The Nation Newspaper

Category: Money

  • FCMB upgrades service delivery with new software

    First City Monument Bank (FCMB) Limited has upgraded its service delivery platform by deploying the Finacle Core Banking solution version 10 to enhance world-class service excellence and customer experience.

    In a statement, the bank said the new generation banking platform will accelerate innovation and support its business growth in the rapidly changing business environment in which it operates.

    It explained that the advanced service-oriented architecture (SOA) of Finacle 10 enables the lender to optimise its processes, enhance system reliability, performance, scalability and security, among others. This ensures that transactions at the bank’s branches and other touch points are now faster with rare occasions of service unavailability at its alternate channels, while offering more innovative products to customers.

    While expressing gratitude to customers for their patience and understanding during the upgrade process, the Bank assured that it will continue to expand its platforms and further raise the bar in products and service offerings in line with its culture of excellence and values as a simple, reliable and helpful lender.

    The Group Managing Director/Chief Executive of the bank,  Ladi Balogun, said, the bank is excited to have successfully concluded the Finacle 10 service delivery platform upgrade.

    He stated further: “’We are conscious of the needs of our target market and the evolving dynamics of the society with an increasing technology savvy population. The new Finacle 10 solution provides us the flexibility required to create new pathways for enhanced offerings and service excellence, using cutting edge technology. It has also placed us on a higher pedestal to sustain our rapid expansion drive and keep pace with market demands and trends.”

    Also speaking, the Executive Director, Service Management and Technology of FCMB, Nath Ude, said: ‘’The pace of change in the financial services sector is unprecedented, driven by growth in disruptive technologies that are changing how we bank and conduct business. This new environment creates challenges, but more importantly, provides us with a unique opportunity to lead the sector and serve our customers as they embrace new technologies and seek secure, easier and more flexible ways to look after their daily banking needs.

    “With the functionalities available in the new Finacle10, we are optimally positioned to help our customers realize their financial goals while delivering products and services in a targeted manner that takes into account, our customers unique needs and preferences,’’ he said.

  • Industrialist praises Sterling Bank’s commitment to economic growth

    The Chairman and Chief Executive of The Bazaar Limited, a growing player in the retail outlet and food chain business in Nigeria, Mr. Rajesh Mehta, has praised Sterling Bank Plc for its contribution to the economic growth of the country.

    The industrialist, who spoke at the opening of The Bazaar Retail Store outlet in Ogba, Lagos, said the lender has been providing adequate capital for its customers across the value chain in all the sectors of the economy.

    He said the provision of capital and other advisory services by the bank has boosted the growth of his business.  “Sterling Bank is indeed, a bank of choice. We have been banking with the bank for the past 20 years. We started with one of its legacy institutions- Magnum Trust Bank and we have come this far because of the quality of banking services we enjoy from the bank. Apart from the provision of capital, the advisory services provided by the bank stand out in the industry and its staff are adequately trained to support the business growth of their customers,” he said.

    According to Euromonitor International, a leading independent provider of strategic market research globally, Nigeria’s retail business has become more organised in recent years. The huge demand posed by the country’s population has made it a hotbed for international retailers and investors. It is expected that this trend would be replicated across the various sectors of the economy.

    Corroborating the claims by Mr. Mehta, the bank assured that it will continue to support the growth of both new and existing businesses in various sectors of the economy “No business can run successfully without sufficient working capital,” the bank noted.

    The bank said it is already equipping the operators in the Micro Small and Medium Enterprises (MSMEs) segment with the right skills to effectively manage their businesses for success.

  • Nigeria plans to issue first non-interest sovereign bond in 2016

    The Federal Government is working on a plan to issue Nigeria’s maiden sovereign non-interest bond this year as part of efforts to deepen and make the domestic capital market more inclusive and diversified.

    Non-interest bond, otherwise known as Sukuk bond, makes returns to the investors through sharing of profit or cash flow from the underlying asset with them in addition to redemption of the principal upon maturity. Nigeria currently has only one sub-national Sukuk bond issued by the Osun State Government. Two other states, Kebbi and Sokoto states have indicated interests in issuing Sukuk bonds.

    The absence of a sovereign Sukuk bond to serve as benchmark for other government and corporate Sukuk issuance has been cited globally as a drawback for the growth of non-interest Sukuk bond market. Standard & Poor’s Rating Services (S & P) estimated that global Sukuk issuance could reach up to $55 billion in 2016.

