Quarter 2 financial statement for 2024

Audited

In thousands of naira

Note

30-Jun-2024

31-Dec-2023

ASSETS

Cash and cash equivalents

15

12,411,404

17,487,783

Investment securities

18

1,385,000

1,869,183

Loans and advances to customers

17

22,324,429

21,552,344

Pledged assets

16

1,762,813

1,889,342

Other assets

19

971,010

558,619

Property and equipment

20

1,424,745

1,531,263

Intangible asset

21

-

2,047

TOTAL ASSETS

40,279,401

44,890,581

LIABILITIES

Deposits from customers

22

22,305,708

26,939,651

Current tax liabilities

14(b)

273,579

676,470

Other liabilities

24

2,905,022

4,166,778

Borrowings

23

1,247,028

2,065,020

Deferred tax liabilities

14(c)

124,730

52,463

TOTAL LIABILITIES

26,856,067

33,900,381

CAPITAL AND RESERVES

Share capital

25

2,996,477

2,996,477

Share premium

26(a)

4,166,786

4,166,786

Retained earnings

26(b)

4,026,305

1,851,312

Fair value reserve

26(c)

21,288

(13,147)

Statutory reserve

26(d)

1,733,915

1,988,772

Regulatory risk reserve

26(e)

478,563

-

TOTAL EQUITY

13,423,334

10,990,200

TOTAL LIABILITIES AND EQUITY

40,279,401

44,890,581

Mrs. Olamide M. Akin-Balogun, FCA

Mr. Habeeb A. Yusuf

Chief Financial Officer

Managing Director/Chief Executive Officer

FRC/2015/ICAN/00000011044

Apr - Jun

Apr - Jun

In thousands of naira

Note

30-Jun-2024

2024

30-Jun-2023

2023

Gross earnings

5,551,809

2,804,381

4,585,941

2,307,130

Interest income calculated using the effective interest method

7

5,041,235

2,530,306

4,184,783

2,090,298

Interest expense

8

(534,791)

(257,292)

(425,947)

(195,497)

Net interest income

4,506,444

2,273,014

3,758,836

1,894,801

Fee and commission income

9

464,576

250,792

356,838

197,803

Revenue

4,971,020

2,523,806

4,115,674

2,092,604

Other income

10

45,998

23,283

44,320

19,029

Net impairment loss on financial instruments

11

-

-

(350)

(350)

Personnel expenses

12

(1,546,217)

(879,296)

(1,390,154)

(751,762)

Other operating expenses

13

(2,204,382)

(1,256,932)

(1,175,778)

(690,503)

Depreciation of property and equipment

20

(206,262)

(102,483)

(186,775)

(126,948)

Amortisation of intangible assets

21

(2,047)

(171)

(10,843)

(7,229)

Profit before tax

1,058,110

308,207

1,396,094

534,841

Income tax expense

14(a)

(264,325)

(76,849)

(349,023)

(133,710)

Profit for the period

793,785

231,358

1,047,071

401,131

Other comprehensive loss

Items that will not be reclassified to profit or loss

Equity investment at fair value through OCI

18(a)

-

-

4,996

4,996

Other comprehensive loss for the period

-

-

4,996

4,996

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

793,786

231,359

1,052,067

406,127

Basic and diluted earnings per share (kobo)

31

13

4

17

7

Share

Share

Retained

Fair Value

Statutory

Regulatory

Capital

Premium

Earnings

Reserve

Reserve

Reserve

Total

Balance at 1 January 2024

2,996,477

4,166,786

2,298,552

21,288

1,733,915

478,563

11,695,581

Total comprehensive income

Profit for the year

-

-

793,785

-

-

-

793,785

Audit adjustments

-

-

934,777

-

-

-

934,777

Other comprehensive loss

Fair value reserve (FVOCI equity instruments):

