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COVID-19 Sinks Barclays Profit by 66% in H1 2020

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Barclays

COVID-19 Drags Down Barclays’s Profit by 66% in H1, 2020

Barclays Bank, one of British leading banks, on Wednesday said its first half of the year profit declined by 66 percent in the first half of 2020.

Barclays’s profit after tax declined to £695 million during the period under review, down from the £2.07 billion reported in the same period of 2019.

Accordingly, the lender’s net profit plunged by 91 percent or £1.6 billion to around £90 million during the period defined by COVID-19 lockdown and low economic activities.

“The COVID-19 pandemic has caused disruption to the Barclays Bank UK Group’s customers, suppliers and staff,” it said in Wednesday’s statement.

“In the UK severe restrictions on the movement of people have been implemented by the UK, Scottish and Welsh governments, with a resultant significant impact on economic activity.”

Chief Executive Officer, Barclays Bank, Jes Staley said: “This has been a period focused on supporting our customers, clients and the UK economy through the Covid-19 pandemic – providing the people and businesses that we serve with a bridge to recovery in every way we can.”

He added: “To help consumers with their short-term household finances more than 600,000 payment holidays have been provided along with other fee waivers and support measures.

“Our consumer business income decreased by 11% in Barclays UK … as a result of the lower interest rate environment, fewer interest earning balances, reduced payments activity and action to provide support for customers.

“Credit impairment charges increased to £3.7 billion in the first half due to the forecast impact of Covid-19. However, our improved pre-impairment performance ensured that we still delivered £1.3 billion profit before tax for the first half of 2020, post impairment.

“While the remainder of 2020 will be challenging, our diversified model means we can remain financially resilient and continue to support our customers and clients.”

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 long experience in the global financial market.

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Deposit Money Banks Start Debiting Debtors’ Other Bank Accounts

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Banks Start Debiting Debtors’ Other Bank Accounts

Deposit Money Banks (DMBs) has commenced the implementation of the new Central Bank of Nigeria’s Global Standing Instruction directive that allows them to recover outstanding debts from debtors’ other bank accounts domiciled with other banks.

The initiative was in a move to reduce the size of the debt in the banking sector, according to Godwin Emefiele, the Governor, Central Bank of Nigeria.

Deposit Money Banks have commenced the implementation on August 1, 2020

Experts have said the implementation would differentiate real wealthy businessmen from debtors parading themselves as wealthy businessmen.

Peter Esele, a former President, Trade Union Congress, stated that the new rule was long overdue, adding that it was better late than never.

He said, “The financial system has been abused and it is baffling that one man would be owing six banks in the same country; it can’t happen anywhere else.

“What the CBN is doing now is that it is sanitising the industry and we now actually know who are the real businessmen and the real big men.

“Some men are wealthy from running banks down because a lot of the big men are running banks down.”

He added the central bank and the deposit money banks should start giving credit score.

Joseph Ajaero, the President, United Labour Congress, said, “Banks that are lending money to people should make sure that they have adequate collateral.

“Ordinarily, banks cannot on their own go to another bank and take the money that was kept in another bank; they are independent and should operate independently.”

He said deposit money banks ran into trouble because they were lending without collateral.

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Ardova Revenue Declines to N35.3bn in Q2 2020

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Ardova

Ardova Posts Lower Profit After Tax in Q2 2020

Ardova Plc’s revenue declined from N40.227 billion filed in the second quarter (Q2) of 2019 to N35.262 billion in the quarter ended June 30, 2020.

In the unaudited financial statements released through the Nigerian Stock Exchange on Friday, the company gross profit expanded slightly from N2.519 billion in Q2, 2019 to N2.559 billion in Q2 2020.

Ardova, formerly known as Forte Oil, reported an operating profit of N787.407 million, up from N246.495 million decline reported in the corresponding period of 2019. While finance income depreciated from N4.254 billion in the Q2 of 2019 to N42.616 million.

Accordingly, profit before income tax dipped from N3.198 billion reported in the same period of 2019 to N591.087 million.

Similarly, profit after tax plunged from N2.126 billion achieved in the corresponding period of 2019 to N514.923 million.

Earnings per share declined from N1.63 to 39 kobo in the second quarter ended June 30, 2020.

The global pandemic that disrupted crude oil market eroded profits of oil companies and weighed on their entire operations, especially during the April-June quarter when oil prices dipped to their lowest on record.

Ardova was one of the numerous oil companies affected by the disruption in global commerce and economic activities.

The company’s total asset contracted from N47.089 billion to N45.341 billion in Q2 2020. While total liabilities declined from N30.856 billion in Q2 2019 to N28.165 billion in Q2 2020.

However, total equity expanded to N17.176 billion, up from N16.163 billion in the second quarter of 2019.

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UBA Denies N41bn Fraud Involving NITEL

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United Bank for Africa Denies N41bn Fraud Involving NITEL

United Bank for Africa (UBA) on Thursday denied the alleged N41 billion fraud linked to Mr. Tony Elumelu, its Chairman.

In the statement signed by Bili A. Odum, Company Secretary, UBA and released by the bank through the Nigerian Stock Exchange, the lender said the allegation was misleading, untrue and malicious. It, therefore, stated that it would be disregarding the allegation in its entirety.

The statement reads “The attention of United Bank for Africa (UBA) has been drawn to false reports circulating in the media alleging that UBA and some of its principal officers have been indicted in a NGN41 Billion fraud involving NITEL in Liquidation.

“We would like to use this medium to inform the general public that the reports are untrue, misleading, malicious, libellous and should be disregarded in its entirety.”

“UBA has set in motion all appropriate legal actions to ensure that the misleading reports are retracted and the perpetrators held accountable for their actions.

“UBA is a reputable global brand and responsible corporate citizen, operating in multiple jurisdictions, and will continue to conduct its business in line with global best corporate governance practices, extant laws and regulations, as it has done in over 70 years of operations.”

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