Despite the slowdown in the financial services space, Nigeria’s 5 biggest banks by capitalization delivered an improved performance for the first half ended June 2019.
Here is a look at how the banks performed as a group, and the outliers in each category.
The 5 lenders FBN Holdings, UBA, Guaranty Trust Bank, Access Bank, and Zenith Bank made a total of N1.46 trillion as gross earnings for the half year ended June 2019. This marks an 8.14% increase from the N1.35 trillion earned in the corresponding period of 2018.
Zenith leads in terms of gross
Zenith Bank led in terms of gross earnings, as the bank had N331 billion as gross earnings for the half year ended June 2019.
Access Bank follows closely behind; it made N324 billion as gross earnings in the first half of 2019. The two banks thus accounted for 44.7% of earnings made by the 5 banks.
Access also had the highest increase in gross earnings largely due to effects of its merger with Diamond Bank Plc. Access Bank made N253 billion as gross earnings in the first half of 2018. Year on year, this amounts to a 28% increase.
Profit before tax
Profit before tax for the five banks increased from N358 billion in 2018 to N410 billion in 2019, a 14.5% increase year on year.
GT Bank takes the lead profit-wise
Guaranty Trust Bank led the way in terms of profit before tax, as the bank had a profit before tax of N115 billion. Zenith Bank follows next with a profit before tax of N111 billion. The two banks thus accounted for 55.1% of the profit made by the 5 banks.
Access Bank again had the highest year on year increase. The bank’s profit before tax jumped from N45.8 billion in 2018 to N74.1 billion in 2019, up 61.7% year on year.
UBA was next with a 20.8% increase year on year. Profit before tax rose from N58.1 billion in 2018 to N70.2 billion in 2019.
Profit after tax
Compared to the larger industry, the tier one banks, have maintained the lion share of profit. The FUGAZ banks accounted for 70.3% of the N477 billion made by all listed banks in the country.Profit after tax by the 5 banks rose from N296.6 billion in 2018 to N336.3 billion in 2019. This amounts to a 13.3% increase year on year.
Guaranty Trust leads in terms of profit
Guaranty Trust Bank, also took the lead in terms of profit after tax, as the bank made N99.1 billion as profit after tax in the first half of 2019. Zenith Bank follows closely with a profit after tax of N88.8 billion.The two banks thus accounted for 55.8% of the profit made by the 5 lenders.
Access Bank takes the third place with a N63 billion profit after tax. UBA is fourth with a profit after tax of N46.7 billion. FBN Holdings takes the last spot with a N31.7 billion profit after tax.
How have the shares fared year to date?
In terms of capital appreciation, Access Bank is the best performing, as the stock is up 1.47% year to date. While the appreciation is marginal, the stock has outperformed the broader market index which is down 13.63%.
FBN Holdings is down 45.28% year to date, and is the worst performing stock among the tier one banks. Guaranty Trust Bank is down 24.09% year to date. UBA is down 20.78% year to date, while Zenith Bank is down 21.91% year to date.
Breaking: Crypto investors lose $530 million within a day
The Crypto futures became overheated and record sell-offs began leading traders to lose more than $527 million in a single day.
These are surely bad times for many crypto investors on the account that roughly $530 million worth of Crypto positions disappeared into thin air within a day.
The mass liquidation of such trading positions, according to data retrieved from Bybt.com, showed such occurred before the flagship crypto dipped around $34,000 today.
What this means
Over the past day, Bitcoin, with the highest dominance rate in the crypto market gained 7% when it moved from $35,500 to nearly $38,000, taking into consideration future demand for the crypto asset could skyrocket.
- However high sell-offs gained momentum immediately Bitcoin touched $38,000 value amid several large sell orders placed around that price.
- The Crypto futures became overheated and record sell-offs began leading traders to lose more than $527 million in 24 hours.
What they are saying
A highly respected crypto expert, Ki-Young Ju, disclosed the ongoing activity in the ever-volatile Crypto market on his Twitter feed, by critically hinting that buying pressure has paused in recent days.
- “People trade $BTC with low leverage, open interest is skyrocketing, and the long-short ratio looks neutral. Strong on-chain buying signals that have driven this bull market hasn’t come up so far. Bitcoin might retest 30k, so I don’t have any position now in this uncertain market.”
People trade $BTC with low leverage, open interest is skyrocketing, and the long-short ratio looks neutral.