Equity investments at FVOCI - net change in fair value

-

-

-

-

-

-

-

Total other comprehensive loss

-

-

-

-

-

-

-

Total comprehensive income

-

-

793,785

-

-

-

793,785

Transfer to statutory reserve

-

-

-

-

-

-

-

Transfer to regulatory risk reserve

-

-

-

-

-

-

-

Contributions by and distributions to equity holders

Dividend paid

-

-

-

-

-

-

-

Increase in share capital

-

-

-

-

-

-

-

Total contributions and distributions

-

-

-

-

-

-

-

Balance at 30 June 2024

2,996,477

4,166,786

4,027,114

21,288

1,733,915

478,563

13,424,143

FOR THE PERIOD ENDED 30 JUNE 2023

Share

Share

Retained

Fair Value

Statutory

Regulatory

Total

Capital

Premium

Earnings

Reserve

Reserve

Reserve

Balance at 1 January 2023

2,996,477

4,166,786

1,207,473

(5,349)

1,733,915

478,563

10,577,865

Total comprehensive income

Profit for the period

-

-

1,047,071

-

-

-

1,047,071

Audit Adjustment

-

-

268,628

-

-

-

268,628

Other comprehensive loss

Fair value reserve (FVOCI equity instruments):

Equity investments at FVOCI - net change in fair value

-

-

-

4,996

-

-

4,996

Total other comprehensive loss

-

-

-

4,996

-

-

4,996

Total comprehensive income

-

-

1,047,071

4,996

-

-

1,052,067

Transfer to statutory reserve

-

-

-

-

-

-

-

Transfer to regulatory risk reserve

-

-

-

-

-

-

-

Contributions by and distributions to equity holders

Dividend paid

-

-

(599,295)

-

-

-

(599,295)

Increase in share capital

-

-

-

-

-

-

-

Total contributions and distributions

-

-

(599,295)

-

-

-

(599,295)

Balance at 30 June 2023

2,996,477

4,166,786

1,923,877

(353)

1,733,915

478,563

11,299,265

In thousands of naira

Note

30-Jun-2024

30-June-2023

Cash flows from operating activities

Profit for the year

793,785

1,047,071

Add: Tax expense

14(a)

264,325

349,023

Profit before tax

1,058,110

1,396,094

Adjustments for:

Depreciation of property and equipment

20

206,262

186,775

Amortization of intangible assets

21

2,047

10,843

Net impairment loss on loans and advances to customers

11

-

350

Net impairment loss on cash and cash equivalents

11

Net impairment loss on pledged assets

11

-

-

Net impairment loss on other assets

11

-

-

Net impairment (gain)/ loss on investment securities

11

-

-

Interest income

7

(5,041,235)

(4,184,783)

Interest expense

8

534,791

425,947

Profit on sale of property and equipment

10

(1,891)

(5,726)

Loss on disposal of treasury bills

10

-

-

Gain on derecognition of lease liability

10

-

-

(3,241,916)

(2,170,500)

Changes in:

- pledged assets

(9,483)

(240,716)

- loans and advances to customers

(3,032,268)

2,166,831

- other assets

3,540,783

(4,999,988)

- deposits from customers

(4,645,422)

4,130,233

- other liabilities

(701,317)

3,742,552

(8,089,623)

2,628,412

Interest received

5,046,008

8,763,154

Interest paid

(529,478)

(417,831)

Tax paid

14(b)

(930,968)

(379,390)

VAT paid

24

(21,605)

(18,808)

Net cash (used in)/generated from operating activities

(4,525,666)

10,575,537

Cash flows from investing activities

Acquisition of property and equipment

(107,899)

(319,337)

Acquisition of intangible assets

21

-

-

Proceeds from disposal of property and equipment

10,044

5,726

Purchase of treasury bill investments

-

-

Proceeds from disposal of treasury bill investments

-

-

Net cash flows used in investing activities

(97,855)

(313,611)

Cash flows from financing activities

Repayment of principal on borrowings

23(b)

(615,000)

(1,035,872)

