Category: Money

By Collins Nweze

Branch International has processed over N40 billion loans in its last three years of its operation in Nigeria.

The digital banking app with over 20 million downloads across Nigeria, Kenya, Tanzania and India, says it gives 20 per cent yearly investment returns to investors.

Borrowers, through the digital platform, can also have access instant loans. This has deepened the company ‘s commitment to driving financial inclusion in Nigeria.

Speaking during a virtual media roundtable in Lagos, Managing Director, Branch Nigeria, Adedayo Ademola, said the tech firm is leveraging technology to offer a range of unique financial services to customers.

According to her, the quest to make financial services accessible at an affordable rate to individuals and businesses is critical in boosting development.

Thus, their unique range of offerings are designed to give value to customers while enabling them make payments and granting access to loans and investment opportunities.

Continuing, Ademola said: “At Branch, it is our commitment to keep up with our objective of leading the way in digital banking, to improve the financial well-being of Nigerians, unlock the greater potential within the financial services sector and promote seamless banking across the country. Our approach as a mobile-only digital bank is deeply rooted in our prioritising the convenience, satisfaction and safety of our customers”.

“With Branch’s suite of unique products, we are consistently pushing the envelope by offering customers valuable services beyond the conventional banking needs thereby making a meaningful impact on their lives. It remains perfectly poised to take on the challenge of providing access to affordable financial services for all,” Dayo added.

These product features include free and unlimited money transfers, free bills payment and airtime purchase, 20 per cent annual investment returns (one of the highest in Nigeria) without any withdrawal restrictions – investments made through the Branch app are channelled into low-risk financial instruments with capital preservation as the ultimate goal, and instant loans up to N500,000 in minutes with no paperwork or collaterals required and no late charges.

Branch is founded by Kiva.org founders, a Non-Governmental Organisation (NGO), which has raised over US$1.5 billion in zero per cent interest capital for global financial inclusion. For this, the founders have received global media recognition and several awards including being listed in Fortune 40 Under 40.

With support from world-class investors such as VISA, IFC and Andreessen Horowitz, Branch continues to deliver superior customer value.

By Collins Nweze

The Central Bank of Nigeria (CBN) has denied planning to nationalise Unity Bank Plc as alleged by an online news medium.

Reacting to the report, the Acting Director, Corporate Communications Department, CBN,  Osita Nwanisobi, described it as, “fake news.”

He said: “The report is fake news. There is iota of truth in it.”

He added that the public should disregard such news .

The report had claimed that the apex bank’s target examination of Unity Bank showed that the Tier 2 lender is in ,”grave financial condition”, with Capital Adequacy Ratio (CAR) and Non- Performing Loans (NPL) ratio that breach  prudential standards.

However, analysts  note that just last month, the CBN’s Monetary Policy Committee ( MPC) noted  in the communiqué it issued at the end  of its meeting that the banking industry is in good health

According to the communique: “the Capital Adequacy Ratio (CAR) and the Liquidity Ratio (LR) both remained above their prudential limits at 15.8 and 38.9 per cent, respectively. The Non-Performing Loans (NPLs) at 5.89 per cent in April 2021, showed progressive improvement compared with 6.6 per cent in April 2020.”

Unity Bank’s audited financial year  2020 results  show improved performance  in key parameters. For instance,   the Bank’s gross loans portfolio increased by 92.9 per cent to N206.2 billion in 2020 from N106.9 billion in 2019.

The bank’s total assets rose by 67.90 per cent when compared with N293.05 billion achieved in the comparative period of 2019.

Also, the lender posted gross earnings of N42.71 billion compared with N44.59 billion recorded in the comparative period of 2019.

Its customer deposit portfolio grew by 34.4 per cent to N356.62 billion in 2020, up from N257.69 billion posted in the corresponding period of 2019.

Profit after tax stood at N2.09 billion, while profit before tax was N2.22 billion during the year under review.

Its net operating income rose to N25.46 billion from N23.21 billion in the corresponding period of 2019, representing a 9.71 per cent increase.

This is even as the net interest income recorded a significant jump, as it rose by 7.60 per cent to N17.75 billion from N16.49 billion in the corresponding period of 2019.

