E-Tranzact reports 57 percent decline in 2016 Profit

…As Unity Bank’s profit sheds 53 %

eTranzact International Plc, has announced a profit after tax of N449.5 million for the year ended 31st December 2016, representing a 56.8 decline from N704.7 million in 2015.

The company recorded a revenue growth of 20 percent to N10.40 billion for the review period from N8.67 billion in 2015, but rising cost of sales coupled with increased expenses decelerated operating profit by 27 percent to N620.2 million.

The company thus recorded a profit before tax of N865.1 million as against N1.1 billion recorded in 2015.

Valentine Obi, Founder, CEO, eTranzact said “Recognizing opportunities for partnerships, improved product focus, continued innovation, drive and commitment to the company’s vision of making payments simple helped our company navigate the challenging macroeconomic environment in 2016.

We believe some of the strategic investments we have made across our business in 2016, have prepared us for an even better 2017”

Niyi Toluwalope, Chief Financial Officer said, “eTranzact continues to ensure it maximizes the value of its shareholders and stake holders. We will continue to invest in our core infrastructure to position the company for the expanding opportunities within the sector”.

In 2016, eTranzact completed its strategic rebranding; making key changes to its brand identity, vision, mission, products and people helping the company take advantage of various opportunities.

The company also made efforts to align its processes and operating standards with global best practices achieving the ISO 27001 & ISO 20000 certifications recognizing service delivery and excellence. The certifications were testament to eTranzact’s commitment to a world-class, customer-oriented service culture and environment.

Meanwhile, Unity Bank’s 2016 profit declined by 53 percent in 2016 financial year ended 31 December 2016. The released results showed that Profit after tax was N2.2 billion as at the end of the 2016 financial year against N4.7 billion recorded in 2015.

The bank’s audited financial statements released to stakeholders through the Nigerian Stock Exchange on Wednesday revealed further that the group’s net interest income grew by 15 percent from N43.1 billion in December 2015 to N49.5 billion while net operating income depreciated 10 percent from N31.4 billion to N28.2 billion, due to a 33 percent increase in impairment of financial assets that stood at N35.9 billion.

Earnings per share of the company increased in growth to 18.68 kobo compared to 12.34 kobo in 2015, representing an appreciation of 51 percent.

The bank’s balance sheet revealed that shareholders’ funds rose marginally to N83.1 billion from N82.6 billion, funds due to customers’ rose by 14.2 percent from N231.4 billion in December 2015 to N264.2 billion as at December 2016, and total assets of the lender stood at N492.7 billion as against N443.3 billion in 2015, representing a growth of 11 percent.