The Nation Newspaper

Tag: net profit

  • Sterling Bank’s net profit hits N8.5b

    •Profit grows by 65 per cent

    Sterling Bank Plc recorded strong growths in the top-line and bottom-line last year as it rode on the back of widening income sources and improving operating efficiency to increase its net earnings by 65 per cent.

    Key extracts of its audited report and accounts for last year, released at the Nigerian Stock Exchange (NSE) yesterday showed considerable improvements in key performance indices.

    The report showed that gross earnings rose by 19.8 per cent from N111.4 billion in 2016 to N133.5 billion. Profit before tax increased to N8.61 billion in 2017 as against N6 billion in 2016. Profit after tax grew by 65 per cent from N5.16 billion in 2016 to N8.52 billion in 2017.

    Top-line performance was driven by growth in both interest and non-interest income, which rose by 11.3 per cent and 87.8 per cent respectively. The bank’s net operating income increased by 7.9 per cent while cost-to-income ratio improved by 260 basis points to 71.5 per cent. Customer deposits increased by 17.1 per cent to N684.8 billion in 2017 as against N584.7 billion in 2016. Shareholders’ funds rose by 20.2 per cent to N102.9 billion in 2017 as against N85.7 billion in 2016, reaffirming the bank’s commitment to returning value to its shareholders.

    The board of directors of the bank has recommended distribution of N575.8 million as cash dividend for the 2017 business year, representing a dividend per share of 2.0 kobo.

    The bank’s Chief Executive Officer, Mr. Abubakar Suleiman, said last year’s performance that highlighted positive performance across key financial indices despite challenging operating conditions reaffirms the bank’s underlying institutional strength.

    “The non-interest banking business continued to gain significant traction, adding positively to our bottom-line. This performance underscores the commitment of the entire team to our corporate goals and the resilience of our business model,” Suleiman said.

    He said the bank maintained a disciplined and prudent approach to loan growth in line with its risk management framework, a development which resulted in a significant improvement in asset quality as reflected in the reduction of non-performing loan ratio by 370 basis points to 6.2 per cent.

    He noted that the bank continued to scale its business with support from a well-diversified funding base, pointing out that for the first time, the bank recorded N1.1 trillion in total assets from N834.2 billion in 2016, representing a 28.7 per cent growth.

    According to him, the bank also gained traction in its retail drive with an active customer base that exceeded three million resulting in 17.1 per cent growth in deposits. During the year, the bank’s liquidity and capital adequacy ratios remained sound and well above the required regulatory benchmark at 33 per cent and 12.2 per cent respectively. The bank prioritised efficiency across its businesses as it progressed on its digital transformation journey by successfully launching “Specta”, an innovative online lending platform which offers personal loans within five minutes. It also invested in a first-rate business process management tool to optimise operating efficiency while providing its customers with ‘best in class’ service.

    “In 2018, we will continue to execute our plans to drive efficiency across the business under the three pillars of agility, digitisation and specialisation. These pillars will propel us toward sustainable growth by enhancing our ability to innovate; solidify our retail funding base; strengthen our enterprise-wide risk management framework and drive excellent service delivery across all channels to enhance customer experience,” Suleiman said.

     

  • CCNN to pay N1.57b dividend as net profit rises by 157%

    The board of directors of Cement Company of Northern Nigeria (CCNN) Plc has earmarked N1.57 billion for distribution to shareholders as cash dividend for the 2017 business year as the cement manufacturing company grew its net profit by 157 per cent.

    A breakdown of the dividend recommendation indicated that shareholders will receive a dividend per share of N1.25 for the 2017 business year. CCNN did not pay dividend for the 2016 business year.

    Key extracts of the audited report and accounts of CCNN for the year ended December 31, 2017 showed significant growths in sales and profitability. Turnover rose by 39 per cent from N14.09 billion in 2016 to N19.59 billion in 2017. Gross profit nearly doubled from N4.94 billion in 2016 to N7.61 billion in 2017, representing an increase of 94 per cent.

