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Q2 2017: Bad Loans in 10 Lenders Rise by N19bn —Analysis

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banks
  • Q2 2017: Bad Loans in 10 Lenders Rise by N19bn

From N216 billion recorded by 10 lenders in the first half of 2016 to N235 billion in the same period of 2017, the total impairment charges recorded in the first six months of this year have increased by N19 billion.

Analysis by Nigerian expert which showed the above results for 10 lenders, covered the following banks: First Bank of Nigeria (FBN) Holdings, First City Monument Bank (FCMB), Union Bank, Sterling Bank, Diamond Bank, Zenith Bank, GTBank, Access Bank, UBA and Ecobank Transnational Incorporated.

Impairment charges are provisions for loans which borrowers have defaulted and may no longer be recovered, especially for banks that had more exposures to upstream oil sub-sector, power sector and foreign currency loans.

Despite its growth in profit, Zenith Bank ranked top with 198.5 per cent increase in its H1:2017 impairment charges/write back from N14.2 billion in 2016 to N42.4 billion in the current period. It is followed closely by Ecobank with 92.7 per cent increase in impairment charges/write back.

However, FBN Holdings with N62.4 billion impairment charges booked 10.7 per cent reduction when compared with N69.4 billion recorded in half year 2016; FCMB’s N10 billion is a 26.1 per cent reduction in credit impairment charges from N13.5 billion in the corresponding period of 2016. Union Bank recorded 36.8 per cent decrease, but booked N5.4 billion credit impairment charges in 2017 compared with N8.8 billion recorded last year. In the same way, Sterling Bank booked N4.1 billion impairment charges in the first 6 months of 2017 compared with N3.7 billion recorded last year, while Diamond Bank’s impairment charges increased by 6.9 per cent to N20.3 billion from N19 billion recorded last year.

Similarly, Guaranty Trust Bank recorded impressive 80.8 per cent decrease in impairment charges to N7.2 billion, from N37.5 billion in the corresponding period of 2016. Access Bank at N10.4 billion managed 1.5 per cent increase from N10.2 billion while the United Bank for Africa booked 38.4 per cent increase to N9.4 billion from N6.8 billion recorded in H1 2016.

Impairment is specifically used to describe a reduction in the recoverable amount of a fixed asset below its book value. Its negative effect on profit is always high.

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

NSE Launches e-Filing Portal, X-Filing, to Enhance Securities Listing​​

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Nigerian stock market
The Nigerian Stock Exchange (NSE or The Exchange) is pleased to announce the launch of its e-Filing Portal, X-Filing, on Tuesday, 2 March 2021. 
X-Filing, which comes on the back of the recent upgrade to the NSE Issuers’ Portal, X-Issuer, is a fully integrated, secure web interface designed to enable the submission and processing of securities listing applications online. The Portal provides Dealing Member Firms (DMFs) and other accredited sponsors with a simple, efficient and convenient way to submit securities listing applications on behalf of issuers as well as enable The Exchange to process the applications online, saving time and resources.
Accessible via, https://efiling.nse.com.ng​, the Portal is equipped with features that allow the submission, review, and approval of securities listing applications; generation of listing and application reports; and easy tracking of application status. Users of the Portal will also be able to check estimated listing and application fees and make payment online.
Speaking on the development, the Executive Director, Regulation, NSE, Ms. Tinuade Awe noted thus, “The launch of X-Filing accords with The Exchange’s commitment to leverage technology to drive regulatory objectives and ease compliance for stakeholders. Automating the securities listing process of the NSE is, therefore, a major milestone for us in our quest to ease the burden of listing for applicants and to attract new listings. As an agile Exchange, we continue to review our processes to ensure quick time to market as required by all our stakeholders. We have adopted an integrated approach to ensure a seamless end-to-end process that will allow Issuers to manage their securities listings and other applications from anywhere they choose at any time.”
X-Filing is expected to facilitate a timely review process from The Exchange, ultimately improving the quality of its service delivery. “The Portal has been designed to enhance our securities listing application processes, thereby improving Issuers’ experience. We are, therefore, confident that the features we have incorporated will enhance the competitiveness of the Nigerian capital market as a global listing destination,” Ms. Awe further stated.
The Exchange remains committed to delivering products and services that meet the needs of its stakeholders, especially as we transition to a world of increased digital interactions. X-Filing is one of The Exchange’s dedicated efforts to remain globally competitive while enhancing its service delivery to stakeholders.

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Finance

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

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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.

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Banking Sector

Dennis Olisa Invests N53.6 Million in Zenith Bank

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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

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