    The two frontal government agencies in charge of bond issuance, the Debt Management Office (DMO), which oversees government’s debt issuance progamme, and Securities and Exchange Commission (SEC), the apex capital market regulator, said they would work together to realise the long-standing goal of issuing Nigeria’s first sovereign Sukuk bond this year.

    At their second interactive session in less than three months, both SEC and DMO reiterated their commitments to deepening the domestic debt market by developing the non-interest debt market.

    Director General, Debt Management Office (DMO), Dr Abraham Nwankwo said the DMO attaches importance to the development of non-interest products in the Nigerian capital market noting that sovereign Sukuk issuance has been part of the agency’s strategic plan drawn three years ago.

    He solicited support from the SEC, especially in the area of capacity building in order to realize the goal of issuing Nigeria’s first sovereign Sukuk within this year.

    Director General, Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo, said the apex capital market regulator would support the DMO with capacity development in the area of non-interest finance.

    According to him, SEC will nominate staff of DMO to participate at the Capital Market Committee’s sub-committee on non-interest products to further deepen the capacity of DMO.

    The two government agencies noted that within the context of continued decline in the prices of crude oil in the international markets, attendant drop in both foreign exchange and government revenues as well as fragility of growth from major emerging markets like China, the need for alternative sources of capital to finance infrastructure becomes increasingly more compelling.

    Both government agencies agreed on the urgent need to begin mobilising capital in order to address the nation’s investment needs, noting particularly that issuing a sovereign Sukuk will attract significant amounts of affordable capital from the Gulf countries and other established Islamic markets around the world into Nigeria.

    Gwarzo added that issuing a sovereign Sukuk will send a much needed positive message to the market amidst the negative investor sentiment that persists currently.

    He expressed confidence that Nigeria’s maiden sovereign Sukuk will be oversubscribed as both domestic and foreign investors have appetite for exposure to Nigeria, urging the DMO to take advantage of this unique opportunity to make a mark on the Sukuk market in spite of the challenging times.

    When the SEC released rules on sukuk issuance in 2013, the State Government of Osun took advantage of the robust regulatory framework to issue Nigeria’s first Sukuk in which it raised N11.4 billion.

    SEC’s Rules on Sukuk Issuance in Nigeria underline that Sukuk shall be structured as Sukuk Ijarah – leased contract; Sukuk Musharakah– sharing contract; Sukuk Istisnah–  exchange contract; Sukuk Murabahah– financing contract; and any other form of contract that may be approved by the Commission.

    According to the rules, eligible issuers of Sukuk include public companies including Special Purpose Vehicles (SPVs), State Governments, Local Governments, and Government Agencies as well as multilateral agencies.

    In its outlook for the Sukuk market in 2016, S & P said it expects Sukuk issuance to reach $50 billion-$55 billion in 2016, compared with $63.5 billion in 2015 and $116.4 billion in 2014. The correction started last year, mainly because the central bank of Malaysia (Bank Negara Malaysia; BNM)—the largest issuers of sukuk worldwide—stopped issuing. Excluding the BNM effect, sukuk issuance dropped by around five per cent in 2015 from 2014.

    S & P however outlined that over the next few years, the Sukuk market will benefit from the greater involvement of traditional stakeholders—such as the Islamic Development Bank Group, the Islamic Financial Services Board (IFSB), the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and the International Islamic Financial Market (IIFM)—as well as new ones like the International Monetary Fund (IMF).

    S & P said Islamic finance is by design a good match for infrastructure financing and investing in the real economy and developing new tools in these areas could give the industry a big boost and increase its global attractiveness as a tool for achieving sustainable development goals.

     

     

     

  • FCMB upgrades service delivery with new software

    FCMB upgrades service delivery with new software

    First City Monument Bank (FCMB) Limited has upgraded its service delivery platform by deploying the Finacle Core Banking solution version 10 to enhance world-class service excellence and customer experience.

    In a statement, the bank said that the new generation banking platform will also accelerate innovation and support its business growth in the rapidly changing business environment in which it operates.

    It explained that the advanced service-oriented architecture (SOA) of Finacle 10 enables the lender to optimise its processes, enhance system reliability,performance, scalability and security, among others. This ensures that transactions at the bank’s branches and other touch points are now faster with rare occasions of service unavailability at its alternate channels, while offering more innovative products to customers.

    While expressing gratitude to customers for their patience and understanding during the upgrade process, the bank assured that it will continue to expand its platforms and further raise the bar in products and service offerings in line with its culture of excellence and values as a simple, reliable and helpful lender.

