BUA Sustains Strong Performance As Profit Rises By 54% To N105.6bn

Despite the numerous political and economic headwinds impacts experienced in the year, BUA Foods Plc sustained her leadership position in the Foods with a Profit After Tax (PAT) of N105.6 billion for the nine months period ended in September 2023.The amount represents a growth of 54 per cent against N68.8 reported the same period of last year.The company revenue grew by 81 per cent y-o-y to N524.4 billion at the end of September this year from N289.8 billion reported at the corresponding period of 2022.The growth in revenue according to the company was due to a year-on-year increase of 74.2 per cent in Sugar to N315.2 billion from N180.9 billion reported in 2022, a 126 per cent increase in Flour to N149.9 billion against N66.2 billion in the preceding year and 37 per cent growth in Pasta to N58.3 billion from N42.7 billion in the comparative period of last year.According to the company result, new division Rice business contributed N995 million to the top line during the same period, adding that across the business divisions there was significant growth in volume sold impacting the overall performance as well.The key drivers include slight price adjustments to reflect high input costs, volume growth and gradual commissioning of its expansion projects.The increase in cost of sales added 74.1 per cent to N340.6 billion in the third quarter from 195.6 billion in 2022 and was driven by an increase in raw materials cost and energy cost. The high input cost environment and further devaluation of the Naira against the US Dollar weighed heavily on prices for raw materials. This resulted in higher cost of production. Gross profit increased by 95.1 per cent to N183.8 billion in nine month in year 2023 against N94.2 billion in the same period of last year even as gross profit margin appreciated by 250bps to 35.0 per cent within the reviewed period against 32.5 per cent recorded in the preceding year due to the slight selling price adjustment and new market penetration for sales within the year.

FBNHoldings Declares N270bn PBT In 9 Months

FBNHoldings Plc has reported gross earnings of N985.6 billion for the nine months financial year ended September 30, 2023. The amount represents an increase of 80.1 per cent compared with N547.2 billion achieved in the corresponding period of 2022. The group’s profit before tax rose to N270.3 billion from N105.5 billion in 2022, representing 156.3 per cent from N105.5 billion recorded the previous year while profit after tax grew by 159.2 per cent to N236.4 billion from N91.2 per cent posted in the preceding year. Analysis of the result showed that Interest income increased by 71.1 per cent to N633.8 billion against N370.4 billion recorded in the corresponding period of last year while net interest income went up 51.4 per cent to N377.7 billion from N249.5 billion in the preceding year. Non-interest income rose by 108.2 per cent to N326.90 billion against N157 billion in 2022. Commercial banking segment of the company within the period reported N922.2 billion growing by 79.8 per cent year on year from N512.9 billion achieved in the comparative period of last year. The bank’s profit before tax went up by 157 per cent to N248.5 billion from N96.4 billion while profit after tax stood at N221.1 billion against N85.7 billion in the preceding year, indicating 158.2 per cent growth year on year. Commenting on the financial result, the Group Managing Director, FBNHoldings, Nnamdi Okonkwo said “over the period we have delivered a strong performance and growth enabled by focused execution of our strategic plan. Gross earnings were up by 80.1 per cent while our profit before tax grew by 156 per cent year on year. At the same time, our credit risk portfolio remains healthy with an NPL ratio of 46 per cent and a coverage of 85.4 per cent. Cost of income ratio improved to N 50 per cent from 65 per cent in 2022 on the back of enhanced revenue generation as well as effective cost containment initiatives. “Despite the high inflationary environment we remain committed to leveraging technology, automation and our brand strength to enhance our value proposition, increase revenues and improve the overall operational efficiency of the group. We are confident in our continuous progress in generating sustainable value for our shareholders.” Also the Chief executive officer First Bank of Nigeria Limited, Commercial banking group) Dr Adesola Adeduntun said “in the nine months ended September 30, 2023, First Bank group reported impressive financial results, reflecting sustained growth and resilience of the franchise. “Our gross earnings at the end of the quarter were N922.2 billion, making a remarkable increase of 79.8 per cent y-o-y. The substantial increase of 49.3 per cent yoy in net interest income reflects our commitment to managing interest rate dynamics effectively and optimising our interest-earning assets, while the impressive growth of 111.6 per cent y-o-y in non-interest income underscores our success in diversifying the bank’s revenue streams and providing value added services to our customer. “Growth of 157.9 per cent and 158.2 per cent y-o- y in the profit before tax and profit after tax respectively reflect our commitment to delivering exceptional value to our shareholders and stakeholders. “This performance is a testament to the dedication and hard work of our entire team, and it reaffirms First Bank’s position as one of the leading players in the commercial banking industry. As we continue to face dynamic market conditions, our agility, risk management capabilities and strategic approach will remain pivotal in sustaining this impressive growth trajectory. Looking ahead, we are committed to sustaining this momentum exploring new growth opportunities through innovation and upholding our core value of customer centricity.”

