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UBA shows resilience as Gross Earnings, profit hit N375bn, N79bn

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United Bank for Africa Plc, has announced its unaudited 2018 third quarter financial results, with impressive growth in Gross Earnings, which berthed at N374.8 billion, an 12.3 percent increase when compared to N333.9 billion recorded in the corresponding period of 2017. According to the report filed to the Nigerian Stock Exchange (NSE) yesterday, UBA’s net operating improved 1.7 percent year-on-year to N227.7 billion, when compared to N224 billion achieved in the similar period of 2017.

Amidst inflationary pressures and uncertainties undermining the business environment in Nigeria and a few other countries in Africa, UBA’s operating expenses increased by 2.3 percent to N149.1 billion, compared to N145 billion recorded in the same period of last year. Overall, the Bank posted a Profit Before Tax of N79.1 billion whilst Profit After Tax stood at N61.7 billion. This profit performance puts the Bank’s annualized return on average equity at 16 and 20 per cents at pre-tax and post-tax profit level respectively.

The bank’s Total Assets stood at N4.51 trillion, a 10.8 per cent year-to-date rise over the N4.07 trillion total asset recorded as at December 2017, while customers’ deposit was up by 16.2 percent year-to-date growth growing to N3.18trillion, compared to N2.73 trillion as at December 2017. The shareholders’ fund remained strong at N509.3 billion, even as the implementation of International Financial Reporting Standard (IFRS) 9, moderated the Group’s equity by 3.8 per cent year-to-date.

Commenting on the result, the Group Managing Director and Chief Executive of UBA Plc, Kennedy Uzoka, said “We achieved a number of strategic imperatives during the quarter and committed more investments in the future of the business – building a solid foundation for sustainable and superior return to our shareholders”
Uzoka said he is pleased that the Bank’s Virtual Banking Chatbot, Leo, which debuted on Facebook earlier in the year, was successfully launched on WhatsApp during the quarter. “This new channel offering, which enables our customers to fulfil their banking transactions through simple chat commands, is another premier initiative in our suite. The early pay-offs are quite compelling – recent customer acquisitions and broader transaction volume growth are exciting leading indicators that reinforce our confidence in these novel channels.

“Our franchise is increasingly renowned for financial solution and I am happy with the consistent growth in our businesses across the continent. We have grown balance sheet by 11 per cent year-to-date to over N4.5 trillion. Notwithstanding the statutory-induced cost growth, our earnings proved resilient, as we recorded nine-month profit before tax of N79 billion. Notwithstanding the macro-risk arising from upcoming elections in Nigeria, our single largest market, we are confident of finishing the year strong,” Uzoka stated.

Also speaking on UBA’s financial performance and position, the Group Chief Financial Officer, Ugo Nwaghodoh said that despite the relative volatility in the third quarter of 2018, especially in the face of U.S. interest rate hikes and concerns over global trade war, which has disrupted the interest and exchange rate environment in many African countries, the bank remains on track to deliver its earnings target for the year.

He said “We remain committed to our five-year plan of working down CIR to 50 per cent, which we consider to be a normalised medium-term CIR. Overall, we closed the third quarter with a post-tax RoAE of 16 per cent and the Group remains well capitalized and liquid, as reflected in the Group’s capital adequacy of 21 per cent and Bank’s liquidity ratio of 53 per cent.

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Q1 2019: Zenith Bank sustains market dominance with improved profitability

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In the first quarter ended 31 March 2019, Zenith Bank Group recorded improved numbers across key metrics, driven by a solid performance in all business segments. This resulted in a Profit before Tax (PBT) of ₦57 billion, representing a 6% growth over the ₦54 billion achieved in the corresponding period in 2018. The Group’s on-going commitment to cost optimisation on the income statement and statement of financial position ensured earnings per share increased by 7% to ₦1.60 compared to Q1 2018.

The growth in net interest income and operating income by 23% and 1% respectively mitigated the decline in gross earnings. The effective management of cost-to-income ratio, cost of funds and cost of risk offset top-line declines to deliver an enhanced operating income in the period.

Our risk and asset quality continues to improve as cost of risk dropped significantly by 52% from 0.9% in the prior year to 0.4% for the period. This was achieved as impairment charges declined by 54% (₦2.5 billion year on year reduction). Our cost of funds also improved, declining by 25% from 4% in Q1 2018 to 3% at quarter-end. This was supported by a 22% decrease in interest expense of ₦10 billion over the same period, affirming the Group’s robust treasury and liquidity management. Our prudent cost management led to a 5% decline in our cost-to-income ratio by 5% from 53.3% in 2018 to 50.9% in the period with an absolute reduction in operating expenses by ₦2.3 billion year-on-year.

The Group’s retail franchise continues to increase as retail deposits grew by N80bn between December 2018 and March 2019 representing a 9% growth notwithstanding the fact that total customer deposits dropped marginally by 3%. The drop in customer deposits was as a result of rebalancing of the deposit mix as expensive purchased deposits were forgone in favour of cheaper and stickier retail deposits.

