own the space described as Nigeria. But our ill-informed and ill-educated military thought the structural blocks designed to build the Nigerian nation were the problems and decreed them out of existence. Unfortunately, 60 years after the death of an idea, the military as represented by retired Generals Obasanjo and Buhari and their fronts – the major beneficiaries of the current anarchy, have continued to confuse symptoms with the fundamental cause of our crisis of nationhood.

    Their fraudulent claim we can literarily climb the palm tree from the top by imposing a nation on nationalities without first resolving the fundamental issue of how the nationalities want to live together, probably explains why, every emerging new set of the parasitic ruling elite, loyal to none but themselves, is often worse than the one preceding it.  For instance, as if they were not called upon to serve the nation, the 1999 set insisted on recouping funds they expended on fighting elections. The David Mark/Ekweremadu that followed supervised free looting of the nation with Mark going to court to defend his immoral confiscation of the senate presidential mansion for an amount EFCC alleged was far below market price of the structure.

    The Saraki/Ekweremadu set holds no pretence to any form of morality. Those who by their own accounts literarily sold off the victory of their party cannot be said to be driven by any lofty ideals or loyalty to the state. That they have resolutely stood against government’s pro-Nigeria policies in the last three years  more than demonstrate they are in office to serve none but themselves. The Senate’s spokesperson, Aliyu Sabi Abdullahi has even tried to justify the scandalous N13.5m senators’ monthly running costs by claiming “almost all holders of elective or appointive office have running costs allocated to their offices”  without citing where else in the world whether in a democracy or dictatorship  such practice is sustained.

    Thieving members of the executive, lawmakers or ‘armed robbers’, as Obasanjo calls them, or supreme courts judges that trade in justice as well as the compromised members of the fourth estate of the realm, are not the sources of our nation’s nightmare.  They are all symptoms of a state as an orphan.

    The truth is that we are today back to 1962 when those who had no faith in Nigeria seized the country. A clear evidence of this is the recent APC response to clamour for the restructuring of the country. The recommendation by its committee on restructuring headed by Nasir El-Rufai of Kaduna State that ‘indigene-ship’ be replaced with residency or citizenship in a federal constitution is a reinforcement of an old policy that has been successfully used for the pacification and assimilation of all the Hausa-conquered territories in the north. It is also a policy whose covert implementation in the unconquered Middle Belt territories has resulted in social dislocations among a people that are being prevented from taking their own destinies in their own hands.  APC’s ploy is nothing but another name for the military and its PDP political arm’s failed ‘mainstreaming’ gamble.

    Finally, modelling Nigeria, inhabited by unconquered nationalities that cherish and celebrate their different cultures and values after America, a nation conquered through force of arms by adventurers and criminals from Europe, amounts to intellectual fraud. If there is a lesson to be learnt at all, it has to be from our European colonial masters who, based on their own long history of internal strife and two devastating world wars, had advised us on path to peaceful co-existence, a path we traded for mainstreaming in 1962.

  • Oando explains delay in earnings report

    Oando explains delay in earnings report

    Oando Plc yesterday indicated that it would not be able to meet the deadline for the submission of its full-year audited report for the year ended December 31, 2017 due to a review of the report by the Financial Reporting Council of Nigeria (FRCN).

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

    Most quoted companies including all banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year.  Not less than 83 per cent of quoted companies use the 12-month Gregorian calendar year as their business year. The deadline for the submission for the 2017 business year is thus March 31, 2018.

    In a regulatory filing signed by Company Secretary and Chief Compliance Officer, Oando Plc, Ayotola Jagun, Oando stated that the Financial Reporting Council of Nigeria (FRCN) has indicated interest in undertaking a more detailed review of the company’s audited financial statements as part of their statutory review due to the issues raised by the recent investigation of the company by the Securities and Exchange Commission (SEC).

    “We envisage that the FRCN’s review might take longer than originally anticipated. Therefore, the company may not be able to file the accounts until the second week in May, the exact date of filing will be dependent on the turnaround time at the FRCN,” Oando stated.

    SEC has directed a forensic audit of Oando. The forensic audit was precipitated by alleged findings of the SEC, following an investigation into the company which commenced in July 2017. SEC had in October 2017 released the findings of the investigation and called for a technical suspension on the trading of Oando’s shares as well as a forensic audit into the affairs of the company.