Repayment of interest on borrowings

23(b)

(179,434)

(336,479)

Payment for new leased properties

145,438

127,305

Payment of principal on lease liability

(49,261)

(49,261)

Payment of interest on lease liability

(2,630)

(2,630)

Additions to borrowings

23(b)

-

-

Dividend paid

-

(599,295)

Proceeds from increase in share capital

-

-

Addition to share premium

-

-

Net cash generated from/(used in) financing activities

(700,887)

(1,896,232)

Net increase in cash and cash equivalents

(5,324,408)

8,365,694

Cash and cash equivalents as at 1 January

17,735,812

6,499,404

Cash and cash equivalents as at 30 June

15

12,411,404

14,865,098

The accompanying notes are an integral part of these financial statements.

-

7

Interest income

In thousands of naira

30-Jun-2024

30-Jun-2023

Loans and advances

4,518,862

4,060,537

Government Securities

39,422

-

Treasury bills

94,399

54,049

Call accounts

388,552

69,250

Pledged assets

-

947

Money market placement

-

-

Total interest income calculated using the effective interest method

5,041,235

4,184,783

8

Interest expense

In thousands of naira

30-Jun-2024

30-Jun-2023

Term deposits

474,801

252,617

Current deposits

28,182

19,593

Savings deposits

25,029

23,259

Borrowings (see note 23(b))

-

120,897

Lease liabilities

6,779

9,581

Interest payment on ROU

-

-

Total interest expense

534,791

425,947

9 Fees and commission income

In thousands of naira

30-Jun-2024

30-Jun-2023

Credit-related fees and commission

328,649

228,245

Deposit-related fees and commission

135,927

128,593

464,576

356,838

In thousands of naira

30-Jun-2024

30-Jun-2023

Loan management fee

105,156

76,161

Loan commitment fee

145,760

98,567

Insurance fee

66,993

45,750

Credit search fee

10,740

7,767

328,649

228,245

Admin and management fee

59,161

54,693

Account maintenance fee

76,766

73,900

135,927

128,593

464,576

356,838

11 Impairment loss/(write-back) on financial instruments

In thousands of naira

30-Jun-2024

30-Jun-2023

Impairment loss on loans and advances to customers (see note 17(c))

-

350

Impairment loss/(write-back) on investment securities at amortised cost (see note 18(c))

-

-

Impairment loss on other assets (see note 19(e))

-

-

Impairment loss on cash and cash equivalent (see note 15(b))

-

-

Impairment loss on pledged assets (see note 16(b))

-

-

-

350

12 Personnel expenses

In thousands of naira

30-Jun-2024

30-Jun-2023

Wages and salaries

1,484,949

1,332,917

Post-employment benefits:

Defined contribution plan - pension cost

61,268

57,237

1,546,217

1,390,154

In thousands of naira

30-Jun-2024

30-Jun-2023

Directors' fees

25,000

12,500

Sitting allowances

62,150

39,100

Other Directors' expenses

334,174

169,617

Total non-executive Directors' remuneration (see note 13)

421,324

221,217

Executive compensation

43,323

43,323

464,647

264,540

13

Administration and general expenses

In thousands of naira

30-Jun-2024

30-Jun-2023

Repairs and maintenance cost

266,958

82,014

Vehicle and generator running cost

202,565

104,064

Office expenses

134,859

106,622

Computer expenses

323,107

132,499

Travel expenses

77,996

53,211

AGM expenses

11,465

11,078

Year-end expenses

141,421

90,256

30th year anniversary

-

5,000

Directors' emolument

421,324

221,217

Bank charges

14,720

21,527

Marketing/publicity expenses

182,186

76,381

Professional fees

83,245

33,738

Subscription fees

8,822

11,854

Charges and levies

63,025

40,945

Insurance cost

39,047

33,068

NDIC premium

72,637

56,543

Electricity expenses

29,320

16,197

Recruitment expenses

58,172

2,159

Legal expenses

2,366

4,711

SMS alerts

40,434

45,875

Rent and rates

-

-

Audit fees

16,994

18,872

Fraud, forgery and theft

20

830

Other expenses (see note (a) below)

