HENATES

Recession? Well even in war time, there are companies that thrive and so Presco PLC is one company with head above today's turbulent waters in Nigeria. According to the nine months unaudited results released recently, core revenue grew at 48.4% to N11937.5m accompanied by a heartwarming 3.43% rise in cost of sale to N29460m. This gave birth to 73% increase in gross profit to N8991.5m with which to absorb blows from cost pressure. Yet it turned out that real pressure came only from 86.9% growth in distribution expenses to N166.7m although 36.7% decrease in other operating income to N78.4m tried to dampen vision. There was 35.1% increase in administration expenses to N2240m but this was not threatening since it was well behind both core revenue and gross profit growth. But more cheery news was to come. First gain on fair value for Presco PLC's biological assets rose by a handsome 97.6% to N4408.5m. This was paper profit no doubt, but it came as icing on good operating profit...

Unity Bank PLC is not directly threatened as such by the continuing downswing in the value of the Naira but more by the depression in the economy made more biting by Naira's fate. According to the nine months figures to September released recently what Unity Bank needs desperately is increased income because most streams are delivering less Over all gross income by September was down 28.5% to N35173.9m driven by 39% drop in mainstream interest income to N21150.6m; and 81.5% decrease in fee and commission to N1300.5m. Amongst the traditional income sources, only other operating income recorded 10.7% rise to N5085.1m. In fact, Naira value drop ended with an effective prop for Unity Bank as asset revaluation as a result of this chipped in N5472.9m compared to N1072.1m previously. Equally helpful was 91.7% drop in impairment provision to  just N144.6m but interest expense decrease by 19.4% to N11525m; that is far short of the interest income dive; did not quite help too. As for f...

Since the introduction of the inter bank foreign exchange market in June, the potential has existed for Nigerian group of companies with subsidiaries abroad to boost earnings with paper profits. These are profits that accrue in the course of consolidation of group accounts in reporting currencies other than originating currency or when such profit is due to asset revaluation. In the case of consolidation, currency value related profit can come from conversion of profit made abroad or from conversion of foreign asset values. In the case of profit earned abroad, that is normally not paper profit because it is already realised. It is the one from asset revaluation that constitutes paper profit. That is, profit recognisable for the period but that can only be realised if the asset revalued is sold. In view of the fact that paper profit is inherent and not realised yet, declaring any dividend from it could in fact jeopardise the liquidity position of the company since cash is the li...

Zenith Bank PLC apparently has it's eyes fixed beyond the moment with some prop even though crisis looms over Nigerian finance. According to the figures for nine months to September released yesterday, Zenith bank dished out N20028m as capital expenditure within the period with N16747m deployed in Nigeria and N3436m in Africa. Yet in recognition of the challenges of the times, it topped its provision for toxic loans by 127.6% to N21858m at a time its loans and advances portfolio closed only 31.7% up. At the same time, the unaudited figures say in spite of the challenges Zenith bank was heading for double digit growth in profit since with three months to go N121275m was in the bag, up 16.6% from 12.9% rise in gross earning to N380352m. Of course, the main prop came not from 11.3% increase in interest income to N285674m ( this helped greatly no doubt) but from quantum leap in gains from foreign exchange related revaluation which pushed Other income up by 229.7% to N31986m. ...

From the look of things, Cadbury Nigeria PLC is doing battle with one monster in the current financial year: Direct costs also known as cost of sale. According to the unaudited figures for nine months to September released last week, it is the only obstacle between it and profit this financial year. Within the period, core revenue had dropped by 1.61% to N21325.5m but the monster refused to shrink along, instead it rose by 14.8% to N16848.6m. This so depressed gross profit that no matter all Cadbury Nigeria did later to stair the boat aright, loss league was inevitable. Yet, it did try hard. It drove administration expenses down by 37.7% to N1209.5m;  reduced other operating expenses by 50.9% to N45.9m and even scaled down selling and marketing cost by 4.33% to N4249.1m. In addition, finance income even ended the nine months at N185.4m up 62.3% on September 2015's N114.2m. No dice. Cadbury Nigeria thus ended the period with N842.2m loss compared to N40.8m profit by the ...