    Profit before tax jumped by 141 per cent from N1.74 billion in 2016 to N4.20 billion in 2017. After taxes, net profit also leapt by 157 per cent to N3.22 billion in 2017 as against N1.25 billion in 2016. Earnings per share thus improved correspondingly from N1 in 2016 to N2.57 in 2017.

    The balance sheet of the company also improved as total assets grew by 23 per cent from N20.03 billion in 2016 to N24.65 billion in 2017. Shareholders’ fund also increased from N11.49 billion to N14.41 billion, representing an increase of 25 per cent.

    The underlying fundamentals of the company also improved considerably during the year, showing that the positive overall performance was driven by improvement in the operations of the company. Gross profit margin improved from 28 per cent in 2016 to 39 per cent in 2017. Net profit margin also doubled from 9.0 per cent to 16 per cent. Return on capital employed jumped from 11 per cent in 2016 to 22 per cent in 2017.

     

  • UBA grows net profit by 44% in Q3

    UBA grows net profit by 44% in Q3

    United Bank for Africa (UBA) Plc blazed the trails as the first financial institution to submit its third quarter results, with the nine-month earnings showing strong growths in the top-line and the bottom-line.

    Key highlights of the nine-month results for the period ended September 30 this year showed that net profit rose by 44 per cent while gross earnings grew by 17 per cent. Net operating income rose by 21 per cent while non-performing loans remained low at 2.1 per cent.

    Group gross earnings rose to N247.21 billion in third quarter this year as against N210.72 billion recorded in comparable period of last year. Net interest income had risen from N81.96 billion to N102.12 billion. Net operating income also rose from N136.04 billion to N162.03 billion. Profit before tax grew by 35 per cent from N42.54 billion to N57.37 billion. After taxes, net profit rose by 44 per cent from N33.63 billion to N48.56 billion.

    The cost to income ratio remained within management’s guidance of 65 per cent, compared to 68.7 per cent in the corresponding period of last year, as it continued to focus on improving operational efficiencies to deliver superior return to its shareholders. It closed the third quarter with total assets of N2.87 trillion, loan book of N1.01 trillion and a deposit base of N2.18 trillion.

    Its Group Managing Director,  Mr. Phillips Oduoza, attributed the bank’s performance to enhanced balance sheet efficiency and improving extraction of value from the bank’s channels, noting that the bank has been able to maintain its discipline on how, where and with whom it does business, as reflected in its earnings and asset quality.

    “We have continued to sustain our financial performance in 2015, leveraging our unique pan-African platform and the strength of our committed work force in gaining competitive edge in the market place,” Oduoza said.

    Its Group Chief Financial Officer, Ugo Nwaghodoh said that the bank’s entrepreneurial persistence continues to yield results as the group increasingly extracts synergy opportunities across its African network.

    “Our business in Africa, excluding Nigeria, contributed a quarter of our profit after tax in the period; a resounding benefit of our geographic diversification,”  Nwaghodoh said.

    He pointed out that the group’s balance sheet remains strong, with a 20 per cent capital adequacy ratio and 49 per cent liquidity ratio, adding that the lender will continue to balance the quest for earnings and growth, with the best sustainability principles.

  • Wapic Insurance bounces back with N236m net profit

    Wapic Insurance bounces back with N236m net profit

    Wapic Insurance Plc has returned to profitability as the insurance company grew its profit after tax by 214 per cent in 2014.

    Audited report and accounts of Wapic Insurance Plc for the year ended December 31, 2014 showed that the company’s profits after tax improved significantly with a 214 per cent increase to close at N236 million over the N208 million loss position recorded 2013.

    The company’s gross written premium rose by 38 per cent from N3.76 billion to N5.2 billion. Similarly, underwriting profit increased by 1272 per cent to N1.24 billion underpinned by improved risk selection and greater efficiency in managing underwriting expenses which dropped by 31 per cent relative to 2013.

    Wapic Insurance stated that it paid about N1.09 billion in claims within the financial year, a significant percentage of these relate to current period transactions of 2013/2014.

    According to the company, having paid most of the outstanding legacy claims in 2013, its efforts at implementing a structured approached to risk selection and management has begun to yield results as claims ratio improved significantly closing at 34 per cent in 2014 compared to 80 per cent in previous year.