TAJBank Records Highest Tier-1 Capital, Pre-Tax Profit

TAJBank Limited, a Nigeria’s non-interest bank has recorded the highest Tier-1 capital in the non-interest banking sub-sector in the first half of 2023. This is according to a statement by TAJBank’s Chief Executive Officer (CEO), Mr Hamid Joda. Joda said that the audited financial statements of the bank also reflected an increase in its Profit Before Tax (PBT) to N6.019 billion, which is the highest in the banking sub-sector and surpassed analysts’ projections. TAJBank also made history early this year when it listed the first tranche of N100 billion Sukuk Bond on the Nigerian Exchange Limited (NGX) after the successful issuance. Joda said that a further analysis of the latest audited financial statements showed that its total assets rose from N212.021 billion in December 2022 to N335.017 billion at the end of June 2023. He said that the figures indicated a 58 per cent increase. “Its gross earnings increased by 67 per cent from N136.149 billion at the end of December 2022 to N227.031 billion as of the end of June. “Other highlights of the bank’s financial scorecard in first half of 2023 reflected that the financing also significantly increased by 62 per cent from N78.235 billion recorded as of December 2022 to N126.725 billion by June. “The deposits base surged to N251.250 billion from N161.958 billion as of December 2022; while its total equity grew by 88 per cent from N19.135 billion in December 2022 to N36.706 billion as of June,’” he said. Joda, attributed TAJBank’s enviable feat to the increasingly proactive strategies being adopted by the management to respond to emerging trends in non-interest banking and deployment of the right resources. “What I can say about TAJBank’s latest scorecard is that we have demonstrated that hard work pays. “As we have maintained over the past three years, our interest is in our customers and we are pursuing this goal with all resources available to us to tell the whole world that TAJBank is the way to go in non-interest banking. “To demonstrate our commitment to this customer-friendly corporate slogan, we are investing in world-class technologies and digital payment solutions in our services nationwide,” he said. “In pursuit of non-interest financial inclusion drive, we have also opened five branches this year and plan to open more in other states in the next few months”, he said. TAJBank’s bank’s Executive Director, Mr Sherif Idi, said that the successes were made possible by the bank’s shareholders and customers. “Our thanks go to our growing customers and shareholders whose belief in our vision and capacity to drive TAJBank to the leading edge of market competition has taken us this far. “Let me assure them that TAJBank’s management and staff will continue to do its best to serve them better and protect their interests, which we value so much in all areas of operations,” he said.

Conoil Grows Earnings To N145.8bn In 2022

Conoil Plc has reported gross earnings of N145.8 billion for the 2022 financial year. The amount represents an increase of 5.3 per cent against N138.2 billion in the corresponding period of 2021. The major oil marketer in a statement at the weekend on its audited results for the year ending December 31, 2022, said despite the massive developmental challenges in the country and the tough operating environment, its Profit Before Tax (PBT) grew by 60.1 per cent to N6.13 billion in 2022 from N3.83 billion in 2021, while Profit After Tax (PAT) increased by 60.1 per cent from N3.08 billion to N4.96 billion in the same period. With the significant improvement in profitability in the petroleum-marketing subsector, Conoil’s earnings per share rose to N7.14, representing a 60.8 percent increase over the N4.44 earned in 2021. The company also recorded an increase of 22 per cent in net from N53.98 billion to N65.91 billion. Thrilled by the impressive all-round performance, shareholders at the company’s 53rd Annual General Meeting at the weekend, unanimously approved the proposed final dividend payout of N1.734 billion, which translates to N2.50 per share, for the 2022 financial year. Conoil had assured the shareholders of its commitment to continue to deliver strong and sustainable performance that would enhance returns to its shareholders. The Chairman, Conoil Plc, Dr. Mike Adenuga (jnr), in his address to the shareholders at the meeting, said that company remained motivated in creating excellent value for its shareholders, while also ensuring that its share price remained on the rise. He said, “We have shown a consistent ability to improve our operating margin and grow our volumes across all our locations. We have a great brand portfolio with energized and talented personnel with a reach pan-Nigerian. Our overriding goal is to ensure the continued delivery of excellent services to our customers and ultimately ensuring that our shareholders are rewarded. “Conoil Plc plans to consolidate on the progress made in the previous years to deliver a strong and sustainable performance that enhances returns to our shareholders. “Regardless of the odds, the company is marching forward in the year with confidence and optimism, as it strategically and continuingly positions its business to take advantage of key opportunities,” Adenuga assured the shareholders. Looking ahead, the Conoil Chairman noted that while there might be challenges posed by the rapidly changing geopolitical and socio-economic environment, Conoil would, however, concentrate on the strategies that have given it the greatest dividend. He said the Federal Government has stated critical reforms, such as the elimination of the petrol subsidy and reforms in the foreign exchange market.  Towards this end, he said Conoil would concentrate on the strategies that have given it the greatest dividend. “The Company will grow its earnings, improve profitability and asset quality and deliver competitive returns to its esteemed shareholders.”

