The Nation Newspaper

Tag: Profit

  • MasterCard records $605m profit

    MasterCard records $605m profit

    MasterCard Incorporated posted fourth quarter profit that beat analysts’estimates as customers made more purchases. Net income excluding litigation charges increased 18 per cent to $605 million, or $4.86 a share, from $514 million, or $4.03, a year earlier, the Purchase, New York-based company, said in a statement obtained by Bloomberg.

    “It was a solid quarter capping a really solid year despite the economic challenges,” MasterCard Chief Financial Officer Martina Hund-Mejean said.

    Chief Executive Officer Ajay Banga is fending off competitors Visa Incorporated and Shanghai-based China UnionPay as he seeks a larger share of the electronic payments processing market.

    Banga is targeting developing countries, such as Myanmar, Ghana, Nigeria and Angola for growth amid a global consumer shift from cash to plastic. “We are gaining traction in our United States credit business with some recent wins, continuing to experience momentum in our mobile initiatives around the world, and securing important business in emerging markets like Africa and Brazil,” Banga said.

    Profit comparisons were skewed by a $770 million expense tied to settling litigation with merchants taken in the fourth quarter of 2011. Including that cost, earnings a year earlier were $19 million, or 15 cents a share.

    MasterCard’s total revenue increased 9.7 per cent to $1.9 billion, beating the Bloomberg forecast of $1.89 billion. Worldwide spending on MasterCard- and Maestro-branded cards climbed 13 per cent to $727 billion, based on local currencies, the company said. Processed transactions jumped 20 per cent to 9.2 billion.

     

  • Diamond Bank’s three-month profit hits N8.7b

    Diamond Bank’s three-month profit hits N8.7b

    The management of Diamond Bank Plc has expressed optimism that the bank would achieve stronger performance in 2013, citing the early strides in the first quarter.

    In a review of the first quarter performance of the company, Group Managing Director, Diamond Bank Plc, Dr. Alex Otti, said that the profit before tax of N8.7 billion in the first three months of this year signifies the resolve of the bank to grow its capacity and increase profitability this business year.

    Interim report and accounts of the bank for the first quarter ended March 31, 2013 showed that gross earnings increased by 31 per cent from N30.7 billion in March 2012 to N40.3 billion in March 2013. Net interest income increased by 21 per cent to N24.5 billion as against N20.2 billion in comparable period of 2012. Profit before tax increased from N7.8 billion to N8.7 billion.

    According to Otti, the first quarter performance results was an affirmation of the bank’s resolve to deliver better returns to its shareholders in the current financial year.

     

  • Standard Bank’s costs weigh on profit

    Standard Bank will press ahead with expensive plans to open another 30 branches in sub-Saharan Africa this year, aiming to cash in on booming loan and deposit growth even as the costs of such investment hit its bottom line.

    Reuters said Africa’s biggest bank by assets, is 20 per cent owned by Industrial and Commercial Bank of China. It blamed a below-forecast nine per cent increase in first-half profit on costs of investment.

    “It really has been growing rapidly and we’ve continued to invest, which is part of the reason for the cost growth that you’ve seen,” Chief Executive Jacko Maree said, referring to its 16 operations across the continent.

    “But if you look at the profitability in Africa you saw the profits growing by some 80 per cent, just looking at the on-the-ground banks on the continent, which is a very big jump.”

    He pledged to do all he could to control spending after a 17 per cent rise in the six months to the end of June but said costs would continue to climb as the bank seeks to cash in on an estimated 30-40 per cent rise in loans and deposits across the continent.

  • GTBank sets record with N103b profit

    Guaranty Trust Bank (GTBank) Plc has strengthened its position as the pacesetting Nigerian financial institution as it achieved a record profit before tax of N103 billion during the financial year ended December 31, 2012.

    GTBank grew pre-tax profit by 66 per cent from N62.08 billion in 2011 to N103.03 billion in 2012, the highest by any bank so far. Profit after tax also rose by 69 per cent from N51.7 billion to N87.3 billion. Gross earnings grew by 22 per cent from N182.41 billion to N221.94 billion.

    The audited report and accounts for 2012, which were in compliance with the International Financial Reporting Standards (IFRS) and approved by all regulatory agencies, confirmed GTBank as the first Nigerian bank to cross the N100 billion profit before tax milestone from continuing operations at both bank and group levels. Four banks have so far released their audited reports including Zenith Bank, Sterling Bank, Access Bank and GTBank.