Furthermore, the bank sustained the growth momentum demonstrated in its 2020 full year earnings as it recorded an impressive performance of 43 per cent in both profit before and after tax in first quarter 2021.

The  Bank’s unaudited first quarter results show that  the retail lender profit before tax (PBT) grew by 43 per cent to N784.3million from N550.1 million recorded in the corresponding period of 2020.

The profit after tax (PAT) for the period, which also grew by 43 per cent stood at N721.5million compared to the N506.1million recorded in first quarter 2020.

As an outcome of increased focus on supporting local enterprises and industry, the asset portfolio also showed significant growth in loan book of 76 per cent as net loans and advances to customers increased to N223.2 billion, from N126.6 billion recorded in the corresponding period.

The total assets of the bank for the period showed an appreciable growth of 42 per cent to close at N521.5 billion, from N366.8 billion in the corresponding period of 2020.

The balance sheet of the bank had been considerably de-risked with the non-performing loan (NPL) ratio of near-zero per cent, which it has consistently maintained over time. With this, the bank ranks number one in risk management assessment.

The bank recorded gross earnings of N11.5 billion, representing a marginal decline of three per cent when compared to N11.9billion posted in the corresponding period of 2020.

Union Bank Plc has announced a nationwide campaign to reward new and existing customers with N55 million in the ‘Save & Win Palli’ promo.

The campaign was introduced to provide relief to its customers as Nigeria continues to grapple with the economic hardship induced by the COVID-19 pandemic and other national issues.

During the promo period which runs from June to December 2021, new and existing customers who save a minimum amount of N10,000 monthly, will qualify to win cash rewards and other prizes.

A total of 350 customers will win N100,000 each in the monthly draws, while six customers will be rewarded with N1,000,000 each during the quarterly draws. The grand finale will take place in December, with one customer winning the grand prize of N5,000,000. An additional 300 customers will receive exciting gifts, bringing the total number of winners in the promo to 657.

The bank’s Head of Retail Banking and Digital, Lola Cardoso, while kicking off the campaign, reiterated the bank’s consistent efforts to give back to customers. She said,  “Union Bank is excited to give back to our customers through the Save & Win Palli Promo, which is one of the many ways we are offering support to Nigerians at this time.

This promo presents a wonderful opportunity to reward our customers in ways that matter and foster the savings culture among Nigerians. Union Bank will continue to deliver products and services that enable our customers to achieve their personal and business goals.”

Union Bank customers can top up their savings with multiples of N10,000 to increase their chances of winning in the draws. Winners in the promo will emerge through a series of transparent, electronically- generated draws which will be supervised by relevant regulatory institutions.

Prospective customers can download the UnionMobile app on their mobile phones to open accounts, or walk into any Union Bank branch. Through initiatives like this, Union Bank continues to enable success for the average Nigerian.

By Collins Nweze

No fewer than 30 winners have emerged in the fifth  Unity Bank Plc’s flagship business plan competition, Corpreneurship Challenge, which held across 10 states last week.

The winners, who won cash totalling N10 million, emerged during the final business pitch in the fifth contest for National Youth Service Corps (NYSC) Batch A Stream II Orientation, which took place simultaneously across ten NYSC camps in Lagos, Ogun, Benin, and Akwa Ibom states as well as Abuja.

Other NYSC camps where winners emerged included Ogun, Kano, Sokoto, Enugu and Osun states.

As in the previous editions, the cash prizes included a N200,000 business grant for each of the second runner ups; N300,000 business grant for the first runner ups and a star prize of N500,000 for each of the ten winners.

Some of the winners included Monday Love Sheba, Adeoye Janet and Essien Nsikak in Bayelsa camp, while Agu Ogechukwu Lilian, Obichukwu Victor and Abiona Elizabeth emerged as the winners in the Akwa Ibom State camp.

In Ogun, Olisa Sofia, Chiamaka Goldleen and Ifeanyi Onoh emerged winners to claim the cash prizes. Ekpenyong Paul Gabriel also emerged as the winner in Sokoto.

Speaking during the grand finale in Akwa Ibom NYSC Camp, the Divisional Head, Retail, SME Banking and E-Business Directorate, Unity Bank Plc,  Olufunwa Akinmade, said the contest had proved to have a great impact on youth empowerment.

