Tag: sustains

  • Transcorp sustains growth with N9b profit in Q3

    Transnational Corporation of Nigeria Plc (Transcorp) Plc recorded considerable improvement in its overall return outlook in the third quarter as the conglomerate drew on improved top-line and operating efficiency to return to positive bottom-line.

    Key extracts of the interim report and accounts of Transcorp for the nine-month period ended September 30, 2017 showed that the group’s turnover rose by 35 per cent from N41.92 billion in third quarter 2016 to N56.76 billion in third quarter 2017. Gross profit rose by 45 per cent from N19.84 billion in 2016 to N25.62 billion in 2017. Operating profit stood at N16.81 billion compared with N11.58 billion in comparable period of 2016.

    With better finance cost management, net finance cost declined considerably to N7.77 billion in 2017 as against N24.37 billion in 2016. Profit before tax thus improved to N9.04 billion in third quarter 2017 as against pre-tax loss of N12.7 billion recorded in third quarter 2016. After taxes, net profit recovered to N8.2 billion in 2017 as against net loss of N14.21 billion in corresponding period of 2016.

    President, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Adim Jibunoh, said the third quarter performance highlighted a significant improvement in the group’s operations.

    According to him, the result was achieved largely through improved and sustained production capacity in the power business as a result of improvements in gas supply amongst other initiatives and the positive outlook in the hospitality business.

    “Our power plant has consistently ranked as the number one power producer in the country for third quarter 2017 and we are on track for a stronger performance in fourth quarter 2017, as we progress plans to increase our available capacity,” Jibunoh said.

    He added that improvements in general economic activity in Abuja on the back of implementation of 2017 budget and return to operations of newly upgraded room stocks will boost occupancy and top line performance for Transcorp Hotels in the months ahead.

    Jibunoh had earlier assured the investing public that the conglomerate would deliver better returns in the current business year.

    He noted that the conglomerate would deliver better returns in 2017 given the growths across its business segments.

    He said the conglomerate has been investing in its businesses in the hospitality, power and oil and gas sectors because of its strong faith in the economy.

    He said the conglomerate was working on becoming the biggest provider of electric power in the country.

    “The shareholders will be happy this year as something good will come out as a return to them,” Jibunoh said.

    Transcorp, owned by more than 300,000 shareholders, has a vast business portfolio that comprises strategic investments in the power, hospitality, agribusiness and oil and gas sectors. The group’s notable businesses include Transcorp Hilton  Hotel, Abuja; Transcorp Hotels Calabar; Transcorp Power Limited, owner of 972 megawatts power plant, Teragro Commodities Limited, operator of Teragro Benfruit plant-Nigeria’s first-of-its-kind juice concentrate plant; and Transcorp Energy Limited.

  • Access Bank sustains improved performance

    Access Bank sustains improved performance

    Access Bank has remained on strong growth trajectory as latest earnings reports showed improvements across key performance indicators.

    The bank’s focus on assets quality and cost management, appeared to be paying off with strong earnings growth and significant reduction in loan loss provisions, driving overall performance to the Deposit Money Bank to the industry’s top chart.

    The improvements in fundamentals have positively impacted share pricing trend at the Nigerian Stock Exchange (NSE), with the bank’s share price rising by more than 70 per cent so far this year.

    Access Bank reported an impressive first quarter profits, showing improvement in performance indicators. The bank’s unaudited financial results for the first quarter ended March 31, 2017 showed an increase of 38 per cent in profit before tax to N31.2 billion when compared with N22.6 billion in the first quarter of 2016. The bank’s profit after tax rose by 34 per cent to N26.0 billion in 2017, up from N19.4 billion recorded in the corresponding period of 2016.

    Gross earnings stood at N116 billion, an increase of 44 per cent on N80.3 billion reported in comparable period of 2016. Interest income and non-interest income contributed 68 per cent and 31 per cent respectively to the gross earnings. Although loan growth remains subdued in the first quarter and some key fee income businesses weakened, margin expansion and gains on foreign exchange and derivatives have more than compensated. Funding income should remain strong in the near term, supported by relatively high yields on treasury bills.

    Also, key extracts of the full-year report for the period ended December 31, 2016 showed that pre-tax profit appreciated by 20 percent to N90.3 billion in 2016 from N75.4 billion recorded in the 2015. Also, post-tax profit climbed up by 9.23 percent to N90.3 billion in 2016 from N75.0 billion in 2015. Gross earnings increased from N337.4 billion in 2015 to N381.3 billion in 2016, indicating an increase of 13.05 percent.

