First bank profit took a hit as forex scarcity and global slowdown continue to wipe-off banks’ profits.
The earnings report released on Tuesday showed the bank’s profit after tax stood at N15.1bn for the full year ended December 31, 2015. This represents a decline of 82 percent when compared with N84bn reported in December 2014.
Total profit before tax was N21.5bn, down by 77.1 percent year-on-year. However, gross earnings rose 4.9 percent to N505.2bn from N481.8bn reported a year earlier.
The bank also posted a net interest income of N265bn, up by 8.7 percent from N243.9bn recorded in December 2014, and operating expenses of N223.6bn, down by 5.6 percent year on year.
The bank’s total assets stood at N4.2tn, down by 4.1 per cent year-on-year (December 2014: N4.3tn); its customer deposits was N2.97tn, down by 2.6 per cent year-on-year (December 2014: N3.1tn); while customer loans and advances (net) were N1.8tn, down 16.6 per cent year-on-year (December 2014: N2.2tn).
Commenting on the bank’s financial results, the Group Managing Director, FBN Holdings, Urum Eke, said, “This has been a very difficult time in the history of our institution. Despite the tough macroeconomic and regulatory backdrop during the year, our underlying business remains strong as reflected in the gross earnings growth of 4.9 per cent to N505.2bn.
“Furthermore, the holding company platform has provided support in mitigating the impact of credit losses and the vulnerabilities experienced by our commercial banking business.”
“In coming periods, our primary focus is to drive efficiency and operational excellence across all operating companies. Key initiatives in achieving this, as we eliminate the value eroding factors and seek to reposition the group towards a new growth path, include enhanced focus on moderating risk appetite; risk management practices and culture; disciplined cost containment; asset optimisation; and synergy realization.”
“We will be sustaining the drive to improve cross sell initiatives; improve performance and returns from our subsidiaries to provide diversified and sustainable revenue for the group. While acknowledging the challenges facing the group, we are committed to achieving our set tasks. Among those, one priority stands out above all else – the need to restore shareholder value while building long-term sustainability into our business.”
Stanbic IBTC Obtains Approvals, License to Establish Life Insurance Subsidiary
Stanbic IBTC Holdings Plc on Friday announced that it has obtained all required Regulatory Approvals and a license from the National Insurance Commission to establish a wholly-owned Life Insurance subsidiary, Stanbic IBTC Insurance Limited (SIIL).
In a statement signed by Chidi Okezi, Company Secretary, Stanbic IBTC and released on Friday, the bank said “The establishment of this new subsidiary essentially complements the bouquet of product offerings by Stanbic IBTC as it continues its goal of being the leading end-to-end financial solutions provider in Nigeria. In this regard, SIIL will aim to facilitate long term insurance for already financially included individuals and will seek to become the preferred Insurer in the Life Insurance Business.
“Stanbic IBTC Holdings PLC, a member of Standard Bank Group, is a full-service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20.1% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade deals between Africa, China and select emerging markets. Standard Bank Group is the largest African financial institution by assets. It is rooted in Africa with strategic representation in 21 countries on the African continent.
“Standard Bank has been in operation for over 158 years and is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa; and connecting selected emerging markets to Africa by applying sector expertise, particularly in natural resources, power and infrastructure.”
World Bank to Discuss New $1.5 Billion Loan Request From Nigeria
The Finance Minister, Budget and National Planning, Mrs. Zainab Ahmed, on Friday said the Federal Government has met all the conditions for a fresh loan of $1.5 billion from the World Bank.
The minister disclosed this on Bloomberg TV.
She said the multilateral financial institution is in the final stage of approving the loan. The minister explained that the loan will be discussed in the bank’s next meeting and possibly be approved in the same meeting.
In June, the Senate approved the borrowing plans but the World Bank pushed back demanding Nigeria fulfill the conditions attached to the $3.4 billion loan received from the International Monetary Fund (IMF) in May.
Some of the conditions were to increase revenue generation by upping VAT, the introduction of tariff reflective electricity bill, the removal of subsidy and the unification of the nation’s foreign exchange.
Most of which the Federal Government has done despite protests from most Nigerians who called the new policies anti-people given their current situation.
Nigeria Realises Over N400 Billion from Company Income Tax in the Third Quarter of 2020
The Federal Government realised N416.01 billion from Company Income Tax (CIT) in the third quarter of the year, according to the latest report from the National Bureau of Statistics (NBS).
This was 3.48 percent higher than the N402.03 billion generated in the second quarter of the year and represents a decline of 20.13 percent year-on-year from N520.89 billion realised in the third quarter of 2019.
A breakdown of the report showed the professional services sector including the telecoms generated the highest amount of CIT at N55.52 billion during the quarter, while the manufacturing sector followed with N42.03 billion.
The banking and financial institutions realised N24.05 billion while the mining generated the least and closely followed by Textile and Garment Industry and Local Government Councils with N120.93 million, N167.51 million and N321.72 million generated, respectively.
The report added that out of the total amount realised during the quarter under review, a sum of N244.70 billion was generated as CIT locally. The federal government collected N70.34 billion as foreign CIT payment and the remain N100.97 billion was received as CIT from other payments.
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