Jaiz Bank Plc has released its half-year 2020 unaudited financial statement, and it shows fairly positive improvements in key financial indicators. As always, the highlights are presented below.
Gross Income: For the half-year period ended June 30th, 2020, Jaiz Bank recorded gross income from financing transactions of N8 billion, indicating a 39% increase when compared to N5.7 billion reported in half-year 2019.
Total Expenses: During the period under review, Jaiz Bank’s operating expenses, staff cost and depreciation and amortisation were N4.9 billion. This is more than N3.9 billion that was reported during the comparable period last year.
Profit after tax: Profit after tax grew by 45.3% to N1.1 billion during the period under review, compared to N814.3 million in H1 2019.
Total Assets: Jaiz Bank’s total assets as of June this year is N186.6 billion. There was an 11.6% increase from N167.3 billion which was recorded last year.
Interestingly, Jaiz Bank further disclosed in its financial report that it is currently involved 21 court cases. Out of these suits, 16 were instituted by others against the bank while 4 were instituted by it against other entities. The remaining 1 is a civil appeal against Jaiz Bank.
“The Bank, in its ordinary course of business, is presently involved in 21 litigation suits: Sixteen (16) cases instituted against the Bank, four (4) cases instituted by the Bank, Nil judgement in favour of the Bank awaiting execution and one (1) civil appeal against the Bank. The Directors are of the opinion that none of the aforementioned cases is likely to have a material adverse effect on the Bank and are not aware of any other pending or threatened claims and litigations,” part of the report said.
Jaiz Bank’s stock closed today’s trading on the Nigerian Stock Exchange with a share price of N0.54.
Custodian Investment Plc posts Profit After Tax of N1.5 billion in Q3 2020
The company recorded impressive results in some key financial metrics such as gross revenue and profit after tax.
Custodian Investment Plc has declared a Profit After Tax (PAT) of N1.5 billion in the third quarter of 2020, as against N1.37 billion posted the same period in 2019.
This is according to the consolidated financial report of the firm for Q3 2020.
What you should know
The firm recorded impressive results in some key financial metrics such as;
- Gross Revenue grew by 42% from N15.85 billion to N22.52 billion.
- Interest income advanced by 11.3% Year-on-Year.
- Investment income gained 25.4% from N5.61 billion to N7.03 billion.
- Earnings per share appreciated by 50% from N24 to N36 for the period under view.
- Other investments and operating income grew by approximately N6.40 billion.
- Total assets also grew by 27% from N118.01 billion to N149.94 billion for the period under view.
- Profit before tax marginally grew by 2.8% from N1.69 billion to N1.73 billion.
What this means
- The growth in revenue and profitability is attributable to an increase in financial and reinsurance assets which appreciated by 35.62% and 32.5% (Y-O-Y) respectively.
- An increase in investment and interest incomes were also very important in driving revenue.
- On the contrary, despite recording increased gross revenue, the net profit margin decreased over time, from 23.91% recorded as of Q3 2019 to 5.8% in Q3 2020. Thus, indicating a probability of weak cost control mechanism or that variable values are not well controlled.
- The Net profit margin indicates that the company earned N0.057K in profit for every N1 it received in revenue as of Q3, 2020. This is lower compared to N0.24k for every N1 it earned in revenue in Q3, 2019.
- This is evident in the higher operating expenses recorded as of Q3 2020 which is up by 97.4% when compared with the figures obtained in the corresponding period last year (Q3 2019).
Trans-Nationwide Express Plc suffers N79 million loss in Q3 2020
Trans-Nationwide Express Plc has recorded a loss that amounts to the tune of N79 million in Q3, 2020.
Trans-Nationwide Express Plc, a logistics and courier service company in Lagos, Nigeria, suffered N79 million loss in the third quarter of 2020.
This disclosure was based on the Q3 2020 financials sent to the Nigerian Stock Exchange on Wednesday.
- Revenue declined by 7.5% Year-on-Year, from N548.3 million as of the corresponding period last year to N507.17 million this year.
- The dip was largely due to a decline in revenue from courier services, which contributed about 54.1% of the total revenue as of Q3, 2020.
- The revenue from courier services declined from N326.44 million to N274.40 million for the period under view.
- On the contrary, other revenue churning segments like Freight income, logistics income, internal mailing income, and warehouse all recorded a positive outlook, as they all grew viz-a-viz last year’s figures.
- Gross profit declined by 7.1% from N321.23 million to N298.40 million in the period under view.
- Administrative expenses increased by 17.5% from N321.0 million to N377.1 million within the period under view.
- Cash received from customers recorded a dip from N542.28 million to N523.07 million, indicating a slip of about 3.5%.
What this means
The pandemic affected several businesses and sectors, the transportation and logistics sectors were not exempted. The loss might have been largely due to the period of economic inactivity, due to embargo on inter-state and international travels.
The high cost of maintenance, coupled with little or no revenue in those periods also played a major part.
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Total Nigeria Plc records 344% rise in PAT for Q3 2020
Total Nigeria Plc recorded an 881% rise in Profit Before Tax (PBT) for the period under view.
Total Nigeria Plc recorded N500.12 million as Profit After Tax in Q3 2020, against the N204.84 million loss it suffered in the corresponding period last year – a 344% increase.
The information is contained in a recent disclosure sent to the Nigerian Stock Exchange Market today.
In addition, it also recorded an 881% rise in Profit Before Tax (PBT) for the period under view, as PBT increased to N912.89 million, against N116.95 million loss recorded in the corresponding period last year.
On the contrary, revenue during the period under view declined by 32%, from N221.84 billion recorded in Q3 2019 to N151.71 billion in Q3 2020.
What this means
The reason for the mixed result in terms of the dip in revenue and a non-corresponding increase in profit is largely due to a drastic reduction in costs. This simply means that the firm was able to manage its costs very well despite recording lower revenue.
For example, the firm was able to do the following:
- Reduce its cost of sales to about N66.06 billion, from N196.74 billion as of Q3 2019 to N130.68 billion in Q3 2020 – indicating a 33.6% reduction.
- Reduce its finance cost by 58.25% and increase its finance income by 664.3%.
- The number of staff also reduced by 6%, hence impacting administrative costs.
- Interest on bank loans and overdraft remarkably declined by approximately 64.0%.
- On the flip side, the impact of the lockdown period, due to the spread of the pandemic, affected the revenue of the firm, which may have accounted for the 32% dip in revenue for the period under view.