The volume and value of transactions across our electronic and digital platforms continue to grow as new customers are being acquired. Our balance sheet continues to strengthen as liquidity ratio is at 66.7%, loan to deposit ratio closed at 43%, and capital adequacy ratio ended the period at 25% respectively and remain above the relevant regulatory thresholds as at 31 March 2019.

Going into the rest of the year and with improving economic fundamentals, we are confident of delivering value to all our stakeholders on our commitments even as we create more opportunities for businesses by supporting them through selective risk asset creation. We shall continue our investments in the retail segment of the market as we consolidate our leadership position in the corporate segment while maintaining a strong balance sheet.

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Keystone Bank, others partner Mojec to roll out prepaid meters

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L-R: Head, Personal Banking, Wema Bank Plc – Mr. Abiola Afolayan; Chairman, Mojec International Limited, Mrs Mojisola Abdul; Managing Director, Mojec International Limited, Ms. Chantelle Abdul; Executive Director, Corporate Bank & South Directorate, Keystone Bank Limited, Yemi Odusanya and Group Head, Retail & SME, Unity Bank Plc, Mr. Olufunwa Olugbenga Akinmade at a press conference and signing of the Memorandum of Understanding ceremony between Mojec and the partner banks on the roll out of prepaid meters, held in Lagos on Monday, April 15, 2019.

Mojec Meter Assets Management Company, a subsidiary of Mojec International Limited, has announced partnership with Keystone Bank Limited and other leading banks in Nigeria to provide retail financing for rollout of prepaid meters to its customers within the coverage area of its partner Distribution Companies (DISCOs) across the country.

This is a major step ahead of the commencement of the much-anticipated Meter Asset Providers (MAP) scheme.

The partnership announcement was made at a press conference and Memorandum of Understanding signing ceremony held in Lagos on Monday, April 15, 2019 between Mojec and the partner banks. The partner banks include Keystone Bank, Unity Bank, Zenith Bank, Polaris Bank, First Bank, Wema Bank, Sterling Bank and First Option Micro-finance Bank.

MAP is a scheme approved by the Nigerian Electricity Regulatory Commission (NERC) through a regulation meant for the provision, supply, installation and maintenance of end-user meters by Meter Asset Providers with a view to fast-tracking a closure of the metering gap and end estimated billing in Nigeria.

Speaking at the event, the Managing Director/Chief Executive Officer, Mojec International Limited, Ms. Chantelle Abdul disclosed that the company was determined to bridge the metering gap in the power sector by ensuring provision of top-quality electricity meters to consumers in Nigeria.

“Now that MAP is here, Mojec is once again blazing the trail in the provision of high-end quality pre-paid meters to consumers, helping to reduce the financial burden estimated electricity billing is putting on electricity consumers,” Abdul said, noting that Mojec as a company has invested a lot of resources, positioning it as best suited to meet the metering needs of all consumers within the coverage of its partner DISCOs.

She further explained that Mojec would be partnering with eight DISCOs including, Ikeja Electric, Eko DISCO, Abuja DISCO, Kano DISCO, Enugu DISCO, Jos DISCO, Ibadan DISCO and Kaduna DISCO covering about 20 states of the federation.

In his remarks after the MoU signing, the Acting Managing Director/CEO, Keystone Bank Limited, Mr. Abubakar Danlami Sule, represented by Mr. Yemi Odusanya, Executive Director, Corporate Bank & South Directorate shared the bank’s driving motivation for the partnership. “The importance of energy in the growth of businesses and for the livelihood of homes in Nigeria cannot be overemphasized.

“Energy cost is by all standards the major cost line in most homes and businesses.

“The scheme is set to eradicate the unnecessary prevalence of estimated billing which deprived the national economy of funds which otherwise could be deployed into other productive use.

“We are therefore excited to be part of this initiative to bring electricity to homes and businesses at the most prudent cost, putting households and business in control of their expenditure pattern.” He concluded.

Keystone Bank is a technology and service-driven commercial bank offering convenient and reliable solutions to its customers.

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CBN boosts Forex market with another $210 million

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The interbank segment of the Foreign Exchange Market has received a boost of $210 million from the Central Bank of Nigeria (CBN) following sales concluded on Tuesday, April 16, 2019.

According to figures obtained from the Bank, authorized dealers in the wholesale segment of the market were offered the sum of $100million. Similarly, the Small and Medium Enterprises (SMEs) segment received the sum of $55 million, while customers requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55 million.

The Director, Corporate Communications Department, Mr. Isaac Okorafor confirmed the transactions and disclosed that the effort of the Bank had helped to reduce exchange rate pressures across all segments of the market. According to him, the stability of the exchange rate underscored the level of confidence investors and the public had in the Naira.

It will be recalled that the Bank, at its last intervention on Friday, April 5, 2019, injected the sum of $247.8 million and CNY34.8 million into the Retail Secondary Market Intervention Sales (SMIS) segment.

Meanwhile, the Naira on Tuesday, April 16, 2019, exchanged at an average of N360/$1 in the BDC segment of the market.

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