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Lafarge Africa Posts N15.262bn Profit After Selling Subsidiary



Lafarge Africa

Lafarge Africa Reports N15.262bn Profit Following Sale of South African Subsidiary

Lafarge Africa Plc on Friday said it grew profit after tax by 160 percent in the second quarter of the year to take its first half of the year profit to N23.329 billion.

In the unaudited financial statement released through the Nigerian Stock Exchange, the company said profit after tax rose from N5.864 billion recorded in the second quarter of 2019 to N15.262 billion in the second quarter of 2020.

The company’s revenue stood at N56.845 billion in the period under review, below the N59.869 billion reported in the same period of 2019. This was largely due to the recent decision by the company to let go its subsidiaries and focus on profit-making business units.

Lafarge Africa sold its South African subsidiary for US$316.3 million in 2019.

The company cost of sales also reduced from N38 billion in the corresponding quarter of 2019 to N32.762 billion in Q2 2020.

The N5.24 billion difference in cost of sale boosted gross profit by N2.21 billion from N21.868 billion posted in the same period of 2019 to N24.083 billion.

Similarly, administrative expenses reduced from N6.040 billion spent in Q2 2019 to N3.238 billion in Q2 2020. While operating profit jumped by N4.842 billion from N16.326 billion recorded in the second quarter (Q2) of 2019 to N21.168 billion.

Also, the report shows Lafarge was able to reduce not just administrative expenses by selling its South Africa subsidiary but reduced finance costs. The company’s finance costs moderated substantially from N6.209 billion in Q2 2019 to N1.940 billion in Q2 2020.

Therefore, profit before tax from continuing operations expanded from N10.866 billion in Q2 2019 to N19.375 billion in Q2 2020.

Despite paying N4.113 billion as income tax in the quarter under review, up from N1.328 billion paid in the same quarter of 2019, the company was able to post N15.262 billion profit after tax.

Speaking on the impressive performance, Khaled El Dokani, CEO of Lafarge Africa said “Q2 results remained resilient with net sales of -5.1% and recurring EBIT +29.7%, compared to prior-year period, despite the impact of the COVID-19 pandemic. The implementation of our “HEALTH, COST and CASH (HCC)” initiatives have delivered considerable improvement in our performance.”

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


CBN Maintains 11.5 Percent Monetary Policy Rate, Leaves Other Ratios Unchanged



cbn 1

The Central Bank of Nigeria led Monetary Policy Committee (MPC) has left the interest rate unchanged at 11.5 percent to further stimulate activities in the real sector of the economy.

Godwin Emefiele, the Governor of Central Bank of Nigeria disclosed this at the end of the MPC meeting on Tuesday in Abuja.

He said other parameters, the Cash Reserve Ratio (CRR), Liquidity ratio, and asymmetric corridor, were left unchanged.

According to the Governor, the committee voted unanimously to maintain the current monetary policy and attributed the surge in inflation to structural policies, the increase in pump price and the recent #EndSARS protest.

Highlights of CBN-MPC’s  Decision

  • MPR was kept at 11.50%
  • The asymmetric corridor of +100/-700 basis points around the MPR
  • CRR was retained at 27.5%
  • Liquid Ratio was also kept at 30%

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Unity Bank Grew Gross Earnings by 8 Percent to N34 Billion in Nine Months



Unity bank

Unity Bank Plc grew gross earnings by 8 percent despite COVID-19 and other headwinds that hurt the profitability of most businesses in the first nine months of the year.

A break down of the bank’s unaudited financial results for the period showed gross earnings rose by 8 percent to N33.91 billion for the nine months ended September 30, 2020, up from N31.26 billion posted in the same period of last year.

The lender’s total assets rose by 44 percent from N293.05 billion in the corresponding period of 2019 to N420.87 billion in the period under review.

Unity Bank grew profit before tax from N1.61 billion in 2019 to N1.71 billion in the period under review, while profit after tax expanded from N1.48 billion in the corresponding period to N1.57 billion in 2020.

Customers’ deposits stood at N332.36 billion during the period under review, up from N257.69 billion posted in 2019.

Commenting on the performance, Mrs. Tomi Somefun, the Managing Director/Chief Executive Officer, Unity Bank Plc, expressed delight at the strong growth recorded across the bank’s balance sheet, especially from both the liability and assets side of the business and across key indices.

She said, “even as the bank continues to innovate in its e-business product bouquet to target and support value chain business with robust technology and thus diversify its earnings base.”

Somefun said, “One of the areas that will define our strategic direction going forward is investment in alternative channels, leveraging further deployment of resources in technology.

“COVID-19 gave us a chance to test the integrity and scalability of our technology, the IT infrastructure, and the electronic banking channels, and provided us an opportunity to see where we needed to improve and strengthen, knowing that the future of sustainable banking business is in alternative channels.”

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Financial Sector Grew by 6.8 Percent in the Third Quarter



Central Bank

The finance and insurance sector that comprises of both the financial institutions and insurance subsectors grew by 5.91 percent year-on-year in nominal terms in the third quarter (Q3).

According to the National Bureau of Statistics (NBS) latest report, the financial institutions’ subsector accounted for 88.89 percent of the sector in real terms in the quarter under review while the insurance subsector contributed the remaining 11.11 percent.

During the third quarter of 2020, the financial institutions’ subsector grew by 6.8 percent in Q3 2020 from 28.41 percent in Q2 2020 and 0.61 percent in Q3 2019 despite COVID-19 and a tough operating environment. The insurance subsector, however, contracted by -18.67 percent in Q3 2020 from -29.53 percent in Q2 2020 and 3.96 percent in Q3 2019.

On a quarterly basis, the sector declined by 24.76 percent.

In terms of contribution to GDP, the finance and insurance sector contributed 2.46 percent in Q3 2020, higher than the 2.40 percent it represented a year ago and lower than the contribution of 3.76 percent achieved in the previous quarter.

The economy contracted by 3.62 percent in the third quarter following a 6.10 percent decline posted in the second quarter. Nigeria is officially in the second economic recession in four years.

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