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Lafarge Africa Posts N15.262bn Profit After Selling Subsidiary

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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 Investing.com, with over a decade experience in the global financial markets.

Finance

Stanbic IBTC Reports N20.9 Billion Profit in the Third Quarter

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Stanbic IBTC Bank

Stanbic IBTC Posts N20.9 Billion Profit After Tax in the Third Quarter (Q3)

Stanbic IBTC Holdings Plc on Monday released its financial statements for the third quarter (Q3) of 2020.

In the financial results released through the Nigerian Stock Exchange (NSE), the lender generated revenue of N56.72 billion in the third quarter, below the N58.78 billion recorded in the same quarter of 2019.

Net interest income also declined slightly from N19.362 billion posted in the corresponding period of 2019 to N18.71 billion in Q3 2020.

Non-interest revenue rose to N28.66 billion in the quarter under review, up from the N27.09 billion posted in Q3 2019.

Accordingly, the total income for the period grew from N46.45 billion achieved in the third quarter of 2019 to N47.37 billion in Q3 2020. While operating expenses increased slightly from N21.52 billion in Q3 2019 to N22.31 billion in Q3 2020.

Profit before tax remained unchanged at N24.46 billion in the quarter under review when compared to the same N24.46 billion posted in the same quarter of last year.

However, profit after tax rose to N20.96 billion in the third quarter of 2020, thanks to tax differential. The lender posted N19.31 billion in the same period of 2019.

Earnings per share grew from 179 kobo in Q3 2019 to 183 kobo.

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More Retirees Quit Pension Scheme, Collects N28.46 Billion

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Pensioners

114,837 Retirees Quit Pension Scheme, Collects N28.46 Billion

Thousands of retirees whose employers did not adequately fund their Retirement Savings Accounts and retired with balances below N550,000 have collected their contributions and quit the Contributory Pension Scheme (CPS).

A total of 114,837 employees who retired after attaining the age of 50 and had less than N550,000 in their CPS account had collected their contributions and left the scheme as of the end of June 2020.

This includes contributors from the state, federal and private sectors.

In the quarterly report released on Friday by the PenCom, these retirees withdrew a total sum of N28.46 billion since the inception of the scheme till June.

The report showed about 6,561 of the total retirees that left the program were from the Federal Government sector while 3,879 and 104,397 were from the state and private sectors, respectively.

The report also showed that some of those who collected their contributions included foreign nationals who retired and returned to their countries of origin.

A further breakdown showed as of the end of third quarter of 2019, a total of 109,284 retirees with similar low balances withdrew N27.09 billion. While by the final quarter of 2019, 2,241 retirees withdrew about N569.27 million.

In the first quarter and second quarter of 2020, about 2,227 and 1,085 retirees withdrawn N531.95 million and N274.09 million, respectively. Bringing the total from inception to N28.46 billion.

PenCom stated in its Q2 report on en-bloc payments that, “The commission granted approval for the payment of the entire RSA balances of the categories of retirees whose RSA balances were N550,000 or below and considered insufficient to procure a programmed withdrawal or annuity of a reasonable amount over an expected life span.

“Approval was also granted for payment of RSA balances to foreign nationals who decided to return to their home countries after making contributions under the CPS.

“Accordingly, the sum of N274.78m was paid to 1,085 retirees, which comprised 140 from the public sector retirees (FGN and state) and 1,085 from the private sector retirees during the second quarter.

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Finance

Central Bank to Promote Zero Balance Account Opening to Drive Financial Inclusion

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Central Bank

Banks Now Accept Zero Balance Account Opening to Deepen Financial Inclusion

In an effort to boost financial inclusion in the country, the Central Bank of Nigeria has said it would start promoting zero balance account opening to encourage and lure the unbanked into the banking system.

The apex bank disclosed this in its report titled ‘Monetary, credit, foreign trade and exchange policy guidelines for fiscal years 2020/2021’.

The report read in part, “As part of its effort towards promoting greater financial inclusion in the country, the bank shall continue to encourage banks to intensify deposit mobilisation during the 2020/2021 fiscal years.

“Accordingly, banks shall allow zero balances for opening new bank accounts and simplify their account opening processes, while adhering to Know-Your-Customer requirements.

“Banks are also encouraged to develop new products that would provide greater access to credit.”

The apex bank said the Shared Agency Network Expansion Facility, launched to deepen provision of financial services in under-served and unserved locations and drive financial inclusion through agent banking, would continue in the 2020/2021 fiscal years.

Banks, mobile money operators and super-agents would also continue to render returns in the prescribed formats and frequency to the CBN.

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