    Oando had initially disagreed to what it termed ‘steep penalties’, however, in December 2017, the company issued a statement on its website, saying it would fully cooperate with the SEC on the forensic audit.

    For three consecutive quarters the company has released its results on time and posted strong revenues and profits, despite a challenging environment.  Following in the footsteps of the company’s cooperation with the SEC, Oando recently reached a peace accord with one of the shareholders who petitioned the SEC, AlhajiDahiruMangal with the Emir of Kano, SanusiLamido as the arbitrator.

  • Zurich boss feels good with 2018, 2019 after earnings

    Zurich Insurance Chief Executive, Mario Greco, has a positive outlook for both the company and insurance industry as a whole after the insurer reported better-than-expected earnings for 2017.

    According to CNBC, Greco said the premiums are growing, they are back into developing and growing the relationship with their customers.

    He said they feel very good about it and “actually, we feel very good about 2018 and the following year”.

    He said: “We see traction and we see that the company has taken a different speed and we think this will continue and will further develop.

    “We reported better-than-expected earnings even as we dealt with a raft of natural catastrophe losses and a sluggish investment environment. We are riding a wave of transformation in the insurance industry.”

    The Swiss insurer said last year’s net profit fell six per cent to $3.00 billion, beating the average analyst estimate of $2.72 billion in a Reuters poll.

    Greco said the company was “very, very pleased” with the earnings.

    “These earnings are solid, they show an improvement along all the dimensions we promised we would be working on. It is visible in these results that the books we’re acquiring are books that are more profitable than ever in the past,” he added.

    Europe’s fifth-biggest insurer proposed a dividend of 18 Swiss francs per share, up from 17 francs a year earlier, the first time Zurich has raised its dividend in seven years.

    However, the high number of disasters weighed on Zurich’s general insurance combined ratio, which worsened to 100.9 per cent from 98.4 per cent in 2016. The combined ratio is a measure of profitability of the insurer’s underwriting business, with a level below 100, meaning the insurer takes in more in premiums than it pays out in claims.

  • Quoted firms have tomorrow as deadline to submit Q3 earnings reports

    Quoted companies that have not submitted their operational reports and financial statements for the third quarter must submit their reports to the Nigerian Stock Exchange (NSE) before the close  of work tomorrow in order to avoid poor corporate governance tag and sanctions that may range from N100,000 to about N100 million.

    Regulatory filing calendar of the NSE at the weekend indicated that most quoted companies are mandatorily required to submit their interim earnings reports for the nine-month period ended September 30, 2017 on or before the close of work on Tuesday, October 31, 2017.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

    Most quoted companies, including banks, major manufacturers, oil and gas, breweries and cement firms use the 12-month Gregorian calendar year as their business year.  Not less than 83 per cent of quoted companies use the 12-month Gregorian calendar year as their business year.

    NSE tags and applies fines on companies that fail to meet earnings reports’ deadline. The Exchange had on January 1, 2017 launched a new sanction regime for delay in submission of companies’ results. Under the new sanction regime, companies may pay fines that range from N100, 000 to more than N100 million as penalties for delay in the submission of their corporate earnings reports.

    Companies that also delayed their financial statements and accounts face threats of suspension and delisting in addition to the monetary fines.

    Under the rules, quoted companies are required to file their unaudited quarterly accounts with the NSE not later than 30 calendar days after the relevant quarter, and publish it within five business days after the date of filing, in at least two national daily newspapers, and post it on the company’s website, with the web address disclosed in the newspaper publication. Also, an electronic copy of the publication shall be filed with the Exchange on the same day as the newspaper publication. Where the company chooses to audit its quarterly accounts, it shall be required to file such accounts not later than 60 calendar days after the relevant quarter.

  • ‘Nigeria’s oil earnings to fall further’

    Nigeria’s crude earnings may dip further if current realities in the global oil market are anything to go by.

    The country’s oil earnings has reduced to $103.5 million in June 2017, from $114 million recorded in May, this year, and the earnings may decline further if the fall in the prices of crude oil persists. By this, the country has lost $11.5 million within a month.

    Brent crude fell from $47.06 per barrel on Monday, last week to $45.70 on Monday, this week. The price may fall further as the Organisation of Petroleum Exporting Countries (OPEC), struggles with United States shale oil and increased output from Nigeria and Libya.

    The former President, International Association of Energy Economists (IAEE), Prof Adeola Akinnsiju, said the price of crude oil would continue to fall, until OPEC puts concrete measures in place to mitigate increase in production of crude oil by some member countries, among others.