— Ki Young Ju 주기영 (@ki_young_ju) January 17, 2021
At the time of drafting this report, Bitcoin’s volatility ensured that no firm market direction was in control, as Bitcoin fluctuated around $34,800.
Sequel to the sudden correction seen in the Bitcoin market lately, it had been in on a bullish run relatively.
FG announces mandatory NIN enrolment for foreign diplomats
The Federal Government has directed foreign diplomats in the country to also partake in the mandatory NIN registration.
The Federal Government on Sunday announced the mandatory National Identity Number (NIN) enrolment for foreign diplomats in the country.
While making the announcement, the government said that approval has been gotten for the establishment of enrolment centre at the Federal Ministry of Foreign Affairs by January 19, 2021.
According to a press statement which was signed by the Technical Adviser (Information Technology) to the Minister for Communications and Digital Economy, Dr Femi Adeluyi, the special centre will be managed by his ministry.
Adeluyi, in the statement, disclosed that the Communications Minister, Isa Pantami, said the centre is being set up based on the request of the Minister of Foreign Affairs, Mr Geoffrey Onyeama.
He said that the enrolment centre will provide support for members of the diplomatic corps and will be managed by the Federal Ministry of Communications and Digital Economy through the National Identity Management Commission (NIMC).
What the statement from the Ministry of Communications and Digital Economy is saying
The statement reads, ” The Minister of Communications and Digital Economy, Dr Isa Ali Ibrahim Pantami, has approved the setting up of a National Identity Number (NIN) enrolment centre at the Federal Ministry of Foreign Affairs. The desk will be set up by Tuesday, 19th of January, 2021.
“This enrolment centre will provide support for members of the Diplomatic Corps and will be managed by the Federal Ministry of Communications and Digital Economy, through the National Identity Management Commission.
” The centre is being set up based on the request of the Honourable Minister of Foreign Affairs, Geoffrey Onyeama, in order to simplify the process for diplomats.
“The National Identity Number is mandatory for diplomats who will reside in Nigeria for a continuous period of two years or more. It is also mandatory for all other lawful residents in the country as stated in Section 16 of the National Identity Management Commission Act 2007.’’
The statement also says that the compliance for NIN enrolment has been low until recently despite the Law making it mandatory for Nigerians and legal residents since 2007.
What you should know
- It can be recalled that on December 15, 2020, the Federal Government had declared that after December 30, 2020, all SIMs that were not registered with valid NIN on the network of telecommunications companies would be blocked.
- However, following public outcry against the short notice, it later extended December 30, 2020, giving 3 weeks’ extension for subscribers with NIN from December 30, 2020, to January 19, 2021, and a 6-week extension for subscribers without NIN from December 30, 2020, to February 9, 2021.
- However, it yet to be seen if the deadline will be met with the large crowd that turn out every day at NIMC offices without being attended to
— Fed Ministry of Communications & Digital Economy (@FMoCDENigeria) January 17, 2021
PayVIS: New Lagos State platform to use traffic cameras to fine traffic offenders
Lagos State’s Vehicle Inspection Service has launched a technology-based initiative to track, monitor and book traffic offenders.
The Lagos State Government has launched PayVIS, a number plate detection platform that captures vehicle offenders when they violate traffic laws and then bills them.
PayVIS is an initiative of the Lagos State Vehicle Inspection Service.
According to the information contained in the website of PayVis,
- “PlateDetect is a Traffic analytics and access control application developed for Lagos State’s Vehicle Inspection Service to track, monitor, and book traffic offenders.”
- “LASG VIS’s PlateDetect ensures that all vehicle documentation (vehicle license, Insurance policy, Roadworthiness certificate, Driver’s license, Hackney permit (Commercial vehicles only), Lagos State Drivers’ Institute card (Commercial vehicles) can be verified and tickets raised for violators.”
How it works
- From an advert seen by Nairametrics, traffic cameras located beside traffic lights will capture traffic offenders without the presence of traffic officials.
- The camera takes a photo shot of the vehicle’s plate number, and runs a scan of the vehicle’s records in the state’s database.
- To detect whether you may have had a prior traffic offense, vehicle owners are to visit their website, type in their plate number and then click on search.
- Once this is done, a bill is generated for any outstanding offense.
On its Facebook page, the Vehicle Inspection Service said that it will be showing an understanding of the current economic situation to exhibit fairness and good faith by offering a 50% rebate on existing unpaid fines from January 1 to 31st January 2021.
Offenders are advised to take opportunity of the period to pay up, as 100% penalty would be payable after the deadline.
Watch the advert below: