First Bank Holdings (FBNH) Plc, has announced a cumulative decrease of N32.5 billion in its revenue for the full year ended December, 2013 and its first quarter financials for the period ended March, 2014.
Managing Director, Mallam Bello Maccido, disclosed this at the company’s “Facts Behind the Figures” presentation at the Nigerian Stock Exchange (NSE), noting that the Holdings’ significant loss in revenues was due to a change in policies by the Central Bank of Nigeria (CBN).
He also disclosed that increase in Asset Management Company of Nigeria (AMCON) from 0.3 percent to 0.5 percent increased the Holdings fee from N7.4 billion to N13.9 billion.
Maccido attributed the gradual phasing-out of Cost of Transaction (CoT) as part of the reasons for the decline. According to him, from N5.00 previously charged, it came down to N3.00 in 2013, resulted in making the holding company to record a loss of N3.4 billion in CoT income for the period.
Similarly, Maccido informed the capital market community that another N7 billion loss in revenue was accrued to the FBN Holdings as a result of industry policy changes which also led to upward review of Cash Reserve Ratio (CRR).
FBN equally recorded another loss of N9.2 billion as a result of increased interest rate from one percent to 3.6 percent.
He noted that the financial institution has consolidated its first position among its peers in Nigeria, adding: “We are first in Nigeria by total assets, gross loans and total deposits, with strong local franchise.”
Maccido reiterated the Holding Company’s readiness to increase focus on capital efficiency by optimising portfolio risk weighted assets (RWAs) across groups and geographies; optimising mix of other earning and non- earning assets; and judiciously growing risk weighted assets and deposits.
In 2013, FBN Holdings Plc recorded total assets of N3.861 billion, its net interest income stood at N225.2 billion.
Its gross earnings up by 7.0 percent in 2013 to stand at N395.9 billion as against N370.2 billion recorded in December 2012.
Operating Expenses of N185.0 billion achieved in 2012 declined by 4.4 percent as against N193.5 billion recorded in 2012.
Camac’s Oyo-8 Oil Well Raises Hope For Enhanced Nigerian Output (Economy)
Drilling started on Sunday at the new Oyo-8 development well, which is located off-shore Nigeria, Camac Energy, the oil and gas explorer, said on Tuesday.
Camac Energy, which is listed on the Johannesburg (JSE) and New York (NYSE) stock exchanges, is the “operator” of the Oyo-8 well. The firm also holds a 100 percent working interest on the well.
This development well is one of Nigeria’s first deep-water oil finds. It is located about 75 kilometers offshore Nigeria in water pits of about 300 meters.
The Northern Offshore Energy Searcher drillship is drilling the Oyo-8 to a full deepness of about 1,800 meters, Camac said.
The Oyo-8 well is likely to start production in the last three months of this year. The firm said the Oyo-7 well will also be finished following the Oyo-8 well. The two wells are likely to boost production from the Oyo Field substantially, brewing hope that Nigeria may soon see a reversal in oil output fortunes, which is currently experiencing a dwindling trend.
Factors including oil theft, vandalism of oil facilities, and bunkering have all been listed as key challenges facing the oil and gas sector in Nigeria.
Crude production has reportedly shrunk in the last year, with recent figures placed at 2.5 million barrels daily. Nigeria, Africa’s largest economy, is said to have lost more than $2.5 billion in potential oil revenue, owing largely to the drop in production.
This might have also motivated actions by the US to reduce importation from Nigeria, the country’s largest oil trading partner, accounting for 40 percent of its total oil exports.