“The Unity Bank Corpreneurship has a very positive impact, not only for the corps members but for the entire youth population in Nigeria. It is a way to support the young men and women who are just graduating from university to grow,’’ Akinmade.

“You will agree that it is not easy today to come out of the university and get a paid job, and so at this tender age, it is good that they imbibe that culture of entrepreneurship, and then with the financial support that they get from Unity Bank and the knowledge that they have acquired through the competition, they will be able to grow from job seekers to employers.”

Represented by Etop Ukpe, the Uyo Regional Manager, Akinmade reiterated: “The grants are not a loan and the winners are expected to channel the funds to profitable ventures to achieve the objectives of the scheme.”

Going down memory lane, Mr. Akinmade recalled that what started in 2019 with a pilot in four states have now expanded to ten additional states and is well on its way to achieving national coverage.

He said: “We started Corpreneurship in 2019, with a launch in Lagos and in three other states which included Edo, Ogun, and Abuja. So, today we have expanded it to ten locations, and it has been hugely successful.

“This is a programme that will stand the test of time, but all we are doing is to support NYSC corps members to start their own business no matter how small and then grow with it. Unity Bank will continue to be part of their journey, to offer them a startup capital as well as business mentorship.”

By Collins Nweze

Easyshare.Africa has unveiled Easyshare to enable consumers send and receive money in Africa using crypto technology.

Easyshare allows consumers to perform micro-transactions.

Co-founder and Head of Partnerships & Community at Easyshare.Africa, Ben Onuoha, said: “Easyshare was borne out of a lot of research. Bitcoin and Ethereum have definitely offered more people access to the global financial system but African consumers have repeatedly told us that Bitcoin and Ethereum can still be way too expensive to use in many cases, and it is therefore, not necessarily the answer for the financial needs of all communities.

‘’More African Bitcoin and Ethereum users are increasingly using other cryptocurrencies which offer better value for money.”

Onuoha added: “In response to consumer demand, we are solely focused on the ease of sending and receiving value through cryptocurrency using the most affordable means. Our vision is to bring Decentralised Finance (DeFi) to low and middle income countries where remittances account for five per cent or more of GDP and make these DeFi services more accessible.”

Easyshare.Africa is capped at a maximum of US$2,500 per transaction and a minimum of US$1. Users can send money to a mobile wallet or bank account using crypto in five easy steps.

Easyshare.Africa supports  cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Tether (USDT ERC20). It also supports other low transaction cost cryptocurrencies such as Binance Coin (BNB), Litecoin (LTC), Tether (USDT TRC20) and Tron (TRX).

Also, Easyshare.Africa is committed to extending its impact, by pioneering the world’s first decentralised network of verified peer to peer crypto-powered remittance agents.

 

Stanbic IBTC Holdings PLC, a member of Standard Bank Group, has held its Ninth Annual General Meeting (AGM) to adopt the company’s audited financial statements for the 2020 financial year among other resolutions.

The AGM held by proxy in line with the NCDC COVID-19 guidelines.

The highlight of the AGM was the declaration that a dividend of 360 kobo per ordinary share of 50 kobo be paid to shareholders as recommended by the Board of Directors. The shareholders were further allotted one bonus share for every six ordinary shares held by them.

Announcing the resolution, Chidi Okezie, Company Secretary and Head, Country Legal Services of Stanbic IBTC Holdings PLC, said: “Pursuant to Section 430, sub-section two and three of the Companies and Allied Matters Act 2020, and following a recommendation by the Board of Directors of the company, the sum of  N925,499,797.50 is set aside out of the company’s general reserves, be capitalised, and the same be applied in paying in full for 1,850,999,595 ordinary shares of 50 kobo each, in the capital of the company, and such ordinary shares be allotted and credited as fully paid up, and issued to shareholders who are on the register of members as at close of business on Thursday, June 10, 2021, in the proportion of one  new ordinary share for every six existing ordinary shares held by them in the capital of the company as at close of business June 10, 2021.

“The shares so distributed will rank at the same rate with existing ordinary shares, subject to receipt of all required regulatory approvals.”