13,699

7,117

2,204,382

1,175,778

(a)

Other expenses includes the following:

Corporate social responsibility

-

-

Donations

5,341

-

Damaged ATM cards

-

-

Loan recovery expenses

4

670

Fines/penalty

3,514

1,800

Stamp duties

106

2,613

Share listing expenses

4,734

2,034

13,699

7,117

14

Income taxes

Audited

In thousands of naira

30-Jun-2024

31-Dec-2023

(a) Amounts recognized in profit or loss

Current tax expense

Company income tax

264,325

575,533

Education tax

-

71,421

National Information Technology Development Agency (NITDA) levy

-

16,144

Nigeria Police Trust Fund (NPTF) levy

-

81

National Agency for Science and Engineering Infrastructure (NASENI) levy

-

4,036

264,325

667,215

Deferred tax expense

Origination and reversal of temporary differences (see note (c))

-

(72,268)

-

(72,268)

Tax expense

264,325

594,947

(b) Movement in current tax liabilities

In thousands of naira

30-Jun-2024

31-Dec-2023

Balance at 1 January

940,222

401,054

Income tax expense (see note (a) above)

264,325

667,215

Tax paid

(930,968)

(391,799)

Balance at 30 June

273,579

676,470

Recognized in

Balance at 1

profit or loss Recognized in

Balance at 31

In thousands of naira

January

(see (a))

OCI

December

Property and equipment

235,908

-

-

235,908

Impairment allowance

(229,658)

-

-

(229,658)

Others

46,213

-

-

46,213

Deferred tax liabilities

52,463

-

-

52,463

31 December 2023

Recognized in

Balance at 1

profit or loss Recognized in

Balance at 31

In thousands of naira

January

(see (a))

OCI

December

Property and equipment

188,724

47,184

-

235,908

Impairment allowance

(73,142)

(156,516)

-

(229,658)

Others

9,147

37,067

-

46,213

Deferred tax liabilities

124,729

(72,265)

-

52,463

Deferred tax liabilities

The Bank's deferred tax liabilities are attributable to the following:

30-Jun-2024

31-Dec-2023

In thousands of naira

Gross amount

Tax effect Gross amount

Tax effect

Property and equipment

1,267,547

235,908

1,340,166

235,908

Impairment allowance

(223,727)

(229,658)

(223,727)

(229,658)

Others

58,436

46,213

53,111

46,213

1,102,256

52,463

1,169,549

52,463

(d) Reconciliation of effective tax rate

In thousands of naira

30-Jun-2024

31-Dec-2023

Profit before tax

%

1,058,110

%

1,614,377

Tax using the Bank's domestic tax rate

30

317,433

30

484,313

Non-deductible expenses

-5

(56,302)

7

116,162

Tax-exempt items

(4)

(42,910)

(6)

(97,210)

Tertiary Education Tax

3

33,105

4

71,421

NITDA Levy

1

13,242

1

16,144

Nigeria Police Trust Fund (NPTF) levy

0

-

0

81

NASENI Levy

0

-

0

4,036

25

264,568

36

594,947

15

Cash and cash equivalents

Audited

In thousands of naira

30-Jun-2024

31-Dec-2023

(a) Cash and cash equivalent comprise:

Cash on hand:

Cash on hand

126,348

114,135

Deposits with banks:

Treasury Bills

94,790

77,400

221,138

191,535

Deposits with banks:

Current account balances with other banks

4,848,404

5,719,403

Money market placements

7,343,456

11,640,322

Cash and cash equivalents for cash flow purposes:

12,412,998

17,551,260

Impairment allowance (see note (b))

(1,594)

(63,477)

Cash and cash equivalents

12,411,404

17,487,783