    Key extracts of the audited report showed that GTBank recorded impressive performance in profit and loss accounts as well as balance sheet structure and size. The bank closed the 2012 financial year with on-balance sheet size of N1.73 trillion as against N1.608 trillion in 2011 while total assets and contingents stood at N2.26 trillion compared with N2.14 trillion in 2011.

    Besides, deposit liabilities of the group grew by 12 per cent to N1.15 trillion in 2012, reflecting a decent growth of N120 billion from the N1.03 trillion recorded in 2011. The growth in customer deposits underpinned modest increase in the loan book with net loans and advances of N783.9 billion in 2012 as against N707.05 billion in 2011. Shareholders’ funds increased from N230.4 billion in 2011 to N283.4 billion in 2012.

    Further analysis showed quality growth as continuous improvement in credit risk management kept non-performing loans within the lowest rate in the industry in spite of growth in loans and advances. The proportion of non-performing loans to total loans and advances improved to 3.4 per cent compared with 3.5 per cent in 2011. Cost-to-income ratio also improved significantly to 42.7 per cent from 52.9 per cent in 2011.

    The bank’s stance as an upstanding social citizen and commitment to full disclosure was further evidenced by its 2012 tax liabilities, which came to over N16.3 billion.

    The board of GTB has recommended gross final dividend of N38.26 billion in addition to interim dividend of N7.36 billion paid earlier, bringing total dividend for the year to N45.62 billion. On per share basis, shareholders of GTB would receive a final dividend per share of N1.30 in addition to interim dividend of 25 kobo.

    Besides the cash payouts, underlying returns showed greater values for shareholders and other stakeholders. Return on equity and return on assets closed at 33.9 per cent and 5.2 per cent in 2012 as against 23.2 per cent and 3.7 per cent recorded respectively in 2011.

    Chief executive officer, Guaranty Trust Bank (GTBank) Plc, Mr. Segun Agbaje said the performance in 2012 reflected the bank’s continued adherence to a defined growth plan, high corporate governance standards and the cultural values for which it is known.

    According to him, the performance was driven by several competitive advantages including a resourceful board, an in-depth understanding of the market and the passion of GTBank employees, which have enabled the bank to grow market share and continue to avail its stakeholders with value-adding services.

  • GTBank declares N103 bn profit before tax

    GTBank declares N103 bn profit before tax

    Guaranty Trust Bank Plc has declared a profit before tax of N103bn in its audited financial results for the December 2012 financial year.

    The Group’s results released to  operators of the Nigerian Stock Exchange also show improved Gross Earnings of N221.9 billion, 66% growth in Profit Before Tax to N103 billion (2011: N66.08 billion) and 69% improvement in Profit After Tax to N87.3 billion; (2011: N51.7 billion),

    The Bank closed the 2012 financial year with an On-Balance Sheet size of N1.73 trillion (2011: N1.608 trillion) while Total Assets and Contingents stood at N2.26 trillion (2011: N2.14 trillion) representing a growth of 8% and 6% respectively.

    Further analysis shows that deposit liabilities of the Group grew by 12% to N1.15 trillion in 2012, reflecting a decent growth of N120 billion from the N1.03 trillion closing position in the corresponding period of 2011. This growth in customer deposits fueled the increase in the loan book as Net loans and Advances closed at N783.9 billion, translating to a growth of 11% over the N707.05 billion in the comparative period of 2011. Shareholders’ funds increased from N230.4 billion in 2011 to N283.4 billion in 2012.

    In terms of asset quality, the bank also impressed as Non Performing Loans (NPL) ratio stood at 3.4% compared to 3.5% in 2011, while Cost-to-Income ratio improved significantly to 42.7% from 52.9% in 2011. On the backdrop of this strong operating performance, Return on equity (ROE) and Return on Assets (ROA) closed at 33.9% and 5.2% from the 23.2% and 3.7% recorded in 2011, respectively.

    The Bank’s stance as an upstanding social citizen and commitment to full disclosure was further evidenced by its 2012 tax liabilities, which came to over N16.3 billion. The total dividend payment for the financial year is projected at N45.62 billion (N1.55 per ordinary share of 0.50 kobo each).

    Commenting on the results, Mr. Segun Agbaje, GTB’s Chief Executive Officer attributed the Bank’s success to its adherence to a defined growth plan, high corporate governance standards and the cultural values for which it is known.

    He said these factors, coupled with a resourceful board, an in-depth understanding of the market and the passion of GTBank employees have enabled the Bank grow market share and continue to avail its stakeholders with value adding services.