Tunde Bamidele, a shareholder, appreciated the Board and Management of Stanbic IBTC for the steadfastness, hard work and dedication, which resulted in the N83 billion profit after tax for the 2020 financial year, and culminated in the 360 kobo dividend and allotment of bonus shares.

He said: “I would like to express my gratitude to the Board of Directors, Management and members of Staff of Stanbic IBTC for a job well done. Despite the COVID-19 pandemic, the company declared a dividend of 360 kobo which is very impressive compared to other players in the financial industry. I would also like to thank you for giving us a bonus share for every six shares held. Indeed, the bonus dividend is robust.”

Kunle Adedeji, Ms. Ngozi Edozien and Ms. Salamatu Suleiman were re-appointed as Directors, and Mrs. Sola David-Borha, immediate past Chief Executive, Africa Regions, Standard Bank Group, was appointed as a Non-Executive Director.

Other resolutions which were ratified at the 9th Annual General Meeting were the election of members of the Audit Committee, the fixing of Director’s Fees and the approval of new external auditors for Stanbic IBTC Holdings PLC.

At the AGM, KPMG Professional Services having served as the Group’s external auditors for the past ten (10) years formally retired as Auditors to the Group in accordance with section 5.2.12 of the Central Bank of Nigeria Code of Corporate Governance, which stipulates a maximum tenure of ten (10) years for external auditors. PricewaterhouseCoopers was thereafter appointed as the new external auditor for the Group.

Basil Omiyi, Chairman of the Stanbic IBTC Holdings PLC, commended the Group’s management on an impressive result despite operating in a tough environment. He said: “The Board is very happy with what the Management has been doing. We pass most of the commendation to our very efficient and able Management team who have delivered impressive results despite operating under difficult circumstances.”

Demola Sogunle, Chief Executive, Stanbic IBTC Holdings PLC, reiterated the Management’s commitment to sustaining the high standards that have earned the Group several commendations and awards, including the highest level of ratings by globally recognised rating agencies.

He said: “We would continue to work very hard to sustain our high level of ratings by globally renowned rating agencies. We also pledge to continue adhering to regulatory guidelines, while also making improvements in the areas of performance, corporate governance, risk management, quality of workforce and succession planning.”

By Collins Nweze

The Purchasing Managers’ Index (PMI) report for last month shows growth in the private sector gained momentum, with business conditions improving to the greatest extent in nine months.

Output and new order growth strengthened, with companies reporting marked rises in customer numbers. As a result, firms added to their head counts, and at the strongest rate in almost three years. In response to greater output requirements, firms increased their buying activity, and raised inventory holdings for the eleventh month running.

Plans to expand product offerings underpinned expectations for growth over the next 12 months, although sentiment moderated to a five-month low.

Meanwhile, input price inflation quickened to the sharpest in the series history. Rising staff and material costs were behind higher prices.

The  headline  figure  derived  from  the  survey  is  the PMI. Readings above 50 signal an improvement in business conditions on the previous month, while readings below 50 show a deterioration.

At 54.4 in May, up from 52.9 in April, the headline PMI registered a rate of growth that was the sharpest since last August, and extended the c sequence of expansion to 11 months.

The stronger improvement in the health of the private sector was centred on a robust rise in new orders, with the rate of growth the strongest since last August. Exports meanwhile rose at the fastest pace since February, last year.

With new business up sharply, firms increased output levels for the sixth month in succession. The latest uptick was the strongest in the aforementioned sequence and in line with the series average.

Sub-sector PMI readings indicated manufacturers saw the fastest rise, followed by agriculture, services and wholesale and retail, respectively. Meanwhile, larger output requirements encouraged increases in buying activity and inventory holdings.

To cater for growing demand, firms sought to increase their headcounts. The rate of expansion was solid, and reached a 35-month high in May. Rising staffing levels allowed firms to complete orders in a timely manner with backlogs falling at the third-quickest rate in the survey to date.

Overall input price inflation quickened to the sharpest   in the series history. Higher raw material costs and unfavourable exchange rate movements were linked to the uptick. Increased input prices were often passed on to clients, with charge inflation the third-quickest since data collection began in January 2014. Business sentiment remained in positive territory as plans to expand operations fueled optimism. That said, sentiment was weak in the context of the historical average.