    Further analysis of the bank’s finance showed that its balance sheet remained strong with a total assets standing at N3.54 trillion at the end of first quarter, compared to N3.48 trillion recorded as at December 2016. Derivative assets rose from N156 billion as at December 2016 to N161 billion, representing an increase of 3.2 per cent, while its investment in subsidiaries, properties and equipments increased by 2.5 per cent from N84.1billion to N86.2 billion. Its income from derivative instrument has been a topical line item around the bank’s earnings in recent years. The income line offsets the impact of currency devaluation on its foreign currency liability and has consistently supported non-interest income.

    The bank’s capital adequacy and liquidity ratios, which are a class of financial metrics used to determine a bank’s ability to pay off its short-term debts obligations, remain 21 per cent and 46.3 per cent respectively, more than the minimum regulatory requirement of 15 per cent and 30 per cent. The higher the value of the ratio, the larger the margin of safety a bank possesses to cover short-term debts. The bank raised a $300 million five-year Eurobond at 10.5 per cent in October 2016 in a bid to support its foreign exchange liquidity, which continues to enhance its balance sheet.

    The reports showed that the bank continues to focus on de-risking its portfolio, building a consolidated business, expanding its international network, and driving efficiency through technology innovation in a bid to successfully navigate the tough operating environment.  Asides restructuring existing loans, the bank has been cautious about risk asset creation – maintaining a zero exposure to the troubled power sector whilst restricting credit to quality names across other sectors. The bank continues to focus on enhanced technology and innovation to drive efficiency as the bank looks to contain its relatively high operating cost, which came from a high cost base post acquisition of Intercontinental Bank.

    Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe said that 2017 marks the end of the bank’s third five-year transformation journey and in the coming months, its priorities will be the delivery of its strategic objectives.

    “We will continue to improve on profitability and shareholder value by maintaining our capital and liquidity positions, assiduously implementing our cost management strategy, and exploiting retail business opportunities using our digital platforms and deepening market share of the wholesale business,” Wigwe said.

    He assured stakeholders that the bank was now stronger and well positioned to deliver long-term value to its stakeholders. According to him, although the macro-economic conditions and corresponding implications on the banking industry remain uncertain, the bank’s diversified banking model, robust balance sheet and solid management team give it the strength and resilience that will keep the financial institution in good stead.

    “By diligently executing our strategy, we will continue to maintain improved profitability and create the capacity to continue to invest in our key areas of strength.  As we come to the end of our third five-year transformation journey, our top priority in the coming year will be to cement our position as a dominant corporate bank and establish ourselves as a formidable retail player, leverage digital technology and innovation to create value for our customers whilst unlocking new revenue streams and deliver seamless and superior customer experience across all our service touch points,” Wigwe said.

  • How Mark sustains his influence on power

    How Mark sustains his influence on power

    The role played by Senate President David Mark in maintaining the stranglehold of the Peoples Democratic Party (PDP) on power in recent times suggests that he is one of the pillars that sustain the ruling party. Deputy Political Editor RAYMOND MORDI examines how the Benue State-born politician has succeeded in steering the Senate above trouble waters, where others failed.

    He is a smooth operator, but the growing influence of Senate President David Alechenu Bonaventure Mark has been very much evident in recent times, following the crisis that rocked the ruling Peoples Democratic Party (PDP) at the centre. Mark stood out like a rock in a surging sea throughout the crisis, making him one of President Goodluck Jonathan’s most reliable allies. For this reason, he is one man the President cannot afford to disappoint and he uses his influence on the President once in a while. For instance, following the tragic aptitude and fitness test conducted by the Nigeria Immigration Service (NIS), which claimed the lives of about 17 applicants, Interior Minister Abba Moro would have been relived of his job, but for the intervention of Mark. Moro, who hails from Benue State just like the Senate President, had quickly reached out to the well-respected man who nominated him for the ministerial position, to plead with President Jonathan who was said to be livid with the minister over the tardiness in conducting the ill-fated test. Mark’s influence within the Senate and in the polity generally, it is said, has grown over the years, marking him out from his predecessors.

