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Union Bank Reports N15bn Full Year Profit, Grows First Quarter Profit by 16%

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  • Union Bank Reports N15bn Full Year Profit, Grows First Quarter Profit by 16%

Union Bank of Nigeria (UBN) Plc, yesterday released its audited financial results for the year ended December 31, 2017 and first quarter (Q1) ended March 31, 2018. While the full year profit recorded a marginal decline that of Q1 rose by 16 per cent.

UBN posted gross earnings of N163.8 billion for the full year, up by 26 per cent from N126.6 billion in 2016. Net interest income improved from N65 billion to N66.6 billion. Impairment charges rose from N27.7 billion to N31.7 billion. Profit before tax (PBT) was N15.519 billion, showing a marginal decline from N15.738 billion, while profit after tax stood at N14.608 billion, down by five per cent from N15.391 billion in 2016. .

However, the bank has shown brighter prospects in Q1 of 2018, recording gross earnings of N39.5 billion compared with N34.3 billion in Q1 of 2017. Interest income had grown by 14 per cent to N31.7 billion in 2018 as against N27.7 billion in 2017. Net interest income before impairment increased by 22 per cent to N17.8 billion in 2018 compared to N14.6 billion in 2017, driven by 14 per cent increase in interest income and a lower six per cent increase in interest expense. Non-interest income also rose by 18 per cent from N6.6 billion to N7.8 billion. PBT tax rose from N4.7 billion in 2017 to N5.4 billion in 2018, while PAT to N5.3 billion in 2018 from N4.5 billion in 2017.

The Chief Executive Officer of UBN Mr. Emeka Emuwa, said the Q1 reflected the bank’s renewed focus on driving efficiency and productivity with a view to fully leveraging resources including human, technology and new capital to maximize the bottom line.

“While we are just in the early stages of this drive, we are already starting to see positive results,” Emuwa said.

Emuwa disclosed that the bank had been pushing strongly on debt recovery efforts across board including initiating or continuing legal action where necessary.

“For the first half of the year, we will continue to hone initiatives around our productivity drive, focusing our people on targeted opportunities across regions and optimising our technology and digital platforms to deliver operational efficiency and improved customer service,” he said.

Also speaking on the results, the Chief Financial Officer of UBN, Oyinkan Adewale said while the Q1 results reflected the adoption of International Financial Reporting Standards (IFRS) 9, which came into effect at the start of 2018, the bank’s regulatory risk reserve was adequate to absorb the impact of the new accounting rules.

“Our capital adequacy ratio (CAR) remains robust at 17.9 per cent in spite of the impact of IFRS 9 on impairments. Liquidity ratio is at 39.4 per cent, well above the minimum requirement, while net interest margin improved to 8.73 per cent in first quarter 2018 from 7.14 per cent in first quarter 2017,” Adewale said.

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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Access Bank Enters Into Definitive Agreement With Cavmont Capital

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Access Bank Signs Definitive Agreement With Cavmont Bank Ltd

Following July 8, 2020 announcement, the Board of Access Bank Plc on Thursday said its subsidiary, Access Bank Limited (Zambia) has entered into a definitive agreement with Cavmont Capital Holdings Zambia regarding the acquisition of Cavemont Bank Ltd.

In the statement released through the Nigerian Stock Exchange, the bank said the proposed acquisition will position Access Bank as one of the top 10 banks in Zambia and improve the bank’s momentum to advance its strategic objectives.

The bank said “This is a highly complementary transaction, combining ABZ’s wholesale and trade finance capabilities with Cavmonth Bank’s retail and commercial banking operations. Customers of the enlarged bank will benefit from greater security offered by what will be one of the most capitalised banks in Zambia with a more diversified product and service offering and a broader geographical footprint and infrastructure. The enlarged bank will be well-placed to participate in the long-term economic growth of Zambia, predicated on the country’s vast reserves of natural resources and fast-growing young population.

The transaction agreement showed Access Bank Zambia will acquire the entire issued share capital, assets and liabilities of Cavmonth Bank while Capricorn Group Limited, majority shareholder of Cavmonth Capital Holdings, will invest around $16.5 million or ZMW300 million of preference shares into Access Bank Zambia.

According to the bank, the transaction is expected to be completed in the fourth quarter of 2020.

Speaking on the transaction, Herbert Wigwe, the Group Managing Director, Access Bank Plc, said “Access Bank is focused on building the scale needed to become a leading bank in its key operating markets through leveraging the right partnerships. This transaction underscores our approach and is another stepping stone towards delivering on our strategic aspirations of becoming the World’s Most Respected African Bank and Africa’s Gateway to the World. It will strengthen our presence in Zambia, while furthering our footprint for growth in the COMESA region, Africa’s largest free trade area.

“Over the years, we have worked hard to build a sustainable international bank of African origin that can expand the potential of businesses, support economic prosperity, facilitate trade and investment and extend the power of banking to millions of people who do not yet have the financial tools to achieve their dreams. This proposed transaction aligns with that strategy”.

Thinus Prinsloo, Managing Director of Capricorn Group, also said: “Access Bank is an African banking group with an impressive growth trajectory and geographic reach across Africa and internationally. This transaction is an excellent strategic fit with Cavmont Bank’s presence in Zambia and will strengthen the capital base from which to achieve long-term sustainable growth. Zambia is an economy with th potential that is poised for a robust recovery, and this combination best positions the combined bank to harness these opportunities“.

