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Companies

Royal Exchange Plc forecasts N500.83 million PAT in Q1 2021

Royal Exchange has projected a 244% rise in its Profit After Tax for the first quarter of 2021.

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Royal Exchange completes acquisition deal between German Fund and subsidiary , Royal Exchange subsidiary receives investment from German Government

Royal Exchange Plc has projected a rise in its Profit after Tax (PAT) to N500.83 million for the first quarter of 2021 (Q1, 2021), indicating a 244% increase from the figures recorded in Q3 2020.

This is according to the latest earnings forecast of the firm, signed by the Chief Financial Officer of the firm, Olalekan Jayeola, and sent to the Nigerian Stock Exchange market.

Key highlights of the earnings forecast of Q1 2021

  • Pre-tax profit is projected at N736.5million, +244% Q-o-Q.
  • Gross Written Premium is expected to hit N4.75 billion, +95% Q-o-Q.
  • Net premium is projected to decline to N1.7 billion, -19.1% Q-o-Q.
  • Fees and commission income is projected to decline to N141.2 million, -25% Q-o-Q.
  • Investment income is projected to increase to N475.51 million, +3.3% Q-o-Q.
  • Total underwriting expenses is projected to decline to N1.3 billion, -40.5% Q-o-Q.
  • Total underwriting profit is projected to increase to N567.4 million, +299.4% Q-o-Q.
  • Total operating expenses is projected to decline to N494.1 million, -5.7% Q-o-Q.

Key assumptions

In preparing the forecast, some assumptions were made including;

  • The premium income budget for the year is zero based.
  • Reinsurance is projected at 27% of Gross Written Premium.
  • Fees and Commission income was forecasted at 11% of reinsurance expense.
  • Claims expense of N514Million is estimated not to exceed 30% of Net Premium Income.
  • Underwriting expenses of N685Million is forecasted not to exceed 40% of Net Premium Income.
  • Management expenses of N479million are estimated not to exceed 30% of Net Premium Income.
  • The Inflation rate was projected at 14% as the worst case scenario.
  • The exchange rate of N385 to a dollar was assumed.

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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Companies

Africa Prudential Plc declares N1 billion dividend for shareholders

The Board of Directors of Africa Prudential Plc has proposed the payment of N1 billion as dividend to qualifying shareholders.

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Obong Idiong, Africa Prudential Plc

The Board of Directors of Africa Prudential Plc, Nigeria’s leading registrar and a key player in the capital market, has proposed the payment of N1 billion as dividend to qualifying shareholders of the company.

This is in line with the resolution made at the Company’s Board meeting which held on Thursday, February 18, 2021, as the Board resolved to pay a dividend of 50 Kobo per ordinary share, amounting to N1,0000,000,000 (One billion Naira only).

It is essential to understand that the dividend recommended by AfriPrud’s Board is subject to appropriate Withholding Tax, and the approval of shareholders at the Company’s Annual General Meeting.

What you should know

  • The dividend recommended by the board of AfriPrud in 2020 is 28.57% lower when compared to the total dividend of 70 kobo per share paid to shareholders last year for 2019.
  • It is important to note that the dividend declared is subject to appropriate withholding tax and the approval of shareholders at the Company’s next Annual General Meeting.
  • However, with a share price of N7.3 per share at the close of trading activities on the floor of NSE for last week, the dividend yield of the company stands at 6.85%.

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Companies

United Capital earmarks total dividend of N4.2 billion for shareholders

United Capital Plc announced a payment of a total of N4.2 billion as dividend to shareholders for 2020.

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Commercial paper, United Capital Asset Management explains mutual funds’ positive performance

The Board of Directors of United Capital Plc, Nigeria’s financial and investment services powerhouse, has announced the payment of a total N4.2 billion as dividend to shareholders for 2020. The resolution was made at the Board meeting which held on Wednesday 17, 2021.

This information was contained in a notification dated 18 February 2021, which was signed by the Company’s Director Peter Ashade, and sent to the floor of the Nigerian Stock Exchange.

According to the notification, the dividend declared by United Capital on a per-share basis was pegged at 70 kobo per share, this put the total dividend to be paid to shareholders at N4,200,000,000.

READ: 6 Questions to consider when evaluating a job offer

What you should know

  • The dividend declared for 2020 is 40% higher when compared to the total dividend of 50 kobo per share paid by the company to its shareholders last year for 2019.
  • It is important to note that the dividend declared is subject to appropriate withholding tax and the approval of shareholders at the Company’s next Annual General Meeting.
  • The dividend will be paid to only shareholders whose names appear in the Register of Members as at the close of business on Friday, March 5, 2021.
  • However, with a share price of N5.98 per share at the close of trading activities yesterday on the floor of NSE, the dividend yield of the company stands at 11.7%.

READ: Why Nigerian stocks are getting pummeled

What to Expect: The Audited Accounts of United Capitals Plc will be published on or before Monday, February 22, 2021, on the website of the Nigerian Stock Exchange. This is in line with the option by the Company to submit its audited accounts within 60 days of the year-end.

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