    Before his emerged on the scene as President of the Nigerian Senate, on June 6, 2007, that office was widely seen as a minefield of banana peels. This is owing to the fact that previous occupants of that office since the advent of the Fourth Republic were not able to meander through without stepping on the peels. But Mark, retired army general, former governor, former minister of communications and one of the Babangida boys at the height of military rule in the country, has had an unassailable run since he came into the scene. Somehow he commands a lot of respect from his fellow senators. After his first term in 2007, he returned in 2011, and does not look like somebody whose job is threatened in any way.

    Against this background, the question that has been on the lips of many Nigerians for a long time is: what is Mark’s staying power? The consensus of respondents is that Mark has a good understanding of Nigerian politics. He displays a good political sagacity in the way he handles the affairs of the upper chamber of the National Assembly. In the view of Monday Ubani, a Lagos-based legal practitioner and chairman of Nigeria Bar Association, NBA, Ikeja Chapter, Mark adopts a populist political method in his dealings with fellow Senators particularly and politicians generally. His words: “He reaches out to them, by making sure that they do not have reasons to grumble. In other words, he carries them along and makes that everyone is properly settled, including financial inducements. Political leaders have problems within the Nigerian set up, when they eat alone. As long as he shares whatever accrues to the upper chamber equitably among all the members, there would be no complains from any angle.” In the absence of any reason for agitation, his position has never been threatened.

    Another respondent who does not want to be named puts it this way: “David Mark’s reputation as a man of the people is well known in the National Assembly. I think he is a better mixer, compared to previous occupants of that position. He is a guy who understands the importance of human relations in dealing with people.” He is of the view that Mark humbles himself, by not allowing his exalted position to get to his head. “Let’s not forget that he was a good student while he was at the Nigerian Defence Academy (NDA), he was a good soldier and an accomplished administrator,” he added.

    The overriding factor, according to observers, is that Mark appears to understand the mindset of his colleagues. He is believed to be wealthy. Being a former governor, minister and one of Babangida’s close associates during the military era, money is not his problem this time around. In this regard, he ensures a constant flow of Ghana-must-go bags. Besides, he does not deny or delay the privileges meant for his colleagues. These include constituency allowance, furniture allowance, choice houses, contracts and overseas trips and estacodes. He knows that many of them are hardly interested in the business of lawmaking, which explains why the chamber is always near empty at every session. As a result, he does not pay attention to absentee members. After all, better an empty house than a house full of traitors.

    Besides, the incumbent Senate President knows that a cordial relationship with the Presidency is critical and crucial for his survival. In Ubani’s opinion, Mark has protected the president very well. “In doing this, he has been very careful not to be seen as being neither subservient nor belligerent. He has been playing a role you could describe as very reconciliatory; he panders to the Presidency when it is necessary and to the house when this is called for,” he explained. In that regard, the legal practitioner believes the Senate President has been able to strike a balance between the two sides and this has helped in no small way in protecting his political party, the PDP.

    Indeed, the way he handled the recent face-off on the floor of the upper chamber over the recent defection from the PDP to the APC has also earned him respect from both sides. Everyone expected the issue to cause a big uproar in the Senate, but somehow he doused the tension, without ruffling feathers. Ubani noted that the fourth term legislator refused to pander to the whims of former PDP Senators who say they have decamped to APC, and wanted him to announce that development on the floor of the Senate, by telling them that the matter is in court. He added: “He also refused to pander to the interest of some members of his political party who wanted the defectors to be sanctioned. At the end of the day, no one could accuse him of being used to further the interest of any of the two major political parties. But, overall, he succeeded in protecting the interest of the PDP, through the matured way he handled the matter.”

    He also portrays himself as a statesman, by ensuring that he is seen to be vocal on all national and international issues. For instance, condemns the insecurity in the land when Boko Haram insurgents strike. On the other hand, he calls the bluff of foreign powers when they become overbearing, as they sometimes do when it comes to issues like gay marriage.

    A brief recap of the tenure of his predecessors is imperative, to better appreciate what Mark has achieved in that regard. At the inception of the Fourth Republic in 1999, Senator Evans (or is it Evan?) Enwerem set the tone for other occupants of that coveted office under the Olusegun Obasanjo era, when he stepped on the infamous banana peels and his reign was short-lived. His albatross was the allegation of falsification of his name. But there was more to his fall. He was investigated for the crime of corruption. But the controversy as to whether the senator’s real name was Evan or Evans soon became the subject of intense media attention. He was removed from office on November 18, 1999. He survived for just eight months.

