Business
Zenith Bank tops up balance sheet to N18trn in Q3
Zenith Bank Plc grew the balance sheet by N2.1 trillion in the third quarter (Q3) to close at N18.1 trillion at the end of the nine months of operations.
This is a sustaining rapid growth in assets for three quarters running from N1.1 trillion in the first quarter (Q1) to N2.6 trillion increase recorded in the second quarter (Q2) and further to N2.1 trillion expansion in Q3.
Over the nine months of operations so far, the bank has expanded the size of the balance sheet by nearly N6 trillion from the closing figure of N12.3 trillion in 2022.
Bad loans are experiencing the same galloping speed growth with assets at N210 billion at the end of September, more than five and half times the loan loss expenses of N37 billion the bank recorded in the same period in 2022.
The Q3 financial report of the bank at the end of September 2023, shows that the asset volume drivers are loans and advances, which grew by N1.8 trillion to N5.8 trillion, lending to other banks, which rose by N1.2 trillion to N2.5 trillion and cash and bank balances, which expanded by N940 billion to N3.1 trillion over the respective closing numbers in 2022.
Other top growing assets over the same period include treasury bills which grew by N598 billion to N2.8 trillion, investment securities, which swelled by N566 billion to N2.3 trillion, derivative assets, which rose by N433.8 billion to N483.7 billion and other assets that advanced by N218 billion to close at N431.5 billion.
Asset expansion was financed by a huge increase of N4.4 trillion in customer deposits in nine months to stand at N13.4 trillion at the end of Q3, an expansion of N901 billion in borrowings to N1.9 trillion and a boost of N523 billion in shareholders’ funds to over N1.9 trillion.
The high growth in assets translated into an outstanding increase in revenue with gross earnings jumping by 114 percent year-on-year to close at N1.3 trillion at the end of Q3. The nine-month revenue figure has already beaten the 2022 full-year gross earnings figure by N383.5 billion.
Leading revenue growth is foreign currency revaluation gain of over N378 billion – which multiplied more than 34 times from N11 billion in the same period last year.
The bank’s main income line – interest earnings– grew by 71.7 percent year-on-year to hit N670.9 billion at the end of Q3, already ahead of the 2022 full-year figure of N540 billion.
The cost of funds keeps growing far ahead of interest earnings, which continues to impinge on margins. At N255.7 billion, interest expenses rose by 137 percent compared to the 71.7 percent improvement in interest income.
Net interest income, therefore, grew at a slower pace than interest income at 46.8 percent to N415.2 billion over the period.
The bank was pressured further by the upsurge in loan losses, which consumed all the increase in net interest earnings, leading to a drop in net interest earnings after loan impairment charges from N245.8 billion to N205.2 billion over the review period.
The drop in net income was, however, remedied by a huge increase in other income from N20.5 billion to N400.4 billion over the period– which was driven by the windfall from foreign exchange revaluation.
A moderated increase in operating expenses supported the strong growth in other income, powering an elevated bottom line.
Zenith Bank posted an after-tax profit of N434.2 billion at the end of Q3, which towers a clear 149 percent above the corresponding third quarter profit figure of N174.3 billion in 2022.
The Q3 profit figure also stands at 94 percent above the full-year figure of N223.9 billion in 2022.
Rapid increases in the cost of funds and credit loss charges remain the two critical challenges facing the bank’s management so far this year, though their combined claim on interest income went down from 87 percent at half-year to 69.4 percent at the end of Q3.
Net profit margin is further up from 30.2 percent at half-year to 32.7 percent at the end of September 2023, and from 28.1 percent in the same period last year.
Business
31 electricity towers affected as vandals destroy transmission lines in Edo communities
The Transmission Company of Nigeria (TCN) says vandals in Benin, Edo state, have destroyed 31 transmission towers.
In a statement on Friday, Ndidi Mbah, TCN’s director of public affairs, confirmed that vandals attacked transmission towers in Okada and Ofosu communities along the 330kV Benin-Egbin and Benin-Omotosho transmission lines.
Mbah said the vandalised towers, which suffered significant damage with critical components removed earlier in November, were discovered by TCN linesmen during a routine patrol.
“A total of 31 towers were affected in this incident,” she said.
“TCN engineers from the Benin Sub-Region have initiated repairs to prevent the collapse of the affected towers and to avoid disruption of bulk power supply.”
‘AHOADA-YENAGOA LINE UNDER REPAIR TARGETED BY VANDALS’
Mbah also said its Ahoada-Yenagoa 132kV line, which was under repair following a previous attack, was once again targeted by vandals.
The TCN spokesperson confirmed that the attack, which occurred on November 19, affected towers 29 to 31 and resulted in the theft of approximately one-third of the conductor.
On August 14, TCN announced that Bayelsa state would face a prolonged power outage following the destruction of 13 transmission towers along the Ahoada-Yenagoa 132kV double circuit transmission line by vandals.
The transmission company, on October 29, reported that 65 percent of the damaged transmission towers had been repaired.
The company said 17 transmission towers had been successfully erected, with work continuing on the remaining three.
“A team of TCN engineers, led by Engr. Emmanuel Akpa, General Manager of the Port Harcourt Region, has conducted an inspection of the site,” the statement reads.
“Preliminary findings indicate that the incident occurred at night. In an attempt to prevent further theft while repair arrangements are being made, local security has been engaged at Ula Ikata in Ahoada East LGA to secure the site until repairs are completed.
