Fidelity Bank Plc has emerged the best bank to work for in Nigeria.
In a study conducted by Venture Africa, an online platform for news and analysis about African businesses, in conjunction with Jobberman.com, Nigeria’s employment website, the lender emerged one of the top 12 most preferred places to work in the country.
The report tagged “Top 100 companies for Nigerian millennials” surveyed young Nigerians born between 1982 and 2003 and measured company culture, dream-company, staff welfare, gender equality, government institution, company’s prestige, salary, and non-salary benefits. It also looked at the level of satisfaction, salary consideration, level of contentment, career growth, concerns outside work and work-life balance amongst others.
According to the study, the lender led all other banks in the country in all the measuring indices.
In a statement, its Managing Director/Chief Executive Officer, Nnamdi Okonkwo said the development is a testimony to the bank’s robust human capital management policies which focuses on enhancing the lives and wellbeing of employees.
The Central Bank of Nigeria (CBN) has set a six-year time limit within which all transaction-based complaints against financial institutions can be lodged.
A circular endorsed by its Director, Financial Policy and Regulation, Udofia Obot, addressed to all banks, discount houses and other financial institutions, explained that the new policy became exigent following recent challenges in ensuring timely resolution of complaints from consumers of financial services against banks.
The circular stressed that the CBN’s consumer protection role had over the years been hampered by “non-availability of, or delays in receiving documentary evidences from both parties.” This, it stressed underscored the need to have a policy on “time bar” for complaints management in the financial services industry.
“Consequently, the CBN having consulted the relevant stakeholders in the financial services industry, and in line with provisions of limitation legislation; Money Laundering (Prohibition) Act 2013; and CBN Anti-Money Laundering and Counter Financing of Terrorism Regulation for Banks and Other Financial Institutions in Nigeria, 2013, hereby adopts a time limit of six years, effective from the date of the transaction, within which complaints against financial institutions shall be lodged,” it added.
However, the circular stated that the time limit would not apply to fraud cases; complaints already lodged with the financial institutions and CBN; and international electronic payment transactions which records are not retained beyond 180 days on the dispute resolution application (arbiter). The circular further explained that the latest circular supersedes the earlier circular dated February 16 ths year on the subject matter.
Customers have commended First City Monument Bank (FCMB) Limited for initiating and supporting activities designed to empower the society. Winners of N5 million and N1million, respectively, at the grand finale of the Lagos & Southwest Regional draw of the FCMB Millionaire Promo held on August 19 across the country, Nkem Egwuonwu and Mrs. Philomena Ewohimen, commended the lender for its kind gesture.
Speaking yesterday during the cheques presentation ceremony in Lagos, Egwuonwu described the bank as a true partner in progress. According to him, ‘’one of the hallmarks of any responsible corporate organisation is the ability to maximise the wealth of its customers. FCMB has continued to show over the years that it is committed to help customers grow’’, adding that, ‘’I am proud to identify with the bank’’.
‘’FCMB Millionaire Promo will go a long way to turn around the fortunes of many people. I therefore urge existing and incoming customers to fully participate in it,’’ he said.
Mrs. Ewohimen, who won N1million, said: ‘’Today is one of the happiest moments in my life. FCMB has made me proud. This money will help me a lot to further develop myself.
‘’Since I opened an account with FCMB, I have not had any cause to regret and I believe that I will continue to grow with the Bank, because it has proved that it stands for the progress of the people.’’
Deputy Director, Consumer Protection Council (CPC), Mr. Joshua Nggada, hailed the lender for conducting the promo and the draws ‘’with integrity and transparency’’.
He said: ‘’FCMB followed due process from the beginning of the promo till the emergence of the various winners.
Nigeria’s economic growth slowed sharply in the second quarter of the year as lower crude prices took their toll on the local economy. Annual growth dropped to 2.35 per cent from 6.54 per cent a year earlier, the Nigerian Bureau of Statistics (NBS) said yesterday.
Reuters report said oil production fell to 2.05 million barrels per day from 2.21 million over the same period. With oil accounting for more than 90 per cent of Nigeria’s foreign exchange earnings and about 70 per cent of government revenues, the fall in crude prices and output has hurt Nigeria’s finances and its naira currency, with foreign investors pulling out of its stock and bond markets.
