Business News
Zenith Bank Half Year Profit Rises to N111.7Bn

From Udo Onyeka, Lagos
Zenith Bank Plc, is impressed by its audited results for the half year ended June 30, 2019, which showed positive growth across key financial metrics.
This significant growth has further reaffirmed the bank’s position as one of the leading financial institutions in Africa.
As a testament to its commitment to its shareholders, the bank also announced a proposed interim dividend pay-out of 30 kobo per share.
The result showed gross earnings growing by 3 per cent from N322.
2 billion to N331.6 billion driven by a significant growth of 24 per cent (YoY) in non-interest income from ₦88.6 billion in H1 2018 to N109.7 billion in H1 2019.In particular, fees from electronic products increased by N17bn 168 per cent from ₦10bn in H1 2018 to N27 in H1 2019, demonstrating significant progress in its retail banking initiatives.
This top-line growth filtered through to the bottom-line as Profit Before Tax (PBT) increased to N111.7 billion reflecting a 4 per cent growth over N107.4 billion reported in H1 2018 with earnings per share (EPS) increasing by 9 per cent to N2.83 in H1 2019 from ₦2.60 compared to the prior period.
Between December 2018 and June 2019, the Group’s total deposit increased by 3 per cent with retail deposits growing by N267 billion 31 per cent from N861 billion to close at ₦1.1 trillion.
Despite the growth in its deposit base, the bank optimized interest expense leading to a 4 per cent reduction from N74.7 billion to N72.1 billion due to the Group’s improved funding mix and its profound treasury management skills.
Also Net Interest Margins (NIMs) witnessed a compression from 10 per cent in the same period last year to 8.6 per cent in H1 2019, as a result of the declining yield environment but cost of funds improved from 3.4 per cent to 3.0 per cent.
The banks robust risk management ensured that absolute Gross Non-Performing Loans (NPLs) remained flat.
However, the marginal movement in NPL ratio was as a result of the 3 per cent reduction in the bank’s loan book from N2.02 trillion as at December 2018 to N1.95 trillion at the end of the period.
The bank is also creatively deploying new retail loan products to ensure it captures a reasonable share of the retail loan market, while remaining committed to maintaining strong balance sheet with liquidity ratio at 74.6 per cent and Capital Adequacy Ratio (CAR) at 25 per cent ensuring it remained above regulatory thresholds.
Going into the second half of the year, the bank intends to continue to consolidate its leadership in the corporate space while its retail banking drive will continue unabated. It expects to see an improvement in economic activities even as it maintains its promise of delivering a unique service experience to customers.
Consistent with this superlative performance and in recognition of its track record of excellent performance, the bank was recently ranked as the Most Valuable Banking Brand in Nigeria in 2018 by The Banker Magazine.
Similarly, Zenith Bank was recognized as the Best Corporate Governance Bank in Nigeria by The World Finance for the sixth time just as Ethical Boardroom, a Europe based Boardroom watchdog reaffirmed this recognition by naming the bank as the Best Bank in Corporate Governance in 2018.
Business News
Fuel Subsidy Reportedly Back As FG Pays N169.4 Billion in August

A payment of N169.4 billion has been reportedly paid by the Federal Government as subsidy in August.
It is alleged the payment was to keep the pump price at N620 per litre.
According to a report by DailyTrust, a document by the Federal Account Allocation Committee (FAAC), reviewed on Wednesday, September 20, showed that in August 2023, the Nigerian Liquefied Natural Gas (NLNG) paid $275m as dividends to Nigeria via NNPC Limited.
NNPC Limited used $220m (N169. 4 billion at N770/$) out of the $275m to pay for the PMS subsidy. Then NNPC held back $55m.The revelation by FAAC effectively indicates that the subsidy is back and NNPC is now taking NLNG dividends to pay the subsidy, the report added.
Also, the current price stagnation despite the worsening exchange rate and international crude price crossing $95 a barrel suggests a return of subsidy despite the numerous assurances by President Bola Ahmed Tinubu that the subsidy is gone.
The revelation by FAAC indicates that the subsidy is back and NNPC is now taking NLNG dividends to pay the subsidy.
Reports by the Nigerian National Petroleum Corporation (NNPC) to the Federation Accounts Allocation Committee (FAAC), showed that petrol subsidy cost N1.57 trillion in 2021 alone and another N1.27 trillion from January to May 2022.
Another N3 trillion was used to cover petrol subsidy costs from June 2022 to June 2023.
The report comes barely four months after President Bola Tinubu on May 29, declared that there would no longer be a petroleum subsidy as the current 2023 budget did not contain it.
He revealed that the current 2023 budget has provision for the fuel subsidy till June.
Tinubu stated that funds for subsidies would be diverted to other things like public infrastructure, education, health care, and jobs but the removal of subsidy led to a massive increase in the cost of fuel which had a ripple effect on the economy skyrocketing prices of everything.
Business News
CBN Digitises Licensing Application, Approval for Microfinance Banks

