Recent reports reveal that surging interest rates, high inflation, high gas prices, and some other economic factors devastated the U.S. auto industry in 2022.
Automakers in the world’s largest economy were faced with weak demand for new vehicles as household income declined amid a high cost of living.
This surge in consumer prices created uncertainty among players in the automobile industry as they struggle to project the market outlook for 2023, especially after the International Monetary Fund (IMF) predicted that one-third of the world’s economies would be in recession this year.
Speaking in an interview, Senior Director of Industry Insights and Cox’s senior economist Charlie Chesbrough said, “This is one of those rare times where we really have no idea which direction the market could go. It could easily go up or down from where we’re at right now. The pace over the last couple of months has been definitely pointing to a weakening market.”
Investors King understands that in 2022, about 13.9 million new vehicles were sold in the U.S, an 8% decline compared with 2021 and the lowest since 2011 when the industry was recovering from the Great Recession.
Sales of vehicles had topped the 17 million mark for five straight years before the Covid-19 pandemic struck in 2020, unleashing supply-chain problems that have affected deliveries ever since.
Many analysts at Wall Street predict that profitable days for automakers may be nowhere near, as there is still surging higher interest rate and other economic challenges.
Meanwhile, a few car executives disclosed that they are optimistic that sales will improve in 2023, as vehicle inventories improved towards the end of 2022.
Some executives disclose that sales have been at or near recessionary levels due to parts and supply chain issues, plus demand has piled up from consumers and businesses after years of tight vehicle inventories during the pandemic.
Also, Toyota and GM disclosed that they expect U.S. auto sales to increase to about 15 million vehicles this year, which would be a roughly 9% increase over 2022.
Wema Bank’s profit increases by 41.5% to N12.6 billion in 2022
The financial statement by Wema Bank Plc has revealed a profit of N12.6 billion for the year 2022. The amount is 41.5% higher than the N8.8 billion in the previous year.
The company raked in N129 billion gross profit for the period from the N93 billion it saw in 2021.
Interest income stood at N104 billion in 2022 compared to N74 billion filed in 2021. Loans and advances to customers rose to N82 billion in 2022 from N64 billion the previous year. Included in interest income on loans and advances, however, is modification loss of N600 million for the group and bank.
It represents the changes in gross carrying amount of the financial asset from immediately before to immediately after modification. The modifications were not as a result of credit deterioration.
Interest expenses also increased for the period to N53 billion from N34 billion led by deposits from customers which improved to N45 billion for the period compared to the N27 billion the previous year as the net interest income amounted to N51 billion from N39 billion in 2022.
The net fee and commission income was N16 billion for the period compared to N13 billion in the previous year as other fees and charges spiked for the period.
Net trading income was up to N4 billion from N1.6 billion as the bank made gains on fixed income securities, treasury bills and foreign exchange trading. Foreign exchange trading income is principally made up of trading income on foreign currencies, as well as gains and losses from revaluation of trading position. The amount reported are totally from financial assets carried at fair value through profit or loss.
Other income however declined to N2.9 billion from N3.3 billion in the previous year. This is as the bank decline in FX revaluation, service charge and others. Also the operating Income valued N74 billion in 2022 from N57 billion in 2021.
Jaiz Bank Improves 2022 Profit by 46% to N6 Billion
Jaiz Bank reported an increase in its profit for the year 2022 to N6 billion. The financial report seen by Investors King shows that the value reported is 46% greater than the amount reported the year before.
During the year, the income from financing jumped to N22 billion in 2022 from N15 billion in the previous year led by improvement in Murabaha transactions, Ijara transactions and profit from others.
Murabaha is an Islamic banking contract that is basically a contract for the sale of goods at cost plus an agreed profit while the Ijara process is asset-based rather than credit-based Islamic financing method.
The bank saw an increase in income from financing contracts as Murabaha’s profit in the corporate and retail values rose to N8.8 billion and N4.1 billion in 2022 from N6.6 billion and N2.9 billion reported in the previous year. Also, Ijara Wa Iqtina Profit- Corporate and Ijara Wa Iqtina Profit-Retail grew to N1.8 billion and N2.4 billion in 2022 from the respective N1.3 billion and N2.2 billion in the previous year.
As for income from investment activities, trading assets and Sukuk drove the segment to record N2 billion and N7.6 billion respectively from N1 billion and N7.9 billion in 2021 while the gross income from financing transactions was N31 billion from N24 billion in 2021.
Bank’s fees as Mudarib/profit from Bank joint investments totaled N28 billion from N20 billion in the previous year. The amount of profit paid from financing investment to Mudarabah account holders amounted to N7 billion from N6 billion while profit from joint investment amounted to N13 billion from N9 billion in 2021.
Fees and Commission Income – consisting banking services, net income from e-business and LC trade finance income – as well as other operating income – consisting Wakala income and miscellaneous income – amounted to N1.6 billion and 340 million from N1.1 billion N557 billion.
Staff cost, depreciation and amortization and operating expenses drove total expenses to N16 billion compared to the N13 billion in the previous year and the profit before tax was N6.7 billion from N4.4 billion.
Black Market Dollar To Naira Exchange Rate For Today 8th February 2023
This online business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.
Note that the exchange rate changes hourly.… it depends on the volume of dollars available and the Demands. It means that…you can buy or sell 1 dollar at ₦752 and ₦755, and the price can change (high or low) within hours.
How Much Is Black Market Dollar To Naira Exchange Rate Today?
Dollar to naira exchange rate today black market (Aboki dollar rate):
Investors King understands that the exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N747 and sell at N751 as of the time of filing this report.
|Dollar to Naira (USD to NGN)||Black Market Exchange Rate Today|
The local currency opened at N751.00 per $1 at the parallel market otherwise known as the black market today Wednesday, 8th February 2023, in Lagos Nigeria, after it closed at N755 per $1 on Tuesday, 7th February 2023.
Even though the dollar to naira opened in the parallel market at N751 per $1 today, Investors King reports that the Central Bank of Nigeria (CBN) does not recognize the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.
Investors King reports that in the black market, the players buy a dollar for N747 and sell for N751 on Wednesday morning, February 8, 2023, after they purchased N752 and sold for N757 on Tuesday, 7th February 2023.
Factors Influencing Foreign Exchange Rates
Here are some of the causes of the dwindling dollar to naira exchange rate.
Inflation Rates: It is well known that inflation directly impacts black market exchange rates. If the Nigerian economy can be stabilized and inflation is controlled, the naira will benefit; however, if the naira continues to fall, it may indicate that food and other necessities are becoming more expensive daily.
Interest Rates: Another tool to keep an eye on is interest rates. If the interest rate at which banks lend money rises, it would harm the economy, causing it to contract and, as a result, the value of the naira to fall.
Government Debt: National debt can impact investor confidence and, as a result, the influx of funds into the economy. If inflows are high, the naira exchange rate will rise in favour of the naira.
Speculators: Speculators frequently impact the naira-to-dollar exchange rate. They stockpile money in anticipation of a gain, causing the naira to plummet even lower.
Conditions of Trade: Favorable trade terms will increase the value of the naira to the dollar, although Nigeria is currently experiencing a trade deficit. Everything comes from China, India, and the majority of Asian countries.
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