    The Group Managing Director/Chief Executive of First City Monument Bank,  Ladi Balogun, said the bank is excited to have successfully concluded the Finacle 10 service delivery platform upgrade.

    He stated further. “’We are conscious of the needs of our target market and the evolving dynamics of the society with an increasing technology savvy population. The new Finacle 10 solution provides us the flexibility required to create new pathways for enhanced offerings and service excellence using cutting edge technology. It has also placed us on a higher pedestal to sustain our rapid expansion drive and keep pace with market demands and trends”.

    Also speaking, the Executive Director, Service Management and Technology of FCMB, Nath Ude, stated: ‘’The pace of change in the financial services sector is unprecedented, driven by growth in disruptive technologies that are changing how we bank and conduct business. This new environment creates challenges, but more importantly, provides us with a unique opportunity to lead the sector and serve our customers as they embrace new technologies and seek secure, easier and more flexible ways to look after their daily banking needs.

    With the functionalities available in the new Finacle10, we are optimally positioned to help our customers realise their financial goals while delivering products and services in a targeted manner that takes into account, our customers unique needs and preferences.’’

  • WorldRemit extends mobile money service to MTN subscribers

    WorldRemit and MTN Group has announced that its customers can now send money instantly to MTN Mobile Money wallets in Rwanda, Uganda and Zambia.

    The launch follows the signing of a global partnership agreement earlier this year, to enable WorldRemit customers all over the world to send international remittances to MTN’s Mobile Money customers.

    “This partnership makes sense for both companies, as WorldRemit and MTN share a disruptive approach to innovation and bring impactful services to our customers. Together, we are now providing an instant, fully digital and very affordable solution to send international remittance to Rwanda, Uganda and Zambia. Other countries will follow soon,” says Serigne Dioum, MTN Group Head of Mobile Financial Services.

    “At WorldRemit, we are pioneering international mobile-to-mobile remittances. Our partnership with MTN allows our customers around the world to send money instantly from the WorldRemit app to MTN Mobile Money users in Rwanda, Uganda and Zambia. Together with MTN, we make sending money home as easy as sending an instant message,” Senior Mobile Analyst at WorldRemit, Alix Murphy said.

    She continues: “For Diaspora members sending money to friends and family back home in these countries, Mobile Money is a real game-changer. In Uganda, Mobile Money has already overtaken cash pick-up and bank deposits as the preferred method to receive money. We expect this trend to continue as MTN’s Mobile Money services reach millions of people without bank accounts, giving them access to a variety of life-enhancing financial services including savings and insurance schemes.”

    People in more than 52 countries already use the WorldRemit app to send around 400,000 money transfers every month to over 125 destinations. WorldRemit is the leading sender of remittances to Mobile Money wallets connecting to over 25 different services worldwide.

    MTN Mobile Money enables users to perform utility payments, save money, purchase airtime and access a range of mobile financial products. To date, MTN Mobile Money is used by customers in 15 countries across Africa, i.e. Benin, Botswana, Cameroon, Congo, Ghana, Guinea Bissau, Guinea Republic, Ivory Coast, Liberia, Nigeria, Rwanda, South Africa, Swaziland, Uganda and Zambia.

  • John Holt explores new businesses to drive growth

    John Holt explores new businesses to drive growth

    John Holt Plc, one of Nigeria’s oldest conglomerates, is exploring new business opportunities to mitigate import-related influence on its businesses and strengthen its domestic products and businesses. These moves come as John Holt seeks to expand its businesses in Nigeria as it struggles with the external shocks due to Naira depreciation.

    In the business outlook for the conglomerate, the board of the company said it has been exploring for new business opportunities including provision of electrical transformers, electrical equipment and expansion of fire control business to widen the revenue base of the group.

    The conglomerate said it was seeking investments in businesses that are less import dependent as devaluation of the Naira remains a drain on bottomline.

    According to the company, with its business interests ranging from engineering, leasing, trade and distribution, the devaluation of the Naira was a drain on bottom lines since most of its raw materials and equipments are imported.

    “Because we are an import dependent company, we had N500 million wiped out because of devaluation,” the company stated.

    The board of the conglomerate said it has started implementing a number of measures to improve liquidity and profitability of the group as well as strategies to enhance revenue and control costs.

    The board of the company said it has also been working on injection of long-term funds in order to ensure that the company has adequate resources to continue in operation for the foreseeable future.

