Banks' profits continue to slide

Many of the banks that were certified healthy by the Central Bank of Nigeria (CBN) have recorded huge dips in their profit levels compared to their performances last year.

Recent yearly and quarterly bank reports to the Nigerian Stock Exchange (NSE) have experienced either pre-tax or post-tax profit falls.

Fidelity Bank Plc's first quarter 2009 financial result shows a 33.12 per cent growth in turnover, from N13.939 billion to N18.555 billion, while the profit after tax declined by 24.84 per cent from N3.024 billion to N2.273 billion. Total net asset for the period in review also fell by 5.18 per cent from N138.888 billion to N131.693 billion.

In its second quarter result for 2009, Access Bank Plc recorded a turnover of N64.326 billion from N49.189 billion; representing a 30.77 per cent increase. However, the profit after tax dipped by 227.99 per cent from N9.187 billion to (N11.758 billion), just as net asset for the period also dropped by 12.29 per cent from N184.159 billion to N161.535 billion.

Similarly, Ecobank Transnational Plc's third quarter account for the year shows that gross earnings grew by 31.35 per cent from N96.961 billion to N127.354 billion. The profit after tax plunged by 24.82 per cent from N12.222 billion to N9.189 billion, while the net asset for the period grew by 12.10 per cent from N144.174 billion to N161.621 billion.

Skye Bank Plc's fourth quarter turnover grew by 35.96 per cent from N74.615 billion to N101.448 billion. However, the bank recorded N13.263 billion loss after tax from N15.126 billion profit in the previous year, representing a 187.68 per cent decline. Also, it shed 7.41 per cent in net assets for the period to close at N86.901 billion down from N93.853 billion.

Sterling Bank Plc's fourth quarter gross earnings grew by 4.04 per cent from N36.30 billion to N37.768 billion, while profit after tax dropped by 169.63 per cent from N6.583 billion to (N4.584 billion). The net asset recorded for the period also dipped by 4.49 per cent from N31.272 billion to N29.868 billion.

Other sectors record higher profits

Unlike the banking sector bugged down by the incidence of bad debts, other sectors of the economy have fared better.

In spite of the controversies trailing the Transnational Corporation (Transcorp) Plc, the company's audited account for the year ended September 30, shows that its turnover grew by 23.83 per cent while its profit after tax grew by 114.37 per cent.

Tantalizer Plc's third quarter account shows a 23.82 per cent growth in turnover, from N3.279 billion to N4.060 billion. Profit after tax rose by 5.89 per cent from N225.213 million to N238.479 million while the net asset recorded for the period increased by 1.56 per cent from N3.768 million to N3.827 million.

The Northern Nigerian Flourmill Plc's second quarter turnover also grew by 14.18 per cent from N4.694 billion to N5.360 billion. Profits after tax grew significantly by 337.24 per cent from N75.179 million to N328.709 million while the net asset for the period increased by 31.33 per cent from N865.169 million to N1.136 billion.

Academy Press Plc's first quarter turnover increased by 39.47 per cent from N412.862 million to N575.800 million; its profits after tax increased by 314.72 per cent from N9.350 million to N38.776 million while the net asset for the period grew by 7.35 per cent from N463.152 million to N497.201.

Benue Cement Company Plc's third quarter turnover grew by 177.28 per cent from N9.819 billion to N27.226 billion. Profit after tax grew by 209.06 per cent from N4.196 billion to N12.968 billion.

However, some others like Berger Paints Plc also experienced some bad fortunes, as the second quarter financial statement of the company shows 11.82 per cent and 29.60 per cent decline in turnover and profits after tax, respectively.