Zenith Bank
Business and Economy

Business and Economy (219)

WEMA Bank Plc has posted net interest income of N13.9 billion in its unaudited financial results for the period ended September 30, 2014.   

This, according to the bank represents 71per cent growth, when compared to N8.1billion achieved in the corresponding period in 2013.

The bank’s operating profit also rose from N15billion in 2013 to N19 billion during the period under review.

   Profit before tax recorded 345 per cent growth, from N0.56billion in 2013 to N2.5 billion in 2014.

   Reacting on the performance, the Managing Director/CEO of the bank, Segun Oloketuyi  said: “While we remain on course in achieving our growth targets as set out by our growth plan, Project LEAP, we are delighted to announce continuous quarter-on-quarter improvement in our financial performance as displayed in our Q3 results. 

   “Our Total Assets are up 6per cent from December 2013 and loans have risen by 29per cent in the same period. Profit before Tax grew by 345per cent compared to the equivalent period in the last financial year and 47per cent in Q3, this year, spurred by a 44per cent growth in Net Interest Income and a 51per cent rise in Fees& Commission Income quarter on quarter respectively.

  “Our operations are also becoming more efficient with cost-to-income ratio down 900 basis points to 86per cent from 95per cent at year-end 2013and a downward trending NPL ratio of 2.5per cent. Return on Equity (ROE) has also improved from 3.9per cent in 2013 to 9per cent this quarter. These achievements, when combined with our growing deposit base illustrate that our turnaround initiatives are indeed yielding results,” he added.

   He explained that the bank opened three new branches in the last quarter, and embarked on a renovation exercise on four of its branch network located in key commercial and retail hubs, “whilst keeping a keen eye on possible opportunities in the market to grow our business inorganically.”

  “ We have obtained our PCI-DSS recertification and continue to improve our technology and electronic payment platforms. We intend to continue to leverage the efficiency gains from Project LEAP, and invest in key areas to achieve superior returns to our shareholders over the next quarter and through to next year”

   As part of the Banks efforts to boost its customer enhancement initiatives during the quarter,  Oloketuyi  added that the bank organised an international trade & structured finance forum, bringing together customers involved in international trade, regulators and other key stakeholders. 

   “With adequate representation from key stakeholders and regulators, we were able to enhance the understanding of the new guidelines issued by the CBN and the Customs Service regarding trade, address customer issues with regulators directly and have positioned ourselves adequately within the system to take advantages of the opportunities that arise”, he said.

WEMA Bank Plc has posted net interest income of N13.9 billion in its unaudited financial results for the period ended September 30, 2014.   

This, according to the bank represents 71per cent growth, when compared to N8.1billion achieved in the corresponding period in 2013.

The bank’s operating profit also rose from N15billion in 2013 to N19 billion during the period under review.

   Profit before tax recorded 345 per cent growth, from N0.56billion in 2013 to N2.5 billion in 2014.

   Reacting on the performance, the Managing Director/CEO of the bank, Segun Oloketuyi  said: “While we remain on course in achieving our growth targets as set out by our growth plan, Project LEAP, we are delighted to announce continuous quarter-on-quarter improvement in our financial performance as displayed in our Q3 results. 

   “Our Total Assets are up 6per cent from December 2013 and loans have risen by 29per cent in the same period. Profit before Tax grew by 345per cent compared to the equivalent period in the last financial year and 47per cent in Q3, this year, spurred by a 44per cent growth in Net Interest Income and a 51per cent rise in Fees& Commission Income quarter on quarter respectively.

  “Our operations are also becoming more efficient with cost-to-income ratio down 900 basis points to 86per cent from 95per cent at year-end 2013and a downward trending NPL ratio of 2.5per cent. Return on Equity (ROE) has also improved from 3.9per cent in 2013 to 9per cent this quarter. These achievements, when combined with our growing deposit base illustrate that our turnaround initiatives are indeed yielding results,” he added.

   He explained that the bank opened three new branches in the last quarter, and embarked on a renovation exercise on four of its branch network located in key commercial and retail hubs, “whilst keeping a keen eye on possible opportunities in the market to grow our business inorganically.”