    The audited report for the period ended September 30, 2015 showed that John Holt’s debt to adjusted capital ratio fell to 43 percent in 2015 as against 51 percent in 2014. Finance cost dipped by 7.60 percent to N231 million. The decrease in the debt to adjusted capital ratio for the group during the year resulted primarily from decrease in debt by N400 million from N1.8 billion in 2014 as against N1.4 billion in 2015, according to the company’s 2015 audited financial statement.

    Despite infrastructure deficits such as bad roads and  huge energy costs that spiral up operating expenses of companies in Africa largest oil producer Nigeria, John Holt was able to reduce costs as administrative expenses fell by 20.10 percent to N682 million in 2015 from N856 million in 2014.Distribution expenses were down by 20.30 percent to N856 million.

     

     

     

     

    The company spent less money on operating expenses to generate every unit of product as operating expense margin (OPEX) margin fell to 43.21 percent in 2015 from 48.10 percent in 2014.Cost of sales was down by 3.80 percent to N1.77 billion, thanks to effective cost control mechanisms put in place by management.

    John Holt attributed the slow growth in sales to reduced patronage from major customers in the oil and gas industry that got hit by the oil price crash.

    The report showed that group turnover dropped from N2.82 billion in 2014 to N2.43 billion in 2015. Gross profit also dropped from N967 million to N655 million. With exchange loss of N528 million in 2015, operating profit shrank from N677 million to N60 million. While finance costs reduced from N250 million to N231 million, the group incurred a loss before tax of N171 million in 2015 as against profit before tax of N427 million in 2014. After taxes, net profit of N591 million in 2014 turned into a net loss of N254 million in 2015. Earnings per share reversed from N1.52 in 2014 to a loss of 65 kobo in 2015.

    John Holt, a subsidiary of John Holt & Company (Liverpool) Limited, United Kingdom, was incorporated in Nigeria in August 1961 and was listed on the Nigerian Stock Exchange (NSE) in May 1974. John Holt & Company currently holds 53 per cent majority equity stake in the Nigerian subsidiary.

    The principal activities of the group include assembly, sale, leasing and servicing of power and cooling equipment, sale and servicing of fire fighting vehicles and equipment, sale and servicing of marine equipment, marine transport, warehousing and distribution services, property services and construction.

     

     

  • NIDF to pay investors dividends this week

    Nigerian International Debt Fund (NIDF), a mutual fund listed on the Nigerian Stock Exchange (NSE) would distribute the final coupon for the 2015 business year to its investors this week.

    Investors in the mutual fund would receive N49 per note as the Fund Managers, Afrinvest Asset Management Limited, begin payment of final coupon for the 2015 financial year on February 3, 2016. This represents the 36th coupon in the life of the Fund since its inception in 1997.

    Managing Director, Afrinvest Asset Management Limited, Ola Belgore, said a total of N27. 17 million would be distributed among note holders on the register of the NIDF as of December 31, 2015 at N49 per note.

    He noted that the second coupon payment was in line with the structure of the NIDF, which is designed to pay distributions twice a year, having paid an interim coupon of N38.21 in July 2015.

    “NIDF offers investors safety, capital preservation, steady returns, diversification and value, and has a consistent dividend history making it quite attractive for both individual and institutional investors such as Pension Fund Administrators (PFAs), insurance companies, asset managers and gratuity funds,” Belgore said.

    He pointed out that in 2015, the NIDF was rated “A-” by Global Credit Rating Company (GCR), which is currently among the best for mutual funds in the market.

     

     

    Afrinvest Asset Management Limited is a subsidiary of Afrinvest West Africa Limited, a wealth advisory firm involved in investment banking, securities trading, asset management and investment research with a focus on West Africa.

     

     

  • FirstBank appoints new director

    FirstBank appoints new director

    First Bank of Nigeria Limited, at the weekend, announced the appointment of Mrs. Olusola Oworu to its Board of Directors as an Independent Non-Executive Director. The lender also announced the retirement of Alhaji Mahey Rafindadi Rasheed and Adetokunbo Abiru from the Board.

    Mrs Oworu’s appointment, which is still subject to the Central Bank of Nigeria’s (CBN’s) approval, is in line with the bank’s strong corporate governance credentials and best practice. She was before her appointment, an Honourable Commissioner for Commerce & Industry in Lagos State from 2011 to 2015. She was also then Special Adviser to the former Governor of Lagos State, Babatunde Raji Fashola on Commerce & Industry from 2007 to 2011.

