- UBA, Stanbic IBTC’s Impairment Charges Hit N47.5bn
United Bank for Africa Plc and Stanbic IBTC Holdings Plc have set aside N47.48 billion to cover bad loans in their 2016 financial results. The provision showed a jump of 138 per cent compared to N19.9 billion they set aside in 2015.
Access Bank Plc, Guaranty Trust Bank (GTBank) Plc and Zenith Bank Plc, had reported a total loss provisions N119.59 billion, indicating an increase of 183 per cent from N42.297 billion in 2015.
However, when UBA and Stanbic IBTC released their audited results last week, they followed the same trend of rising impairment charges as a result of the economic headwinds that had affected some of their debtors.
A breakdown of the impairment charges showed that UBA made the higher provision of N27.68 billion, which is a significant jump from N5.06 billion in 2015. That of Stanbic IBTC rose from N14.9 billion to N19.8 billion.
Despite the huge impairment charges, both financial institutions ended the year with higher profit after tax (PAT). For instance, Stanbic IBTC Holdings grew its PAT by 51 per cent to N28.52 billion, from N18.891 billion in 2015.
UBA’s PAT rose by 22 per cent from N60 billion to N72 billion in 2016. Based on the performance, the Board of Directors of UBA proposed a final dividend of 55 kobo,, bringing the total dividend to 75 kobo per share for the year. The bank had earlier paid an interim dividend of 20 kobo.
Commenting on the results, the Group Managing Director and Chief Executive Officer of UBA, Kennedy Uzoka expressed satisfaction at the resilience of the bank, despite the macroeconomic challenges in a number of countries where it operates.
He said: “Given the operating environment in 2016, I am very pleased with our profitability – an impressive 32 per cent growth in profit before tax to N91 billion – whilst we have also focused keenly on operational efficiencies, illustrated by the reduction in our Cost-to-Income Ratio.”
Speaking on the bank’s outlook for the 2017 financial year, Uzoka said: “As we implement our Customer First Philosophy, we are approaching 2017 with real optimism, especially with the outlook remaining positive in many of our markets, where we benefit from our increasingly diverse revenue streams. We reiterate our pledge to delivering excellent service to our customers, and remain committed to creating superior and sustainable return for our shareholders.”
Speaking in the same vein, Chief Financial Officer (CFO) of UBA Group, Ugo Nwaghodoh said, 2016 performance reflected the strong potential and resilience of the bank’s business.
“We grew top and bottom lines by 22 per cent and 32 per cent respectively, despite the stagflation in Nigeria, our core market. Reflecting improved balance sheet management and better value extraction, our net interest margin (NIM) improved to 6.7 per cent,” he said.
Npower News on Permanency for Batch A, B
Npower News on Permanency for Batch A and Batch B
Hajiya Sadiya Umar Farouq, Minister of Humanitarian Affairs, Disaster Management and Social Development, recently said the exited and eligible N-power beneficiaries will be absorbed into government programmes and by private organisations for a permanent job.
On N-power Permanency, she said “We have directed Focal Persons of National Social Investment Programmes in the states to submit an updated list of the exited N-Power beneficiaries that are interested in participating in the transition plans of the ministry.
On stipend, she said the payment has been approved by President Muhammadu Buhari and outstanding stipends paid to exited N-power beneficiaries of Batch A and B.
“Meanwhile, approval has been given for the payment of the outstanding stipends for the exited N-Power Batches A and B beneficiaries.
“The approval for payments for up to the month of June, 2020 for the two Batches has already been forwarded to the office of the Accountant General of the Federation (AGF) for final checks and payments.
“The only outstanding approval waiting to be forwarded to AGF’s Office is for the payment of July Stipends for batch B beneficiaries,” she said.
The minister said she has requested the details of those affected and the reasons for their rejection. She promised to communicate that to the affected beneficiaries.
Several organisations and stakeholders have called on Federal Government not to disengage Batch A and B beneficiaries but rather absorbed them into government parastaNpower News on Permanencytals to further ease the unemployment rate.