  “ We have obtained our PCI-DSS recertification and continue to improve our technology and electronic payment platforms. We intend to continue to leverage the efficiency gains from Project LEAP, and invest in key areas to achieve superior returns to our shareholders over the next quarter and through to next year”

   As part of the Banks efforts to boost its customer enhancement initiatives during the quarter,  Oloketuyi  added that the bank organised an international trade & structured finance forum, bringing together customers involved in international trade, regulators and other key stakeholders. 

   “With adequate representation from key stakeholders and regulators, we were able to enhance the understanding of the new guidelines issued by the CBN and the Customs Service regarding trade, address customer issues with regulators directly and have positioned ourselves adequately within the system to take advantages of the opportunities that arise”, he said.

It has come to our notice that Access Bank Plc is in the process of selling more shares in order to shore up its capital to bolster its current balance sheet position ahead of Basel IIII. Please note that the present Access Bank, which has its Head Office at Plot 999c, Danmole Street, Victoria Island, is a product of a questionable business combination/Merger between Intercontinental Bank Plc and Access Bank Plc.

Accordingly, the general public is hereby put on notice, that the legality or otherwise of this business combination and subsequent merger of these two institutions mentioned above is still being challenged in various courts of competent jurisdiction in Nigeria, especially on the basis of allotting 3.5 shares for every 100 shares originally held by shareholders.  This can be verified under the following suit numbers: FHC/L/CP/1272/09, FHC/L/CP/605/11 & CA/L/606/11. All prospective investors within and outside the country are hereby duly informed.

You Are Warned!

Signed:

Concerned Shareholders of Intercontinental Bank Plc

Over two hundred Nigerians thronged the Town Hall meetings and one day training organized for prospective sales agents for Nigeria’s first super mobile money network, the Glo Xchange, in Abeokuta, Enugu, Onitsha and in Kano cities of Nigeria.
At the event Glo and partner banks – Zenith, Stanbic IBTC, Ecobank and First Bank enlightened the public and prospective agents on the rudiments of the Mobile Money business.
Addressing the participants in Abeokuta, Globacom’s Mobile Money Expert, Mr. Tim Mukata described the Glo Xchange agentship as a veritable avenue for business minded Nigerians to make money on every transaction without losing their initial deposits.
“Being a Glo Xchange agent is a win-win situation for agents as the floating capital remains the same at any point in time. The agents will get commissions on every transaction, attract clients to purchase other merchandising items in their shops and carry out transfer of money anytime of the day, seven days a week. It is very safe and easy and I implore Nigerians from all parts of the country to join the train,” Mr. Mukata added.He informed the participants that a Glo Xchange agent can make up to a monthly profit of N50,000 initially and increase it as more people transfer money through the platform. He said the agent can graduate to the level of recruiting agents, sub-dealers and dealers.
Mr Mukata noted that the Glo Xchange network would form the foundation for agency banking in Nigeria in the nearest future.
Since Glo Xchange was launched three weeks ago, thousands of Nigerians have registered as agents of the country’s first super mobile money agent network. Commenting on the training, Mr. Kunle Akingbogun, the representative of the Ogun State League of Cooperative Thrift and Credit Societies which has over one hundred thousand branches, commended the initiative and urged Globacom to extend the partnership to Skye Bank for their members to benefit from the scheme.
In a related development, a prospective sales agent Prince Jaiye Adeleke who recently retired from Union Bank said the agentship would be a continuation of his relationship with people in the last thirty years of his banking experience.
At the Kano, Enugu and Onitsha venues of the training, the prospective agents trooped to sign up to the scheme while praising Globacom’s initiative.
Mr Nonick Anozie, a small-scale business owner in Onitsha, said Glo Xchange was a “good innovation, with obvious potential to greatly enhance the economy.”
Ignatius Okpara fron Nnewi said that with Glo Xchange, Globacom has once again demonstrated its love for Nigerians, by “always setting the pace in innovation.”

