Connect with us

Business News

TAJBank Sets New Record, Pays Dividend in First Three Years

Published

on

Share

By Tony Obiechina, Abuja

TAJBank Limited, Nigeria’s fast-growing and technology-driven non-interest banking services provider, has set a new record in the nation’s banking system with the payment of dividend to its shareholders just three years of its operations.

Recall that TAJBank made history early this year as the first corporate entity in Nigeria to list Sukuk Bond on the Nigerian Exchange Limited (NGX) after the successful issuance.

Available data on banking industry’s audited financial reports indicated that no bank had achieved such a remarkable feat in the over 100 years of the sector’s history.

Addressing the shareholders at the meeting, the Board chairman, Alhaji Tanko Isiaku Gwamna, recounted the global economic whirlwinds in the past two years as well as the macroeconomic developments in the nation’s economic space, especially the surging inflation rate, with the attendant negative impacts on businesses.

Gwamna maintained that despite the inclement operating environment, the Board and management of the bank were able, through innovation and proactive strategies, to sustain TAJBank on the path of sustainable growth and financial stability for the benefits of the shareholders and Nigeria’s economy.

On the dividend issue, he said: “On behalf of the Board, I am pleased to inform our shareholders that we have recommended a scrip dividend payment of 1 share for every 10 shares, subject to shareholders’ approval. We remain committed to promoting business expansion and success while making sure that a sizeable amount of our profits is set aside for you.”

In his report, the bank’s Managing Director/CEO, Mr. Hamid Joda, described the FY 2022 as a significant milestone in the journey of the non-interest lender despite the headwinds that characterized the operating environment as the management was able to deliver on key strategic goals through relentless execution, backed by a positive culture and delivery on high-impact projects.

On the bank’s financial performance in FY 2022, Joda reported that TAJBank recorded remarkable growth across key indices during the year as its balance sheet grew by over 93% from N110 billion recorded in FY 2021 to N212 billion while its Profit Before Tax (PBT) also surged from N1.6 billion in FY 2021 to N5.081 billion in 2022 financial year.

He also told the excited shareholders that the bank’s earnings per share grew by 138% to N31.27 kobo in FY 2022 compared to N13.11 kobo recorded in FY 2021.

On the plans to further grow the bank in the years ahead, Joda, the award-winning banker, said: “In our relentless effort to promote non-interest products and modes of banking nationwide, the Board and management of TAJBank have set key objectives for the year 2023 and beyond.

“These initiatives include, inter alia, to promote financial inclusion by leveraging various channels and touchpoints, especially our electronic platforms with the aim of reaching out to the unbanked populace; and to be recognized as the market leader in the non-interest banking industry in Nigeria.

“We also plan to open 110 branches/business offices across state capitals/major commercial centers before 2024 and to offer non-interest banking products and services to underserved markets; to grow our agency network to 100,000 active agents by 2025 thereby reducing the financial exclusion rate; to grow our customer base to at least four million by 2027; and to achieve a minimum customer satisfaction score of 85%”, he added.

Speaking to journalists shortly after the AGM, a leading financial expert and an Independent Non-Executive Director of the bank, Alhaji Tata Shekaru Omar, lauded the Board and Management for innovatively positioning TAJBank at the leading edge of competition in the nation’s increasingly dynamic financial services market.

“TAJBank is just barely four years of age and that it was able to make profit in its first year of operation is great and cheery news for all its stakeholders. I want to say kudos to the MD and the entire team for such a feat, especially that the bank is now giving out dividends to shareholders.

“TAJBank deserves the congratulations it is getting as an institution because it has achieved a lot and this needs to be commended. The bank has continued to make great strides and now it is even expanding in terms of branches. TAJBank continues to make a statement that non-interest banking is here to stay and the way to go,” he added.

Business News

Afreximbank Closes $282 million India-focused Club Deal

Published

on

Afreximbank
Share

By Tony Obiechina, Abuja 

The African Export-Import Bank (Afreximbank) has announced the successful completion of a first-of-its-kind India-focussed club deal for US$282.00 million.

Initiated for the exclusive participation of Indian lenders, and arranged by Bank of Africa UK PLC, the primary syndicated club deal saw participation from Indian lenders through their overseas branches and subsidiaries in the Dubai International Financial Centre in the United Arab Emirates, Singapore and Mauritius.

