Business
Stanbic IBTC impairment charges balloon by 508.76% in 2020
The country’s economic lull took a toll on the bank’s revenue drive as its financial statement, which was recently released, showed it barely increased gross earnings by 0.27 to N234.45 billion, buoyed by trading revenue (earnings from fixed income and foreign exchange) that rose 43.43% during this period.
Nigerian economy entered into recession in the third quarter of last year due to the impact of the coronavirus pandemic and significant drop in oil prices but recovered at the end of the year after it grew 011%.
Stanbic struggled to rake in money from core banking activities in 2020 as Interest income dropped 12.15% to N105.78 billion compared with N120.41 billion in 2019, while fees and commission income managed to rise 0.16% to N75.15 billion in 2020 and other revenue lowered by 30.59% to N1.41 billion.
It grew post-tax profit by 10.9% to N83.11 billion in 2020, the highest it has made ever made in a financial year, despite revenue remaining static.
Meanwhile, it was able to trim expenses, cutting interest cost by 25.88% to N31.56 billion, fees and commission expenses by 14.65% to N3.96 billion and other operating expenses by 2.40% to N52.13 billion.
The risk assets increased by 18.27% to N632.97 billion as total assets improved to 32.50% to N2.49 trillion last year.
On the other hand, the bank attracted N1.33 trillion as deposits, which was 49.49% higher than N886.74 billion it had in 2019 and total liabilities rose 33.89% N2.11 trillion in 2020.
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Business
“You lied” – FG lambasts cement manufacturers over hike in product price
The minister further declared that the excuse of an increase in mining equipment should not come up because equipment bought by the manufacturers has been used for decades and not purchased every day.
However, he noted that if the government decides to open the border for mass importation, prices of cement would crash and local manufacturers would be gravely affected.
The minister, who called on the manufacturers to be more patriotic, said BUA Cement, for instance, has been willing and is still willing as at the last time he spoke with them, to crash the price of their cement, lower than the N7000, N8000 agreed by the manufacturers and he sees no reason why the others should not do same.
“The challenges you speak of, many countries are facing the same challenges and some even worse than that but as patriotic citizens, we have to rally around whenever there is a crisis to change the situation.
“The gas price you spoke of, we know that we produce gas in the country. The only thing you can say is that maybe it is not enough.
“Even if you say about 50 percent of your production cost is spent on gas prices, we still produce gas in Nigeria. It’s just that some of the manufacturers take advantage of the situation.
Earlier, Group Chief Commercial Officer of Dangote Cement, Rabiu Umar blamed the high cost of gas and mining equipment for the hike in cement price.
He said: “It is safe to say we are all Nigerians and we are all facing the current head weight that is happening. I would like to speak on the popular belief that most of the raw materials to produce cement are available locally.
“While we have limestone and in some cases, we have gypsum and some cases coal, the reality is that it takes a lot of forex-related items to produce cement.
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