Appealing to Federal Government, Umuahia, National Chairman of Isun Multipurpose Cooperative Society, Sir Isaac Nkole said, ”The introduction of N-Power stands out as one of the best policies of the Federal Government under President Muhammadu Buhari. A lot of graduates have been engaged through the scheme. Some of them are in N-Teach, N-Agro, N-Tax and N-build. I appeal to President Buhari not to listen to anyone advising him to disengage the beneficiary as being speculated that the programme will be stopped by the 26th of this month.
“The questions are; If you disengage these graduates that are helping to improve the quality of education in primary schools, where do you want them to go? Is it to the over-saturated labour market or the crime industry?”
Visa and She Leads Africa Partner to Deepen Support for African Female Entrepreneurs
Visa, She Leads Africa Partner to Deepen Support for African Female Entrepreneurs
Visa Inc and She Leads Africa, an organisation that empowers female entrepreneurs in Africa, have joined forces to deepen support for over 700,000 African female entrepreneurs.
According to a statement put out by Visa, the partnership is part of Visa’s ‘Where you Shop Matters’ initiatives launched earlier in June to champion and enable entrepreneurs across Africa.
The global payment company said women are the backbone of African economies. The company backed this up with the 2018/2019 report from the Global Entrepreneurship Monitor Women’s Entrepreneurship that estimated that 21.8 percent of women from sub-Saharan Africa are entrepreneurs, the highest in the world.
Corine Mbiaketcha, Visa General Manager for East Africa, said “our partnership with She Leads Africa, will enable us to engage over 700,000 female entrepreneurs across Africa through digital channels and direct engagements with female-owned businesses.”
Afua Osei, Co-Founder of She Leads Africa, said “we are so grateful for the opportunity to collaborate with Visa to support the incredible women in our community with learning and growth opportunities. Our community is passionate and committed to making an impact with their businesses and partnering with Visa enables us to share resources that will help them take it to the next level.”
African women entrepreneurs continue to face a myriad of challenges ranging from cultural barriers that require overcoming the narrow classification of child-bearer and or home manager, to a shortage of role models, inadequate access to financial assistance and limited educational opportunities.
Mbiaketcha concludes, “There are too many reasons why female-led organisations fail to flourish and we as Visa are committed to addressing these challenges by partnering with organisations such as She Leads Africa so that we can empower the next generation of female African businesses owners with the tools to not only survive but to thrive.”
Fuel Scarcity Looms as NARTO Directs Tanker Drivers to Halt Operations
NARTO Tells Fuel Tanker Drivers to Ground Operations
The Nigerian Association of Road Transport Owners (NARTO) has directed all tanker drivers under the association to halt operations following the government’s directive banning operations of petroleum trucks more than 45,000 litres on Nigerian roads.
NARTO, the umbrella association of all commercial vehicles owners in Nigeria engaged in the haulage of petroleum products, general cargoes, and movement of goods and passengers within the country and the West-African sub-region, said members of the association will park their truck on Tuesday and Wednesday as warning against the ban.
Speaking on the situation in Abuja, NARTO’s National President, Yusuf Othman, said: “NARTO received with grave shock the recent government decision to place immediate ban on all petroleum trucks above 45,000 litres capacity from plying Nigeria roads.”
Othman explained that government’s sudden ban was insensitive and unappreciative of tankers efforts at strengthening the supply chain of petroleum products across the nation.
He said, “In view of the above, we are therefore constrained to allow the decision of all our members to park their trucks as from tomorrow, 22nd to 23rd September, 2020, to prevail as warning.
“And furthermore, issue 10-day ultimatum with effect from 24th September, 2020, for a full blown withdrawal of service.”
He added, “If such scenarios occur, we earnestly plead with those who will lose employment, income and the general public that will be negatively affected by this avoidable situation.”
NARTO argued that it was discouraging and distressing to abruptly enforced new policy without giving tanker drivers time to phase out affected trucks.
Othman said, “The leadership of NARTO is not in any way against the decision of the Federal Government to ban the use of trucks with more than 45,000 litres capacity in the conveyance of petroleum products considering the dilapidated state of Nigerian roads.
“But NARTO is particularly concerned about the sudden and prompt nature of the ban. We consider the approach to be highly insensitive to the huge investments the owners of these trucks have made and debts they incurred in executing the mandate given by previous administration.”
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