The naira has fallen about 15 per cent over the last one year, with devaluations in November and February, despite the central bank spending billions of dollars to prop up the currency.
The weakening currency has fuelled inflation, which at 9.2 per cent is at its highest annual rate since February 2013 and above the central bank’s target range. Tuesday’s figures showed the continent’s second biggest economy, South Africa, shrank for the first time in over a year, raising the risk that labour disputes and slowing Chinese demand for commodities could push it towards recession.
The Central Bank of Nigeria (CBN) has granted final approval for the merger of Heritage Bank Limited and Enterprise Bank Limited. The scheme of merger has also been endorsed by the Federal High Court which gave its blessing to the merger.
“The Management of the CBN has approved the grant of Final Merger Approval to Heritage Banking Company Limited and Enterprise Bank Limited and the licence of Heritage Bank Limited (the successor),” the CBN said in a letter to Heritage Bank.
Managing Director/Chief Executive, Heritage Bank, Ifie Sekibo, said: “We’re pleased with the final approval of the merger of the two institutions. The stage is now set for us to achieve the vision of a bigger and better Bank that offers world class banking services designed to help customers to create, preserve and transfer wealth.
“With this acquisition, the new Heritage Bank is better positioned to offer unparalleled banking services which spread across over 200 branches, 177 Automated Teller Machines (ATMs), 57 Cash Centres and 2000 Point of Sale (POS) Terminals in 26 states. We shall harness the better of the two worlds combined in terms of our innovative products, bespoke technology and extended branch network manned by a team of tenacious people; as this automatically transforms our bank from a tier-2 player to a strong tier-1 player.
“As we integrate into a larger bank, we assure our esteemed customers that this strategic stride is ultimately to serve them better. We affirm our commitment to all stakeholders that we will continue to deliver on our promise of creating and preserving wealth across generations through highly personalised service.”
The Chairman of Courteville Business Solutions Plc., Group Capt Murtala Salami (rtd) has reiterated the firm’s determination to diversify revenue base to enhance better returns for investors.
He spoke yesterday at the company’s 10th annual general meeting (AGM) held in Lagos. He explained that it was imperative that the firm reduces its concentration risk on AutoReg while it has a wide lead over competitors.
Salami said last year, Courteville, in compliance with the Security and Exchange Commission (SEC’s) Code of Corporate Governance, inaugurated a Corporate Governance and Remuneration Committee, and adopted a formal Risk Management Framework. A new Risk Management department reporting directly to the board’s risk management committee was also created.
The chairman commended the management team led by Adebola Akindele, the group managing director, for successfully navigating the company through a challenging economic cycle brought on by the depreciated naira, falling oil prices, and tensions that arose in the run-up to general elections. Last year, Courteville’s profit before tax rose 13 percent to N457.03 million. Earnings per share leapt up 22 percent to 8.67 kobo.
Salami said under Akindele, who has been at the helm for 10 years, Courteville ‘adopted strategies, which helped to stabilise its operations in the midst of economic uncertainties and fast depleting disposable income of consumers.’
Skye Bank Plc has concluded its financial training for the youth. It was designed to empower them with the necessary entrepreneurial and financial planning skills.
According to a statement issued by the bank, the Sustainability and Consumer Protection Department, which anchored the training, said the programmes were based on the ongoing Financial Literacy Mentoring and Skye Financial literacy seminar initiatives of the bank.
It said Government Day Secondary School, Wuse 2, Abuja, was adopted for the mentoring programme where the training developed by Junior Achievement of Nigeria (JAN) was administered to the students over the course of the 2014/2015 academic session. A total of 84 contact hours were devoted to delivering the 7-modules training to all the students in the six arms of the school.
“The Skye Financial Literacy Seminar series was conceived on the strength of studies which showed financial literacy as an important component of sound financial decision making. The objective of the seminar series is to help participating students acquire the necessary financial knowledge and develop corresponding financial intelligence that will be useful for their lives’ journey. The seminar has taken place in Lagos, Ibadan, Calabar, Uyo, Port Harcourt and Yenagoa with a total of 208 contacts hours invested in teaching over 7000 students across 52 schools”, the statement explained.
