- Access Bank Grows Profit by 18%, Equities Gain
Access Bank Plc has reported an 18 per cent growth of its profit before tax for the half year ended June 30, 2017.
The lender’s PBT rose to N52bn, representing a 18 per cent year-on-year growth when compared to N43.9bn in H1 2016.
Its profit after tax also grew to N39.5bn in H1 2017 from N33.6bn in H1 2016. Its Return On Average Equity was 16.9 per cent, which was flat compared to 16.9 per cent of 2016 half year.
The bank’s gross earnings rose by 42 per cent year-on-year to N246.6bn as against N174.1bn recorded in H1 2016, with interest income and non-interest income contributing 66 per cent and 34 per cent, respectively.
Interest income grew by 44 per cent year-on-year to N161.9bn in H1 2017 from N112.3bn in H1 2016, while non-interest income stood at N84.4bn, appreciating by 37 per cent compared to N61.7bn in H1 2016.
The lender’s loans and advances totaled N1.79tn as at June 2017 (December 2016: N1.86tn) reflecting a cautious approach in the light of a recovering macro economy, according to the bank. But customer deposits declined by nine per cent to N1.9tn in the period, from N2.09tn in December 2016.
Its total assets was flat at N3.46tn as at June 2017 (December 2016: N3.48tn).
Commenting on the performance, the Group Managing Director/ Chief Executive Officer of the bank, Herbert Wigwe, said, “The group’s performance in the first half of the year reflects the strength and sustainability of our business, and the effective execution of our strategy. Non-interest income remained strong on the back of 68.8 per cent growth in foreign exchange income demonstrating our optimisation of revenue generating opportunities.
“We maintained stable asset quality, recording non-performing loans and cost of risk ratios of 2.5 per cent and one per cent, respectively and wound down on our foreign currency exposures as a deliberate strategy to de-risk the business. As we cautiously grow our loan portfolio in light of macro realities, we will continue to uphold our proactive risk management principles in order to maintain asset quality within acceptable limits.”
Meanwhile, the Nigerian Stock Exchange market capitalisation appreciated to N12.773tn from N12.739tn, while the All-Share Index closed at 37,059.21 basis points from 36,962.48 basis points.
A total of 264.286 million shares valued at N5.53bn were traded in 3,849 deals.
The Nigerian Exchange recorded a 0.26 per cent advancement to settle the year-to-date return at 37.90 per cent.
Similarly, volume of transactions and market turnover increased by 8.17 per cent and 50.59 per cent, respectively. There were 17 gainers and 21 losers.
Caverton Offshore Services Group Plc topped the gainers’ list once again, advancing by 9.52 per cent to close at N1.15. Other gainers were United Capital Plc, Livestock Feeds Plc, Access Bank Plc, Neimeth International Pharmaceuticals Plc, among others.
COVID-19: CBN Extends Loan Repayment by Another One Year
Central Bank Extends One-Year Moratorium by 12 Months
The Central Bank of Nigeria (CBN) has extended the repayment of its discounted interest rate on intervention facility by another one-year following the expiration of the first 12 months moratorium approved on March 1, 2020.
The apex bank stated in a circular titled ‘Re: Regulatory forbearance for the restructuring of credit facilities of other financial institutions impacted by COVID-19’ and released on Wednesday to all financial institutions.
In the circular signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, CBN, the apex bank said the role-over of the moratorium on the facilities would be considered on a case by case basis.
The circular read, “The Central Bank of Nigeria reduced the interest rates on the CBN intervention facilities from nine per cent to five per cent per annum for one year effective March 1, 2020, as part of measures to mitigate the negative impact of COVID-19 pandemic on the Nigerian economy.
“Credit facilities, availed through participating banks and OFIs, were also granted a one-year moratorium on all principal payments with effect from March 1, 2020.
“Following the expiration of the above timelines, the CBN hereby approves as follows:
“The extension by another 12 months to February 28, 2022 of the discounted interest rate for the CBN intervention facilities.
“The role-over of the moratorium on the above facilities shall be considered on a case by case basis.”
It would be recalled that the apex bank reduced the interest rate on its intervention facility from nine percent to five percent and approved a 12-month moratorium in March 2020 to ease the negative impact of COVID-19 on businesses.
To further deepen economic recovery and stimulate growth, the apex bank has extended the one year-moratorium until February 28, 2022.
MTN Nigeria Generates N1.35 Trillion in Revenue in 2020
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.
Nestle Nigeria Approves Final Dividend of N35.50k per 50 Kobo Ordinary Share for 2020
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.
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