At a trying time when many fear for stress in the Nigerian banking industry from the frightening growth in loan loss provision, Wema Bank PLC has announced 65.2% drop in its own impairment provision. According to the nine months figures released late last week, the provision by September was N79.7m compared to N229m at the same time in 2015 year. This was in spite of 20.8% increase in loans to customers to N177013.5m from only 2.4% rise in customers deposits to N227016.4m. Despite this cheery confidence in the relative strength of its loan portfolio, the bank though ended the nine months with 2.26% profit drop to N1494m. This was even as gross earnings grew by 16.4% to N37892.3m on the back of very good harvest from foreign exchange trading (income up 445.2% at N666.8m); 16.8% increase in fee and commission to N4407.5m and 20.1% topping of interest income to N31927.5m. Wema Bank's main draw backs within the period were 43.7% leap in interest expense to N19136.6m despite signif...

NCR NIGERIA: MRS HUSSAIN, NEW DIRECTOR. The boardroom doors of NCR Nigeria revolved unexpectedly recently just as nine months figures indicated it was heading for a record year. It revolved principally because Ambassador H Ahmadu passed on thus ceasing to be a non executive director of the company. To fill the vacuum, the board picked not a new non executive director but an executive one rewarded  for recording board proceedings for 8 years without being a m formal member. Mrs Olufunke Hussain has thus been appointed an executive director while still retaining her old job as company secretary. She holds LLB from Obafemi Awolowo University Ile Ife and was called to the Nigerian bar in 1987. In the past 28 years she gained experience in both private and corporate legal practice and has been the company secretary of NCR Nigeria since 2006. It will be recalled that nine months figures released recently and analysed in an earlier post indicated profit margin leap to 12% from 3.73...

Presently, Nigerian investors are yet to key in fully to data generated at the Nigerian stock exchange daily. According to Mr Ade Bajomo Executive director market operations and technology, of the estimated 5.9m investors in Nigeria, only about 100,000 or 1.69% subscribe to market data accessible on line and by choice, real time. Bajomo, while speaking during the recent inaugural market data workshop in Lagos, however informed the participants that this was not the lowest percentage patronage. From the figures he released, listed companies are even less inclined to subscribe to market data adding that of the 171, 1.17% subscribed. He had separate figures for banks and insurance companies though. Among the 43 insurance companies, he said, only one or 2.33% currently subscribed to market data. In the case of 21 banks, he said only 6 or 28.6% now subscribe. However, naturally, stock brokers are well keyed to market data generated as of the 205 in operation, 174 or 84.9% have subscri...

Guarantee Trust Bank PLC should be reeling under the weight of quantum leap in bad debts provision right now but it is not because of the strong shoulders offered by foreign exchange related income or gain. According to the figures for the nine months to September released this week, GTB  increased provision for doubtful debts (impairment) to N57083.3m from only N8515.6m at the same time in 2015. In view of the fact that interest income grew by only 5.17% to N181909.5m although accompanied by 6.95% drop in interest expense to N49161.2m; this kind of great leap in impairment should have been a life threatening one. More so, when loans and advances to customers grew by only 19.6% to N1640258.3m within the period. But it is not, according to the unaudited figures principally because income from foreign exchange related business or revaluation grew at a faster rate. Indeed, by September, forex related income and gain contributed 31% of gross earnings compared to only 8.24% by Sept...

Soon, Nipco PLC, an indigenous downstream company formed 15 years ago, will become the top petroleum products marketer in Nigeria. This is because Mobil oil Nigeria PLC announced today that its major shareholder. ExxonMobil has decided sell its 60% holding to Nipco PLC. According to the announcement, this followed the decision of ExxonMobil to divest and so join other major downstream international companies like Shell. Chevron. Agip and Eni that have since hands off downstream business in Nigeria. Nothing yet is said about the amount to be paid and when it will be paid but the acquisition shoots Nipco PLC to the top of downstream business in Nigeria. In terms of turnover Nipco is not biting more than it can chew because its 2015 turnover was N114724m compared to Mobil Oil Nigeria's (MON) N64220.9m. But it will gain a lot from Mobil oil Nigeria's far more efficient operations. In 2015 and 2014, MON reported 17.1 and 13.7% gross profit margin respectively compared to Nipco...