According to the bank, the lecture focuses on money, how to make,manage and multiply money as well as the role of banks and other financial institutions in the management and multiplication of money.
Phoebestar Royalty Schools, Osogbo, has been adopted by the bank for the next round of Ongoing Financial Literacy Mentoring while the Skye Financial Literacy Seminar series would be focusing on the Southwest states.
Guaranty Trust Bank (GTBank) Plc recorded a drop in its non-interest income in its second quarter 2015 earnings.
Analysts at FBN Capital, an investment and research firm, said the bank’s non-interest income dropped to seven per cent year-on-year from 26 per cent in the first quarter of this year. Non-interest income comes from service and penalty charges and, to a much less extent, from asset sales and property leasing. Unlike interest income, this income is largely unaffected by economic and financial market cycles and is usually not controlled by law or regulation.
However, GT Bank’s result for the second quarter showed that profit before tax and profit after tax grew by 20 per cent year-on-year and 34 per cent year-on-year to N30.5 billion and N27.4 billion respectively.
Although profit before provisions advanced by 10 per cent to N55.8 billion, the double-digit growth on the PBT line was mainly driven by 40 per cent decline in loan loss provision to N2.4 billion and an operating expenses growth of eight per cent year-on-year.
“Further up the profit and loss, both revenue lines contributed to pre-provision profits. However, funding income which grew by 11 per cent was the stronger of the two. In contrast, the non-interest income line grew by seven per cent year-on-year, visibly weaker than the 26 per cent year-on-year growth that we saw in first quarter of 2015,” it said.
“Lower effective tax rate of 12 per cent against 17.6 per cent second quarter of last year and N666 million on the other comprehensive income line (OCI), PAT growth came in faster at 34 per cent year-on-year, compared with the 20 per cent year-on-year growth on the PBT line. Sequentially, PBT declined by seven per cent quarter-on-quarter due to an 11 per cent quarter-on-quarter reduction in pre-provision profits”.
Although the lender’s funding income grew by five per cent quarter-on-quarter, 36 per cent quarter-on-quarter decline in the non-interest income was the major driver behind the decline in profit before provisions.
Compared with our estimates, while PBT was came in five per cent ahead of our N29.1 billion forecast, PAT beat by 15 per cent mainly because the bank’s actual effective tax rate of 12 per cent was 500 basis points lower than tax rate forecast. “A positive surprise on the OCI line also contributed to the variance. On an annualised basis, GT Bank’s first half PBT of N63.1 billion is tracking slightly ahead of management’s full year PBT guidance of N120 billion and consensus’ forecast of N122 billion,” it said.
Many commercial banks are deepening their vehicle finance drive, launching new products and signing pacts with leading automobile firms. From Stanbic IBTC Bank, Access Bank, Skye Bank and others, vehicle financing is the next way to empower consumers, writes COLLINS NWEZE.
Abiodun Orebiyi, a civil servant based in Lagos, has always dreamt of driving a new car popularly called ‘tear rubber’. But his poor cash flow keeps denying him that pleasure. When he visited the Auto Loan Unit of his bank, he was bluntly told to forget the idea and go for a fairly-used car (Tokunbo).
All efforts to get the bank to approve the loan were futile because his salary was not sufficient to keep the vehicle in good condition and repay the loan. Orebiyi’s assurances that he has other sources of income fell on deaf ears.
This is the plight of many Nigerians who are tired of driving used cars but lack the resources to buy a new one. The thirst for second-hand cars is linked to poor income streams and low Gross Domestic Product (GDP). Besides, Tokunbo cars, despite the multiplicity of challenges they pose, are adjudged better than not having a car at all.
Constant breakdowns and the attendant visits to the mechanic take a huge toll on the pockets of those using Tokunbo cars. It also means that the vehicle owner usually has to jettison more productive activities while awaiting the vehicle’s repair; and for those who rely on the vehicles for livelihood or business, such frequent breakdowns translate to loss of time and revenues.