    After him, the cerebral and bombastic Dr. Chuba Okadigbo, came on board. His tempestuous reign as Senate President also did not last long. Okadigbo, who was usually hailed with his traditional title, the Oyi of Oyi, was known for his opposition to his own political party, the ruling Peoples Democratic Party (PDP) at the time. But it was his cat and mouse relationship with the former President Olusegun Obasanjo that became his greatest undoing. He was charged with corruption and removed from office in August 2000. He spent less than a year as Senate President. Incidentally, Okadigbo was actively involved in the removal of Enwerem.

    There was also Anyim Pius Anyim, the Ebonyi State-born politician who occupies the office of Secretary to the Government of the federation at present. He became the Senate President in August 2000 after the removal of Okadigbo. As Senate President, his attempt to impeach Obasanjo failed. He, however, did not seek re-election in the 2003, knowing that his opposition to Obasanjo would cost him a re-election. The reign of Adolphus Wabara, who became the Senate President in 2003, also ended in acrimony. Like those before him, allegations of corruption brought about his downfall. In April 2005, he resigned following allegations that he collected a bribe from the then Minister of Education, Prof. Fabian Osuji, to facilitate the passage of his annual budget. Although Wabara’s charges were eventually dropped, the damage had been done. It was all part of the game plan. He had to go. Senator Ken Nnamani completed the vicious cycle of banana peels the Senate presidency had become until Mark made a grand entry in 2007.

  • How Mark sustains his influence on power

    How Mark sustains his influence on power

    The role played by Senate President David Mark in maintaining the stranglehold of the Peoples Democratic Party (PDP) on power in recent times suggests that he is one of the pillars that sustain the ruling party. Deputy Political Editor RAYMOND MORDI examines how the Benue State-born politician has succeeded in steering the Senate above trouble waters, where others failed.

    He is a smooth operator, but the growing influence of Senate President David Alechenu Bonaventure Mark has been very much evident in recent times, following the crisis that rocked the ruling Peoples Democratic Party (PDP) at the centre. Mark stood out like a rock in a surging sea throughout the crisis, making him one of President Goodluck Jonathan’s most reliable allies. For this reason, he is one man the President cannot afford to disappoint and he uses his influence on the President once in a while. For instance, following the tragic aptitude and fitness test conducted by the Nigeria Immigration Service (NIS), which claimed the lives of about 17 applicants, Interior Minister Abba Moro would have been relived of his job, but for the intervention of Mark. Moro, who hails from Benue State just like the Senate President, had quickly reached out to the well-respected man who nominated him for the ministerial position, to plead with President Jonathan who was said to be livid with the minister over the tardiness in conducting the ill-fated test. Mark’s influence within the Senate and in the polity generally, it is said, has grown over the years, marking him out from his predecessors.

    Before his emerged on the scene as President of the Nigerian Senate, on June 6, 2007, that office was widely seen as a minefield of banana peels. This is owing to the fact that previous occupants of that office since the advent of the Fourth Republic were not able to meander through without stepping on the peels. But Mark, retired army general, former governor, former minister of communications and one of the Babangida boys at the height of military rule in the country, has had an unassailable run since he came into the scene. Somehow he commands a lot of respect from his fellow senators. After his first term in 2007, he returned in 2011, and does not look like somebody whose job is threatened in any way.

    Against this background, the question that has been on the lips of many Nigerians for a long time is: what is Mark’s staying power? The consensus of respondents is that Mark has a good understanding of Nigerian politics. He displays a good political sagacity in the way he handles the affairs of the upper chamber of the National Assembly. In the view of Monday Ubani, a Lagos-based legal practitioner and chairman of Nigeria Bar Association, NBA, Ikeja Chapter, Mark adopts a populist political method in his dealings with fellow Senators particularly and politicians generally. His words: “He reaches out to them, by making sure that they do not have reasons to grumble. In other words, he carries them along and makes that everyone is properly settled, including financial inducements. Political leaders have problems within the Nigerian set up, when they eat alone. As long as he shares whatever accrues to the upper chamber equitably among all the members, there would be no complains from any angle.” In the absence of any reason for agitation, his position has never been threatened.

