Consolidated Hallmark records N3.8b premium, N271m profit
CONSOLIDATED Hallmark Insurance Plc
has announced a gross premium income of N3.8 billion for the year ended
December 31st, 2011, which represents an increase of N1 billion or 36 per cent
over N2.8 billion recorded in 2010.
The
profit after tax (PAT) went up by 28 per cent to N271 million from the 2010
figure of N211 million, while shareholders’ fund was also grown from N4.l1
billion in 2010 to N4.2 billion last year.
The
chairman of the company, Ugo Obi Ralph Ekezie, addressing shareholders at the
17th yearly general meeting held in Lagos said that notwithstanding the
daunting challenges posed by the global economy and the harsh operating
environment, “your company
grew its gross premium income from N2.8 billion in 2010 to N3.8 billion during
the financial year ended 31st December 2011 which represents a remarkable
increase of N1 billion ort 36 per cent.”
He
attributed the success recorded to the unflinching support of customers and the
unwavering determination and commitment of management and staff.
As
a result, the shareholders approved the board’s recommendation of a dividend
payout of two kobo totalling N120 million.
In
his remark, the Chief Executive Officer of the company, Mr. Eddie Efekoha,
said: “The company
has continued to recognise the importance of its staff and their contributions
to its growth and development. We are not relenting in the training of staff to
improve on their competencies. A comprehensive learning and development
programme designed to equip our technical staff with modern skills is run
yearly in partnership with external consultants.”
According
to him: “We remain
committed to building the company into a world class firm. Our attitude and
resolve remain strong and with your continued support, we shall achieve our
dream.”
Sovereign Trust announces N6.5b premium income
SOVEREIGN Trust Insurance Plc
recorded a N798 million profit before tax in 2011 against N415 million recorded
in 2010, representing 92 per cent increase.
Profit
after tax also stood at N704 million, a 128 per cent increment when ranked over
the sum of N308 million recorded in 2010, marking the largest single profit
jump in the company’s history.
Also,
gross premium income of the company went up by 36 per cent to N6.5 billion as
against N4.7 billion recorded in the previous year.
The
size and quality of the company’s
balance sheet was buoyed by this performance for the year. While total asset
rose by a sum of N1.6 billion to close the year at N7.3 billion, the
composition of the asset was well structured to position the company for better
future performance.
The
Chairman of the Company, Ephraim Faloughi, addressing shareholders of the
company at the 17th yearly general meeting in Lagos, told the investors “on the back
of greater operational efficiency and productivity, we ended fiscal year 2011
revenue and our best earnings per share performance in five years. Our focus on
successfully executing a growth strategy paid off as revenue grew by 36 per
cent.”
He
attributed the performance to the effort of the unified Sovereign Trust team
and “our
commitment to structural business strategies aimed at aggressive revenue
generation and cost curtailment in the course of the year.”
Faloughi
told the elated investors that at the back of the financial performance and
consistent with our policy of creating superior wealth for our shareholders,
the board of directors is pleased to recommend for your approval a dividend of
four kobo per every 50 kobo share for the year ended.
The
STI chairman told the shareholders, “we concluded year 2011 pleased with
our progress but with the knowledge that we have even greater challenges and
opportunities ahead. Our industry is changing at a never-before-seen pace, and
we are energised and eager to lead in order to better serve our customers.”
The report of the House of
Representatives ad hoc committee on the investigation into the near collapse of
the Nigerian capital market may be made public this week, THISDAY has learnt.
The Ibrahim El-Sudi-led eight-man
panel was asked by
the House to conduct a fresh
probe following bribery allegations levelled against the Herman Hembe’s House
Committee on Capital Market and other Institutions by the
Director General of Securities and Exchange Commission, Ms Arumah Oteh.
The committee invited regulators,
operators and other stakeholders to appear before it and explained their roles
in the market since the downturn began in 2008.
Sources close to the committee said
after delays due to non-submission of documents by some government agencies,
the report has now been finalised and would be table before the House this
week.
