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Accion MFB Declares N1.05bn PAT

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Accion Microfinance Bank has announced N1.05 billion profit after tax (PAT) in its 2018 financial statement, Compared to N809.76 million recorded in 2017. This represented a 30 per cent growth.

While the bank’s return on equity closed at 23 per cent, its shareholders’ funds grew to N4.61 billion as against the N3.91 billion recorded in 2017, which was a growth of 18 per cent.

Speaking at the Annual General Meeting (AGM) of the bank in Lagos, the Chairman, Accion Microfinance Bank, Patrick Akinwuntan, noted that the growth performance clearly depicted the effective deployment of capital provided by our shareholders.

He stated further that the bank had continued to manage its capital base to cover risks inherent in its business as it closed the year with a capital adequacy ratio of 50 per cent as at December, 2018 as against the regulatory requirement of 10 per cent.

Also, commenting on the development, the Managing Director, Accion, Mr. Taiwo Joda, said 2018 had challenges characterised by the apprehensions around security and other policy uncertainties in the run-up to the 2019 general elections that slowed down businesses, “nonetheless, the bank was able to weather the storm.”

Taiwo, added that the customer deposits maintained a strong growth of 15 percent, from N2.44 billion in 2017, to N2.81 billion, while the number of depositors/savers and accounts grew by 49 per cent and 44 percent respectively.

According to Joda: “In line with our determination to continually provide easy access to financial services to our clients, we deployed various initiatives in this regard during the year.

“This also enabled us to on-board new clients using our e-Channels (ATMs and POS) and Agency banking network. Cumulatively, the number of ATM cards issued to our customers closed at 72,768 as at December 2018 while the number of the bank’s active agents closed at 204.

“The deployment of the Digital Field Application (DFA) and Electronic digital management system (EDMS) also impacted positively on our service delivery in 2018. Further, our core banking application was upgraded from R10 to the new R16 model of T24 to serve our Customers better while also deploying other ICT Customer-centric initiatives, some of which include the upgrading of the NIBSS Instant Payment (NIP) platform for better customer service.”

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Bidvest Bank trading profit rises 3.5% to R6.7bn

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The Commercial bank in the Republic of South Africa trading, distribution and services group Bidvest said recently its trading profit for the year ended June 30 rose 3.5 percent to R6.7 billion despite flat revenue.

Headline earnings per share were up 9.8 percent to 1,352.1 cents and the company said exceptional cost and capital discipline as well as improved margins were highlights against a volatile trading backdrop.

The CEO Bidvest Bank Lindsay Ralphs said, “There has been a strong focus on our clients, on solutions, innovation, wholesaling the right product at the appropriate price point as well as bolt-on acquisitions in the services and office & print divisions, which has culminated in acceptable growth.”

The group declared a final cash dividend of 318 cents per share, bringing the total dividend for the year to 600 cents, up 7.9 percent from last year.

Strong profitability gains were achieved at Adcock Ingram while Comair recognised the successful claim awarded against South African Airways, which increased Bidvest’s share of profits from these associated companies.

Bidvest said its diverse portfolio of businesses and extensive reach allowed it to weather challenging times.

“Our basic-need services and everyday essential product ranges enable us to support and add value to all our stakeholders. Innovation to disrupt ourselves, and the industries in which we operate, remains a core focus alongside disciplined asset management and cost control,” Ralphs added.

 

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Guinness Nigeria Declares N5.5bn Profit, N3.3bn Dividend

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A leading beverage alcohol firm in Nigeria Guinness Nigeria, recently announced a profit after tax (PAT) of N5.483 billion for the year ended June 30, 2019, compared with N6.718 billion. The profit was actualized from a revenue of N131.498 billion as against N142.975 billion in 2018.

Net financing income fell from N3.443 billion to N1.862 billion, while profit before tax (PBT) was N7.103 billion, down from N9.943 billion in 2018. The board of directors has recommended a dividend of N3.329 billion.

Commenting on the result, the Managing Director, Guinness Nigeria Plc, Mr. Baker Magunda, stated that the company would continue to work on all operating indices while expecting that the micro and macroeconomic parameters improve.

Magunda mentioned that: “Revenue for the year declined 8% compared to same period last year on the backdrop of an extremely challenging macroeconomic and competitive environment. The cost of the increase in excise duty at a time of stagnant consumer disposable income had to be absorbed by industry players. Despite the tough competitive landscape, we continue to see good growth performance from Guinness, Spirits and the malt drinks.”

According to him, a combination of factors, inflation plus prior year royalties and accruals not approved by NOTAP, led to a 17 per cent decline in gross profit for the organisation.

Magunda explained that “Marketing spend reduction by 16 per cent and distribution costs initiatives partly mitigated the gross profit decline, thus leading to a fall in operating profit by N4.4 billion. Profit before tax decreased by N2.8 billion as a 46 per cent reduction in net finance costs further helped to cushion the decline in operating profit,”

Also speaking on the performance, Chairman of the company, Mr. Babatunde Savage, said: “As a board, we are confident that our strategy is sound, and that we are making the right investments in the company to ensure our long-term competitiveness. The Board will continue to support the management in its efforts to build a business that aims to consistently deliver growth for stakeholders.”

The company noted that despite the challenges, it continues to fulfill its commitment to stakeholders particularly as it drives its renewable energy and water recovery project for sustainable environment.

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Zenith Bank grows profit to N111.7bn, in H1’19

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Nigeria’s leading financial service Zenith Bank Plc has announced profit before tax (PBT) of N111.7billion and proposed interim dividend of 30 kobo per share for the half-year ended June 2019 (H1’19).

This was disclosed by the bank in its audited financial results for H1’19 released recently which showed improved performance in key financial indicators.

In a statement announcing the results, the bank said: “Gross earnings grew by three percent from ¦ 322.2 billion to ¦ 331.6 billion driven by a significant growth of 24 percent (YoY) in non-interest income from ¦ 88.6 billion in H1 2018 to ¦ 109.7 billion in H1 2019.”

It further said: “In particular, fees from electronic products increased by ¦ 17 billion (168 percent) from ¦ 10 billion in H1 2018 to ¦ 27 billion in H1 2019, demonstrating significant progress in our retail banking initiatives.”

“This top-line growth filtered through to the bottom-line as Profit Before Tax (PBT) increased to¦ 111.7 billion reflecting a four percent growth over ¦ 107.4 billion reported in H1 2018 with earnings per share (EPS) increasing by nine percent to ¦ 2.83 in H1 2019 from ¦ 2.60 compared to the prior period.” It added.

 

 

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