Under a partnership scheme unveiled in Lagos involving Coscharis Motors Limited, Stanbic IBTC Bank and Access Bank, fimamce will be provided for the acquisition of new cars by interested Nigerians, whether unit or fleet buyers, on concessionary terms.
These include a competitive interest rate, payment by instalment and flexible repayment period, simple documentation, speedy approvals and a minimum of 90 percent finance on the value of the vehicle. The scheme covers a wide range of brands under the Coscharis stable. Coscharis Motors distributes brands such as Ford, BMW, Land Rover, Rolls Royce, Jaguar, MINI, Joylong and MG, among others.
Coscharis said the uniqueness of the financing scheme, which runs for an initial period of 12 months and renewable for another year, is that the customer will contribute a minimum of 10 per cent of the cost of the vehicle while the participating bank will provide the balance.
According to the company, the scheme thus frees the customer from the difficult task of raising a lump sum, which may run into several millions of naira. In addition, the monthly repayment period is spread over four years, depending on the customer’s preference, which does not only eases the burden of repayment, but ultimately determines the actual amount for repayment monthly.
It said the package also includes free vehicle registration, maintenance and service support as well as vehicle recovery and emergency assistance.For the vehicles financed, comprehensive insurance has been negotiated at a concession and payment made easy for the clients.
He explained that the common denominator in this partnership is its potential to accelerate economic empowerment and self-actualisation. “The enthusiasm displayed by the partners at the MoU signing ceremony in Lagos was not misplaced; with the potential to increase the number of new vehicles plying Nigerian roads, economic activities are expected to proceed more efficiently, with the attendant job and wealth creation,” the firm said.
Coscharis Group Managing Director, Josiah Samuel, said: “The need for the collaboration was informed by some key factors: many corporate Nigerian workers, including the small and medium enterprises, want new vehicles from Coscharis but have inadequate financial capacity to effect outright payment; and most of the SMEs buy fairly used vehicles to run their businesses in order not to drain their working capital.” Implementing the initiative alone, he stated, would have required considerable capital outlay by Coscharis as well as an extensive lead time. The involvement of Access and Stanbic IBTC banks to perform the financing role has solved the challenge.
The Coscharis chief added that the finance scheme, in offering Nigerians a competitive source of finance to buy new cars, would boost patronage of automobiles, enhance the social status and quality of life of Nigerians, create employment opportunities for many and drive economic development. “What makes this scheme enticing is the fact that it brings within the reach of Nigerians the ownership of brand new and affordable cars, which will in turn enhance economic productivity, protect life and ensure peace of mind, especially against the backdrop of the high fatality rate associated with rickety vehicles plying Nigerian roads.”
• CEO Stanbic IBTC Holdings, Mrs. Sola David-Borha
Executive Director, Personal and Business Banking, Stanbic IBTC Bank, Obinnia Abajue, said it dovetails into the bank’s commitment to Nigeria’s economic development as well as building a sustainable environment for people and businesses. He said the main motivation for the deal was to bring the acquisition of new cars within the reach of more Nigerians, with the multiplier effect on social status and economic wellbeing.
“This partnership is unique in being the first time two financial institutions will be partnering with a leading automobile company, Coscharis Motors, to empower people by making the acquisition of new vehicles of choice stress-free. A dedicated team of experienced professionals from our Vehicle and Asset Finance unit is available round the clock to deliver to Coscharis Motors and its customer’s excellent service and professional advice, in line with the terms of the partnership,” said Abajue.
With Nigeria’s positive economic outlook and further growth of the middle class, Abajue said Stanbic IBTC Bank will continue to strengthen its position as the preferred destination for vehicle and asset acquisition financing, including the leasing of assets.
He said: “We set out with a clear objective to make the acquisition of assets for qualifying businesses and individuals easy and without undue pressure. Also, individuals and corporate organisations are able to acquire or lease assets through the Stanbic IBTC Bank Vehicle and Asset Finance product across a tenor of between six to 60 months.
“We remain confident that our strategy of building relationships in the automobile marketplace will continue to deliver long-term value to customers and partners, with its attendant positive impact on Nigeria’s economic development. Our partnership with Coscharis Motors is testament to our commitment to the development of Nigeria’s automobile industry.”