Economist at Stanbic IBTC Bank, Gbolahan Taiwo,  commented: “The Nigerian private sector business environment continues to show strong signs of improvement in May as the PMI rose to 54.4, the highest print in nine months. For one, the easing of stringent public health restrictions since the second quarter of last year continues to pave the way for some level of broad macro-economic recovery this year. That said, the economy still faces some idiosyncratic factors of heightened insecurity situation and seemingly low forex liquidity. We believe the Agricultural and ICT sectors will still drive growth this year. However, as the recently published quarter one GDP numbers showed, the manufacturing sector is back in positive territory, growing by 3.4 per cent year-on-year from a contraction of 1.5 per cent year-on-year  during the fourth quarter of 2020. This is very much in alignment with persistent recovery we have seen in the PMI numbers since last year. We think that the Nigerian economy will grow by 3.1 per cent year-on-year  this year, partly helped by lower base effects occasioned by the contraction during the second and third quarters of 2020. Inflation continues to remain high and as the recent PMI series suggests, both input and output prices have been on the rise. This potentially could impact the recovery in aggregate demand and purchasing power of the consumer, in light of sticky wages.”

By Collins Nweze

Bureaux De Change (BDC) directors have reiterated their commitment to ensuring stable exchange rate in the country.

This was part of the resolutions made at the end of a meeting of BDC Directors organised by the Association of Bureaux De Change Operators of Nigeria (ABCON) in Lagos.

ABCON President, Aminu Gwadabe charged the directors to protect the huge money invested in their care by ensuring their staff members operate within the Central Bank of Nigeria (CBN) guidelines.

He said this had become imperative to protect the BDC business, especially the weekly dollar sale by the apex bank.

Noting that the investment in each BDC is about N35 million, he called for increased supervision by directors, to detect and forestall any activity that could lead to the loss of such investment.

Listing the expected roles of BDC directors, Chairman Southwest Zone, ABCON, Taiwo Ebenezer, said directors should be involved in the activities of their  BDCs and relate regularly with their staff members.

Among other things,  he added that BDC directors must know the sources of funds paid into their corporate accounts, while also ensuring weekly operational reports from their staff.

ABCON National Treasurer, Gbadamosi Mohammed, said it is the duty of directors to educate their members on the ethics of the business as indicated in the CBN guidelines.

He added that the ABCON training was informed by the need to ensure that BDC staff members were educated, and that the directors should ensure application of  lessons from the training by their staff in the running of their BDCs.

Also, ABCON Vice President, Azubuike Igbokwe listed  unauthorised transactions for BDCs to  include, funds transfer, donations to political parties, funding of importation and funding of terrorism activities.

Noting that the penalty for unauthorised transactions include N5 million fine, exclusion from forex  bidding or revocation of licences, he charged the directors to  validate the Bank Verification Number (BVN) of their customers to ensure that their identity and activities as a way of ensuring their BDCs were not used for  any unauthorised transactions.

The directors also expressed support for the proposed ABCON Task Force Committee on monitoring compliance by operators.

While observing that the guidelines for BDC operations required that BDCs operate in  their registered offices, the directors charged  ABCON to punish any operator that contravened the guidelines of CBN.

The directors said they were committed to increased supervision of BDCs’ operations while ensuring adequate remuneration for staff and prompt rendition of returns to the regulatory authorities.

By Collins Nweze

Nigeria’s insurance-to-Gross Domestic Product (GDP) ratio will rise with the launch of Heirs Insurance and Heirs Life Assurance, Chairman Heirs Holdings Group, Tony Elumelu, has said.

Speaking yesterday during the launch of Heirs Holdings’ new insurance businesses – Heirs Insurance and Heirs Life Assurance in Lagos- he said there was the need for private and public sectors to collaborate on development.

Elumelu said Heirs Insurance and Heirs Life’s planning took over seven years to be realised and would change the insurance landscape, adding that the plan was to build a formidable sector that would boost revenue.

Heirs Insurance and Heirs Life have a paid-up share capital of N10 billion and N8 billion, and are backed by leading reinsurers, providing a second layer of security for clients’ insurance portfolios.