The Central Bank of Nigeria (CBN) in recent weeks has been making concessionary changes in its guidelines in an attempt to fine tune for better impact. One major concession was contained in a circular dated October 17 and signed by the director, Banking and payment department, Dipo Fatokun. Titled Amendment to guidelines for Transaction switching, the circular removed the restriction placed on licensed Nigeria central switch (NCS) from issuing payment card of its own. Section 2.6.3 of the guidelines had clearly stated that "The NCS shall not own or promote any card business or retail products and shall be run in accordance with international best practices" In the amended version, the restriction on owning or promoting cards or retail business was expunged leaving the international best practices requirement as the only provision of section 2.6.3 By implication, the NCS can now issue or promote retail products if it so wishes while serving as licensed central switching c...

Far from crumbling in today's harsh Nigerian business environment, the cake being baked by NCR Nigeria PLC seems destined to bring smiles to stakeholders faces come financial year end. That is, provided the trend for nine months to September holds through the year. According to the unaudited figures released this week, the really good news was that cost of sale went down at a much faster rate than income drop. From the figures total income was driven down 4.13% to N5127.1m by core revenue decrease of 4.1% to N5105.4m and investment income drop by 11.4% to N21.7m. However, the cost of sale that generated the core revenue dropped by 23.9% to N3590.4m leading to 149% growth in gross profit to N1515.1m. Thus the foundation for good profit was solid and even 178.5% increase in distribution expenses to N875.5m, could not wipe this out. Instead, with administration cost tumbling by 61.7% to N45.6m, profit before tax soared by 209% to N615.8m In other words, by the end of the nine mon...

Yesterday, the world celebrated world poverty eradication day. But than even as the day was being marked to galvanise thoughts and actions towards poverty eradication, a major question remained: Can poverty be eradicated? The answer is no, it can not be eradicated; it can only be reduced. So it looks like by opting for eradication, the global effort was already doomed to fail. And that is not just  because poverty is relative from country to country but also, because it is like trying to create a world that does not have  opposites. Give 10 people the same amount one minute, come back in an hour to ask how much they have and what they have spent money on, you will find wide disparity. One or two may already be richer while the majority will either have the amount intact or have made themselves poorer through the choice they made. That is for the best of level playing ground that can be assumed. Of course, there is no society in which that ideal exists; in all climes all we...

There is one driving force behind corruption: Desire. So long as man has desire for anything, it becomes something he is prepared to have at a price. Reverse that and the same thing is also linked to the gratification he is ready to sell his conscience and principles for. Yet no man is free from desire. It is only a question of relative level and relative hold of what is desired on his mind. Some have high appetite for sexual gratification; another has great desire for wealth and all that comes with it; yet another set desire power or fame or both; yet another set could give anything for good health; children of their own; decent accomodation; delicious meals; in fact there are even people who crave pure air, very clean and spotless environment. The list is actually endless. So the truth is that if any man is not corrupt yet, he has not found himself in a situation where he has to choose between what he truly desires and so called path of righteousness. Yet there is no society ...

Interlinked Technologies plc bore a cross in financial year to June that almost broke its back: Drop in earnings. According to the audited figures released last week, total income dropped by 20.3% to N209m as core revenue went down by 20.1% and income from other sources dried up altogether. To make matters worse, finance cost increased by 41.3% to N0.65. Hence much as Interlinked Technologies had good control over its cost, its profit before tax tumbled by 71.5% to N2.6m Yet, it did score rather well in operating cost management driving it down by 19.5% to N45m. But  it was not as successful in controlling direct cost because at 18.1% the decrease in cost of sale did not match income drop. In the end, Interlinked Technologies ended the year with only N1.24 gain on each N100 income as against N3.48 in 2015 year. As the company thus ended the year nearer the loss league, its liquidity position also weakened slightly as working capital stood at N248.7m compared to N255.2m previo...

In the nine months to September 2016, Forte Oil PLC found anchor within the turbulent world of liquidity squeeze in short term loans but the bill was high. According to the figures for the nine months released recently, as working capital deficit jumped to N7353.5m compared to N2571.4m previously in spite of 24.2% draw down of inventories to N7625.9m and as receivables rose by 20.4% to   N42013m, Forte Oil hung on to loans. Forte Oil response to the squeeze was to almost double short term loans by 89.7% to N26096n while reducing more costly overdraft by 60.8% to N4026.7m. This took its pound of flesh eventually as net finance bill jumped to N2233.9m from N292.7m previously. This became the main factor that forced Forte Oil PLC to reap only 6.53% increase in profit before tax from a more healthy 29.8% rise in total income to N122378m propelled mainly by 32.2% increase in core revenue to N121083.3m. Other factors that depressed profit growth  include 34.3% increase in cost of...