Attracting banks that understand the import of such initiatives and are willing to undertake the risks involved, illustrate the length to which Nigerian banks are willing to go in supporting individuals and businesses. For instance, Stanbic IBTC Bank recently financed the acquisition of Tata buses by Southdrift Investment Limited for operation under the Bus Rapid Transit (BRT) scheme of the Lagos State government.
The bank’s aim, according to the Head of Business Banking, Mr. Lloyd Onaghinon, is to engender an efficient transport system in the state and across Nigeria, adding that Stanbic IBTC Bank offers short- to medium-term vehicle and asset finance (VAF) facility to qualified customers as well as non-customers. The bank is committed to supporting the BRT scheme and there are other similar requests that are in process. The offer is extended to operators in the agriculture, manufacturing, transportation sectors, and other businesses, for the acquisition of moveable assets such as vehicles for personal or commercial use on competitive and flexible repayment terms.
Similarly, Stanbic IBTC Bank and Caterpillar Financial Services (Dubai) Limited (Cat Financial), an indirect subsidiary of Caterpillar Inc., a few years ago launched a partnership in which the bank provides a range of financial services to the Mantrac Unatrac Group of Caterpillar dealerships in Nigeria and other markets across Africa, including Ghana, Kenya, Tanzania, Uganda and Sierra Leone. A similar collaboration subsists with Tata Africa Services and John Deere Financial, a division of United States-based John Deere, one of the leading manufacturers of agricultural machinery and heavy equipment globally.
The bank obviously understands that the major pillars of economic growth and development are infrastructure and transportation. When critical infrastructure in the form of power, transportation and communication are in place, this stimulates efficiency in economic activity and consequently, drives productivity. In the long run, it is a win-win situation for all stakeholders. In an environment where perceived risk of funding certain projects is very high and where banks and financial institutions would rather fund short-term projects, it is especially commendable that the Stanbic IBTC Bank and Access Bank have chosen to play a pivotal role in revamping Nigeria’s transport industry via the funding of new cars and other equipment.
Skye Bank Plc has partnered RT Briscoe by providing financing for the Ford brand of cars for people who may not have the bulk cash needed to purchase such cars.
Under the arrangement, the bank will provide 70 per cent of the cost of the car to its existing and prospective customers during the six-month promo organised by RT Briscoe. The customer contributes 30 per cent of the cost.
The special arrangement is to complement RT Briscoe’s attractive incentives for aspiring car owners in commemoration of its 10th year anniversary as Ford auto dealers in Nigeria.
According to a statement, the financing window is available to as many Nigerians who earn a regular income, including business owners with viable and thriving businesses under its Skye Auto finance scheme.
“All a prospective buyer needs do is make his or her choice from any RT Briscoe outlet and visit any Skye Bank branch with the purchase invoice, 30 per cent of the purchase price and evidence of income,” the bank explained.
It further said customers who purchase Ford vehicles during the promo period through the bank will enjoy some exclusive benefits such as discounted vehicle prices, two per cent interest rate discount on loans granted for vehicle acquisition, and four-year free labour service on such cars.
Other benefits include free car delivery on purchase, three-year warranty, eligibility to win another Ford vehicle in a raffle draw, among others.
Skye Bank has an auto loan scheme for its customers through which such customers can buy a wide range of vehicles after paying their equity contribution of 30 per cent, leaving the bank to provide the balance of 70 per cent.
PayPal, a global payment firm, has announced its first acquisition since it split from eBay. Pal said it has acquired mobile payment start-up Modest, which will allow consumers to make purchases in apps by giving merchants the ability to provide buy-buttons for their products.
This is what PayPal calls contextual commerce, and the company is betting on this becoming the new frontier for commerce, said senior vice president and global head of merchant and next-generation commerce at PayPal Bill Ready in a statement.
“For consumers it will mean seamless, simpler and safer ways to buy the things they want, anywhere they discover them,” he said. Modest was founded in 2012 by Harper Reed, who served as chief technology officer for President Barack Obama’s re-election campaign in 2012, and Dylan Richard, who was lead engineer for the campaign.
