- Credit to Private Sector Rises to N22.2tn
Banking sector credit to the private sector increased year-on-year to N22.172 trillion at the end of July 2017, compared with the N21.978 trillion it stood at the end of June 2017.
This was revealed by data gathered from the Central Bank of Nigeria’s (CBN) money and credit statistics for July 2017, obtained from its website.
Also, broad money (M2), which generally is made up of demand deposits at commercial banks and monies held in easily accessible accounts climbed year-on-year to N22.200 trillion as at July, from N21.674 trillion at the end of June.
Similarly, narrow money (M1), which includes all physical monies such as coins and currency along with demand deposits and other assets held by the central bank edged higher year-on-year to N10.325 trillion in the review month, as against the N9.883 trillion recorded the previous month.
But currency-in-circulation dropped to N1.769 trillion at the end of July, compared with the N1.873 trillion position it was the previous month. However, while Banks’ Reserves increased to N3.446 trillion as at July, from N3.266 trillion, Quasi Money, which are highly liquid assets other than cash, that can be quickly converted, stood at N11.874 trillion as at the review month, from N11.790 trillion.
The Group Managing Director and Chief Executive Officer of Access Bank Plc, Mr. Herbert Wigwe, last week predicted a jump in banks’ lending to the private sector.
Wigwe, who said this during an interview on ARISE TV was optimistic that with the Secured Transactions in Movable Assets Act (otherwise known as National Collateral Registry Act) and the Credit Reporting Act, there would be an expansion in banks’ lending to Micro, Small and Medium Scale Enterprises (MSMEs) in the country.
The Collateral Registry Act ensures that MSMEs in Nigeria can register their movable assets such as motor vehicles, equipment, and accounts receivable in the National Collateral Registry, and use same as collateral for accessing loans.
On the other hand, the Credit Reporting Act provides for credit information sharing between Credit Bureaus and lenders (such as banks), as well as other institutions that provide services on credit such as telecommunication companies and retailers.
Continuing, Wigwe, who was responding to question on what to expect from banks following the new legislations, said: “I think seismic is too strong a word to use. A couple of steps have been taken that would ensure that you start to see those shifts.
“First of all, the Credit Registry Act and secondly the use of Bank Verification Numbers (BVN), which means that if somebody defaults on a loan, we can blacklist that person and he cannot have access to credit in the system.
“The fact that I can’t lend to somebody who had defaulted means that, that person has been excluded from borrowing in the system. Now, as banks are beginning to look for other ways to make money, look at even the EMTS exposure we are talking about, God knows how many millions of Nigerians you would have lent to, for you to have that amount of bad loan. But it is not even going to happen!
“So, people are looking for more ingenious ways to make money and it is happening. There is increased agency banking. One thing I can tell you for sure is certain, the proportion of loans that are going to be lent to retails and SMEs is going to be a lot more in 2017 than it was in 2016.
“And in 2018, it would be a lot more. If you take my bank, for instance, our traditional arrangement was we were a wholesale bank, but we are now a large diversified bank and we have invested significantly this year as far as expanding our channels and the retail network is concerned,” Wigwe explained.
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.
Dennis Olisa Invests N53.6 Million in Zenith Bank
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
News3 weeks ago
Doctors Warn Covid Will Become Endemic and People Need to Learn to Live With it
Bitcoin2 weeks ago
Bitcoin Surges Above $50,000 Per Coin on Tuesday, Sets a New All-Time High
News1 week ago
U.S. COVID-19 Deaths Hit 500,000
Economy2 weeks ago
Petrol Subsidy May Hit N11.2bn Per Week
Economy3 weeks ago
Petrol Landing Cost Rises to N180, Oil Crosses $60
Cryptocurrency4 weeks ago
Why CBN Bans Banks from Facilitating Cryptocurrency Exchanges
Bitcoin1 week ago
Bitcoin Rebounds To $50,881 Per Coin on Wednesday
Banking Sector2 weeks ago
Banks Turning Female Marketers to Sexual Slaves – Senator