The Nation Newspaper

Tag: grows

  • Transcorp Hotels grows first half net profit by 83%

    Transcorp Hotels Plc recorded significant growths in turnover and profit in the first half of this year.

    Its net profit after tax rose by 83 per cent to N1.38 billion.

    Key extracts of the interim report and accounts for the first half ended June 30, 2018 showed that turnover rose by 29 per cent while profit before tax and profit after tax grew by 85 per cent and 83 per cent respectively.

    Transcorp Hotels’ group turnover rose from N6.20 billion in first half 2017 to N8.01 billion in first half 2018. Gross profit grew by 31 per cent to N5.89 billion in 2018 as against N4.50 billion in 2017. Profit before tax jumped to N2.02 billion in first half 2018 as against N1.10 billion in first half 2017 while profit after tax leapt from N760 million to N1.38 billion.

    Chief Executive Officer, Transcorp Hotels Plc, Mr. Valentine Ozigbo said the performance of the hospitality group in the first half of this year was driven primarily driven by increase in occupancy, room inventory and aggressive marketing strategies.

    “With the help of a strong and dedicated workforce, we will continue to deliver significant value to our shareholders and unrivalled service excellence to our customers,” Ozigbo said.

    According to him, in line with the company’s long-term strategy of being Africa’s leading hospitality group, the company is investing resources into diversifying its overall guest experience using technology.

    He noted that Transcorp Hotels recently launched the Transcorp Hilton mobile application, which allows guests request for dining services, housekeeping services, valet services and maintenance requests with the click of a button.

    He added that the Transcorp Hilton mobile application also allows guests to read about local attractions in Abuja, explore on-site and off-site recreational services and navigate key locations around the city through the inbuilt map.

    He said that Transcorp Hotels Calabar has also been undergoing an extensive upgrade of its existing technology and internet services, to ensure guests experiences are better personalised and customer service is seamless across digital platforms.

    “This is the only way we can remain competitive in the ever-changing business landscape”, Ozigbo said.

  • Fidelity Bank grows profit by 94% to N20b

    Fidelity Bank Plc has reported N20 billion Profit Before Tax (PBT) for the financial year ended December 31, 2017. The result represents 94 per cent rise in profitability when compared with 2016 figure.

    The bank’s gross earnings rose from N152 billion in 2016 to N179.9 billion in 2017, represnting 18.3 per cent increase. Other details of the full year audited results released yesterday at the Nigerian Stock Exchange (NSE), showed impressive growth in all key indices.

    The performance capped a remarkable 2017 fiscal year for the bank which returned to the international capital markets and successfully issued a $400 million Eurobond that was over-subscribed by over 200 per cent.

    The bank is proposing to pay 11 kobo dividend to shareholders. The lender’s Profit After Tax (PAT) surged by 93.7 per cent to N18.9 billion compared with N9.7 billion recorded in the previous year.

    Its Net Interest Income (NIM) increased by 15.4 per cent to N71.5 billion in 2017, Net Operating Income rose by 9.9 per cent from N86 billion to N78.3 billion while total assets grew by 6.2 per cent from N1.3 trillion to N1.4 trillion in the period under review.

    In other indices, total expenses declined by 2.3 per cent to N65.7 billion from N67.2 billion whilst liquidity ratio stood at 35.9 per cent compared with 33.2 per cent in the previous year.

    Fidelity Bank CEO, Nnamdi Okonkwo expressed delight with the performance. He said the bank sustained its performance through disciplined balance sheet management, strategic cost reduction, increased focus on the corporate, commercial, SME segments and continued execution of its retail and digital banking strategy.

    “We are delighted at the results, which showed strong growth in key revenue lines, significant traction in our chosen business segments and a corresponding decline in our operating expenses despite the high inflationary environment”, he stated.

    According to him, the implementation of initiatives from its Business Process Review Project and the bank’s digital focus, continued to impact positively on operational efficiency as “total operating expenses declined by 2.3 per cent to N65.7 billion leading to the cost-income ratio dropping to 67.5 per cent from 77.3 per cent in the 2016 fiscal year.

    “The combination of the strong net revenue growth of 9.9 per cent to N7.7 billion and the 2.3 per cent decline in total expenses which translated to cost savings of N1.5 billion resulted in our increased profitability”.

  • Vitafoam Nigeria grows Q1 net profit by 94%

    Vitafoam Nigeria grows Q1 net profit by 94%

    Vitafoam Nigeria Plc has witnessed a considerable improvements in its margins and operating efficiency in the first quarter of its business year.  Net profit rose by 94 per cent to N162 million in three months.

    The interim report and accounts  for the three-month period ended December 31, 2017 showed that pre-tax profit rose by 71.4 per cent; net profit increased by 94 per cent.  However, the top-line declined marginally.

    Turnover declined slightly from N5.28 billion in 2016 to N5.05 billion in 2017. Profit before tax increased from N150.8 million to N258.53 million while profit after tax rose from N83.58 million to N162.17 million. Earnings per share doubled from 6.0 kobo to 13 kobo.

    In a recent review, Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi, said significant reduction in interest expense and new business operations would boost performance and ensure better returns to shareholders in the years ahead.

    According to him, strategic initiatives aimed at boosting working capital and sustaining competitive edge would impact positively on the company’s performance in the years ahead.

    He noted that the company has secured a four-year N2 billion loan from the Bank of Industry (BOI) at concessionary interest rate of 12 per cent, a significant reduction from 25 per cent commercial rate incurred by the company in 2017.

    According to him, the BOI’s credit facility would help to reduce finance cost and enhance the company’s ability to directly import its raw materials from the global market.

    “There will be a huge favourable reduction in finance cost by a minimum of N240million, representing 20.4 per cent. Secondly, the previously depleted working capital will be boosted by the BOI’s four-year working capital support. This will enable Vitafoam source its major raw materials directly from overseas manufacturers, thereby retaining middlemen margin in the business. A minimum of 15 per cent margin will be saved on every direct import of major raw materials,” Adeniyi said.

    He outlined that the company has created new business lines that will boost profitability and cushion the adverse effect of fluctuations in other business lines.

    “Specifically, Vitaparts Nigeria Limited, a new subsidiary, established to manufacture oil filters, is expected to commence operation in the third quarter of the current financial year while importation and installation of the manufacturing plant will be concluded in the second quarter of the year, all things being equal.

    “These new strategic initiatives are designed to diversify operation and revenue base of the group. In a similar vein, Vitablom Nigeria Limited, the soft furnishing subsidiary has concluded installation of fiber processing plant. The new production line is expected to boost the operation and revenue base of the group,” Adeniyi said.

    He pointed out that the company recorded a profit after tax of N190 million in 2017 as against N412 million recorded in 2016, despite the tough operating climate. Group turnover also rose by 30 per cent.

    He attributed the performance in 2017 to cost control measures put in place by the management citing the three per cent reduction in administrative expenses and reduction of distribution cost from five percent to four percent of revenue between 2017 and 2016 financial year.

    He noted that due to weak working capital and paucity of foreign exchange letters of credit, the company purchased more than 80 per cent of its raw materials locally, thereby incurring more cost.

    He said the board of the company has decided to recommend distribution of N156.36m as cash dividend to shareholders to further demonstrate the company’s long-standing commitment to shareholder value.

  • Diamond Bank grows Q3 profit by 71%

    Diamond Bank Plc yesterday presented its third quarter ended September 30, 2017 financial result to the Nigerian Stock Exchange (NSE). The lender’s financials displayed moderate growth in key financial parameters despite the lull trailing economic activity after the country exited recession.

    For the nine months business period, the bank’s gross earnings jumped by 11 per cent year-on-year to N168.4 billion while profit before tax surged by 71 per cent to N6.7 billion. Impairment charges shrunk by 16 per cent to N35.3 billion year-on-year, reflecting management’s prudent approach to loan underwriting.

    Although operating costs rose by 16 per cent to N54.3 billion from N46.7 billion in the corresponding period last year; this increase, according to the bank, is due to the huge investment in technology acquisition in line with the management’s strategic set goal to continue to lead the digital revolution in driving the development and delivery of world-class financial products and services in the sub-sector.

    During this business period, the Bank curtailed staff costs, which shrank by five per cent year-on-year. This was because of the migration of more transactions from branches and the banking hall to the digital mobile platforms, leading to 95 per cent increase in online banking and mobile transactions.

    Commenting about the results, Chief Executive Officer, Uzoma Dozie, stated that the bank’s modest growth in the last three business quarters under review despite the lull in economic activity and hazy operating environment, was the result of management’s focus on key strategic projections across the three core segments of retail, business and corporate banking.