“The committee was waiting for some
vital documents from key organisations such as the Central Bank of Nigeria
(CBN), SEC and Asset Management Corporation of Nigeria (AMCON).
“Representatives of these
organisations had promised during the hearing to bring the documents but they
were delaying. I can now confirm to you that the report is ready and would be
laid before the House this week,”
the source said.
While tasking the ad hoc committee,
the Speaker of the House, Aminu Tambuwal, had said that the house had no
intention of engaging anybody in a battle through the investigation.
“You are all aware of the history of
this hearing. We have gone full circle. This is a new beginning of great
expectations. It is a hearing that is looking for answers to the various
problems in the capital market.
“It is not an adversarial hearing but
one that seeks to bring to the fore, the factors working against our capital
market. Whatever has happened should be put behind us because Nigerians are
expecting too much from us to dig seriously into what brought the capital
market to where we are today,”
he said at the time.
On his part, El-Sudi said: “It is
important to emphasise the focus of this probe given recent happenings which
have been widely publicised in the media.
“Our assignment is to identify the
manifest causes of the market’s
near collapse and challenges that have held back its recovery with a view to
finding lasting solutions for the investing public, the operators, the
regulators and the companies that rely on the capital market for long term
funds and the economy as a whole.”
The Committee on Industry of the
House of Representatives has harped on the need for manufacturers in the
country to raise their level of local content utilisation in producing made in
Nigeria goods to reflect government's backward integration policy.
The committee, led by its Chairman,
Mohammed Ogoshi Onawo, made the call while embarking on a tour and assessment
of some manufacturing outfits in Lagos State, which have benefited from funding
from the Bank of Industry (BoI).
According to Onawo, the assessment
exercise, which forms part of their oversight function on the activities of
BoI, also provides a first-hand opportunity to meet Nigerian manufacturers and
assess the challenges facing the sector, in order to go back and map out
solutions.
He expressed the need for
manufacturers to increase the level of local content inclusion in the factories
and plants visited with the ultimate goal of attaining the ultimate goal of 100
per cent local content inclusion.
He noted that Nigeria is blessed
with abundant resources and raw materials and urged industrialists in the
country to exploit these to the economy’s advantage, adding that the
backward integration policy of government would be more fruitful when
manufacturers are committed to achieving its objective.
“With more local content inclusion in
our factories, we will be able to create more jobs for our people and also
reduce the cost of production, which will in turn make made-in-Nigeria- goods
more cost effective and globally competitive,” he said.
“We needed to see for ourselves and
verify the claims by BoI of what it has been doing to help move the industrial
sector to where we want it to be, because as a development bank it has to
identify with needy institutions and also we want to better appreciate the
challenges of the industrial sector,” he said.
After the tour, the chairman
remarked that the committee was impressed with what the beneficiaries were
doing with funds received from BoI.
“If we had met a different thing,
believe me, in front of the camera we would have accused both BoI and the
beneficiaries, there is nobody among the committee members that have gone round
these factories today that has not been impressed,” he remarked.
On the issue of recapitalising BoI,
he stated that the recapitalisation of a bank, particularly a bank like BoI,
would need legislation, and disclosed that a bill to that effect was already in
process. As soon as it comes to fruition, he said, the recapitalisation would
be implemented.
Some of the manufacturers used the
opportunity of the committee’s
visit to showcase the progress made, which they claimed was made possible with
the funds they received from BoI such as the production of better quality
products and the export of some products globally.
They also recounted some of the
challenges militating against them to include having to power their plants on
gas and diesel, high tariffs on imported raw materials, and inability to enjoy
the Export Expansion Grant (EEG) and other government incentives due to
bureaucratic bottlenecks.
The
industrialists also suggested that more avenues be sought for the use of the
EEG such as for the payment of industrial taxes.
In his response the chairman assured them that the committee has met with some of the regulatory bodies of the industrial sector to resolve some of the lingering challenges in the sector.