The Nigerian stock exchange (NSE) will on Tuesday October 18, organise its inaugural workshop on market data at the Civic Centre, Victoria Island, Lagos. With the theme "Understanding market data for savvy investing and wealth creation" participants expected at the workshop include investors, market data aggregators, exchanges, dealing members, telecommunication operators and other stake holders. It is being organised in conjunction with independent market data vendors to increase awareness and contribute to personal and corporate upgrade of market data usage, handling and delivery know how. According to the CEO of the NSE Mr Oscar Onyeama, it is also being organised to coincide with the third anniversary of NSE's X-GEN trading engine built in 2013 in collaboration with NASDAQ. He explained that the X GEN was built not just to trade in securities but also to interface for market data consumption. "It is this system" He added "that we rely on daily...

Inflation in Nigeria, as reflected by consumer price index (CPI) released by the National Bureau Of Statistics (NBS) for September, is still rising but it has stopped galloping. According to the CPI released yesterday, inflation rate in Nigeria now stands at 17.9%, up marginally on the 17.6% recorded in August. However, this implies though that galloping inflation which was the order of the day since late 2015 has finally fizzled out as marginal increases were recorded in August and now, September. It remains a rather high double digit figure though especially as it continues to rise even though at a lower rate. Indeed, like for August, the current rate remains the highest recorded in the month of September since the base year was established in November 2009. Anything close to it was recorded up to 2012 which, in fact, makes the current double digit felt by Nigerians strangely after three consecutive years of single digit. In September 2010 the year on year rate was 13.7%;...

To end 2016 financial year better than it ended 2015, Infinity Trust Mortgage Bank PLC may have to find a way to boost its income from other operating income. According to the figures to September released recently other operating income dropped by 21.8% to N116.1m thus forcing Infinity Trust to settle for only 4.79% growth in gross income despite good growth in other areas. Interest income had increased by 11.3% to N401.8m while fee and commission rose by 39.6% to N63.8m. Even the impact of the growth in interest income was watered down by far higher 20.4% increase in interest expense to N41.9m. Hence depressed margin was inevitable as other operating expenses  rose by 12.8% to N167.8m and staff costs ended 9.30% up at N87m By September Infinity Trust reported 34.1% profit margin compared to 38.4% by the same time in 2015. This was slightly lower than 34.7% reported by 2015 year end This was as profit before tax dropped by 16.9% to N198.4m. And the chances of ending 2016 bet...

As Nigeria marked its 56th independence anniversary on October 1, the Chinese were also celebrating emergence of a different kind. Their national currency, Yuan, was finally admitted by the International Monetary Fund (IMF) basket of currencies its loans to countries can be packaged in. The IMF itself has its own currency of sorts called Special Drawing Rights (SDR) but it is not legal tender in any nation not is it part of the international currencies used for settlements. However, being one of the currencies in SDR valuation basket confers some status and actually implies that such a currency can be used for international trade settlement. Yuan joined the United States Dollar, European union Euro, Japanese Yen and British Pound in the SDR basket. To the Chinese, this was clear recognition of China's growing economic influence since the emergence of China amongst the world's top ten economies. In the West though, the feat of Yuan was symbolic since the world of finance a...

BOARD CHANGES AT TRANSCORP HOTELS Following the acceptance of the resignation of Mr Omoniyi Fabemi from the Board of Transcorp Hotels PLC on October 7, two new directors have been appointed to the board. They are Dr Bakari Wadinga and Hajia Saratu Umar. According to the notice from the company both new directors are non-executive although Hajia Umar also comes in as independent director. Dr Wadinga holds PhD economics from Ahmadu Bello University, Zaria; MSc economics from Bayero University Kano plus an MBA  from the same university and Bsc econs from University of Maiduguri. He is also a member of two professional bodies: ACA and CTI. His working career spans periods at Peak Marwick, Ani Ogunde & co (now KPMG); progress bank; Savanah Beverages ltd  and the Bureau of Public Enterprises. On the other hand, Hajia Umar comes aboard with 24 years of working experience including years as the executive secretary/CEO of Nigerian Investment Promotion Council but most of it ...

