High tariffs on aircraft and parts importation are responsible for the dwindling fortunes of the aviation industry, operators say.
The operators say they are being saddled with high tariffs which are stifling their operations. This is despite a zero tariff policy on aircraft and parts importation announced by government early on in the year.
Domestic airline managers who claim that the Nigeria Custom Services say they are not aware of the policy, observe that they will prefer the zero tariff policy be implemented, as against government’s proposed plan to purchase aircraft for them.
The zero tariffs on aircraft and spare parts importation was announced by President Goodluck Jonathan in the 2013 budget. Jonathan had said he took the decision in order to improve safety, maintenance culture and operation of the airlines.
“All commercial aircraft and aircraft spare parts imported for use in Nigeria will now attract zero percent and zero VAT. This will appreciably improve safety in our skies, newer fleets and less onerous maintenance will prevail”,Jonathan said then.
Some analysts blame the ministries of aviation, finance and the Presidency for ‘hibernating the documentation that will fastrack the implementation’, urging that the policy statement be implemented urgently to give
(YoY) to N75.7 billion, from N18.6 billion in 2011.
Details of the audited IFRS compliant results showed that FBN Holdings plc recorded gross earnings of N359.8 billion, up 31.4 percent year-on-year (YoY) compared with N273.8 billion in 2011. Its net interest income stood at N287.3 billion, up 27.8 percent year-on-year, against N176.2 billion in 2011.
Non-interest income was N73.1 billion; up 20.1 percent year-on-year, compared with the December 2011 figure of N60.8 billion. Operating income was N298.3 billion, up 25.8 percent year-on-year against N237 billion in 2011. Impairment charge for credit losses was N12.3 billion, against N38billion in 2011.
Shareholders of FBN Holdings plc are to receive N1.002 dividend per share subject to approval during their Annual General Meeting (AGM) scheduled for 31 May 2013. Return on average equity rose to 18.8 percent, against 2011 level of 5.1 percent. Earnings per share of N2.33 at the end of December 2012 represent a significant increase from N0.60 as at December 2011.
Its net interest margin was 9.6 percent, against 2011 at 9.3percent; cost to income ratio was 61.9 percent against 53.1 percent in 2011; Non-Performing Loans (NPL) ratio was 2.6 percent, same as 2011 at 2.6 percent; while its liquidity ratio was 55.4 percent against 2011 level at 57.5 percent.
FBN Holdings plc total assets rose to N3.2 trillion, up 11.4 percent year-on-year, against N2.9 trillion in 2011. Customer deposit also increased to N2.4 trillion by 23 percent, against N2trillion in 2011. It closed the review year with customer loans and advances (net) of N1.5 trillion, up 23.1 percent year-on-year against N1.3 trillion in 2011.
FBN Holdings plc successfully migrated to a holding company structure (Holdco) in October 2012. It deployed 73 new business locations in 2012, bringing the total to 790 against 2011 level at 710.
Bello Maccido, Chief Executive officer of FBN Holdings said: “I am pleased to present the maiden results of FBN Holdings following its restructuring as a non-operational holding company with oversight of four major business groups, namely; Commercial Banking, Investment Banking and Asset Management, Insurance and Other Financial Services.”
He said: “During 2012, the Group delivered robust results with a year-on-year increase in gross earnings of 31%, while profit after tax rose 306% and the Group delivered broad based improvement across all key ratios. Having now restructured the business, the focus is on consolidating the Group’s leadership position in Nigeria, providing financial solutions to our customers across the entire value chain and growing our different business lines. Strong natural synergies and cross-selling opportunities exist across the Group, and we are intensifying our efforts to facilitate the realisation of these synergies, crystalise cross selling opportunities and deepen the relationship with our customers. The solid retail platform in the commercial banking business gives us the ability to harness latent growth in our insurance and asset management businesses. We believe the approach of revenue maximisation, underscored by implementation of robust risk management practices, will enhance shareholder value in the medium to long term.”
Commenting on the results for the commercial banking group, GMD/CEO of First Bank of Nigeria, Bisi Onasanya said: “The operating backdrop for 2012 was one of moderate economic growth, high interest rates, rising inflation, firmer domestic oil production, relatively stable oil prices and exchange rates. Against this background, First Bank was able to deliver significant growth. The commercial banking group recorded profit before tax of N86.2 billion (December 2011: N39.2 billion), up 120 percent year-on-year, driven by moderate revenue growth and lower impairment charges.