In his response the chairman assured them that the committee has met with some of the regulatory bodies of the industrial sector to resolve some of the lingering challenges in the sector.
On the issue of EEG, he said the
committee discovered that some unscrupulous individuals had infiltrated the
ranks of genuine industrialists and “not until they are flushed out, the
regulatory authorities will continue to exercise extreme caution and due
diligence in processing of the grants”.
He also advised them to turn in
their claims on time, as this would help to reduce the time taken to process
and facilitate the incentives. He also expressed the concern of the committee
for the welfare of workers employed in the nation’s industries, stressing that they
must not be underpaid or their health and safety compromised for the sake of
profit-making.
He
encouraged manufacturers and industrialists to open up on their challenges,
complaints and suggestions, so that the sector can grow; reiterating the
committee’s open door
policy, attentiveness and responsiveness to every issue it receives.
International rating agency- Fitch
Ratings at the weekend upgraded Access Bank Plc's (Access) long-term issuer
default rating (IDR) to 'B' from 'B-'.
The ratings upgrade, according to Fitch, was partly influenced by the commercial bank’s successful acquisition of the then rescued bank –Intercontinental Bank.
The international agency also said
that the upgrade was as a result of Access Bank's “support rating
to '4' from '5' and the revision of the bank's support rating floor to 'B' from
'NF'.
Fitch explained further: “At the same
time, the bank's national long-term rating was upgraded to 'A-(nga)' from
'BBB-(nga)' and its national short-term rating to 'F2(nga)' from 'F3(nga)'. The
ratings upgrades reflect Fitch's view of an increased likelihood of support for
Access from the Nigerian authorities if needed.
“This is driven by Access's perceived
increased systemic importance and enhanced franchise following its absorption
of the acquired rescued bank, Intercontinental Bank Plc. The combined entity,
which was consolidated at end-2011, controls about 8.5 per cent of system
assets.”
Access Bank Plc - one of Africa’s largest
financial services groups - recently disclosed its intention of becoming the “most
respected Bank in Africa”.
At the end of its business combination with Intercontinental Bank, the commercial bank’s assets base grew to N2.018 trillion while its customer base rose to 5.7 million.
The bank’s branch
network also increased significantly to a total of 309, just as its Capital
Adequacy Ratio (CAR) rose to 18.55 per cent, far above the industry average of
10 per cent.
Its
full year 2011 results had shown gross earnings of N138.949 billion, up from N91.142
billion recorded in 2010. Its profit after tax rose also by 50 per cent per
cent from N11.068 billion in 2010 to N16.708 billion in 2011.
“Prior to its present position in Nigeria and the African financial landscape, the management of the Bank had sought to transform Access Bank into a world-class financial services provider.
“Prior to its present position in Nigeria and the African financial landscape, the management of the Bank had sought to transform Access Bank into a world-class financial services provider.
"This was the vision that
propelled Access Bank Plc from a low industry ranking in 2002 to its current
position of significance in Nigeria and on the African continent,” the bank had
said.
Group Managing Director/Chief
Executive Officer, Access Bank, Mr. Aigboje Aig-Imoukhuede, had also said: “It has become
necessary for us to revise our vision in line with current realities and
aspirations within the context of the global economy. We intend to drive
profitable, ethical economic growth that is also environmentally responsible
and socially relevant.”
The Federal Government has
disclosed plans to enhance the national yield on tubers and cereals by an
incremental 600,000 metric tonnes (MT) per annum through the Growth Enhancement
Support (GES) scheme.
Minister of Agriculture and Rural
Development, Dr. Akinwumi Adesina, disclosed this at the roll-out of seeds and
fertilisers for small scale farmers in Abuja, the Federal Capital Territory
(FCT).
Adesina said government, through the scheme, would help farmers raise their income from the average N50,000 per annum to about N116,500; representing a 233 per cent increase.
