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Continental Reinsurance records N5.3b gross earnings in third quarter

By Moses Ebosele and Femi Adekoya
25 December 2009   |   7:12 am
CONTINENTAL Reinsurance Plc has presented its unaudited financial performance for the third quarter ended September 30, 2009, to the council of the Nigerian Stock Exchange (NSE).   The result showed that the company recorded gross premium of N5.3 billion against N3.9 billion in the comparable period of 2008.

Loss after tax, however, stood at N307.2 million compared to profit after tax of N180.61 million in 2008.


The company’s board of directors explained that the poor performance was caused by increased provisions on technical reserves in line with international best practices and debtors balances totaling N784.9 million and by elimination of N632 million in the value of quoted shares.

“These provisions are aimed at improving business and asset quality and consequently profitability in the long run,” said Continental Reinsurance.

Also in its audited result for the year ended April 30, 2009, HIS Nigeria Plc declared a turnover of N11.3billion up from N7.3 billion in 2008.

Profit after tax also within the period increased to N1.1 billion compared with N758.2 million in 2008.

The board of directors is recommending a dividend of N0.05 per share. The date of closure of register of members is January 18, 2010, while payment date is February 12, 2010.

Meanwhile, for the half-year ended September 30, 2009, unaudited turnover of Flour Mills of Nigeria indicates N81.6 billion, as against N80.9 billion in the comparable period of 2008, while profit after tax went up to N4.9 billion from N2.5 billion in 2008.

Also in its unaudited result for the third quarter ended September 30, 2009, National Salt Company of Nigeria declared turnover of N6.5 billion, as against N5.7 billion in 2008. Profit after tax stood at N1.4 billion compared to N1.1 billion in 2008.

While briefing the NSE, Nigerian Bottling Company Plc said that the company’s unaudited result for the third quarter shows turnover of N64.8 billion as against N56.5 billion. It added that profit after tax and extra-ordinary items stood at N2.3 billion compared to profit after tax of N974 million in 2008.

Also within the period, FTN Cocoa Processors Plc declared unaudited turnover of N901.04 million, up from N704.73 million in the previous year. Profit after tax, however, dropped to N205.7 million from N209.85 million in 2008.

Berger Paints Nigeria Plc and Academy Press Plc announced N1.7 billion and N1.1 billion respectively with profit after tax of N127.9 million and N16.74 million.

Bank PHB in its unaudited result for fifteen months ended September 30, 2009, declared gross earnings of N214.4 billion, as against N87.2 billion during the year ended June 30, 2008.

Loss after tax and exceptional items was put at N387.8 billion compared to profit after tax of N19.9 billion during the year ended June 30, 2008.

The bank, according to information made available by NSE recorded exceptional items of N80.7 billion during the 15 months ending September 2009.

The bank also recorded loss before tax but after exceptional items of N438.6 billion compared with profit before tax of N25.9 billion during the period.

Bank PHB obtained tax waiver of N50.9 billion, which caused a reduction in the loss after tax and exceptional items to N387.8 billion in 2009.

Wema Bank Plc unaudited result for the half year ended September 30, 2009 shows gross earnings of N25.3 billion as against N14.4 billion in the comparable period of 2008.

Loss before tax and after exceptional items stood at N29.4 billion compared to profit before tax and exceptional items of N1.4 billion in 2008.

The bank made provision for risk assets of N33.4 billion in 2009 compared to N600 million in 2008.

According to Wema Bank, “the bold initiatives of the new board and management on recovery of non-performing loans have started to yield positive results, which shall be reflected in subsequent results.”

The Managing Director of the bank, Segun Oloketuyi, also explained that a major challenge for the bank was the quantum of non-performing loans and advances in the sum of N116.355 billion, which had been provisioned in the accounts and led to erosion of the capital base.

He said that the release of these results marked a fulfilment of the new management’s commitment to transparency, adherence to regulations and sound corporate governance practices.

Oloketuyi said that the previous challenges faced by the bank had no doubt impacted adversely on its business as evidenced by the weak financial performance reported in its published accounts.

Oloketuyi said: “In this challenge lies our greatest opportunity to recapitalise the bank through the bold initiatives that the board and management have taken to recover these non-performing loans.

“We are pleased by the result achieved so far. A significant amount of recoveries has been made post September 30, 2009, balance sheet date.

“These recoveries will improve the shareholders funds when our accounts are published for the year ending December 31, 2009.”

He said that the issues the bank faced during this period necessitated the intervention of the regulatory authorities to appoint an interim management board to oversee the operations of the bank.

He added that the new board and management had articulated and commenced the implementation of a three-phase turnaround programme to restore the bank as a leading financial institution in Nigeria.

A critical phase in the transformation process, according to him, was the need to strengthen the capital base of the bank in line with regulatory requirements, adding that the bank had put in place a recapitalisation programme that would achieve this objective in 2010.