    He added that the Bank has a lot to do as the management will continue to passionately pursue its technology-driven retail strategy to optimise cost, boost financial performance in the medium to long term and strengthen support for MSMEs.

    “We are happy with the progress we have made against our technology-led retail strategy and in areas of our financial performance, but there is more to do in the remaining quarter and beyond.

    Specifically, we are committed to further developing our technology and operational infrastructure that allows us to scale rapidly, efficiently and cost effectively across Nigeria”, Uzoma said.

    Economists and keen industry observers are of the view that as the economy waddles on the path to full recovery and strong economic activity after the exit from recession, Diamond Bank’s resolve to strengthen its partnerships with domestic and international bodies.

  • Unity Bank grows capital base to N80b

    Unity Bank Plc’s capital base has hit N80 billion, up from N31 billion in 2014, its former Chairman, Board of Directors, Thomas Etuh, has said.

    Etuh, the immediate past board chairman of the bank said in a post-retirement interview with News Agency of Nigeria (NAN) that the growth was recorded under his watch, between 2014 and 2017.

    He retired as the bank’s board chairman a fortnight ago and explained that the lender was able to achieve the feat because of its “agric business” banking. “You know Unity Bank is number one in agriculture, in terms of agric lending to small holder farmers; we also have a product for youths because youths own this generation. I came into Unity Bank in time of recapitalisation under Sanusi  Lamido Sanusi as the Central Bank of Nigeria Governor and we recapitalised the bank to get it to a national bank where it is today.

    “Interestingly, we are leaving the bank in the capital excess of N80 billion from the N31 billion that we met it,” Etuh said.

    According to him, “the successes recorded by the bank did not come without the contributions of its two major co-shareholders, former President Olusegun Obasanjo and ex-military President Ibrahim Badamasi Babangida.

    He said: “Obasanjo and Babangida came up with that name `Unity’ after the merger of some southern and northern banks. The merger means a lot for Nigeria’s unity. So, having nine banks from different entities, it behoves on the board to also merge the different banks culture into one; and that, we did to make it a national bank”.

    “You can see that the bank has flourished in various products which have brought it to stability, and it was a collective effort of the board and management”.

  • Transcorp grows Q3 profit by 158%

    Transcorp grows Q3 profit by 158%

    Transnational Corporation of Nigeria Plc (Transcorp), an investment conglomerate, has announced financial results for its third quarter ended September 30, 2017. The Group Profit after Tax (PAT) for Q3 2017 improved by 158 per cent Year on Year (YoY) to N8.2billion.

    Its income statement showed revenue of N56.76billion, significant growth from N41.92billion and a 35 per cent growth YoY. Its gross profit improved from N19.84billion in Q3 2016 to N25.62billion (45 per cent YoY) in Q3 2017 along with operating profit of N16.81billion compared to N11,58billion reported Q3 last year.

    Transcorp’s net finance cost for Q3 2017 stood at N7.77billion, down from N24.37billion in Q3 2016 while profit before tax was N9.04billion marking a significant recovery from reported loss of N12.7billion in Q3 2016.

     

     

  • Fidelity Bank grows earnings by 12.5% to N34.8b

    Fidelity Bank grows earnings by 12.5% to N34.8b

    Fidelity Bank Plc has released its unaudited results for the first quarter ended March 31, which showed a 12.5 per cent growth in gross earnings to N34.8 billion and a Profit before Tax (PBT) of N4.7 billion.

    The result also showed that its fee income increased by 54 per cent to N9.2 billion from N6 billion in first quarter of 2014 while operating income increased by 14.4 per cent to N21.6 billion from N18.9 billion same period of last year.

    However, total expenses increased by 12.9 per cent to N14.4 billion from N12.7 billion in first quarter of  2014 while profit before tax increased by 5.6 per cent to N4.7 billion from N4.4 billion during same period of last year. Profit after tax increased by 5.6 per cent to N4 billion from N3.8 billion in first quarter of last year.

    Commenting on the results, its Managing Director, Nnamdi Okonkwo, said the lender built on the successes of the last financial year as it remains committed to delivering sustainable earnings and improved asset quality. “Notwithstanding the headwinds witnessed in our industry, we recorded a 5.6 per cent growth in Profit before Tax (PBT) to N4.7 billion putting us on the right path to achieving our 2015 financial year guidance,” he said.