Elumelu said: “It’s a seven-year journey and it has come to pass. It is good when the public sector recognises that both the private and public sectors need to work together. The coming on board of these businesses has helped to create 150 jobs and more jobs will be created and tax revenue boosted.”

Also, Commissioner for Insurance and Chief Executive Officer,  National Insurance Commission (NAICOM), Sunday Thomas promised to protect insurance subscribers. He said the coming on board of the companies would help conserve foreign exchange for national development.

Thomas said the commission was determined to ensure high ethical standards to protect the sector.

Thomas said the independent of the board and committees of operators were important to the new growth of the industry.

Thomas said: “The timing of this launch could not have been more auspicious as the insurance commission is currently rolling out different initiatives for national development. To Heirs Insurance and Heirs Life, I want to say thank you for coming into our industry, making a difference, impacting the economy, and helping us to deepen the insurance sector in Nigeria.”

In his keynote address, Lagos State Governor, Babajide Sanwo-Olu,  described Elumelu as an entrepreneur par excellence.

He said the state government would continually encourage the private sector to achieve suitable growth.

Sanwo-Olu commended the pan-African investment group on its bold vision to democratise access to insurance.

The event showcased the new companies and their commitment to  excellent service delivery, and their mission to offer insurance that is simple, quick, reliable, and accessible to everyone.

The event also marked the inauguration of Heirs Towers, the seven-storey headquarters of Heirs Holdings.

Its an impressive structure developed by Afriland Properties Plc, one of the investee companies of the Heirs Holdings Group.

Elumelu reiterated the readiness of both companies to usher in a new era in the insurance industry. He stressed that both companies demonstrate the vision of Heirs Holdings to position the private sector as a key enabler of economic and social wealth creation in Africa.

He said: “Heirs Insurance and Heirs Life once again demonstrate our core purpose of improving lives and transforming Africa.  In our years of operations.  Across different industries and countries, we have become synonymous with customer focus and the highest levels of corporate governance.  These are the hallmarks for these new businesses.  We know that our promise, our people and our proven track record will transform the insurance industry, put the customer first and empower people, in good and bad times.”

Elumelu had introduced the leadership of both companies and their distinguished Board of Directors, all seasoned individuals with decades of Nigerian and international experience.

The CEOs, Adaobi Nwakuche, Acting Managing Director/CEO, Heirs Insurance Limited and Niyi Onifade, Managing Director/CEO, Heirs Life Assurance Limited, both have decades of experience in the insurance industry.

By Collins Nweze

The Nigeria Deposit Insurance Corporation (NDIC) has solicited the support of the Ministry of the Federal Capital Territory (FCT) in the realisation of landed properties of banks in-liquidation within the FCT to enable it pay depositors of affected closed banks.

The Chairman of the NDIC, Mrs. Ronke Sokefun said this during a visit by the Corporation’s Board and Management to the Minister of the FCT, Mohammed Bello, in Abuja.

According to Mrs Sokefun, the corporation had faced some bottlenecks in the full payment of trapped depositors’ funds as a result of difficulty in realising assets of banks in-liquidation due to poor documentation by the banks, revocation of title by authorities and litigations over the assets.

The NDIC chairman, who noted that some of the assets were located within the FCT, said the support of the Ministry in realising them would assist the corporation in the discharge of its mandate of deposit guarantee which ensures that depositors recover their savings in the event of bank failure.

NDIC’s Managing Director/CEO, Bello Hassan elaborated on the roles and relationship between the NDIC and the Asset Management Corporation of Nigeria (AMCON) in the management of banks’ assets.

He explained that the NDIC as a liquidator focuses on the assets of closed banks following revocation of their licence by the Central Bank of Nigeria (CBN) while AMCON was involved with only Non-Performing Loans (NPLs) of banks acquired by AMCON.

Responding, Minister of FCT, Mal. Mohammed Musa Bello observed that problems relating to landed properties in the FCT were usually not by the Ministry but from issues arising from the title of such properties. He however said the Ministry was amenable to assisting the Corporation in resolving issues around its properties and those of banks in-liquidation in the FCT within the ambit of the law.