The Nation Newspaper

Tag: gross

  • Access Bank’s 42% increase in gross earning: PR strategy at work

    Access Bank’s 42% increase in gross earning: PR strategy at work

    In 2013, when Access Bank decided to reposition its brand, it did not choose to create a new product but chose to use a public relation strategy – build a community! The father of modern Public Relations, Ivy Lee, defined Public Relations as a “process that builds mutually beneficial relationships between organisations and their publics”.

    Brand strategy will birth great products, but PR’s strategy will birth great community. This is better defined by Access Bank’s women initiative, known as W Community.

    Launched in 2013, W Community focuses on young professionals; women and families; women in business and also give maternal health service support.  At present, Access Bank is focused on banking women, families and children. That is an innovative brand positioning. Who will not bank with a financial institution that have been giving women and their families access to finance, credit facility, mentorship and business trainings?

    This is why the 42 per cent increase in gross earning the bank reported for first half of the year is an expected result.

    This growth may not be unconnected to the W Community being built across the nation by the bank.

  • 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.”

  • Unity Bank posts N78.8b gross earnings

    Unity Bank posts N78.8b gross earnings

    Unity Bank Plc has announced its audited financial result, which showed gross earnings of N78.8 billion for the financial year ended December 31, last year, compared with N77 billion earned during same period of 2014.

    However, the Profit After Tax (PAT) dropped to N4.6 billion from N10.6 billion PAT recorded in 2014 financial year.

    The bank said 2015 performance was achieved in spite of the challenging operating environment characterised by a continued lull in the economic activities in the economy as well as major regulatory headwinds like the implementation of Treasury Single Account (TSA) that cut earnings during the period.

    The bank said its new management inherited huge legacy of non-performing loans from the general commerce and manufacturing subsectors and believes that the impairment charge in Year 2015 was necessary in order to give new breath of life to the institution.

    It said the new management is embarking on enormous tasks to position the lender for proper clean-up and de-risking of its balance sheet, to create huge businesses that will help drive its growth and transformation initiatives.

    The bank also grew its assets by seven per cent from N413 billion in 2014 to N443 billion in 2015, amid shrinking economic indicators, measurement and regulatory policies that affected deposit portfolio during the year under review.

    While commenting on the result, its Managing Director/CEO, Tomi Somefun noted that “with the bank’s repositioning efforts and consistent focus to tap into the emerging opportunities in the enlarged economic space within Nigeria, it is committed to deliver quality banking service to emerging sectors in retail/Small and Medium Enterprises, commercial and the agricultural value chain.

    The bank, she said, is building strong infrastructure for retail banking and attracting youths for its sustainable banking business by developing customer-centric products to meet the needs of its esteemed customers and build new clientele base.

    “With the bank’s capital raising exercise, the year ahead is bright as the effects of the on-going transformation initiatives will surely consolidate  Unity Bank as “a retail bank of choice”,  culminating in superior financial performance and values to all stakeholders,” she said.

    She disclosed that the bank relocated its head office to Lagos from Abuja in March this year, a step that has led to positive impacts felt by its businesses nationwide.

    “The bank is now in a better position to tap into the core commercial hub of Lagos by leveraging on the huge retail spin-offs/opportunities and harness the diverse business potentials provided by population, port and patents for excellent service delivery to its esteemed customers.  It has started to witness increased businesses from the corporate, commercial and retail segments of the market with a strong resurgence,” a statement from the lender said.

  • Arco posts N6.41b gross revenue

    In spite of the challenging economic environment, Arco Group Plc posted impressive gross revenue of N6.41 billion in the year ended 31st March 2015.

    Its Board Chairman, Chief Joseph Akpieyi stated this in his address to the shareholders of the company at the 33rd annual general meeting (AGM)of the company in Lagos. The figure, he said represented 10.14 per cent increment over the preceding financial year’s performance.

    He also said total assets of the group increased from N12.09 billion in the year ended 31st March 2014 to N13.01 billion in the year ended 31st March, 2015.

    He said management would reposition the company to make it the toast of the industry in professionalism and financial performance.

    According to him, the implementation of the recommendations of Arco Strategic Enterprise Transformation Project known as Project ASET has given a new logo to the firm.

    Unveiling the new logo which is in bold red with a blue arrow pointing northwards, Chief Akpieyi said the logo represents Arco accent which is a celebration of the present achievements as well as an expression of hope for its future growth into a Nigerian conglomerate that will outlive its founders.

    He said: “We have long recognized that obtaining international ISO Certification will enhance our business and enable us to compete outside the shores of this country. We are delighted to report that subsequent to year end, our subsidiary, Arco Pipeline Solutions Limited which is ISO certified, secured a contract in the emerging oil and gas industry in Ghana. We believe that this is a great opportunity that will enable us to establish ourselves as a company of choice in the areas we operate in Ghana.”

    Another cheerful news, he stated is the ongoing process of re-engineering of Arco Marine and Oilfield Services Limited that will enable it to raise additional capital in for the purpose of supporting the increasing volume of business of the company.

    Taking a long term view of the oil and gas sector, he said Arco Group was evolving a policy that would focus on diversification of its revenue base from oil and gas sector to other sectors of the economy.

  • Wema Bank records N20.87b gross earnings

    Wema Bank records N20.87b gross earnings

    Wema Bank’s unaudited financial results for the period ended June 30, 2015, showed that it recorded  gross earnings of N20.87 billion, up from N20.82 billion in first quarter of last year.

    Its Net Interest Income stood at N9.06 billion, down from N9.71 billion in first quarter of last year while Profit Before Tax dropped to N1.17 billion, from N1.70 billion in the first half of 2014.

    The bank’s Managing Director/CEO, Segun Oloketuyi, said: “Given the tough operating environment in the first half of 2015 attributable to economic headwinds, regulatory restrictions and political uncertainty, the bank has been able to sustain its financial performance, albeit, on a lower level compared to the same period in 2014”.

    He said the first quarter of the year was characterized by election-related activities and political maneuverings with limited emphasis on economic matters, while the second quarter was largely characterized by the continued pressure on the currency, the tight monetary policy conditions and the low level supply of petroleum products. All these issues affected consumer discretionary spending and indeed the growth in our Retail volumes.

    He said the Cash Reserve Ratio (CRR) harmonisation has reduced liquidity with significant impact on   margins from money market investments. “We are confident that as the new administration settles into office, its policy thrust will become clearer, hence, enabling us to continue to make well informed lending decisions mitigate risk exposures and further expand our customer base.”

    The bank’s Chief Finance Officer, Tunde Mabawonku, said: “Operationally, the bank has continued to efficiently deploy its assets. Our loans to deposits ratio has moderated to 57.1 per cent, compared to 57.6 per cent as at December 2014, through a cautious approach to our lending, pending policy clarity from the new administration.

    The liquidity squeeze and tight monetary policy conditions affected our yields from money market investments. Technically, banks can only lend 39 per cent of available resources, as CRR is 31 per cent and liquidity remains 30 per cent. We therefore used the first few months of the financial year to streamline our mix of deposits and funding sources. This has resulted in slightly smaller deposit liabilities volumes but a better cost of funds.