“The design of
the scheme apart from encouraging the participation of almost 48 million
Nigerians in agriculture also creates directly an additional 174,100 jobs and
the fertiliser distribution supply chain at agro-dealer network at wards
levels.
“Also 3,483 jobs at regional distributor points and sustains an additional 800 to 1,000 jobs at the importation/blending/local production level of the value chain”, the minister explained.
“Also 3,483 jobs at regional distributor points and sustains an additional 800 to 1,000 jobs at the importation/blending/local production level of the value chain”, the minister explained.
He added: “This scheme
breaks the cycle of inefficient fertiliser support delivery to farmers and
ensures that the country’s huge
investments in the sub-sector reaches the target beneficiaries and deliver the
relevant economic benefits”.
The minister said it also leads to
increased fertiliser use and thereby results in increased production and
improved food security, which he informed that government targeted to hit
50kg/ha by 2015.
Adesina, while highlighting the GES
benefits, said it provides a platform to show off a new course of action
structured to help Nigeria’s smallholder
farmers, adding that it reduces governments’ financial outflow requirements.
He also maintained that “it builds
agricultural capacity, increases extension agents’ knowledge and their value to their
community, and increases farmers’
awareness of proper fertiliser application”.
The ministers assured that “the federal government will give a uniform GES to farmers across the country based on the existing price for a bag of fertiliser at any particular time”.
Adesina said his ministry would work
with relevant stakeholders, including the organised private sector and farmers’ associations
to ensure maximum availability of fertilisers at every parts of the country.
He informed that the scheme was
designed as a vital component of the agricultural transformation agenda, ATA of
the Goodluck Jonathan administration and seeks to achieve at the micro level,
food security for the farmer and national security at the macro level.
Nigeria is not broke, says Jonathan
President Goodluck Jonathan
yesterday assured Nigerians that the country was note broke and that the
economy was growing.
Jonathan, who
spoke on many national issues, including the security situation, at the
Presidential media chat in Abuja, on Sunday, said the defense minister Haliru
Bello and the national security adviser Andrew Owoye Azazi were relieved of
their jobs, to checkmate the operational tactics of the Boko Haram sect.
The president
said the aim of the Boko Haram group was to destabilise the nation and the
government and that they had consistently changed tactics.
“The group’s aim is to
destabilise government and they have consistently changed tactics, and for us
to bring their activities to an end, we must also change personnel and tactics.”
He said
government was ready to enter into dialogue with members of the Boko Haram sect
if they revealed their identities and came forward and surrendered their arms,
adding “they have no
leader and we cannot dialogue with a faceless group”.
On the
economy, he said it was being managed by professionals, assuring Nigerians that
the economy was on the right track “if the country is broke, you won’t see most of
the investors running over themselves to invest in the country.”
The president
explained further that the minister of Finance and co-odinating minister for
the economy, Ngozi Okonjo- Iweala, who was highly respected globally, was on
top of her game.
In defence of
his trip to Brazil while the nation was under attack by the Boko Haram sect,
the president said he had no regrets for his actions. He explained further that
the plan of any terrorist is to destabilise and embarrass government, stressing
that government must function inspite of any terrorist group’s actions.
“If the
international community get to hear that the president, the vice president or
the senate president cannot travel out of Nigeria because of Boko Haram, then
the country is finished and they will celebrate it. We won’t give them
such opportunity by glorifying them.”
He vowed that
the days of the Boko Haram sect were numbered adding:”We will crush
them.”
An example of
the achievements he made on the trip was the case he made for the resuscitation
of the drying Lake Chad Basin, he said, explaining that the country needed
about 14 billion dollars to address the problem, which it currently did not
have. He said he made a case for the issue at the world Sustainable Development
Conference in Brazil.
On the oil
subsidy probe, he said the Federal Government vacillated on the issue, adding
that before the House of Representatives started the probe, he had set up a
committee headed by Nuhu Ribadu, who he recalled contested the presidency with
him.
