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Union Bank seeks to cancel N54.46bn accumulated losses
The board of directors of Union Bank of Nigeria (UBN) Plc has called an extraordinary general meeting of shareholders to consider cancellation of N54.46 billion accumulated permanent losses in the books of the commercial bank.
The Nation reports that shareholders are scheduled to meet next week to authorise the board of directors to reduce the company’s share premium account by N54.46 billion to net off the legacy deficit, thus removing the main drawback that had disallowed the commercial bank from paying dividends from its net profit.
According to the resolution, subject to the confirmation of the court, the bank’s issued share capital, including for this purpose its share premium account, be reduced by the sum of N54.458 billion which has been lost or is otherwise unrepresented by available assets and that the credit arising from the reduction be used to eliminate the retained loss in the company’s audited financial statements as at December 31, 2018.
The bank stated that a review of its financial position as at December 31, 2018 established a deficit of N54.46 billion as accumulated permanent losses from legacy transactions, in addition to the N247.87 billion, which had been approved by shareholders in 2017.
The bank explained that the proposed balance sheet restructuring will not affect its authorised or issued share capital or regulatory capital but should result in a reduction of the credit balance in the bank’s share premium account, while leaving the aggregate shareholders’ funds unchanged.
“It would have no impact on the bank’s creditors but rather, pave the way for the bank’s investors to receive dividends out of the bank’s future profits,” UBN stated.
The board of directors is proposing a reduction of N54.46 billion from the bank’s share premium account of N187.09 billion, pursuant to sections 106 and 107 of Companies and Allied Matters Act (CAMA). The reserve arising from the reduction of capital would be used to eliminate the negative retained earnings as at December 31, 2018.
UBN had grown its net profit by 39 per cent to N18.1 billion in 2018 but the bank could not declare dividend due to extant rules that disallow companies with retained deficit from dividend payment. Key extracts of the audited report and accounts of Union Bank for the year ended December 31, 2018 showed that gross earnings dropped by 11 per cent from N163.8 billion in 2017 to N145.5 billion in 2018. Net interest income declined by 17 per cent from N66.7 billion to N55.4 billion while non-interest income also dropped from N39.3 billion to N35.2 billion.
With 113 per cent reduction in credit impairment, net income after impairments increased by 16 per cent from N80.64 billion to N93.5 billion. Profit before tax thus increased by 33 per cent from N13.9 billion to N18.5 billion. Profit after tax also rose from N13 billion to N18.1 billion. Earnings per share however declined by 11 per cent from 72 kobo in 2017 to 61 kobo in 2018.
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FG Pledges Enhanced Security for Southeast Region
… Adequate security is vital for business prosperity – Badaru
The Honourable Minister of Defence, H.E. Mohammed Badaru Abubakar, has assured the people of the South-East of enhanced security measures, emphasizing that a secure environment is crucial for business growth and prosperity.
During his operational visit to Enugu in the South-East, the Minister addressed officers and personnel of the 82 Division/Joint task force south East Operation Udo ka under the General officer commanding, Major-General H.T Dada .He appreciated their performance while urging them to intensify their efforts in combating insecurity in the region. He also engaged with key stakeholders, including heads of security agencies, traditional rulers, students, and other community leaders, to discuss collaborative strategies for addressing the current security challenges. Other military platforms visited by the Minister included the Nigerian Airforce base Emene, Enugu.
“President Tinubu has directed me to engage with you all to find sustainable solutions to insecurity. Without security, there can be no peace or development,” Badaru stated. He acknowledged the entrepreneurial spirit of the South-East populace, asserting that security and peace are essential for businesses to thrive. “We seek your candid suggestions and information on how we can practically enhance security and foster lasting peace in this region,” he added.
The Minister reaffirmed President Bola Tinubu’s commitment to eradicating all forms of insecurity in the South-East . He elucidated on the progress made by the Tinubu administration over the past year in combating insecurity across the nation, particularly in these region.
“There is a renewed determination to intensify our efforts against all forms of insecurity under President Tinubu’s leadership,” he declared.
In his remarks, Major General Hassan Dada, General Officer Commanding (GOC) 82 Division/ JointTask south East Operation Udo ka, announced that the Army is implementing robust strategies to ensure a safe and secure environment for the upcoming festive season. “Through the Joint Security Task Force in the South-East, code-named ‘Operation UDO KA’, we aim to create a secure atmosphere that facilitates the usual mass return for Christmas,” he stated.
Additionally, retired Major General John Nwoga emphasized the role of social media in exacerbating insecurity, noting that the circulation of old videos depicting criminal activities contributes to fear and panic within communities. “It is imperative for our people to collectively address the negative impact of misleading information and fake news proliferated through social media,” Nwoga urged.
Furthermore, the Minister visited Imo State in continuation of his operational tour of southEast on Friday 22nd November 2024. He addressed the troops at the FOB okigwe, 211 Quick Response Group, Nigerian Airforce owerri and Naval Base Oguta in Imo State. He expressed President Bola Ahmed Tinubu GCFR message to them and that they should improve on their successes.
The Honourable Minister also paid a courtesy visit to Governor Hope Uzodimma of imo state to extend his gratitude to the Governor for all his support to the 82 Division of the Nigerian Army/ Joint Task force south East, Operation udo ka. “All the officers and men appreciates you.”
The Ministry of Defence remains committed to fostering a secure and peaceful environment conducive to business and community development in the South-East. We are determined to end insecurity in Nigeria.
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Rented Crowed, APC AKIDA Leader with Zamfara State Govt. Buses Embark on Campaign of Calumny at DSS Office
Godiya Hamza, a Media Analyst, writes from Abuja
The orchestrated campaign of calumny against the Honourable Minister of State for Defence H.E Dr Bello Muhammad Matawalle MON by a group of street orchins recruited by the leader of APC AKIDA Tijjani Ramallan is very preposterous and indecent.
This is politics too far, Ramadan has been attacking President Bola Ahmed Tinubu GCFR right from campaign days. He never supported or participated in APC activities, he has been jealous of Matawalle loyalty to our President.
Tijjani Ramallan has been sponsoring Banditry and romancing with criminals.
The leader of the APC AKIDA Tijjani Ramallan is being sponsored by the state government to attack the person of Dr Matawalle. It is expected that by now the DSS should have arrested him . He has found himself as a willing tool to be manipulated by Governor Dauda Lawal in attacking Dr Matawalle.
The earlier smear campaign embarked by zamfara state government which was stopped by a court order has forced them to shift to the use of APC AKIDA to carry out their mischief.
What zamfara people need is good governance and not wasting the state resources in trying to pull Matawalle down.
Pull him down syndrome pays no body.
Spotlight
World’s First Surviving Nonuplets Visits Italy To Appear On A TV Show
In December 2022, aged one and a half years old, the world’s first surviving nonuplets went on their first plane flight.
They travelled from Morocco, where they were born and lived for 19 months, to their parents’ home country of Mali.
And now, two months shy of their third birthday, the nonuplets have made their first trip to Europe, visiting Italy to appear on our televised talent show Lo Show dei Record!
We bet it feels so beautiful to see them all grow and wish them the very best 🥳
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