From the nine months figures to September released this week. United Bank For Africa (UBA) is quite ready for the storm that seems to be gathering over Nigeria's financial system presently. According to the figures, as expected by September UBA's provision for bad debts more than doubled (grew by 147.1%) to N9098m within the nine months but the only cause for alarm is that its loan portfolio thus needs closer watch. Other wise, no cause for alarm principally because UBA seems in good control of its major costs; recorded fair growth in traditional incomes and more importantly is reaping bountifully from foreign exchange transactions and fair value of its financial assets. By September gross earnings was up 8.16% to N265527m more because net trading income rose by 22.7% to N24398m and fee income increased by 18.6% to N56215m. At 4.51% to N182989m, growth in interest income was far less impressive but acquired more significance when it is noted that accompanying interest expen...

According to the liquidity stress report by the Central Bank of Nigeria as contained in the June 2016 Financial Stability report, 19 banks may be in serious trouble if there is at least 5 day run on them. According to the CBN, within one day run, that is  rush by customers to withdraw deposits, the Nigerian banking liquidity ratio will drop to 30.1% from 43%. Worse, if such a run is cumulative for 30 days, the liquidity ratio will plummet to 5.3%. The report says that should there be 5day and 30 day runs, the industry will record N2.2tr and N2.4tr shortfall respectively. What's more, it said not less than 19 banks will record liquidity ratio s below the threshold of 30% following 5 day cumulative run. Naturally, it named none of the banks so as not to prematurely trigger runs on individual banks that could still weather the looming crisis with customers confidence intact. But it did rate credit risk as top of today's potential stress in banks and adds that the large banks...

Nigerian banks may currently be facing most trying times since 2012 as, says the Central Bank of Nigeria, nonperforming loan provision more than doubled in six months to last June. According to the CBN's Financial system stability report for June dated September 29 but released only recently, non performing loans grew to N1,678bn from N649.63bn by December 2015. Within the same period, total domestic credit grew by only 12.52% to N24318.1bn  which more than points to looming crisis given the leap in bad debts provision. Hence, non performing loans to total loans hit new high of 11.7% in June compared with single digit percentage share of below 5% since 2012 after the mop up of the toxic loans that gave birth to 2008 stock market crash and real stress for the Nigerian finance market. What's more, the CBN report indicates that 33.4% of loans to private sector by June was to 50 customers most of them in the oil and gas, and agriculture although credit to state governments ...

Most time land mark decisions that over turn social norms and customs are given by Nigeria law courts without people being aware of them. One such instance is the Supreme Court of Nigeria judgement on July 15 to the effect the Igbo custom that denies daughters from inheriting their father's property is in breach of the nation's constitution. The fact of the case was that the father of Cladys Ada Ukeje and Eyinaya Lazarus Ukeje died without a will in Lagos in 1981. The Igbo customs says only male children inherit parents property but Cladys was not happy with this and decided to seek redress in the High court to be included amongst the administrators of her father property. The high court in Lagos granted her request holding that the custom is in breach of section 42(1) and (2) of the 1999 constitution. Not satisfied, her brother Lazarus and the wife of the dead father, Mrs Lois Chiture Ukeje appealed to the Court of Appeal. There too, the high court judgement was conf...

In the nine months to September, United Capital PLC sold off its N2266.4m investment in associates and proceeded to restructure its investment portfolio. Apart from realising a capital gain of N1526.1m from the sale, it liquidated its overdraft and proceeded to grow its loans and receivables by 141.7% to N74,564.1m; financial instruments held to maturity by 51% to N34971m and sprinkle N2.94m in tradeable financial instruments. This paid off very well. Investment income more than tripled to N2612.2m; net trading income closed at N14.6m compared to N25.6m loss previously and Other income rose by 63.2% to N559.1m. However, gross earnings ended growing by only 39.2% to N5689.4m despite these impressive growths principally because net interest income dropped by 50.3%; Other gains ended in N1.85m loss compared to N23.5m profit previously and fee and commission chipped in only 31.2% increase to N1428.7m. Yet there was no cause for alarm. United Capital PLC stayed in good control of ...

In order to make it easier for banks to subscribe to certificates of equal value (SUKUK) issued by state governments the Central Bank of Nigeria has released guidelines for according sukuk liquidity status while computing bank capital adequacy ratio. According to public notice dated October 6 and signed for the Director, Financial Markets by Dr Mrs Angela Sere-Ejembi, the guidelines cover needed enabling legislation, repayment structure, maximum tenor and investment limits, amongst others. For example. to qualify to be classified as liquid asset, the sukuk must be backed by a law enacted by the relevant state house of assembly specifying modalities for the sinking fund for repayment which will be replenished from consolidated revenue. There must also be a fiscal responsibility law that establishes the state debt management department. Also, the Securities and Exchange Commission (SEC) must confirm that all proceeds from the sukuk have been disbursed in line with its prospectus ...

