In a renewed optimistic outlook, Cornerstone Insurance Plc has projected a rise in its Profit After Tax (PAT) figures to N537.4 million in the first Quarter of 2021 (Q1 2021), following a loss of N75.84 million it recorded in the third quarter of 2020 (Q3, 2020).

The disclosure is contained in a press release on the firm’s forecast, seen by Nairametrics.

Key highlights

The recent forecast for Q1 2021 when compared with the firm’s reported financial statements for Q3 2020 reveals:

• PAT is projected to hit N537.4 million in Q1 2021, +808.7%.
• Pre-tax profit is projected to hit N767.82 million from the loss of N94.3 million in Q3 2020, +914.3%.
• Net Earned premium in Q1, 2021 is expected to rise to N2.23 billion, up from N1.16 billion earned in Q3, 2020.
• Net claims incurred is expected to rise to N834.52 million, +18.4% when compared to Q3 2020 figures of N705 million.

Other key forecasts for Q1 2021 includes:

• Investment income expected to hit N432.7 million.
• Rise in Operating expenses to N901.5 million.
• Gross premium income projected at N6.2 billion.
• Commission incurred projected at N162.3 million.
• Net operating income expected to hit N1.8 billion.
• Taxation expected to be N230.3 million.
• Net cash generated from operating activities expected to hit N335.1 million.

Bottom line

The forecast is coming amid the negative impact of the coronavirus pandemic and the #EndSARS protests which negatively affected most businesses in Nigeria — a testament to this, is the dim in key financial metrics of the firm for Q3 2020.

A conservative forecast was expected by many, however, renewed optimism and news of the country exiting recession by the first quarter of 2021 could have influenced the positive outlook.

FCMB Group plc has posted a revenue of N48.3 billion for the third quarter of 2020 (Q3, 2020), as Year-To-Date earnings appreciates by +7.8% to hit N146.43 billion as at September 2020.

This is according to the latest financials of the group sent to the Nigerian Stock Exchange Market today.

Key highlights of Q3 2020 results are:

• Gross earnings increased to N48.3billion, +4.8% Y-o-Y.
• Pre-tax profit increased to N4.8billion, +10.2% Y-o-Y.
• Profit After Tax (PAT) grew to N4.2billion, +16.4% Y-o-Y.
• Net interest income grew to N22.7billion, +30.03% Y-o-Y.
• Net fee and commission income increased to N5.2billion, +0.29% Y-o-Y.
• Net trading income grew to N1.82billion, +39.4% Y-o-Y.
• Personnel expenses declined to N6.9billion, -7.9% Y-o-Y.
• General and administrative expenses declined to N7.6billion, -7.52% Y-o-Y.
• Earning Per Share increased to N0.21, +16.7% Y-o-Y.
• Between December 2019 and September 2020, loans and advances to customers grew to N793.14 billion, +10.8%
• Total assets between the period under view also grew to N2.04 trillion, +22.12%
• Deposits from customers between December 2019 and September 2020 crossed the trillion mark, as it hits N1.2 trillion, indicating a gain of +26.7% within the period under view.

Bottom Line

The bank posted impressive growth across key financial metrics, with major income yielding components increasing over time, coupled with a drastic reduction in expenditure items. This reflected in the growth recorded both in the pre and post tax profit levels.

Unity Bank Plc has posted a gross earning of N11.04 billion in Q3 2020 -3% increase, according to its latest financials.

Some key highlights of the Q3 2020 financials of the bank are;

• Profit After Tax increased to N543.14 million, +6% Y-o-Y.
• Pre-tax profit increased to N590.4 million, +6% Y-o-Y.
• Total operating income increased to N5.8 billion, +4% Y-o-Y.
• Net interest income declined to N3.6 billion, -3% Y-o-Y
• Total operating expenses increased to N5.3 billion, +10% Y-o-Y
• Personnel expenses increased to N2.62 billion, +9% Y-o-Y.
• Between December 2019 and September 2020, net loans and advances to customers increased to N131.85 billion, +27% Y-o-Y.
• Total assets also grew to N420.9 billion, up by +44% in 2020 9M.
• Cash and balances with the Central Bank of Nigeria, also increased to N98.8billion, up by +596%, 2020 9M.

Bottom Line

The increase in income components such as net fee and commission income and net trading income (which grew by 176%) boosted the profit of the firm within the period under view.