Access Holdings’ Half-Year Profit Hits N940bn

Access Holdings’ net profit for the first half of the year rose by about 52 per cent compared to the corresponding period of last year as its half-year revenue reached N900 billion mark for the first time ever. Gross earnings for the period climbed by 58.9 per cent to N940 billion, putting the financial services group on track to dwarf the N1.4 trillion reported for full year 2022, when the current year winds down. Access Bank anchored the growth on fair value and foreign exchange gain, which expanded by approximately 50 per cent to N192 billion. That followed a major revamp of the Nigerian foreign exchange system towards the end of the second quarter, which triggered a reasonable drop in the value of the naira against the dollar but opened the door for the lender to gain big after converting its financial assets denominated in the foreign currency to the naira. At 13.5 per cent, improvement in net interest income was paltry as the cash the corporation paid savers as an incentive for holding their deposits ate away at most of the interest it generated during the period, which originally had surged by as much as 63 per cent. That expense alone consumed N382.6 billion of the entire revenue.Taxable profit advanced to N167.6 billion from N97.8 billion a year earlier, while profit for the period rose 52.4 per cent to N135.4 billion. Ironically, Access Holdings’ post-tax profit lagged those of its other peers who come behind it among Nigeria’s five biggest banks, including UBA, Zenith, GTCO and FBN Holdings in indication of the group’s current inability to tap the vast potentiality of its assets to boost earnings. Its total assets stood at N20.8 trillion in June in a big leap from N15 trillion at the end of last year, following a banking acquisition in Angola and a number of similar deals in the pipeline with Standard Chartered Bank in Cameroon, Gambia, Sierra Leone, Tanzania and also Angola. Access Holdings declared an interim dividend of N0.30 per share on Saturday equivalent to a payout of N10.7 billion, compared to the N0.20 per share it announced a year earlier. The stock has yielded 103 per cent since the beginning of the year.

Prudential Zenith grows profit by 18% in 2022

Prudential Zenith Life Insurance Limited (PZL) says it has recorded a profit after tax of N1.33 billion for the year ended December 31, 2022. The figure represented 18 percent increase when compared to N1.131 billion recorded in 2021. The company said this in a statement signed by the Head, Corporate Communications, PZL, Mr Bob Ononu, and made available at the weekend in Lagos. Ononu said that the company’s audited financial results for the year under review were approved by PZL’s Board and the National Insurance Commission (NAICOM). He stated that the result indicated that the firm achieved an impressive growth, despite a challenging business environment, characterised by rising inflation, deteriorating foreign exchange position and temporary cash shortages. He noted that the reported financial growth was released one month after PZL celebrated 175 years with Prudential Plc. and the parent company’s eight Prudential Plc’s subsidiaries in Africa. The company’s spokesperson stated that its top-line Gross Written Premium (GWP) declined by 15 per cent to N6.39 billion, compared to N7.5 billion in 2021. He said the insurers underwriting costs were effectively managed, resulting in an eight per cent growth in underwriting profit while investment income grew by 28 per cent year-on-year. According to him, the growth was due to a substantial increase in the company’s interest-generating assets. Ononu said that the shareholders equity grew by 11 per cent to N1.34 billion, between 2022 and 2021, reflecting an increase in retained earnings. “The 175-year milestone not only signifies Prudential’s rich heritage and enduring success, but also exemplifies the company’s commitment to continuous evolution and meeting the ever-changing needs of customers. “Prudential has over the years transformed countless lives through innovative insurance solutions that empower individuals and businesses to achieve financial security and prosperity,” he said. Comenting on the insurer’s 175 years celebration, Mr Chuks Igumbor, Managing Director, PZL, appreciated its customers and staff, while urging them to always uphold the firm’s core values and strive to help customers get the best of life. Prudential Plc is a leading provider of life and health insurance, as well as asset management services in 24 markets across Asia and Africa. The insurance company promotes financial inclusion and ensures healthcare affordability and accessibility, protects individuals’ wealth, helps them grow their assets, and empowers them to save for their goals.