The facility, which was backed by six participating banks and financial institutions, including five that joined as first-time lenders to Afreximbank, helping the Bank achieve its objective of diversifying its funding sources, carries a three-year tenor.

At a commemorative event held in Dubai, U.A.E., to mark the conclusion of the deal, Haytham ElMaayergi, Executive Vice President at Afreximbank, said that the conclusion of the initiative represented a major milestone for the Bank as it sought to fulfil the key objectives of its funding programme.

Highlighting the importance of investing in, and for, Africa, Mr. ElMaayergi said: “this facility will help Afreximbank to continue to play a major role in the development of intra-African trade and trade between Africa and the rest of the world, particularly with India. 

It is a testament to the rapid growth in Africa’s economic relationship with India and is evidence of Afreximbank’s growing ability to harness resources into Africa and to fund trade finance related investments that would have a positive impact on trade between Africa and India.”

Chandi Mwenebungu, Director and Group Treasurer of Afreximbank, reviewing the Bank’s vision for Africa, said that its funding objectives included achieving the diversification of its liability book by geography, investor type and tenor.

Also addressing guests at the event were Said Adren, CEO of Bank of Africa UK PLC, who thanked the lenders for their participation, and Zineb Tamtaoui, General Manager of Bank of Africa, Dubai Branch, who expressed appreciation for the opportunity to put together “a landmark deal that would be a stepping stone to many India-focused club deals going forward.”

Continue Reading

Business News

Geregu Power Earns N50.4bn From Electricity Sales, Capacity Charges 

Published

on

Share

By Tony Obiechina, Abuja 

Geregu Power Plc has generated N50.4bn on electricity sales and capacity charges to Nigerians in the first quarter of 2024.

The power company which is the first listed power company of the Nigerian Exchange Ltd disclosed the performance in its Q1, 2024 financial statement.

The company grew its Q1 revenue by 225 per cent from N14.

2bn in 2023 to N50.
4bn in 2023.

A breakdown reveals that Geregu Power sold energy worth N31bn and received N19bn as revenue from capacity charge.

Recall that the power company posted an annual revenue of N82.9bn in the full year of 2023 but it has covered half of the amount in Q1.

The revenue was above the company’s forecast for Q1 2024 when it projected its revenue to rise to N31.24bn.

Geregu Power recorded a profit before tax of N21.9bn up from the N5.3bn recorded in Q1 of last year, reflecting 307.8 per cent growth.

During the period underreview, the company saw its profit after tax rose by 307.3 per cent to N14.46bn from N3.54bn recorded in Q1 of last year. In the full year 2023, the company made N16.1bn net profit.

The net profit was above the company projection of N5.5bn. 

Geregu Power took an income tax charge of N7.43bn, up from the N1.8bn in Q1 2023. The tax charges were higher than the N2.7bn projected for Q1 2024.

The company also spent N21.5bn on the cost of sales involving gas supply and transportation, up from the N6.6bn spent on gas supply and transportation in Q1 2023.

Continue Reading

Business News

CBN Shakes Up Banking Sector: A Paradigm Shift Unveiled

Published

on

dailyasset-greetings
Share

By Ademola Oyetunji 

In a surprising turn of events on Wednesday, the Central Bank of Nigeria (CBN) dissolved the boards of three prominent commercial banks – Keystone, Polaris, and Union Bank. This move, although unanticipated, transpired despite the Central Bank’s recent endorsement of these banks’ financial soundness.

Governor Olayemi Cardoso, at his inaugural address during the Chartered Institute of Bankers of Nigeria (CIBN) annual dinner last year, had lauded Nigeria’s financial sector’s resilience in 2023.

Stress tests conducted on the banking industry indicated its strength under various economic scenarios. However, Cardoso highlighted the need for banks to reassess their responsible banking framework, a sentiment echoed by President Tinubu.

President Tinubu’s evident discontent with the Godwin Emefiele-led CBN triggered a comprehensive review of the financial system. A special investigator, Jim Obazee, was appointed to conduct a forensic investigation into Emefiele’s tenure, with damning revelations emerging. Recent developments suggest the initiation of a full-blown financial system reform.