    The bank chief said deposits declined by 2.7 per cent in the quarter under review as the lender continued to replace more expensive wholesale funds with cheaper retail deposits.

    “Our retail banking strategy continued to deliver impressive results as core retail liabilities increased by 7.7 per cent in first quarter of this year, while e-banking income from increased cross-selling of products to the expanding retail customer base also grew by 49.3 per cent. Risk assets grew marginally by one per cent with non-performing loans declining to 3.8 per cent and cost of risk at 0.8 per cent,” he said.

    The bank chief said the lender continued with its balance sheet optimisation which saw average yields on earning assets improve by 100 basis points and net interest margin inched up to 6.2 per cent during the quarter.

     

  • UBA grows loans to N1.2tr

    The  United Bank for Africa  (UBA)  has recorded a  14 percent growth in its loan books to N1.12 trillion.

    The bank announced this as part of its December 2014 full year result at the weekend.

    This is the first time the lender’s loan book is exceeding N1 trillion.

    According to the lender, the loan growth is in line with management’s  target for the year. The result reflected in the low Non-Performing Loan Ratio of 1.55 per cent well below the Central Bank of Nigeria (CBN’s) recommended maximum of five per cent.

    Its Group Managing Director/Chief Executive Officer (CEO), Mr. Phillips Oduoza, said the lender expanded its loan books without compromising its focus on asset quality.

    The bank, he said, focuses its lending on emerging growth sectors such as agriculture, manufacturing, resource-based sectors such as oil, gas and mining, information communication technology (ICT), power and infrastructure.

    He said the bank’s high level liquidity and strong capital base make it the bank of choice for big-ticket transactions in the emerging African markets, where it continues to offer unique financial solutions to businesses and governments.

    Also, the bank’s Group Chief Financial Officer, Ugo Nwaghodoh, said the lender would continue to support Africa-focused businesses and governments, given its strong belief in the continent’s prospect.

    “We believe the opportunities in Africa far outweigh the risks, given our on-the-ground experience in these markets.  We, however, do not compromise our risk management criteria and selective approach to lending across all our target markets, as we focus on quality and profitable risk assets that fit into our sustainable growth principles and objectives,” he said.

    Its Group Chief Risk Officer,  Uche Ike said the growth in the bank’s loan books,  was in line with its moderate risk appetite in the year under review.

    He also said the bank was pleased with the quality of the risk assets created as reflected in the low 1.55 per cent NPL ratio and moderated 0.7 per cent cost of risk.

    “These measures of asset quality are evidence of our investment in risk management;  human capital and ERM tools. We will remain consistent in our responsible approach to lending, especially as we are conscious of macroeconomic headwinds in our core markets. We will continue to maintain a diversified portfolio, with strict concentration limits on obligors, sectors, market segments and markets. Moreso, we will be proactive than ever in our portfolio monitoring in the years ahead, as we are committed to being the industry benchmark on asset quality,” said Ike said.

     

  • Nigeria grows by 6.5 percent in second quarters

    Nigeria grows by 6.5 percent in second quarters

    Nigeria’s Gross Domestic Product (GDP) grew by 6.5 per cent in the second quarter of this year, less than 2 per cent in the corresponding period of 2013, the National Bureau of Statistics said yesterday.

    The second quarter Nigerian Gross Domestic Product Report released Sunday evening by the Bureau revealed that the service sector accounted for the largest share of the real GDP, with Industry coming second, with Agriculture making the smallest contribution to the GDP during the period.

    The report shows that the Services sector grew by N 8,549,170.96 million or 53.15.  Industry, which came second, contributed N4,175,000.87 million or 25.96%. Agriculture made N3,360,450.48 million or 20.89% of GDP.

    The report said: “In the Second Quarter of 2014, Nigeria’s Nominal Gross Domestic Product, GDP (at basic prices) was estimated at N 21,734,829.86 million, and N16,084,622.31 million in real terms. In the corresponding quarter of 2013, nominal GDP was estimated N19,931, 015.71 and N15,096,763.55 million in real terms.

    “As a result, the growth rate of real GDP was recorded at 6.54% in the second quarter of 2014 (4.18% quarter-on-quarter), higher than 5.40% recorded in the corresponding quarter of 2013, and also higher than the 6.21% recorded in the first quarter of 2014.

