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PROFIT

Zenith Bank’s half-year profit more than doubles to N350bn

by Editor September 12, 2023

written by Editor

Zenith Bank Plc has reported a 169 percent growth in profit before tax to N350.4 billion in the first half of 2023 from N130 billion in the same period of 2022.

The country’s biggest lender by market value saw its after-tax profit jump 162 percent to N291.7 billion from N111.4 billion.

Zenith Bank reported 139 percent growth in gross earnings to N967.3 billion from N404.8 billion, driven by both interest income and non-interest income.

Interest income grew 72 percent to N415.4 billion from N241.7 billion, while non-interest income grew 246 percent to N515.7 billion from N149 billion.

The growth in interest income can be attributed to the impact of both the growth and repricing of risk assets, Zenith Bank said in a statement on Monday.

It said the liberalization of the foreign exchange market during the period spurred the growth in non-interest income as revaluations gains improved significantly.

In terms of efficiency, the cost-to-income ratio improved to 38.5 percent from 58 percent in the current period on the back of an enhanced income line.

The lender said the FX liberalization coupled with the heightened risk environment resulted in cost of risk growing to 8.8 percent from 1.4 percent. Cost of funding also grew to 2.6 percent in H1 2023 from 1.4 percent in the same period of 2022 because of the spike in interest rates between both periods as interest expense grew to N153.6 billion from N57 billion.

Total assets grew by 31 percent from N12.3 trillion to N16.0 trillion in December 2022, mainly driven by growth in customers’ deposits and the devaluation of the local currency, the lender said.

Customers’ deposits grew by 30 percent from N9.0 trillion in December 2022 to N11.6 trillion in June 2023.

Loans and advances also grew by 32 percent from N4.12 trillion in December 2022 to N5.38 trillion in June 2023 partly due to the revaluation of the foreign currency-denominated loans as well as growth in local currency loans.

Non-performing loans ratio improved from 4.3 percent to 3.9 percent in December 2022 despite the deterioration of the macros and heightened risk environment because of the currency mix of risk assets.

Capital adequacy ratio improved from 19.8 percent to 22.0 percent, while liquidity ratio reduced from 75 percent to 61 percent in the current period.

Zenith Bank said: “Both prudential ratios are still well above regulatory thresholds. The reorganisation into a holding company structure has advanced, as the group adds new verticals to its businesses and expands into new frontiers.

“As the year progresses, the group said it will continue to remain dynamic in anticipating and responding to the changes in the fiscal and monetary environments in order to sustain growth across all its business segments and markets.”

Source; Businessday.ng

September 12, 2023 0 comment

Equity Group reported a Sh34.3billion profit for the first nine months of the year

by Radarr Africa November 22, 2022

written by Radarr Africa

Equity Group has reported a Sh34.3billion profit for the first nine months of the year, a 27.9 per cent jump from Sh26.9billion posted in the same period last year attributed to an increase in non-funded income.

Non-funded income rose by 31 per cent to Sh41.1billion in the period from Sh31.4billion in Q3 2021, contributing 41 per cent of total income.

Interest earnings from lending rose 23.43 percent to Sh59.84 billion, while non-interest income from transactions went up 32.06 percent to Sh42.22 billion.

Further, customer deposits grew by 15.1 per cent to close at Sh1trillion. Speaking at the investor briefing, Equity Group CEO James Mwangi attributed the growth to customers centric products that have seen the lender hit a new milestone in deposits.

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“It took us over 38 years to build one trillion, but it now evident that if we sustain the current growth rate, the second trillion will be realized in less than 5 years,” said Mwangi.

Operating costs grew by 31.73 per cent to Sh57.74 billion while the lender’s loan book expanded 20.55 per cent to Sh673.91 billion

The Board recommended an interim dividend of Sh8.8 per share for the period.

SOURCE: Capital business

November 22, 2022 0 comment

Business Economy South Africa

Spar slumps 10% profit growth as surge in South Africa

by Radarr Africa November 16, 2022

written by Radarr Africa

Shares of JSE-listed grocery chain Spar slumped on Wednesday, after it reported muted operating profit growth for its year to end-September, hit by surging costs including for fuel and promotions, while its full-year dividend has more than halved.

The firm said on Tuesday group operating profit rose 1.1% to R3.43 billion, dipping in its core SA business, while a temporary change in dividend policies to fund the rollout of a new enterprise software system helped prompt a fall in its full-year dividend to 400c, from 816c previously.

In morning trade Spar’s shares had slumped 9.75% to R148.91, earlier falling 11%, and now having lost almost a quarter over the past year.

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However, the company, which has operations in SA, Ireland, England, Switzerland and Poland, said it “delivered a resilient group performance despite various challenges across all regions”, adding that group turnover increased 6% to R135.6 billion.

It said that in constant currency, turnover increased by 7%.