The CBN’s dissolution announcement and the subsequent appointment of new executives for the affected banks, including Yetunde Oni, Mannir U. Ringim, Hassan Imam, Chioma A. Mang, Lawal M. Omokayode, and Chris Onyeka Ofikulu, might mark the beginning of implementing the investigation’s recommendations – a significant cleanup of the financial sector.

Allegations surfaced during the investigation, suggesting non-cooperation from some bank executives and Emefiele’s questionable acquisitions through proxies and cronies. Cardoso may have secured presidential approval for the CBN’s decisive action.

The CBN cited various infractions by the banks, including regulatory non-compliance, corporate governance failures, and activities threatening financial stability. Despite the challenges, the CBN assured the public of depositors’ fund safety and its commitment to upholding a safe, sound, and robust financial system.

The Special Investigator’s report revealed documents pointing to Emefiele’s involvement in Titan Trust Bank and Union Banks’ acquisitions with ill-gotten wealth. The CBN’s swift replacement of the ousted chief executives received widespread commendation, especially from high-net-worth stakeholders aiming to avert a crisis of confidence within the affected banks.

Adewale Aderounmu, an industrialist, applauded the CBN for implementing effective policies under Olayemi Cardoso’s leadership, despite detractors’ actions against the Naira. Ayomide Deepak, an Abuja-based stockbroker, welcomed the action but emphasized the need for caution in handling revelations from the investigation to prevent further economic challenges.

As the CBN wields its regulatory hammer on these banks, the hope is that other bank executives and investors will learn valuable lessons for the sake of the economy. The CBN’s action is perceived as a strategic move aimed at revitalizing the economy and financial system, not a mere vendetta.

*Ademola Oyetunji writes from Ibadan.

Continue Reading

Read Our ePaper

Top Stories

Afreximbank Afreximbank
Business News12 hours ago

Afreximbank Closes $282 million India-focused Club Deal

ShareBy Tony Obiechina, Abuja  The African Export-Import Bank (Afreximbank) has announced the successful completion of a first-of-its-kind India-focussed club deal...

NEWS12 hours ago

Tinubu Mourns Ex-Minister, Ogbonnaya Onu

SharePresident Bola Tinubu has extended his deepest condolences to the Onu family over the passing of Chief Ogbonnaya Onu, a...

Business News12 hours ago

Geregu Power Earns N50.4bn From Electricity Sales, Capacity Charges 

ShareBy Tony Obiechina, Abuja  Geregu Power Plc has generated N50.4bn on electricity sales and capacity charges to Nigerians in the...

Foreign News18 hours ago

U.S. not Expecting to be Drawn into War but Predicts Attack by Iran Against Israel

Share The United States expects an attack by Iran against Israel but one that would not be big enough to...

NEWS18 hours ago

Akpabio Mourns Ex-minister, Ogbonnaya Onu

Share Senate President Godswill Akpabio has condoled with the family of Dr Ogbonnaya Onu, the first civilian Governor of Abia,...

Foreign News18 hours ago

Russia Sends Air Defence System, Soldiers to Niger

Share Russia has sent an air defence system and 100 military trainers to Niger Republic in West Africa. Military personnel from...

NEWS18 hours ago

Minister Commiserates with Ex-Gov of Kogi over Son’s Death

Share The Minister of Steel Development, Prince Shuaibu Audu, has commiserated with a former governor of Kogi State, Ibrahim Idris,...

NEWS18 hours ago

Recent Deaths in Movies Industry has Robbed the Nation of Legendary Filmmakers,  says Ali Nuhu

ShareThe Managing Director of the Nigerian Film Corporation (NFC), Mr Ali Nuhu , has said that recent deaths in the movie industry...

NEWS18 hours ago

Dosumu Market: 6 Buildings Collapsed, 16 others Impacted by Fire – LASEMA

Share The Lagos State Emergency Management Agency (LASEMA) said the fire that engulfed Dosunmu Market on Lagos Island led to...

Metro18 hours ago

Home Owners Protest Against Alleged Exploitation by Estate Developer

ShareResidents of Urban PrimeTwo Estate at Ogonbo road, Abraham Adesanya in Ajah, Lagos, have staged a peaceful protest against alleged...

Copyright © 2021 Daily Asset Limited | Powered by ObajeSoft Inc