    “The average daily crude oil production in the Second Quarter of 2014 was recorded at 2.21 mbpd as against 2.11 mbpd in the corresponding quarter of 2013, an increase of 0.10 mbpd or 4.7%. In addition, the US dollar price of crude increased significantly from an average price of 104.31 in the second quarter 2013 to 112.25 in the second quarter of 2014, an increase of 7.6 per cent.

    “Consequently, Oil GDP was valued at N2,633,328.61 million in nominal terms in the Second Quarter of 2014, compared to N2,633,328.61 million recorded in the corresponding quarter of 2013. Real growth in the Oil sector was recorded at 5.40% in the second quarter of 2014 (-5.22% quarter-on-quarter), indicating better performance compared to -16.42% growth recorded in the second quarter of 2013.”

    According to the report, the Non-oil real sector of the economy grew by 6.71% in the Second Quarter of 2014, a decline of 2.17 per cent from the 8.88% growth recorded in the corresponding quarter of 2013, adding that relative to first quarter of 2013, non-oil growth was also lower by 1.49 percentage points when growth was recorded at 8.21% .

    In the non-oil sector, according to the report, crop production was the largest contributor to real GDP in the second quarter of 2014, with N2,983,925.41 million or18.55% of total real GDP, which is marginally lower by 0.54 percentage points from  same period in 2013 .

    The report also revealed that growth in the Second Quarter was recorded at 3.56% year-on-year (12.89%) adding that this was however lower by 1.86 percentage points from the First Quarter of 2014.

    The report said: “While growth was not as strong as was experienced in the first quarter of 2014, the sector nevertheless remains buoyed by government interventions in the sector by the way of the Agricultural Transformation Agenda.

    “Trade ranked second in terms of share to real GDP in second quarter 2014. It contributed N2,697,757.92 million or 16.77 % of real GDP in the Second quarter of 2014, marginally lower than the 16.99% contribution to GDP recorded in the corresponding quarter of 2013.”

  • Etisalat grows subscriber base to 19.3m

    Etisalat grows subscriber base to 19.3m

    Etisalat Nigeria said it has grown its subscriber base from 16million to 19.3million.

    Its Acting Chief Executive Officer and Chief Commercial Officer, Matthew Willsher, spoke yesterday during what the telco tagged, ‘Etisalat MNP Testimonials,’ in Lagos.

    He said the firm benefited immensely from the Mobile Number Portability (MNP) introduced by the Nigerian Communications Commission (NCC) in April, last year, adding that it allowed dissatisfied subscribers of other networks to port into its network.

    Willsher said over 45 per cent of those who engaged in the MNP scheme,  ported into the telco’s network.

    When the firm began operations over five ago, he said there were doubts as to the necessity or otherwise of a fourth Global Service for Mobile (GSM) communication carrier, adding that the coming of the telco to the scene redefined service provision to customers.

    “MNP is one of the greatest things the NCC has done for the industry, because it has provided the subscribers the freedom to choose,” he said, adding that it provided opportunity for customers to dump their inefficient service providers.

    Willsher identified lack of education and awareness about MNP as factors that  inhibited its embrace by many subscribers, adding that a lot still needed to be done to improve on these.

    On steps taken by the management to guarantee efficient service delivery to customers, he said the firm has been working with famous Chinese telecoms equipment vendors, such as Huawei AND ZTE to ensure that customers keep getting value for their money.

    He said the NCC has  commended the telco for meeting key performance indicators (KPIs), promising that the telco will not rest on its oars investing on latest technology to improve on service quality.

    Willsher added that pursuant to steeping up its game in the sector, the firm’s 2,800 kilometre (Km) optic fibre cable (OFC) it is laying will soon be completed. He said the level of the deficit in infrastructure in the country and particularly, the telecoms sector, could only be bridged through constant investment.

    “There is huge demand for infrastructure in the country with about 167 million people. We need to invest more and we are doing that. It will only take years to fill the gap. There is a lot more to be done to meet the demands of the telecommunications sector,” he said.

    Etisalat started operation in the country after three other operators were already on the turf. While its competitors enjoyed incentives such as zero duty on importation of equipment into the country and tax holidays, the firm did not.

    When the NCC imposed fines on the three other GSM operators and barred them from adding new subscribers, Etisalat was spared because it met the regulator’s KPIs.