“If the
Presidency or the Nigerian National Petroleum Corporation ( NNPC) had anything
to hide, they would not have brought him to head the committee: Ribadu means I
don’t care what
the committee comes up with, I wonder why people are leaving substance and
chasing shadows.
On the
allegation that his body language suggests unwillingness to take on corruption
and the people charged with it head- long, the president said there was no
truth in the claim and that he had given unfettered latitude to the EFCC and
ICPC to function. He also affirmed his confidence in the leadership of the two
anti -graft agencies.
President
Jonathan said he had refrained from making pronouncements as to whether or not
he intended to contest in the 2015 elections, to avoid sending wrong signals
and distracting governance.
He also
appealed to Nigerians to be patient, assuring that his administration was on
course to resolve the problem in the power sector, explaining that the new
electricity tariff was aimed at attracting private sector investment, and
structured in a way that the poor pay less.
In the course
of the chat, the president also said that he had instructed the EFCC to
investigate the Nigerian embassy in the US for alleged money
Julius Berger put operations on hold in the North
Julius Berger Nigeria Plc., has
disclosed that it has suspended its operations in Northern Nigeria due to the
security challenges.
Managing
Director of the company, Engineer Wolfing Goetsch, stated this in Abuja at its
42nd Annual General meeting, held at the Shehu Musa Yar’ Adua Centre.
The Chairman of the company, Nurudeen Imam (Retd.), in his address, said that Julius Berger has experienced no serious security incidents in 2011 but nevertheless, cannot ignore the fact that security issues require the company to remain vigilant and that while the Niger Delta Amnesty programme continues to prove effective, Boko Haram activities are an increasing concern.
According to Imam, the company recorded a gross profit of N34 billion in 2011 compared to the N29 billion garnered in the preceding year.
Revenue from construction contracts alone amounted to N17 billion in 2011 as against the N171 billion recorded in 2010, while dividend of N2.40 per ordinary share would be paid to shareholders.
He added that the company has diversified its customer base to include clients from the oil and gas sector and private individuals.
The Chairman of the company, Nurudeen Imam (Retd.), in his address, said that Julius Berger has experienced no serious security incidents in 2011 but nevertheless, cannot ignore the fact that security issues require the company to remain vigilant and that while the Niger Delta Amnesty programme continues to prove effective, Boko Haram activities are an increasing concern.
According to Imam, the company recorded a gross profit of N34 billion in 2011 compared to the N29 billion garnered in the preceding year.
Revenue from construction contracts alone amounted to N17 billion in 2011 as against the N171 billion recorded in 2010, while dividend of N2.40 per ordinary share would be paid to shareholders.
He added that the company has diversified its customer base to include clients from the oil and gas sector and private individuals.
Shares rattled by delay in market makers’ operation
Seventy-nine days after the
introduction of Market Makers on the Nigerian Stock Exchange (NSE), delays in
kick-starting market making activities have continued to impact the equities
market which is currently searching for liquidity.
The function
of a Market Maker is to stand ready to buy and sell particular stocks on a
regular and continuous basis, at a publicly quoted price. They make their money
in both rising and falling markets by taking advantage of the difference
between “bid” and “offer” prices.
Sources close
to the Market Makers told Business Day that the delayed take-off was because “they are
currently working with the management of the NSE to put appropriate structures
and frameworks in place, prior to active initiation of market making by the
appointed dealing firms. “Market making
is an event to watch out for in the second half of the year.”
The ten
stockbroking firms selected from a list of 20 that applied to be market makers
are Stanbic IBTC, Renaissance Capital, Future View Securities, Vetiva Capital,
ESS/DunnLoren Merrifield, WSTC, Capital Bancorp, FBN Securities, Greenwich
Securities and CSL Stockbrokers. Their primary obligation would be to always
make a two-way price in each of the stocks in which they make markets.
BusinessDay
investigations further show that the selected firms are still working with the
relevant authorities to resolve the liquidity requirements to kick-start the
process.
