PAPER REVIEW

ZENITH BANK POSTS N35BN PROFIT

Zenith Bank Plc Monday reported impressive financial results for the second quarter (Q2) ended June 30, 2011 with profit after tax (PAT) rising by 44 per cent. The results made available to stockbrokers during trading by the Nigerian Stock Exchange (NSE) showed gross earnings of N122.84 billion, up by 27 per cent from N96.85 billion in corresponding period of 2010. Pre-tax profit rose by 38.2 per cent to N35.05 billion from N25.34 billion in the 2011, while profit after tax grew by 44 per cent from N21.3 billion to N30.67 billion in 2011. Also, margins firmed strongly as pre- and post- tax margins rose from 26.16 per cent and 21.99 per cent 2010 to 28.53 per cent and 24.97 per cent in 2011. The Chairman of Zenith Bank Plc, Mr. Steve Omojafor, had told shareholders at the Annual General Meeting (AGM) of the bank recently that even in the face of very challenging operating environment, the bank had maintained its culture of outstanding performance and industry leadership. According to him, the bank remains committed to delivering superior returns to its shareholders.  Shareholders of the bank received a dividend of N26.6 billion, which translates into 85 kobo per share for the year ended December 31, 2010. ThisDay

FG OFFERS SMES N75BN CREDIT FACILITY

The Federal Government has offered to release N75bn to Small and Medium Scale Enterprises across the country as a credit facility to strengthen their capacity for job creation. The Minister of Trade and Investment, Dr. Olusegun Aganga, disclosed that on Wednesday in Abuja at a Workshop on Attracting Investments into Nigeria. He said that the money would be disbursed to SMEs through the Bank of Industry and the Nigerian Import Export Bank at a single digit interest rate. Aganga said that the Federal Government would give priority attention to the development of SMEs in the next four years by providing the necessary incentives for their businesses to thrive.  He said, “One of the major areas of concern for the Federal Government is the growth and development of the Small and Medium Scale Enterprises. We have identified lack of access to credit as one of the major factors inhibiting the growth of SMEs in Nigeria. Very soon, the government will commence the disbursement of $500m credit facility to SMEs through the Bank of Industry and the Nigerian Import Export Bank at a single digit interest rate.” “The Federal Government is determined to restructure and reform the economy by creating the necessary macro-economic and regulatory environment, as a way of attracting Foreign Direct Investments and encourage ideas that can lead to the realisation of the full potential of our national resources,” he added. The Punch.