“Additionally, the line will be energized from the Ahoada end as a preventive measure.”
Mbah added that efforts are underway to replace the stolen 250mm conductor.
Despite challenges posed by difficult terrain and flooding, she said the restringing of the Ahoada-Yenagoa 132kV line is approximately 85 percent complete.
The public relations officer stressed that the incidents underscore the urgent need to address the growing problem of vandalism and theft, which continue to affect Nigeria’s power infrastructure.
She urged the public to support efforts to tackle such criminal acts, which have hindered the expansion and stability of the national grid.
Mbah also called on security operatives and local communities to remain vigilant in protecting power infrastructure in their areas as TCN intensifies its efforts to safeguard its installations.
Business
NCAA issues aerodrome certification for Lagos, Abuja international airports
The Nigeria Civil Aviation Authority (NCAA) has issued Aerodrome Certification for Murtala Muhammed International Airport in Lagos and Nnamdi Azikiwe International Airport in Abuja.
This recertification is a significant achievement, highlighting the ongoing improvements in the safety standards of Nigeria’s international airports.
The announcement was conveyed via a post on the official X (formerly Twitter) account of the Federal Airports Authority of Nigeria (FAAN) on Friday.
The Aerodrome Certificates were formally presented to the Managing Director/Chief Executive of FAAN, Mrs. Olubunmi Kuku, by the Acting Director General of the NCAA, Capt. Chris Najomo.
“@NigeriaCAA just issued Aerodrome Certification for the Murtala Muhammed International Airport Lagos and the Nnamdi Azikiwe Airport Abuja. The recertification is a major boost and attestation to the continued improvements of the safety standard of our Airports,” the tweet read in part.
The certification confirms that Lagos and Abuja airports adhere to the strict safety, operational, and technical standards of the International Civil Aviation Organization (ICAO). This milestone is anticipated to enhance trust among domestic and international airlines, strengthening Nigeria’s standing in global aviation.
Business
Lagos state government plans traffic diversion in Ikeja for 10km Capital City Race today
The Lagos State Government has announced plans for a traffic diversion to accommodate the 10km Capital City Race scheduled for Saturday, November 23, 2024.
The race, which runs between 5:00 AM and 11:00 AM, will affect several major roads in the Ikeja axis, requiring motorists to explore alternative routes during the event.
A statement published on the official X (formerly Twitter) account of the Lagos State Commissioner for Transportation, Oluwaseun Osiyemi, on Friday, highlighted the affected routes.
These include Shoprite Alausa, Billings Way, Kudirat Abiola Way, Opebi Link Bridge, Allen Avenue, Adeniyi Jones, and Oba Akran Avenue.
The race will conclude at the Police College Sports Secretariat/Gym. Junctions and intersections along these roads will be temporarily blocked and manned by officials from the Lagos State Traffic Management Authority (LASTMA), the Nigeria Police Force (NPF), the Federal Road Safety Corps (FRSC), and the Lagos State Neighborhood Corps (LSNC) to ensure a smooth event.
“The Lagos State Government has announced that traffic will be diverted to accommodate the maiden edition of the 10-kilometer Capital City Race between 5:00 am and 11.00 am tomorrow Saturday, 23rd November, 2024.
“To this end, the following route starting from; Shoprite Alausa Ikeja inwards Billings Way to Kudirat Abiola Way, Opebi Link Bridge, Opebi Glo Tower inward Allen Avenue, Allen Junction, GTBank on Adeniyi Jones, AP Filling Station on Oba Akran Avenue, Samsung Authorized Service Centre to Police College Sports Secretariat/Gym will be partially closed off to vehicular movement.
“Consequently, all junctions and intersections from Shoprite Alausa Ikeja to the destination (Police College Sports Secretariat/Gym) will be blocked with barriers, manned by LASTMA, NPF, FRSC, and LSNC to prevent other road users access to the main race corridor,” the statement read in part.
The Lagos State Commissioner for Transportation urged motorists to remain patient as the road closures are part of the traffic management plan for the event. He added that intersections will be intermittently reopened as the race progresses to minimize inconvenience for road users.
Motorists are advised to plan their movements accordingly and cooperate with traffic officials to ensure the success of the inaugural Capital City Race.
In addition to the planned traffic diversion in Ikeja for the 10km Capital City Race, other traffic diversions are currently in effect across Lagos to accommodate critical infrastructure projects.
The Lagos State Government recently announced a 15-month traffic diversion at Mile 2, which began on November 11, 2024, to facilitate the construction of the new Transport Interchange Terminal. This project aims to integrate rail, bus, water, and non-motorized transport, addressing the city’s growing transportation needs.
The diversion affects Loop 1 on the Apapa-bound lane and Loop 4 on the Badagry-bound lane and will last until February 16, 2026. Motorists are advised to use alternative routes, such as Akinwande Road for Badagry-bound traffic and Durban Road for Apapa-bound traffic, to ease congestion.
Additionally, a three-month traffic diversion on the Marine Bridge, outbound Apapa, commenced on Monday, November 18, 2024. This diversion, set to run until February 25, 2025, is to allow for urgent asphalt repairs overseen by the Federal Ministry of Works.
Motorists heading toward Lagos Island are advised to use the Eko Bridge via Costain Roundabout, while those heading to Ijora Causeway or Iddo can navigate through Ijora 7up or other designated routes.
These diversions are part of ongoing efforts by the Lagos State Government to improve transportation infrastructure while minimizing disruption for road users.
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