    The company’s shareholders’ funds of N14.2 billion is up 0.15 per cent relative to 2013 position while return on equity grew by 236 per cent from corresponding period in preceding year.

    Wapic is a first generation insurance company in Nigeria having been in operation for over half a century. Recently, it became one of only 3 insurance companies in Nigeria with a risk rating following its accreditation of b- rating on financial strength by AM Best, a global risk rating company. All indications show that the company’s transformation agenda is on track while the elevated governance standard and commitment to performance for which the Chairman of the Board, Mr. Aigboje Aig-Imoukhuede is known is being brought to bear in helping to steer the Company on the path of sustainable growth.

  • Sterling Bank grows net profit by 64%

    Sterling Bank grows net profit by 64%

    Sterling Bank Plc continued its impressive performance in the third quarter almost doubling its gross earnings recording a 64 per cent increase in profit after tax.

    Interim report and accounts of the bank for the third quarter ended September 30, 2012 showed substantial growths across key performance indicators, improving prospects for considerable improvement in dividends for the current business year.

    The report indicated 92.6 per cent growth in gross earnings, underlining the success of the bank’s bank-focused business strategy. Interest income doubled by 109.9 per cent while net interest income jumped by 84 per cent. Profit before tax thus rose by 58.5 per cent.

    Sterling Bank grossed N50.74 billion by third quarter 2012 as against N26.35 billion recorded in comparable period of 2011. Interest income leapt to N39.56 billion in 2012 compared with N18.85 billion in corresponding period of 2011. While interest expenses increased from N8.97 billion to N21.37 billion, net interest income also nearly doubled from N9.88 billion to N18.19 billion. Non-interest income increased by 49 per cent to N11.2 billion as against N7.5 billion. Altogether, operating income rose by 78 per cent from N15.9 billion to N28.3 billion.

    With these, profit before tax jumped from N3.01 billion to N4.77 billion. After taxes, net profit distributable to shareholders increased from N2.74 billion to N4.49 billion. Earnings analysis showed earnings per share of 29 kobo for third quarter 2012 compared with 22 kobo in similar period of 2011. At current share price, the net earnings indicated strong double-digit returns for Sterling Bank. It should be recalled that the outstanding issued shares of Sterling Bank had increased in the last quarter of 2011 following issuance of scheme shares to shareholders of the defunct Equitorial Trust Bank, which Sterling Bank had acquired last year.

    Besides, the report showed strong and quality balance sheet with growing deposit base and increasing lending activities underpinned by reduction in the proportion of non-performing loans to total loans 4.8 per cent in December 2011 to 2.4 per cent by September 2012. Customers’ deposits increased from N392.05 billion to N433.98 billion. Loans and advances similarly improved from N164.3 billion to N229.43 billion. Total assets also rose to N564.06 billion from N504.72 billion.

    Commenting on the results, managing director, Sterling Bank Plc, Mr. Yemi Adeola, said the results reflected the continuing success of the bank’s strategic growth initiatives as it continued to draw benefits from the seamless integration of Equitorial Trust Bank.

    According to him, Sterling Bank has been well positioned to capture emerging growth opportunities with customer-centric approach to financial services and products.

    “In line with our forecast, loans and advances grew by 23 per cent to N229.4 billion on the back of our enhanced presence in the corporate banking space. We also grew customer deposits by 13 per cent to N434 billion and added over 22,000 retail accounts. Despite the 400 basis points increase in Cash Reserve Ratio in July, we recorded a 70 basis points reduction in cost of funds to six per cent,” Adeola said.

    He said the performance of the bank showed its underlying strengths, pointing out that the increase in cost-to-income ratio was as a result of one-off merger related expenses.

    He noted that the growth in loans and reduction in non-performing assets were in line with the bank’s objective to grow risk assets as the economy rebounds while focusing on quality growth..

    He assured that directors of the bank were confident they would sustain the performance.

    “In the last quarter of the year, we will consolidate on the progress made thus far and sustain our drive towards building our retail deposits with a view to achieving our corporate goals for year-end,” Adeola assured.