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Cornerstone Insurance Plc projects PAT of N537.4million in Q1 2021

Cornerstone Insurance Plc has projected a rise in its Profit After Tax (PAT) figures to N537.4 million in the first Quarter of 2021

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Cornerstone Insurance Plc

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.

Specta

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.

Chidi Emenike is a graduate of economics, a Young African Leadership Initiative Fellow and an Investment Foundations certificate holder. He worked as a graduate Teaching Assistant in the Federal College of Education Kano and is also a trained National Peer Group Educator on Financial Inclusion

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Niger Insurance Plc posts N311.43 million loss in Q2 2020

Niger Insurance Plc has posted a loss of N311.43 million in Q2 2020, down by -1,173.2% Year-on-Year.

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Niger Insurance Plc posts N311.43 million loss in Q2 2020

Niger Insurance Plc has posted a loss of N311.43 million in Q2 2020, down by -1,173.2% Year-on-Year, from a profit of N29.02 million recorded in the corresponding period last year.

This is according to a notification sent by the firm to the Nigeria Stock Exchange and seen by Nairametrics.

READ: Fidelity Bank: Regulatory-induced fee cut, surge in OPEX halt profit growth

Some other key highlights of the Niger Insurance Plc Q2 2020 result are;

  • Gross premium written declined to N189.41 million, -53.7% Y-o-Y.
  • Gross Premium Income declined to N186.0 million,-46.6% Y-o-Y.
  • Pre-tax operating profit declined to a loss of N358.19 million, -1,323% Y-o-Y.
  • Fee and commission income declined to N3.44 million, -71.3% Y-o-Y.
  • Net underwriting income declined to N177.89 million, -42.1% Y-o-Y
  • Claims expenses increased to N265.6 million, +429.9% Y-o-Y.
  • Total underwriting expenses increased to N266.23 million, +566.6% Y-o-Y.
  • Basic Earnings per Share declined to a loss of N4.02.
  • Tax paid declined to N15 million, -81.3% Y-o-Y.

READ: Fidson Healthcare Plc records 30.28% increase in 2020 9M revenues

Specta

Bottom line

The mass decline in some income-earning components like gross premium, fee and commission income, etc. coupled with a drastic rise in expenditure items, like net claims, total underwriting expenses and others, contributed to the decline in the firm’s profit before and after-tax.

READ: Nigerian economy slips into recession as GDP contracts by 3.62% in Q3 2020

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Ecobank Transnational Inc. records 11% increase in interest income for Q3 2020

Ecobank Transnational Inc. recorded an 11% increase in its interest income to N139.6 billion for 2020 Q3, from N125.93 billion recorded in 2019 Q3.

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Ecobank, SMEs, Digital

Ecobank Transnational Inc. has recorded an 11% increase in its interest income to N139.6 billion for 2020 Q3, from N125.93 billion recorded in 2019 Q3.

This is according to the bank’s latest financials sent to the Nigerian Stock Exchange market today.

READ: Nigeria’s inflation rate jumps to 14.23% in October 2020

Key highlights for Q3 2020:

  • Net interest income increased to N93.62 billion, +45% Y-o-Y.
  • Fee and commission income increased to N39.01 billion, +1% Y-o-Y.
  • Net trading income increased to N46.65 billion, +38% Y-o-Y.
  • Operating income increased to N170.85 billion, +20% Y-o-Y.
  • Non-interest revenue declined to N77.23 billion, -1% Y-o-Y.
  • Loss before Tax declined to N29.64 billion, -182% Y-o-Y.
  • Loss After Tax declined to N38.25 billion, -298% Y-o-Y.
  • Staff expenses increased to N44.12 billion, +7% Y-o-Y.
  • Taxation declined to N8.76 billion, +48% Y-o-Y.
  • Between December 2019 and September 2020, Loans and advances to customers decreased to N3.29 trillion, indicating a decline of -2.6%.
  • Deposits from customers between December 2019 and September 2020 increased to N6.69 trillion, up by +12.8%.

READ: Abbey Mortgage Bank Plc projects N60.13 million profit in Q1 2021

Specta

Bottom line

Despite recording an increase in some of the key income components, these gains were eroded by more than a corresponding increase in expenditure components, leading Ecobank to experience a fall in profit before and after tax.

READ: Sterling Bank Plc records 3.28% decline in 2020 9M gross earnings

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CUTIX Plc posts N1.83 billion revenue in Q2 2020, up by 57.8% Y-o-Y

CUTIX Plc posted growth in key financial metrics such as its revenue, PAT and PBT, amongst others.

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Cutix Plc

CUTIX Plc, a renowned manufacturer and supplier of house wire cables and other electrical appliances, posted an increased revenue of N1.83 billion for Q2 2020 , +57.8%.

This is according to the firm’s recent financials sent to the Nigerian Stock Exchange, and seen by Nairametrics.

Key highlights for the Q2 2020

  • Pre-tax profit leapt to N272.6 million, +277.52% Y-o-Y.
  • Profit After tax also increased to N177.19 million, +277.5% Y-o-Y.
  • Cost of sales increased to N1.35 billion, +57% Y-o-Y.
  • Gross profit increased to N479.34 million, +57% Y-o-Y.
  • Distribution costs declined to N37.5 million, -7.4% Y-o-Y.
  • Administration expenses declined to N143.91 million, -8% Y-o-Y.
  • Finance costs declined to N35.1million, -21.2% Y-o-Y.
  • Income tax expense increased to N95.4 million, +277.515 Y-o-Y.
  • Earnings per share massively gained 233.3% Y-o-Y, to finish at N10

(READ MORE: Export of our products in West African sub-region now less competitive – MAN)

Bottom line

Specta

The firm posted growth in key financial metrics such as its revenue, PAT and PBT, amongst others, which indicates that it was able to manage its costs and maximize profit.

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