     

     

     

  • Union Bank records N17b Q3 profit

    Union Bank records N17b Q3 profit

    •Investors stake N11.5b on equities

    Union Bank of Nigeria (UBN) Plc further consolidated its performance in the third quarter as the recently recapitalised bank reversed net loss of about N59.14 billion with net profit of N17.18 billion.

    Interim report and accounts of the bank for the nine-month period ended September 30, 2012 showed strong bottom-line performance as improvement in core banking operations continued to impact on overall performance.

    Profit before tax stood at N14 billion in 2012 as against pre-tax loss of N75.8 billion in comparable period of 2011. While tax write back of N16.66 billion helped reduced net loss to N59.14 billion in 2011, the company recorded net profit of N17.2 billion in 2012. Tax write-back for third quarter 2012 was N3.2 billion. Net interest income increased from N47.81 billion in 2011 to N52.23 billion in 2012.

    The latest report steadied the bank’s returns outlook with earnings per share of N3.29 in 2012 as against net loss per share of 5.0 kobo in the comparable period of 2011. At today’s opening price, earnings yield stood at 41 per cent, indicating the probable return to investors.

    The report also reaffirmed Union Bank’s large capital base with shareholders’ funds of N209.93 billion in 2012 as against deficit of N189.04 billion recorded in corresponding period of 2011.

    The third quarter report showed sustained growth trend, building on turnaround noted in the first and second quarter. In the first half, the bank recorded net profit of N16.14 billion compared with a loss of N40.30 billion posted during corresponding period in 2011. This translated to earnings per share of N2.51 as against a loss per share of N3.05 kobo recorded same period last year. In the first quarter, the bank posted gross earnings of N25.51 billion while profit after taxation was N6.32 billion.

    Directors of the bank stated that the third quarter report indicated the resurgence of the bank following its recent recapitalisation and restructuring programmes.

    According to the bank, the stellar performance is due to full re-capitalisation, emergence of core investor; faster service delivery to customers and other growth spurring polices of the management.

    The bank said its robust performance sprang from a solid foundation laid during the recapitalisation and restructuring period, thus creating momentum that has helped to feed the investing public optimism as evident in the rising risk appetite and share price of the bank.

    Directors of the bank said they expected the uptrend to continue in the periods ahead as investors look towards first full-year profit in recent years.

    Meanwhile, investors staked N11.49 billion on 1.19 billion shares through 22,277 deals last week at the Nigerian stock market. The financial services sector remained the toasts of the investors with turnover of 835.158 million shares valued at N6.380 billion in 13,326 deals, representing 70 per cent of aggregate turnover for the week. The consumer goods sector staged a distant second with turnover of 178.863 million shares valued at N3.65 billion in 4,204 deals. The trio of Dangote Sugar Refinery Plc, Zenith Bank and United Bank for Africa were the three most active stocks, accounting for 324.977 million shares, some 27 per cent of total turnover.

    On the over-the-counter (OTC) bond market, investors staked N187.51 billion on 179.414 million units of bonds through 1,196 deals. Nigeria’s sovereign bonds are traded on the OTC.

    The benchmark value indices at the Nigerian Stock Exchange (NSE) showed modest gain for equities. The All Share Index (ASI), the main index for Nigerian stock market, inched up from its opening index of 26,559.55 points to close at 26,718.30 points, indicating an increase of 0.60 per cent.

    Aggregate market capitalisation of all equities also added N50.6 billion to close at N8.514 trillion.

     

  • Access Bank’s half-year profit hits N30b

    Access Bank’s half-year profit hits N30b

    Access Bank Plc has announced an audited Profit Before Tax (PBT) of N30.07 billion for its half-year ended on June 30, 2012.

    A statement from the bank said its Profit After Tax (PAT) grew by a 225 per cent to N26.13 billion compared with the N8.08 billion recorded in the corresponding period in 2011.

    Similarly, the bank’s Profit Before Tax (PBT) rose from N12.37 billion recorded for half-year in 2011 to N30.07 billion in June, 2012, representing a 143 per cent growth over last year’s performance. Gross earnings rose by 103 per cent to N108.7 billion in relation to last year’s figure of N53.65 billion.

    The bank’s Group Managing Director/CEO Aigboje Aig-Imoukhuede, said the bank is now firmly established as a top tier Nigerian Bank. “Leveraging on our sustainability driven business philosophy, robust capital position and the quality of our workforce. I am confident that we will continue to deliver strong returns for our investors in 2012,” he said.

    Analysts have described the bank’s performance as a valid testament to its financial strength and capacity for sustainable growth.