MTN Network: Musician - Luciano White

Song: Don’t Gamble
MTN Code - 035140 

Song: My Flow
MTN Code - 035337 

Song: Love Nwantintin
MTN Code - 035338 

To Register, type reg to 4100 (for the first time user only). Type the
code of the desired song to 4100 to activate your caller tune on MTN Network. For
example, type 035338 to 4100 to buy Love Nwantintin by Luciano White. 
Caller tune costs N50.

AIRTEL NETWORK: Musician - Luciano White

Song: Love Nwantintin
Airtel Network Code: 0263823 

Song: My Flow
Airtel Network Code: 0263824

Song: Don’t Gamble
Airtel Network Code: 0263825

To buy tunes on Airtel Network: Type BUY space Tune code in an SMS and send to 791 
For example to buy Love Nwantintin by Luciano White, send Buy 0263823
and send to 791. Tone costs N50 every 90 days.

GLO NETWORK: Musician - Luciano White

Song: Don’t Gamble 
Glo Network Code: 024521 

Song: My Flow
Glo Network Code: 024522

Song: Love Nwantintin
Glo Network Code: 024523 

To register, type Reg to 7728 (for first time user only) registration
costs N50. Type tune followed by the code of the desired song to 7728 to
activate your caller tune on Glo Network. For example, type tune 024521 to 7728 to receive Don’t Gamble
by Luciano White. 
Caller tunes cost N50.

The naira on Thursday depreciated significantly against the US dollar by N1.70k or 1.04 percent at the inter-bank market following continuous drop in the price of crude oil.

The price of crude oil (Bonny Light) on Thursday dropped by 2.2 percent to $93.08/barrel compared to $95.2/barrel on September 24, 2014.

After trading on Thursday, the local currency closed at N164.10/$ as against N162.40/$ on Tuesday, according to data obtained from Financial Markets Dealers Quotations (FMDQ).

Analysts say declining global oil prices and low offshore inflows into the local debt and equity markets have seen the naira weaken in the last three weeks.

However, there was no dollar sale by Central Bank of Nigeria (CBN) at the Retail Dutch Auction System (RDAS) on Wednesday due to the public holiday marking Nigeria’s 54th Independence Day celebration.

Meanwhile, the CBN on Monday offered a total of $500 million but sold a total of $499.9 to 20 deposit money banks at the rate of N155.75/$ at its twice weekly Dutch Auction System (RDAS).

Saturday, 27 September 2014 23:34

Market Watch: indices record marginal growth

Written by

Weekly transactions on the Nigerian Stock Exchange (NSE) closed upward on Friday as the market indicators appreciated marginally by 0.10 per cent.

The All-Share Index rose by 39.72 points or 0.10 per cent to close at 40,819.72 against 40,780.00 achieved on Thursday.

The market capitalisation, which opened at N13.465 trillion, gained N13 billion or 0.10 per cent to close at N13.478 trillion due to price gain by some blue chip equities.

An analysis of the price movement chart indicated that Seplat topped the gainers’ chart, gaining N27 to close at N667 per share.

7UP garnered N13.73 to close at N147.73, while Guinness rose by N7 to close at N190 per share.

Mobil Oil increased by N2 to close at N176, while Lafarge WAPCO improved by N1.69 to close at N128.68 per share.

Conversely, Dangote Cement led the losers’ chart with a loss of N3.98 to close at N220 per share.

The organisation was followed by CAP with a loss of N1.94 to close at N39, while Glaxosmith depreciated 31k to close at N64.59 per share.

Ikeja Hotels lost 16k to close at N1.52, while NASCON depreciated by 9k to close at N8.91 per share.

Access Bank emerged the most traded stock, accounting for 63.57 million shares worth N562.13 million in 156 deals.

Mansard Insurance recorded a turnover of 21.06 million shares valued at N63.15 million in 24 deals, while FBN Holdings sold 17.02 million shares valued at N236.23 million which were exchanged by investors in 448 deals.

In all, a total of 245.926 million shares worth N2.77 billion were traded by investors in 3,806 deals against the 273.113 million shares valued at N4.62 billion traded in 4,330 deals on Thursday.

