Connect with us

Finance

Wema Bank Posts N37.89b Gross Earnings in Q3

Published

on

wema bank
  • Wema Bank Posts N37.89b Gross Earnings in Q3

Wema Bank Plc has announced a 16.36 per cent growth in gross earnings for the third quarter ended September 30, this year. The figure, N37.89 billion, is an improvement on N32.57 billion recorded in the same period last year.

The bank’s nine-month figure was driven by a 20.12 per cent and 16.79 per cent growth in interest, income, fees and commission respectively.

Its Managing Director/Chief Executive Officer, Segun Oloketuyi, said the lender’s third quarter result showed modest improvement in operating indices, despite the slowdown in the operating environment.

He also gave further insight into the numbers, adding that the domestic environment remained largely strained, as the country’s August 2016 manufacturing and non- manufacturing purchasing managers’ index (PMI) data continued to show underperformance(s) at 42.1 index points and 43.7 index points respectively.

He said inflation maintained an upward trend from 17.6 per cent (August 2016) to 17.9 per cent (September 2016), though at a slower pace (May to September 2016), as rising interest rate and foreign exchange illiquidity continue to impact prices.

“Despite the harsh operating environment, Wema Bank continues to record growth, as gross earnings increased by 16.36 per cent to N37.89 billion from N32.57 billion in the same period last year. The bank optimised its balance sheet, as loans to customers rose by 20.78 per cent to N177.01 billion with interest income expanding by 20.12 per cent to N31.93 billion compared to last year while fees and commission increased by 16.79 per cent to N4.41 billion,” he said.

According to Oloketuyi, the bank maintained its commitment to innovation, introducing *945# and other digital initiatives.

“These efforts continue to engender confidence with our customers, leading to a growth in savings deposits by 18.10 per cent from N35.58 billion as at December 2015 to N42.02 billion as at the end of the period. The streamlining of our processes and the leverage on technology, led to improving efficiencies and cost optimisation, with operating expense declining by 1.77 per cent year-on-year from N17.49 billion in September 2015 to N17.18 billion in September 2016 compared to a general inflation level of 17.9 per cent.

“We will continue to seek opportunities to improve our cost-to-serve through alternative channels and continued strategic improvements of our business model without compromising our service quality,” he said.

Continuing, he said the bank’s prudent risk management model continued to enable us deal with the industry-wide spikes in loan defaults and attendant rise in Non-Performing Loans (NPL). He said the NPL ratio for the bank stood at 2.99 per cent as at third quarter 2016, which is below the regulatory threshold of five per cent. The coverage ratio for the Bank remained adequate at 124.82 per cent.

“Going into the final quarter of the year we do not envisage any material improvement in the operating environment. Rather, we expect the gains of the fiscal and monetary policies to impact between first quarter and second quarter of 2017,” he said.

“However, we believe we would close the year with improved performance. On the capital front, we are pleased to announce that we just concluded a Tier II capital raise of N20 billion. This will boost our Capital Adequacy Ratio (CAR), currently at 13.36 per cent (pre-capital raise) and support our medium term growth

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

MTN Nigeria Generates N1.35 Trillion in Revenue in 2020

Published

on

MTN 1

MTN Nigeria Grows Revenue by 15.1 Percent from N1.169 Trillion in 2019 to N1.35 Trillion in 2020

Despite the COVID-19 pandemic and challenging business environment, MTN Nigeria realised N1.346 trillion in revenue in the financial year ended December 31, 2020.

The leading telecommunications giant grew revenue by 15.1 percent from N1.169 trillion posted in the same period of 2019.

Operating profit surprisingly jumped by 8.5 percent from N393.225 billion in 2019 to N426.713 billion in 2020.

This, the telecom giant attributed to the surge in finance costs due to increased borrowings from N413 billion in 2019 to N521 billion in 2020.

MTN Nigeria further stated that the increase in finance costs was the reason for the decline in growth of profit before tax to 2.6 percent.

MTN Nigeria grew profit before tax by 2.6 percent to N298.874 billion, up from N291.277 billion filed in the corresponding period of 2019.

The company posted N205.214 billion profit for the year, a 0.9 percent increase from N203.283 billion recorded in the 2019 financial year.

Share capital remained unchanged at N407 million. While Total equity increased by 22.3 percent from N145.857 billion in 2019 to N178.386 billion in 2020.

MTN Nigeria’s market price per share increased by 61.8 percent from N105 to N169.90.

While market capitalisation as at year-end also expanded by 61.8 percent to N3.458 trillion, up from N2.137 trillion.

The number of shares issued and fully paid as at year-end stood at 20.354 million.

MTN Nigeria margins were affected by Naira devaluations and capital expenditure due to the new 4G network coverage roll-out.

Margins were adversely affected by the effect of naira devaluation and expenses associated with new sites’ roll-out to boost 4G network coverage in FY’20.

“On the former, we note that MTNN expanded the scope of its service agreement with IHS Holding Limited and changed the reference rate for converting USD tower expenses to NAFEX (vs CBN’s official rate previously). Thus, over the full-year period, the company’s operating margin contracted by 1.9 ppts YoY to 31.7%,” CardinalStone stated in its latest report.

Continue Reading

Finance

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

Published

on

Nestle

Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020

Nestle Nigeria, a leading food and beverage company, has declared a final dividend of N35.50k per 50 kobo ordinary share for the year ended December 31, 2020.

The beverage company said N24.50k of the amount declared was from the after-tax profit of 2020 and N5 and N6 were from the after-tax retained earnings of the years ended December 2019 and 2018, respectively.

Nestle Nigeria stated that the amount declared is subject to appropriate withholding tax and approval at the Annual General Meeting of shareholders.

It also noted that payment will be made only to shareholders whose names appear in the Register of Members as at the close of business on 21 May 2021.

Dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 21 May 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.

Shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on their website: www.gtlregistrars.com, complete and submit to the Registrar or their respective Banks.

Continue Reading

Banking Sector

Dennis Olisa Invests N53.6 Million in Zenith Bank

Published

on

Executive Director of Zenith Bank Plc Buys 2 Million Shares of Zenith Bank at N53.6 Million

Executive Director of Zenith Bank Plc, Dennis Olisa, has invested a combined N53.58 million in shares of Zenith Bank.

The leading financial institution stated in a disclosure statement filed with the Nigerian Stock Exchange (NSE) on Monday.

Olisa carried out the purchase in two different transactions on February 24, 2021 at the Nigerian Stock Exchange in Lagos, Nigeria.

He purchased 1 million units of Zenith Bank at N26.60 each and another 1 million shares at N26.50 per share.

On aggregate, Olisa purchased 2 million shares of Zenith Bank at N26.79 per share or N53.58 million. See the details below.

Dennis Olisa was appointed as Zenith Bank’s executive director three years ago.

Prior to his appointment, Mr. Olisa was the Chief Inspector at Zenith Bank Plc and served as its Director from March 3, 2017 until March 16, 2017.

He also served as General Manager and Heads of the Energy Oil & Gas Group at Zenith Bank Plc and served as its Deputy General Manager. He served as Head of Internal Control & Audit Group at Zenith Bank Plc

Continue Reading

Trending