    Another respondent who does not want to be named puts it this way: “David Mark’s reputation as a man of the people is well known in the National Assembly. I think he is a better mixer, compared to previous occupants of that position. He is a guy who understands the importance of human relations in dealing with people.” He is of the view that Mark humbles himself, by not allowing his exalted position to get to his head. “Let’s not forget that he was a good student while he was at the Nigerian Defence Academy (NDA), he was a good soldier and an accomplished administrator,” he added.

    The overriding factor, according to observers, is that Mark appears to understand the mindset of his colleagues. He is believed to be wealthy. Being a former governor, minister and one of Babangida’s close associates during the military era, money is not his problem this time around. In this regard, he ensures a constant flow of Ghana-must-go bags. Besides, he does not deny or delay the privileges meant for his colleagues. These include constituency allowance, furniture allowance, choice houses, contracts and overseas trips and estacodes. He knows that many of them are hardly interested in the business of lawmaking, which explains why the chamber is always near empty at every session. As a result, he does not pay attention to absentee members. After all, better an empty house than a house full of traitors.

    Besides, the incumbent Senate President knows that a cordial relationship with the Presidency is critical and crucial for his survival. In Ubani’s opinion, Mark has protected the president very well. “In doing this, he has been very careful not to be seen as being neither subservient nor belligerent. He has been playing a role you could describe as very reconciliatory; he panders to the Presidency when it is necessary and to the house when this is called for,” he explained. In that regard, the legal practitioner believes the Senate President has been able to strike a balance between the two sides and this has helped in no small way in protecting his political party, the PDP.

    Indeed, the way he handled the recent face-off on the floor of the upper chamber over the recent defection from the PDP to the APC has also earned him respect from both sides. Everyone expected the issue to cause a big uproar in the Senate, but somehow he doused the tension, without ruffling feathers. Ubani noted that the fourth term legislator refused to pander to the whims of former PDP Senators who say they have decamped to APC, and wanted him to announce that development on the floor of the Senate, by telling them that the matter is in court. He added: “He also refused to pander to the interest of some members of his political party who wanted the defectors to be sanctioned. At the end of the day, no one could accuse him of being used to further the interest of any of the two major political parties. But, overall, he succeeded in protecting the interest of the PDP, through the matured way he handled the matter.”

    He also portrays himself as a statesman, by ensuring that he is seen to be vocal on all national and international issues. For instance, condemns the insecurity in the land when Boko Haram insurgents strike. On the other hand, he calls the bluff of foreign powers when they become overbearing, as they sometimes do when it comes to issues like gay marriage.

    A brief recap of the tenure of his predecessors is imperative, to better appreciate what Mark has achieved in that regard. At the inception of the Fourth Republic in 1999, Senator Evans (or is it Evan?) Enwerem set the tone for other occupants of that coveted office under the Olusegun Obasanjo era, when he stepped on the infamous banana peels and his reign was short-lived. His albatross was the allegation of falsification of his name. But there was more to his fall. He was investigated for the crime of corruption. But the controversy as to whether the senator’s real name was Evan or Evans soon became the subject of intense media attention. He was removed from office on November 18, 1999. He survived for just eight months.

    After him, the cerebral and bombastic Dr. Chuba Okadigbo, came on board. His tempestuous reign as Senate President also did not last long. Okadigbo, who was usually hailed with his traditional title, the Oyi of Oyi, was known for his opposition to his own political party, the ruling Peoples Democratic Party (PDP) at the time. But it was his cat and mouse relationship with the former President Olusegun Obasanjo that became his greatest undoing. He was charged with corruption and removed from office in August 2000. He spent less than a year as Senate President. Incidentally, Okadigbo was actively involved in the removal of Enwerem.

    There was also Anyim Pius Anyim, the Ebonyi State-born politician who occupies the office of Secretary to the Government of the federation at present. He became the Senate President in August 2000 after the removal of Okadigbo. As Senate President, his attempt to impeach Obasanjo failed. He, however, did not seek re-election in the 2003, knowing that his opposition to Obasanjo would cost him a re-election. The reign of Adolphus Wabara, who became the Senate President in 2003, also ended in acrimony. Like those before him, allegations of corruption brought about his downfall. In April 2005, he resigned following allegations that he collected a bribe from the then Minister of Education, Prof. Fabian Osuji, to facilitate the passage of his annual budget. Although Wabara’s charges were eventually dropped, the damage had been done. It was all part of the game plan. He had to go. Senator Ken Nnamani completed the vicious cycle of banana peels the Senate presidency had become until Mark made a grand entry in 2007.