NAN

Wednesday, 24 September 2014 00:17

FG clears air on auto policy implementation

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The Federal Government has said that the implementation of the Nigerian Automotive Industry Development Plan is progressing as planned and that there is no intention to reverse certain aspects of the policy.

The National Automotive Council said in a statement on Tuesday that the government had not reneged on its promise to shift the implementation process of certain aspects of the NAIDP till January 2015 as alleged in some media report, noting that the application of the levy exemption was only being misinterpreted.

The Director-General, NAC, Mr. Aminu Jalal, said, “Government had already shifted the implementation of the full tariff on new vehicles from January 10, 2014 to July 1, 2014 to enable importers to clear the vehicles they had ordered at the old duty rates. Government only extended the concession on the importation of used vehicles only by another six months till December 31, 2014.

“This was because up to three out of four imported cars are used and time needs to be given to the assembly plants to produce affordable vehicles to replace the imported used ones. Unfortunately, this levy on new cars was misinterpreted to mean that all vehicles, including new FBU imports, were exempt from levies until December 31, 2014.”

He added, “This could not have been the case because existing and new entrants into the assembling process under the NAIDP have started to roll out new products at competitive rates. As a result of continuous inflow of new FBUs without restriction occasioned by this misinterpretation, assemblers began to cut down on orders for assembly kits, and this has the potential to derail the policy.

“Action taken was, therefore, urgent. The government decided to clear this misinterpretation. Given this clarification, the Nigerian Custom Service has been thus guided in their operations. Council wishes to reassure Nigerians that new vehicles have been stockpiled under the NAIDP awaiting buyers, and there is, therefore, no need to fear adverse rise in prices. “

The DG explained that a special package under the NAIDP was being worked out for dealers, who had made some commitments, to enable them import new FBUs at concessionary import duty rates (minus the levy) until they set up local assembly operations.

He stated, “The response to the policy by investors has exceeded our expectations. The existing assembly plants have a new lease of life, with VON assembling the Nissan and Hyundai vehicles, and PAN resuming assembly of Peugeot cars. INNOSON will soon start car assembly to complement its commercial vehicles production.

“Twenty-two companies have indicated interest to assemble vehicles and four will start assembly operations before the end of this year, and the rest next year. The implementation of the policy is now focusing on local content development.”

Jalal said the objective of the automotive policy was to bring back vehicle assemblage in Nigeria and develop automotive content to supply the assembly plants.

“This is because of the importance of the industry in employment generation, GDP contribution, technology acquisition, SME development, skills development and technology acquisition,” he noted.

Saturday, 20 September 2014 14:45

234Naira.com: Nigeria Discussion Forum

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Journalists Beyond Borders inc is proud to announce the launching of its new website: www.234naira.com. According to the media firm, the website offers Nigerians a new online platform to communicate and engage with others 24/7.  A press statement by the founders said yesterday that "the new website, 234naira.com, is an interactive website for Nigerians to communicate and engage with others online." The website offers a wide-range of categories such as politics, business & economy, sports, arts & culture etc.

The naira fell to its lowest level in two months against the U.S. dollar on Wednesday, as the sale of greenbacks by state-owned energy company NNPC failed to meet market expectations.

Traders said NNPC sold around $300 million to some lenders, but this was not enough to give support to the local currency.

The naira closed at 162.87 to the dollar, compared with Tuesday’s close of 162.80. It was the lowest level seen since July 2, when the local currency closed at 163.10 to the dollar.

“A lot of demand targeted at the NNPC dollar sale hit the market, reducing the impact of the fresh dollar flow and weakening the naira further,” one dealer said.

Dealers said some lenders took the opportunity of the NNPC sale to cover their short positions, which left the market with little left to meet growing demand from importers and other foreign exchange end-users.

The local unit had fallen to a 7-week low on Tuesday, hit by strong dollar demand and a squeeze in availability of the U.S. currency.

“Unless we see further dollar flows from offshore investors buying local bonds, and from some oil companies yet to sell dollars in the market, the naira will cross the 163 to the dollar mark soon,” another dealer predicted.

NNPC accounts for the bulk of dollars traded on the interbank market.

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