    Alhaji Mahey Rafindadi Rasheed, was appointed to the board of FirstBank in 2009 as an Independent Non-Executive Director. He brought his in-depth expertise across industries on the implementation of the bank’s strategic objectives. He started his career at the New Nigeria

    Alhaji Rasheed, an Edward Mason Fellow of Harvard University, has held several Federal Government appointments and sits on the boards of various institutions in the country. In addition, he is currently the Chairman of the Nigeria Sovereign Investment Authority, the nation’s sovereign wealth fund. He was conferred with the national honour of Officer of the Federal Republic (OFR) in 2004.

    Mr. Adetokunbo Abiru joined the Board of FirstBank in 2013 as Executive Director, Corporate Banking. He brought his far reaching experience to bear on the bank’s board. Prior to joining the board, he was Group Head, Corporate Banking and also a pioneer Business Development Manager in 2006 at the inception of that business model by the bank.

     

     

    The bank’s Group Managing Director/Chief Executive Officer, Dr. Adesola Adeduntan thanked Alhaji Mahey and Mr. Abiru for their invaluable contributions to the growth and development of FirstBank over the years and wished them the best in their future endeavours.

    In welcoming Mrs. Oworu to the FirstBank Board, he enthused:  “Mrs. Oworu’s track record typifies our Bank’s value system hinged on passion, partnership, innovation, creativity, entrepreneurship, integrity, dynamism, good governance and service excellence. I trust that she will positively impact our drive for sustainable growth and development.”

     

  • Industrialist praises Sterling Bank’s commitment to economic growth

    The Chairman and Chief Executive of The Bazaar Limited, a growing player in the retail outlet and food chain business in Nigeria, Mr. Rajesh Mehta, has praised Sterling Bank Plc for its contribution to the economic growth of the country.

    The industrialist, who spoke at the opening of The Bazaar Retail Store outlet in Ogba, Lagos, said the lender has been providing adequate capital for its customers across the value chain in all the sectors of the economy.

    He said the provision of capital and other advisory services by the bank has boosted the growth of his business.  “Sterling Bank is indeed a bank of choice. We have been banking with the bank for the past 20 years. We started with one of its legacy institutions- Magnum Trust Bank and we have come this far because of the quality of banking services we enjoy from the bank. Apart from the provision of capital, the advisory services provided by the bank stand out in the industry and its staff are adequately trained to support the business growth of their customers,” he said.

    According to the Euromonitor International, a leading independent provider of strategic market research globally, Nigeria’s retail business has become more organised in recent years. The huge demand posed by the population of the country has made the country a hotbed for international retailers and investors. It is expected that this trend would be replicated across the various sectors of the economy.

    Corroborating the claims by Mr. Mehta, the bank assured that it will continue to support the growth of both new and existing businesses in various sectors of the economy “No business can run successfully without sufficient working capital”, the bank noted.

    The bank said it is already equipping the operators in the Micro Small and Medium Enterprises (MSMEs) segment with the right skills to effectively manage their businesses for success.

    “Last year, we organised the first MSME Academy which was well attended by operators in this segment to equip them with the right skills and minds set to effectively manage their businesses for success. In response to the positive feedback and customers’ request, we are expanding the academy to more locations across the country.”

     

  • Interbank rate falls as N331b T-Bills’ funds hit market

    The interbank rate dropped to 1.25 per cent for overnight lending on Friday, from 3.5 per cent last week after the Central Bank of Nigeria (CBN) injected N331 billion into the system. The inflow is supported by increased liquidity from retired treasury bills and an expected injection of cash from December budget allocations.

    The interbank market is the top-level foreign exchange market where banks exchange different currencies. The banks can either deal with one another directly, or through electronic brokering platform.

    Traders said the fund came from matured open market operation (OMO) treasury bills into the banking system on Thursday, while additional naira from the budget and refunds from deposits for foreign exchange purchases are expected to hit the system by close of business on Friday.

    The Federal Government distributes revenues from oil exports and taxes among its three tiers of government -federal, state and local- on a monthly basis, with the portion for state and local government passing through the banking system and providing liquidity.

    Also, N387.771 billion was shared among the federal, states and local governments as revenue for December 2015. This was higher than the N369.882 shared in the previous month. The shared amount comprised the month’s net statutory revenue of N377.090 billion.

    Also, there is the exchange gain of N4.351 billion which is proposed for distribution, bringing the total revenue distributable for the month of December to N381.441 billion, including VAT of N62.071 billion.