    Analysis of the result has shown that Access Bank is already extracting value from its acquisition of Intercontinental Bank by leveraging scale and access to large retail deposit base evidenced by the Bank’s low cost of fund.

     

  • Equities lose N33b as profit-taking persists

    Investors continued to cash in substantial capital gains on equities as profit-taking trading that started the week extended a bit further yesterday, shaving off N33 billion from aggregate market value of quoted equities.

    The All Share Index (ASI) and aggregate market value of equities, the two main value-based indices at the Nigerian Stock Exchange (NSE) dropped by 0.42 per cent as investors monetised substantial gains on several highly capitalised stocks. The second consecutive decline pushed the year-to-date return at NSE to 18.51 per cent.

    Market capitalisation of all quoted equities slipped from N7.854 trillion to N7.821 trillion. The ASI declined to 24,568.57 points as against its opening index of 24,671.47 points.

    The downtrend was orchestrated by losses recorded by stocks such as Nigerian Breweries, Cadbury Nigeria, UAC of Nigeria, Ashaka Cement, First Bank of Nigeria, GlaxoSmithKline Consumer Nigeria and Union Bank of Nigeria, all of which had recorded double digit capital appreciation in recent period.

    Nigerian Breweries led the decliners with a loss of N2.05 to close at N125.45. Cadbury Nigeria followed with a loss of N1.04 to close at N19.86. UACN dropped by 65 kobo to N35.41. Ashaka Cement lost 57 kobo to close at N11.17. GlaxoSmithKline dropped by 50 kobo to N32. Presco slipped by 48 kobo to N14.42. First Bank lost 32 kobo to close at N13.98 while Union Bank dropped 30 kobo to close at N6.21.

    However, several stocks showed strong resilience against the general downtrend. Unilever Nigeria set a new high with a gain of 92 kobo to close at N38.91. Guinness Nigeria also added 70 kobo to close at N252.90. International Breweries rose by 56 kobo to N11.77. Mobil Oil Nigeria gained 50 kobo to close at N115. Lafarge  Cement Wapco Nigeria added 47 kobo to close at N46.02. Roads chalked up 40 kobo to close at N8.42 while Access Bank Plc, which declared an interim dividend of 25 kobo, gathered 24 kobo to close at N8.74.

    Total turnover stood at 265.774 million shares worth N2.579 billion in 4,955 deals. The financial services sector remained atop activity chart with a turnover of 221.203 million shares worth N2.031 billion in 3,194 deals.

  • Profit taking halts equities’ rally

    THE Nigerian Stock Exchange (NSE) opened this week on a negative note as investors turned to take profit from stocks that have benefited from the consistent capital gains in the last 11 days.

    Notwithstanding the downturn, Nestle Nigeria Plc established a new price record at N577.50. This is the highest in the stock’s and Exchange’s history.
    The benchmark index at NSE, the All-Share-Index (ASI) shed 167.23 absolute points, representing 0.67 per cent depreciation, to close at 24,671.47 points. Similarly, market capita-lisation dropped N53 billion to close at N7.854 trillion.

    The downturn was significantly impacted by losses recorded by several and large capitalised stocks including Dangote Cement, Cadbury, First Bank, Dangote Sugar, Stanbic-IBTC, Zenith Bank, Oando and UBA.

    Specifically, a total of 50 equities recorded price change with 23 appreciating while the remaining 27 reduced in value. Cadbury led the losers’ table with a drop of N1.10 to close at N20.90 followed by UTC with a drop of N0.03 to close at N0.57. Also on the table were Wapic, Fort Oil, Morison, UBA, Dangote Sugar, Paint Company, Eterna Oil and ETI.

    On the gainers’ table, Nestle led the list with an appreciation of N27.50 to close at N577.50 followed by Bagco with a gain of N0.09 to close at N1.89. Also on the list were Bagco, Berger paint, Roads, Julius Berger, International Breweries, NCR, Continental Insurance, Cement Company of Northern Nigeria (CCNN) and NACON.

    In all, investors traded 266.657 million shares worth N2.157 billion in 4, 432 deals. The Financial Services sector was the most sought after with 199.379 million shares worth N1.285 billion across 2, 458 deals.

    This was followed by the Consumer Goods with 21.678 million shares worth N591.461 million in 1,001 deals. Others with significant volume were Conglomerates with 15.734 million shares, Industrial Goods with 7.789 million shares, Construction/Real Estate with 7.737 million shares and Services with 6.503 million shares.