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Banks Paid N8.51bn as IT Levy in 2018

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  • Banks Paid N8.51bn as IT Levy in 2018

Eleven Nigerian banks paid about N8.51bn Information Technology-related levies to the government in 2018, the audited financial reports of the banks showed.

This is an increase of N1.34bn over the N7.17bn IT levy the 11 banks paid to the government in the corresponding period in 2017.

The National Information and Technology Development Agency had established a Fund to which companies and enterprises with an annual turnover of N100m or more are mandated to contribute one per cent of their profits before tax to.

Companies liable to pay the levy as stated in the NITDA Act are GSM service providers and all telecommunications companies; cyber-companies and Internet providers; pension managers and pension-related companies; banks and other financial institutions; and insurance companies.

Some of the banks, whose annual reports were assessed, are Zenith Bank Plc, First City Monument Bank, Access Bank Plc, Guaranty Trust Bank Plc, United Bank for Africa Plc, Sterling Bank Plc and First Bank of Nigeria Limited.

Others are Jaiz Bank Plc, Union Bank Plc, Wema Bank Plc and Fidelity Bank Plc.

UBA paid the highest IT levy out of all the banks in 2018, reporting N2.31bn, a 49 per cent increase from N1.55bn remitted in 2017.

Zenith Bank ranked second, reporting N2.06bn IT levy remittance to the government, a 14 per cent increase compared with N1.80bn paid within the same period of 2017.

Having paid N1.90bn to the coffers of the government, GTB reported a two per cent increase in its IT levy remittance in 2018 as against N1.86bn paid in 2017.

IT tax expenses reported by First Bank rose by 12 per cent from N692m in 2017 to N774m in 2018.

As contained in its annual report, Access Bank’s IT levy remittance to the Nigerian government in 2018 was N752m, an increase of 12 per cent over N670m made in 2017.

Fidelity Bank’s IT levy remittance for 2018 improved by 24 per cent to N251m as against N203m in 2017.

Further analyses of the financial report indicated that FCMB’s IT tax levy paid to the Nigerian government reduced by eight per cent from N131.2m reported in 2017 to N120.5m in 2018.

For Jaiz Bank, the IT levy paid dropped by 38 per cent from N8.85m in 2017 to N5.45m in 2018.

With N98m reported in 2018, Sterling Bank’s IT levy paid to the government increased by 15 per cent year-on-year.

Wema Bank remitted N56.1m from its profits to the government in 2018, compared to N31.5m it paid in 2017, recording 78 per cent growth in IT levy remittance.

Details of Union Bank’s annual report indicated that the bank paid N185m as IT levy to the government in 2018, recording 42 per cent increase as against N130m in 2017.

According to NITDA Act 2007, companies eligible to pay the one per cent levy are assessed and issued a demand notice by the Federal Inland Revenue Service.

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

Insider Dealing: Paul Miyonmide Gbededo Adds Another 612,326 Shares of Flour Mills to His Stake

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Paul Miyonmide Gbededo, the Group Managing Director, Flour Mills of Nigeria Plc bought an additional 612,326 shares of the company.

The management stated this in a disclosure statement sent to the Nigerian Stock Exchange on Monday.

The managing director purchased the shares at N27.75 per share on November 20, 2020 at the Nigerian Stock Exchange in Lagos, Nigeria. Meaning, Gbededo has invested another N16,992,046.5 into the company.

This was in addition to the 3,284,867 shares valued at N91,642,269 and 4,200,852 shares worth N117.62 million purchased by Gbededo earlier in the month of November. Bringing his recent purchases to 8,098,045 million shares worth N226,254,315.5. See the details of the latest transaction below.

 

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FCMB Reports 16.4 Percent Increase in Profit After Tax in Q3 2020

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FCMB

FCMB Group Plc, one of the leading financial institutions in Nigeria, reported a 16.4 percent increase in profit after tax for the third quarter of the year.

In the unaudited financial statements released through the Nigerian Stock Exchange (NSE), the lender’s profit before tax grew by 10.2 percent year-on-year to N4.8 billion while profit after tax increased by 16.4 percent to N4.2 billion.

FCBMB Group Plc expanded gross earnings by 4.8 percent to N48.3 billion during the period under review. Similarly, the bank’s net interest income rose by 30.03 percent year-on-year to N22.7 billion.

The strong performance continued across the board as net fee and commission income increased by 0.29 percent to N5.2 billion. Net trading income rose by 39.4 percent year-on-year to N1.82 billion.

Personnel expenses dropped by 7.9 percent to N6.9 billion during the quarter while general and administrative expenses declined by 7.52 percent year-on-year to N7.6 billion. Largely due to the COVID-19 lockdown.

Loans and advances to customers rose by 10.8 percent to N793.14 billion between December 2019 and September 2020. Total desposits from customers during the same period grew by 26.7 percent to N1.2 trillion.

The bank’s total assets increased by 22.12 percent to N2.04 trillion.

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Stanbic IBTC Obtains Approvals, License to Establish Life Insurance Subsidiary

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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.”

 

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