The CBN on Wednesday in Abuja unveiled a new online platform for the submission licence applications by microfinance banks.
Its Director, Corporate Communications, Mr Isa AbdulMumin, said the platform, known as the CBN Licensing, Approval and Other Requests Portal (CBN LARP), would be the place to process applications.
AbdulMumin said the portal replaced the current manual process where applicants for microfinance banks’ licences submitted applications to the CBN physically.
He said the new portal would improve accessibility, reduce paperwork, and expedite licence approvals.
“In due course, the CBN will extend the platform to other categories of licences.
“The online application system offers numerous benefits, including a simplified process, time saving, enhanced communication, and robust security measures.
“By digitising the application process, the CBN aims to improve accessibility, reduce paperwork, and expedite
licence approvals, benefiting both applicants and the economy.
“Consequently, with effect from Sept. 25, microfinance bank licence applicants are required to submit both hardcopy and online applications (via the CBN LARP) as part of a parallel run,’’ he said.
He added that the parallel run would end on Dec. 31, after which the manual submission of hardcopy bank licence applications would no longer be required and accepted.
“From Sept. 25, prospective microfinance bank applicants are urged to log on to www.larp.cbn.gov.ng to submit their applications,’’ AbdulMumin stressed. (NAN)
Business News
Reps Quiz NPA Over Sale of 16 Vessels at N156m. Others

An ad-hoc committee of the House of Representatives is quizzing the Nigeria Ports Authority (NPA) over the sale of 16 vessels for N156.24 million in 2019.
Among the vessels were ML Pategi sold at N3.2 million; ML Misau sold at N1.06 million; PB Kabba sold at N5.
4 million; SPB 3 sold at N54,000; and PC Shelleng sold at N48,000.Documents before the committee also showed that NPA sold exotic vehicles like Ranger Pick-Up, Toyota Coaster Buses, Toyota Corolla cars, Toyota Hiace buses, Toyota Camry Salon Cars, among others at cheap prices
The documents equally indicated that NPA sold 45 million other items at the Apapa Port, Lagos in 2022 at N1 each, thereby collecting N45 million after the sales.
The property was sold through an invoice dated Aug. 9, 2022.
The NPA also sold 10,800,700 other items at its Apapa Dockyard in 2021 also at the rate of N1 each, netting N10.800 million in the process.
The documents further showed that NPA sold 20 million scrap metals at the Kirikiri Terminal II, Apapa, at N1 each, thereby netting N20 million also.
Prof Julius Ihonvbere, chairman of the committee adjourned sitting on Wednesday to Sept. 25 to enable NPA officials to prepare answers to questions posed at them.
The officials were directed to bring along with them list of properties slated for auctioning and evaluation reports on the adjourned date.
Ihonvbere said the NPA officials should also present the committee with the names of registered property valuers involved in the transactions.
The officials were also directed to present the valuers’ reports and government approval for the sale of the property from the office of Bureau of Public Procurement.
The officials were also directed to present Certificates of No Objection to the sales by appropriate government agencies and evidence of remittances of accrued revenue into Federal Government’s coffers.
Ihonvbere also told the NPA officials to present bidding procedures, newspaper publications, selection and every other document that could assist the committee in its investigation.