Of course, it is obvious that with crude oil earnings and tax revenue down considerably, every government in Nigeria is hungry for more revenue, hence the tendency to tax more those who are presumed able to pay. For all the governments, the first port of call is usually companies operating within each government's territory. Yet, unfortunately, in these trying times, just milking companies because they can pay or because they have no option could backfire. It could force many to opt for operating and servicing the huge Nigerian market from a more friendly neighbouring country, or more importantly, it could discourage new investors from coming in. Thus, Nigeria must be careful how it slams new taxes or applies existing laws on corporate organisations in these times. For example, it does not make sense for the Securities and Exchange Commission (SEC) to slam penalties on companies for not filling interim results. These are unaudited figures and so, have not been certified by ...

At last, attracted by the opportunities opened up by the introduction of inter bank foreign exchange market in Nigeria, post Brexit Travelex  has landed with official nod from the Central Bank of Nigeria. Travelex was established 40 years as currency dealer with its first store in London and by last count, now provides currency related services on line, and through 1500 stores in 28 countries mostly through 1250 automated teller machines (ATM). It has its head office in London that now has to find ways to retain its place in world finance after the British voted to exit the European Union. However, in Nigeria Travelex  landed more as source and distributor of foreign bank notes especially of the kind Nigerians in diaspora send home to relatives and friends annually. It is estimated that the amount so sent home yearly by Nigerians is $21bn. Now, Travelex hopes to corner the chunk of this and sell $15,000 each to 3000 Bureau De Change operators in Nigeria starting from this month...

Do not be shocked if, after all the potential rewards from good cost management the year offers, PZ Cussons Nigeria ends this financial year deep in the loss league. The first quarter figures to August point in this direction because, unfortunately, loss due to foreign exchange dealings has become a big whole in its pocket. All else, perhaps with the exception of other income, had done very well during the quarter but, no thanks to N4701m foreign exchange loss compared to N15m gain previously, PZ Cussons Nigeria landed in N2431.1m loss. Core revenue had grown by 12.1% to N16752.8m with a tasty sweetener in the form of only 1.18% increase in cost of sale to N10970.6m. Thus, from the 12.1% rise in core income, PZ Cussons Nigeria recorded 40.7% increase in gross profit to N5782.2m. Yet the build up had just begone. This was followed by only 5.7% rise in distribution expenses to N2255.1m and very heartwarming 2.65% decrease in administration cost to N1316.7m. Hence, growing ope...

GUINNESS NIGERIA PLC: DIAGEO PLC RETHINKS. Diageo PLC has reconsidered its plans  to increase its controlling interest in Guinness Nigeria PLC by  making offer to acquire additional 15.7%. According to a release signed by Rotimi Odusola esq, the company secretary of Guinness Nigeria, a letter to this effect has been received from Guinness Overseas PLC, the wholly owned subsidiary through which the offer was to come to shareholders. According to the notice, the rethink is not unconnected to the current business environment in Nigeria although Diageo remains optimistic about its investment in Nigeria and  the prospects of the economy. Guinness Nigeria PLC had announced September 9 the potential offer Diageo PLC had planned to make for the additional holding but now says, a review of developments in the last 12 months necessitated rethink. LA FARGE AFRICA GETS NEW CFO LA Farge Africa, Nigeria's pioneer cement maker, has appointed Mr Bruno Bayet to replace Mr Anders Kristia...

Slow and steady, they say, wins the race. In today's trying times in Nigeria, this rings very true for Nigerian Enamelware PLC. In the full year to April 2015, Nigerian Enamelware had ended with 4.57% profit margin. In the next three months after that, it pushed it up to 6.03%. That way, it ended the full year to April 2016 with 5.96%. Yes, down slightly on its first quarter but clearly ahead of the 2015 full year. Now, according to figures released for the first quarter to July 2016, profit margin has been upped to 6.08% like a man gently climbing a tough height. Thus, all things being equal, the full year to April 2017 should end with margin not lower than year 2016's. The key seems to belong more to its continued ability to stay atop of its administration costs while leaning on reliable income from other sources. True, because of the times, cost of sales has a way of caging core revenue growth impact by growing ahead but slightly, not by a wide margin. In the q...