Peet van der Walt, the Managing Director of Cavmont Bank, explained that: “Cavmont Bank’s vision is to be a world-class bank, rated amongst the best in Zambia. This proposed merger with Access Bank Zambia accelerates our strategy and positions us as a top ten bank in the country. As a subsidiary of one of the largest banking groups in Africa, Access Bank Zambia has the scale, capabilities and ambition to enable the combined bank to pursue exciting strategic opportunities in Zambia.

“Our customers will benefit from greater security offered by one of the most capitalised banks in the country, increased scale in Zambia, access to a broader digital and retail offering, and a geographic network across the continent. We look forward to working closely with Access Bank to deliver the benefits of the merger to all the stakeholders.” Shareholders should note that the cautionary announcement dated July 8, 2020 is hereby withdrawn and shareholders are no longer required to exercise caution when dealing in the group’s shares in relation to the potential transaction.”

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FIRS Says All Illegal Stamp Duty Fees Collected By NIPOST Will Be Recovered

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‘All Illegal Stamp Duty Fees Collected By NIPOST Will Be Recovered’ Says FIRS

The Federal Inland Revenue Service (FIRS) has responded to the allegation levied against its body by the Nigerian Postal Service (NIPOST) over the printing and sales of Stamp Duty to the public.

FIRS Nigeria, in a tweet titled ‘‘That Vexed NIPOST Tweet by Mrs. Maimuna Abubakar’’ responded to an earlier tweet by Maimuna Abubakar, the chairperson, NIPOST.

FIRS stated that normally it would not have responded to the tweet but given the sensitivity of the situation, it must, therefore, respond in order not to mislead the public.

Part of the Tweets read “NIPOST is a government parastatal established by Decree 41 of 1992 with the function to *develop, promote, and provide adequate and efficiently co-ordinated postal services at reasonable rates*.”

“This function is clearly contrary to the claim by NIPOST over the administration of stamp duties in Nigeria. On the other hand, the FIRS is the sole agency of government charged with the responsibility of *assessing, collecting, and accounting for all tax types including Stamp Duties*.”

FIRS, therefore, said all illegal funds collected by NIPOST for stamp duty will be recovered to the last kobo in line with President Muhammadu Buhari’s inaugurated Inter-ministerial committee, on the recovery of stamp duties from 2016 till date.

The tweet also noted that “In addition, anyone found culpable of misappropriating the funds in the said illegal NIPOST Stamp Duties Account would be made to face the law as provisioned by the country’s statute books.’’

‘‘The public is hereby reminded that we at the FIRS are resolute in our resolve to safeguard national interests and not any personal ego or interest as NIPOST officials appear to carry on lately.’’

A recap to what Mrs. Maimuna Abubarka tweeted on Sunday August 2, 2020 on her twitter handle at @reg_ng. says that “I am worried for NIPOST, having sleepless night because of NIPOST, we need the general public to come to our aid, FIRS stole our mandate FIRS are now selling stamps instead of buying from us.’’

“What is happening, are we expected to keep quiet and let FIRS kill and bury NIPOST? We need to get our mandate back.”

“NIPOST are the sole custodians of national stamps, another agency printing and selling stamps is against the law/ of the land.”

Abubakar also added that “FIRS did not only steal our stamps but also our ideas, what NIPOST had worked for since 2016, our documents, patent and sneaked everything into finance bill and tactically removed the name of NIPOST.’’

“I like to make this clear, NIPOST is the only agency charged with the responsibility of producing adhesive stamps and revenue for the for the purchase of such stamp accrues to NIPOST.”

“There is no where in FIRS act or stamp duty act where it’s so stated that FIRS can produce stamp or sale stamp.”

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FCMB Grows Profit by 29 Percent to N9.7bn in H1 2020

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FCMB Posts 29 Percent Increase in PAT to N9.7bn in H1 2020

FCMB Group Plc has said its profit before tax expanded by 26 percent in the first half of the year ended June 30, 2020.

The lender grew profit before tax from N8.8 billion reported in the same period of 2019 to N11.1 billion in the period under review.

The lender disclosed this in a statement on “FCMB Group records impressive half year results as profit before tax rose by 26 per cent to N11.1bn,” released on Tuesday.

Profit after tax grew by 29 percent year-on-year to N9.7 billion in the first half of the year despite the COVID-19 pandemic.

This, according to the lender, translated to a 9.4 percent return on average equity and 49 kobo earnings per share, an increase of 16 percent and 29 percent year-on-year, respectively.

It explained that FCMB Group comprises of commercial and retail banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited).

The statement noted that the Group has corporate & investment banking (the Corporate Banking Division of the Bank, FCMB Capital Markets Limited and CSL Stockbrokers Limited).

Also, the Group owned the asset & wealth management arms (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited).

FCMB said, “The half year results also showed that the group recorded an increase in gross revenue by nine per cent to N98.2bn as against N89.8bn for the same period last year.

“Net interest income equally rose by 17 per cent for the first half of 2020 to N45.4bn from N38.7bn posted in the first half of 2019, while non-interest income stood at N17.5bn, an increase of 14 per cent compared to N15.3bn within the six months period last year.”

Lender’s loans and advances rose by 29 percent year-on-year during the period under review and four percent on a quarterly basis to N794.6 billion.
Accordingly, customer deposits jumped up by 28 percent year-on-year to N1.1 trillion in the first half of the year.

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