    He said the news of increases in supply by several key producers has weakened OPEC attempt to support the market and boost price through an output freeze.

    According to him, the development will have grave consequences on Nigeria’s economy since it relies on crude oil exports earnings for over 70 per cent of its revenue to run the economy.

    The country had benchmarked its budget at 2.2 million barrels per day and at a price of $42.5 per barrel, before the Senate pushed the benchmark to $44.5 a barrel with hopes that the black gold would stay around $50 a barrel.

  • GTBank grows Q1 gross earnings to N104.6b

    GTBank grows Q1 gross earnings to N104.6b

    Guaranty Trust Bank Plc has released its unaudited financial results for the quarter ended March 31, which showed its gross earnings for the period grew by 39per cent to N104.66 billion from n75.39 billion reported in March 2016.

    The earnings, the lender said, were driven primarily by growth in interest income. Profit before tax stood at N50.39billion, representing a growth of 64 per cent over N30.68 billion recorded in the corresponding period of March 2016.

    The bank’s loan to customers dipped marginally by two per cent from N1.591 trillion recorded in December 2016 to N1.563 trillion as at March 2017. Deposit from customers grew marginally by one per cent from N1.986 trillion in December 2016 to N2.012trillion in March 2017.

    The bank’s balance sheet remained strong with a 1.6 growth in total assets as the bank closed the quarter ended March 2017 with Total Assets of N3.16 trillion and Shareholders’ funds of N546.9 billion. The bank’s non-performing loans remained low and within regulatory threshold at 3.62 per cent with adequate coverage of 231.6 per cent. Capital remains strong with CAR of 20.03 per cent.

    On the backdrop of this result, Return on Equity (ROAE) and Return on Assets (ROAA) closed at 31.55 per cent and 5.28 per cent respectively.

    Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank Plc, Segun Agbaje, said that “Given the significant progress we made in 2016, we came into the year better equipped to navigate any further economic headwinds, and our performance in the first quarter demonstrates our ability to deliver sustainable long-term growth. We remain committed to maximizing shareholders’ value and delivering superior and sustainable return, guided by our founding values of hard work, discipline and integrity.

  • Unity Bank posts N84b gross earnings

    Unity Bank posts N84b gross earnings

    •PAT hits N2.1b 

    Unity Bank has recorded gross earnings of N84 billion and profit after tax of N2.1 billion

    The bank’s audited financial results for the year ended December 31, 2016, released to the Nigerian Stock Exchange (NSE), showed that the bank recorded growth across key financial metrics, indicative  of the progress of its repositioning efforts.

    Despite the economic headwinds, the bank’s gross earnings for the review period grew by seven per cent to N84 billion from N78 billion reported in December 2015. This was driven largely by growth in transaction-based income.

    Operating expenses dropped by three per cent to N26 billion in 2016 from N29 billion in December 2015. This represents a significant step by the bank in maximizing derived benefits through the efficient allocation of resources and cost containment initiatives embarked upon by the new management.

    Profit before tax stood at N1.82 billion, representing a decline of 22 per cent from N2.34 billion recorded in the December 2015. This is attributed to higher impairment charge of N35 billion in 2016; up by eight per cent from N27 billion charged in December 2015 arising from impairment charges on loans.

    The bank also grew its deposit liabilities by 14 per cent from N231 billion recorded in December 2015 to N264 billion in December 2016. This is indicative of increased customer confidence in the bank, renewed customer care and the emerging innovative products rolled out during the year to delight its teeming and growing customers throughout Nigeria and beyond.

    The bank’s Managing Director/CEO, Mrs. Tomi Somefun said: “the key performance indicators point to increasing resilience in the face of challenging economic headwinds that characterized the operating environment in 2016.

  • Wema Bank posts N54.25b gross earnings

    Wema Bank posts N54.25b gross earnings

    WEMA Bank Plc has released its audited financial results for the 12 months ended December 31, 2016.

    The results showed that the lender grew its gross earnings by 18.48 per cent to N54.25 billion.

    The earnings’ growth was driven by an 18.61 per cent and 13.61 per cent increase in interest and non-interest income.

    The bank’s result released at the weekend, indicated that despite the tough operating environment, it boosted its profit after tax by 14.10 per cent to N2.59 billion compared to N2.27 billion in 2015.