“Group profitability continued to be impacted by the consequences of the pandemic in the first half of this financial year and new geopolitical circumstances which has seen all regions experiencing fuel and energy cost pressures,” said the company.

Referring specifically to southern Africa, the group said that these pressures were “further exacerbated” by the effect of load shedding. This region, almost two thirds of group turnover, saw its operating profit dip 1.4% to R2.45 billion, with operating expenses rising 11.7% to R6.9 billion, with computer costs jumping 38.3% ahead of the implementation of its new system, advertising and promotional costs increasing 20.2%. Fuel and transport costs surged by 26.2%.

SOURCE: News 24

November 16, 2022 0 comment

Banking, Finance & Investment Business Economy Nigeria

Sterling Bank Nigeria plc grows Q3 profit by 41.52%

by Radarr Africa November 4, 2022

written by Radarr Africa

Sterling Bank Nigeria Plc said it recorded 41.52 per cent growth in its profit after tax in nine months of 2022, in spite of economic challenges.

The Group’s unaudited financial report showed it earned N13.41bn in the nine-month ended September 2022, better than N9.38bn recorded in the corresponding period of 2021.

This showed the Group added about N3.93bn within the period under review.

According to a statement, the Group’s gross earnings also grew by 14.22 per cent to N11.60bn it earned in nine-month ended as of 30th September 2022 from N104.71bn in the corresponding year of 2021.Related News

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This data showed a growth of N14.89bn in the period under review.

Similarly, the Group’s bank which is listed on the Nigerian Stock Exchange under the banking sector grew its profit after tax by 42.85 per cent from the N9.38bn it earned in September 2021, against 13.41bn it gained as profit after tax in 2022

According to the statement, the bank’s gross profit for the year surged by 14.58 per cent from N102.92bn it earned in the nine months of 2021 to N117.92bn it gained in the nine months ended 30th September 2022.

This showed an increase of N15bn within the period under review.

SOURCE: Punch news

November 4, 2022 0 comment

Information & Technology Southern Africa Technology Telecommunications

MTN witnesses an increase in profit by 47%

by Radarr Africa August 11, 2022

written by Radarr Africa

MTN reported a 47% increase in profit for the six months to end-June, with subscribers increasing by almost 6% from a year ago to almost 282 million.

This was despite a clampdown in Nigeria on unverified mobile users, which disconnected millions of users.

The company’s service revenue grew by 13%, while data revenue rose 33% – despite MTN lowering the “blended cost of data” across its markets by 22.5% from a year before.

However, it warned of “moderate” price increases in some markets, subject to regulatory approvals.

“Some level of price increment will be needed to ensure the long-term sustainability of the business, including to support the level of capital investment required to maintain the capacity and quality of our networks,” the company said in its results announcement. Over the past year, its capital investment increased by almost 48% to more than R17 billion. The company “accelerated” capital expenditure in Ghana and Nigeria.

In April, MTN Nigeria was forced to restrict the outgoing calls of some 19 million subscribers because their SIM cards were not linked to ID numbers. By end-June, 10.2 million had submitted their details, and 2.6 million subscribers had been reactivated. This, along with increased usage from its existing users, supported an “acceleration” in the recovery of its service revenue growth from April to June.

Almost 55% of its customers across the continent now use smartphones.

ALSO READ: MTN Nigeria launches home broadband services

MTN’s fintech revenue grew by almost 10%, with its active Mobile Money (MoMo) customers increasing by 24% to 60.7 million. The value of these transactions was up 1% (in US dollar), but 12% higher in constant currencies, reaching almost R2 trillion.

Despite rising capital investment and increased costs due to load shedding in South Africa and supply chain disruptions due to the invasion of Ukraine and China’s continuing Covid-19 lockdowns, MTN increased its profit (Ebitda) margin by 0.5 percentage points to 45.3%.

Reported headline earnings per share were up 47% at 567c per share, but no half-year dividend was declared – the same as in 2021. The board expects to pay a minimum final dividend for the year of 330c per share.

Its share price jumped almost 4% to R151.48 on Thursday morning. MTN is still trading almost 30% below multi-year peaks reached earlier this year.

The company didn’t give any new information about its plans to buy Telkom, again confirming that discussions continue to be at an early stage, with no certainty that the deal will happen.

Source: Fin 24

August 11, 2022 0 comment

Business South Africa

Steinhoff witnesses 13% rise in HY core profit

by Radarr Africa June 25, 2022

written by Radarr Africa

South African retailer Steinhoff on Friday posted a 13% rise in core profit and said its markets were likely to remain volatile in the near term from inflationary pressures and supply-chain constraints.

Core profit from continuing operations rose to 760 million euros ($799.82 million) for the six months ended March 31, while the group’s net debt at the reporting date stood at 10.24 billion euros, rising from 8.12 billion euros a year earlier.

Access the full interim results here.

Source: Moneyweb

June 25, 2022 0 comment