In the three months to March 2016, it was a clear case of being less sure of profit for Mutual Benefits Assurance PLC. According to the unaudited figures for the period released last week, the cookie crumbled a little mainly because higher core income had no good support from non-core interests as overheard mounted. Total income had ended the three months up 15% to N3909.7m with good push from premium earned which rose by 38.4% to N3367m. But the lower growth for total income resulted from 32.7% and 32.6% drops in investment and other income to N362m and N49.2m respectively. Hence, in spite of 32.8% rise in underwriting profit due to 27.5% increase in claims recovered and 24.8% drop in other underwriting expenses, final profit recorded by Mutual Benefits for the quarter dropped by 28.8% to N411.6m. Interestingly, 17.4% decrease in employee expenses  to N261.7m had helped, but 14.2% increase in management cost to N981.2m and N259.3m new impairment provision applied pressure...

NEW CHIEF FINANCE OFFICER FOR ECOBANK TRANSNATIONAL. Ecobank Transnational PLC has announced the appointment of Mr Greg Davis as chief finance officer of the group with effect from October 18. Mr Davis holds a first degree in economics and social history from University of Leicester UK, and is a fellow of the institute of chartered accountants of England and Wales. He will bring to bear on resumption wide experience in African finance particularly as chief finance officer Standard Bank Africa operations outside South Africa in charge of finance functions with 400 staff across 19 African countries. Says Mr Ade Adeyemi. ETI CEO" Greg brings a great depth of knowledge and experience at best practice level and I am delighted to welcome him on behalf of the Ecobank leadership team" UNITY KAPITAL ASSURANCE NEW CEO Unity Kapital Assurance PLC has appointed Mr Oluyemi Patrick Olatunji as its new managing director/CEO. This follows his approval by the National Insurance ...

The Central Bank Of Nigeria (CBN) has stripped the chief executive officers (CEOs) of deposit money banks of direct personal responsibility for bank compliance with all regulations and directives from the apex bank unless they are also appointed as executive compliance officers (ECOs). According to a circular to the DMBs signed by I R Yusuf for Director Financial Policy and Regulation dated September 28, the banks are now to appoint an executive compliance officer (ECO) not below the rank of executive director to whom chief compliance officer (CCO) will report. Until now, the DMBs had only CCOs who must be not below the rank of a general manager and in the new dispensation, the ECO will report directly to the Board of directors on compliance matters. Besides, says the CBN, the ECOs will be the ones the CBN will now hold responsible for all compliance matters when there is a breach. Consequently, all DMBs have been asked to send to the CBN not later than October 10, the name and...

The Securities and Exchange Commission of Nigeria (SEC Nigeria) has banned two directors of WT Securities Ltd for life from the capital market. They are Mr Taofik Lawal and Mrs Iyabode Lawal. According to a notice dated September 28 and posted on its website, the ban is with immediate effect and for proven breach of section 110 of the Investment and Securities Act 2007 (ISA 2007). The notice explained: "The SEC in it's exercise of its powers under section 13 of the ISA 2007, investigated complaints against WT Securities ltd and its directors (Mr Taofik Lawal and Mrs Iyabode Lawal) and found them culpable of mismanaging the stocks of Mrs Opral Mason Benson and in unauthorised sale of the Nigerian Breweries PLC shares of Ngozi Onyekwere Nwachukwu" "The actions of WT Securities ltd and its aforementioned directors" it added " are in violation of section 110 of the ISA 2007 and rule 65(1) of the commission's consolidated rules and regulations 2013...

Aside from the usual tired voice of President Buhari (No one cheat change due to aging), the presidential address this morning to mark Nigeria's 56th independence anniversary dangled some reason to renew hope on the country's immediate future. But it could have offered much more. For one, it does not look any more like the present administration is in power primarily to hunt down corrupt officials particularly from the stable of opposition party, the Peoples Democratic Party ( PDP). Buhari still reemphasized anti corruption as the flagship of his administration but in addition Nigerians were told, for example, that self sufficiency in some grains is around the corner. He listed Rice, millet and others to be likely off the import list by 2018. Indeed, he said that Kebbi state alone already has 1m metric tonnes of Rice within view and many other states are also stepping unto ring. With back glance, all 12 river basin authorities existing in the country are to be revived,...