Though the
announcement of market makers is a major step in the direction of turning the
market around, after their birth on April 4, 2012, the observed delay in
take-off has continued to raise questions at various investment fora. This is
because the objective, which is to bring liquidity and depth back into the
equities market is being delayed.
Currently,
illiquidity in the market has continued to impact stock pricing, leading to
under-pricing of most value stocks at the Exchange. This reflects on the trends
recorded in various sectoral indices at the Exchange.
While the NSE
Consumer goods-10 Index which is designed to provide an investable benchmark to
capture the performance of the food, beverage and tobacco sector stood high at
193.31percent year-to-date (ytd); the NSE Insurance -10 Index which provides an
investable benchmark to capture the performance of the insurance sector has
declined by 14.62 percent.
Also, the NSE
Oil & Gas-5 Index which provides an investible benchmark to capture the
performance of the oil and gas sector, comprising the top five most capitalised
and liquid companies in oil and gas marketing, has fallen by 21.04 percent this
year; the NSE-30 Index which tracks the top 30 companies in terms of market
capitalisation and liquidity, has risen marginally by 5.42 percent.
The NSE
Banking-10 Index which is designed to provide an investable benchmark to
capture the performance of the banking sector rose by 10.60 percent.
On the
expected impact of market makers, Abiola Rasaq, analyst at Vetiva Capital
Management Limited said: “In my view,
market making is less correlated with returns (either upside or downside).
Rather, its primary impact is liquidity enhancement.
“The existence
of dedicated market makers for all counters on the Exchange will help stimulate
activity on relatively illiquid counters and also improve the current liquidity
on the more active stocks. Market Makers are expected to have considerable
inventory and/or liquidity to intervene in the market for the stocks they have
been appointed for, either to clear excess offers (supply) or to provide blocks
in the event of excess bids (demand) at their indicative price bands,” Rasaq said.
Ibinabo
Princewill, analyst at APT Securities and Funds had told Business Day that “If everything
goes well, the market makers will be able to provide the necessary liquidity to
boost market activity.”
According to
her, “As a fallout
of this, we anticipate some structural changes in market operations in the near
future, to create an enabling environment for the market makers.”
Since the
announcement of the 10 market makers, the NSE All Share Index (ASI) which
tracks the general market movement of all listed securities on the Exchange,
including those listed on the Emerging Market board, regardless of
capitalization, has gained only 2.2 percent from April 4 when it stood at
20,934points to 21,394.77points last Friday. Year-to-date, ASI has risen by a
marginal 3.20 percent.
India offers to light up Nigeria with $100m
India
is offering Nigeria $100million lifeline of an estimated $500 billion that the
sector needs to generate enough electricity. National Electricity
Regulatory Commission (NERC) Commissioner Eyo Epko says the power sector will
need an average of $20 billion per annum to achieve 7,500 MW generation,
excluding domestic gas investments. In addition, the country would need $500
billion investment to guarantee constant supply. The country would also require
the right calibre of professionals and this is being provided by India.
Speaking at a ceremony to inaugurate a plant for the manufacture and repair of power transmission equipment, Indian High Commissioner Mahesh Sachdev said: "We have also been engaged in supporting the Nigerian power sector through professional capacity building in India under our ITEC training programme."
Speaking at a ceremony to inaugurate a plant for the manufacture and repair of power transmission equipment, Indian High Commissioner Mahesh Sachdev said: "We have also been engaged in supporting the Nigerian power sector through professional capacity building in India under our ITEC training programme."
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Index
Summary
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BusinessDay
Afrinvest-30 Index
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22-Jun-12
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21-Jun-12
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change
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Index Points
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1,064.23
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1,061.04
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0.30%
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P/E
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11.7x
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11.7x
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P/BV
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1.8x
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1.8x
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Dividend Yield(%)
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4.6
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4.7
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BA-30
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NSE
ASI
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YTD change
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7.46%
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3.20%
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