    Its retail customer deposit (savings) improved by 42.79 per cent year-on-year to N53 billion from N34.4 billion due to increasing market share and brand acceptance.

    Speaking on the bank’s performance, its Managing Director/Chief Executive Officer, Segun Oloketuyi, said 2016 was a challenging year given the spate of economic headwinds that impacted the economy and the banking industry.

    “Despite the tough operating environment, Wema Bank recorded a double-digit growth in gross earnings, which rose to 18.48 per cent from N45.79 billion to N54.25 billion.

    “It was driven by an 18.61 per cent and 13.61 per cent increase in interest and non-interest income.”

  • Facts behind judicial officers’ earnings

    Facts behind judicial officers’ earnings

    •Continued from last week

    When one even ventures to compare the salaries and purchasing power of Nigeria Judges and their counterparts abroad and in some African countries, what he or she observes could be highly appalling.

    In the United States of America (USA), while the Chief Justice John Roberts earns $255,500 (or N118, 807,500) per year, the eight associate justices earn a healthy pay raise to $244,400 (N113, 646,000).

    The salary for Supreme Court justices in US is significantly higher than the average salaries earned in related occupations. In 2010, the median salary for all judges and magistrates, regardless of level, was $119,270 (N55, 460,550). Federal circuit judges earned an average of $184,500 (N85, 792,500). Lawyers earned a median of $112,760 (N52, 433,400) yearly.

    As of April 1, 2010, Justices of the Supreme Court, including the Deputy President, were in Group 2 of the judicial salary scheme, with an annual salary of £206,857 (N123,700,486). This is the same group as the Chancellor of the High Court, Lord Justice Clerk, President of the Family Division and President of the Queen’s Bench Division.

    The President of the Supreme Court, Lord Chief Justice of Northern Ireland, Lord President of the Court of Session and Master of the Rolls make up Group 1.1 of the scale on £214,165 (N128,070,670), below only the Lord Chief Justice of England and Wales, who earns £239,845 (N143,427,310).

    In South Africa, according to the latest report of the Independent Commission for the Remuneration of Public Office Bearers, chaired by Judge Willie Seriti, judges in the high and labour courts earned annual salaries of R1.4million (or N46.9million).

    Judge-presidents (heads of court) pocket R1.6million (N53.6million) a year, Constitutional and Supreme Court judges get R1.7-million (N56.9million and the chief justice earns R2.3million (N77.0million), which is a far cry from what obtains in Nigeria. The package of the president of the Supreme Court is just over R2million a year. When they retire, judges are entitled to continue drawing their salary and other benefits, which continue to qualify for an annual increase.

    Doubtless, these princely sums would be quite inconceivable in Nigeria, yet on average, our Justices handle more than five times the number of cases that these Apex Courts adjudicate over.  If one was to contextualise these further, the purchasing power of our dear Naira is quite poor when compared with what is obtainable in these other countries.  As such making a comparison will be like comparing apples and oranges, chalk and cheese.

    It may as well be surprising to note that John Roberts, the 17th and  Chief Justice of the United States is just 61 years old. He took his seat on 29 September 2005, having been nominated by President George W. Bush after the death of Chief Justice William Rehnquist. And except by incapacitation, death or impeachment, he will hold this position for life.

    In contrast, the CJNs and the Justices of the Supreme Court mandatorily vacate the Bench at 70 years of age; even when they are physically fit and proper to compete with J.J.Okocha on the football pitch. Worst still, they are denied by our laws from going back to the Bar to practice, but rather to be soliloquising in the daytime and counting the stars in the night till the Lord demands for the return of his lordship.

    Shortly after Justice Olufunlola Adekeye retired from the Supreme Court bench on October 28, 2012, she said after 36 years in the service of the judiciary, she couldn’t look at a house she could go to as her own. And that is the fate of so many retiring judicial officers, except the few that were privileged to be heads of court.

    Also, during a valedictory court session held in his honour, Justice Adamu Bello, the erstwhile Justice of the Federal High Court , Abuja, fingered poverty and lack of welfare package for judges as key factors behind the spate of judicial impunity currently ravaging the country.

    It is therefore not just dangerous to underfund the Judiciary, but it is even more dangerous to input a hypothetical and gargantuan figure of N33.47billion as the nation’s judicial officers yearly earnings; when in the real sense they were paid N8.6b yearly.

    • Ahuraka is the Media Aide to Chief Justice of Nigeria