The Nation Newspaper

Category: Money

  • African banks now better capitalised, says FBN Capital

    The Vice President and Head, Energy and Natural Resources at FBN Capital Limited, Rolake Akinkugbe, has said that local sources of finance have risen over the past decade because of improved capitalisation among African banks.

    She spoke at the 2015 Oil Council Africa Assembly, which held in Paris. She said the lenders will take advantage of new opportunities in the oil and gas sector.

    She said the new oil price environment has had an impact on the terms and structure of funding that have become available to oil and gas companies and projects.

    According to her, “The price shift is forcing renewed policy focus on those parts of the oil and gas value-chain that create the greatest dividends in terms of contribution to economic growth. The implementation of such policies would have to be balanced with the need to keep Direct Foreign Investors (DFIs) incentivised.”

    Highlighting the challenges with achieving this balance from a sector finance perspective, she said “sector exposure limits and tight regulation, as well as challenging oil price environment, have ushered in a more moderate risk appetite within Africa’s banking community. Often, their foreign counterparts try to offer more competitive rates for deals. In response however, local African banks are collaborating much more in order to build their pool of funds and match value so as not to lose too much market share to foreign banks.”

    She stated that emphasis on the value-add benefit of oil and gas projects goes hand in hand with governments’ push to demonstrate the benefits of the energy sector to the broader economy. In any case, the capital requirements of such infrastructure-related projects are often more than local banks can handle alone.

  • CeBIH advocates prompt BVN enrolment by customers

    CeBIH advocates prompt BVN enrolment by customers

    The Committee of E-Banking Industry Heads (CeBIH) has called on bank customers to take advantage of the deadline extension and promptly enroll for the Biometric Verification Number (BVN) project.

    CeBIH Chairman, Tunde Kuponiyi disclosed this following the Central Bank of Nigeria (CBN) extension of the deadline for enrolment for the BVN.

    The apex bank had on June 30 announced a four-month extension till October 31 for bank customers to enroll for the BVN. “We are calling on customers to visit their banks and promptly enroll for the BVN”, he advised.

    Kuponiyi noted that the purpose of the extension is to allow customers enough time to enroll irrespective of where they are based. “The extension presents ample opportunity for bank customers to do their enrolment without the challenge of spending hours on queues  as experienced few days to the end of the initial deadline,” he said.

    “The four months extension seems a long period, but customers should not delay or postpone their enrolment – it is better to do it now. They should not wait a few days to October 31 to avoid last minute registration rush and avoid spending hours in banking halls. They should also remember that they can enroll for their BVN from any branch of their bank, hence there is no need to wait till when they visit the branch where their accounts are domiciled,” he said.

    Listing the benefits of the initiative, Kuponiyi noted that the BVN affords customers the opportunity to register their biometric data against their bank accounts to protect their funds against fraudulent and unauthorised access.

    “The BVN protects customers’ bank accounts from unauthorised access, as biometric information is not easily manipulated. It also increases the efficiency of the banking industry as it reduces incidence of fraudulent/duplicate bank accounts, and easily highlights blacklisted customers.

    Furthermore, full integration of BVN provides standardised efficiency of banking operation. This means that all banking operations will be verified using the same method, reducing cases of human error or inconsistency.  In addition to these, the implementation of BVN means transaction authentication without the use of cards, but instead using only biometrics and a PIN”, he said.

    Established July 2009, CeBIH comprises all Heads of e-business/e-channels and cards services of all the 23 banks in Nigeria. The primary objective of the committee is to promote electronic banking services in line with global best practices and serve as a forum for sharing ideas and experiences by the E-banking industry Heads.

  • Consumer banking viable, says Citigroup

    Citigroup Inc. said Nigeria’s efforts to crack down on identity theft are making it more attractive to start a consumer banking business in Africa’s most-populous country.

    More banks are rolling out consumer banking in Nigeria because individuals dealing with banks in are increasing “who they say they are,” Akinsowon Dawodu, chief executive officer of Citibank Nigeria Ltd., said. A lack of security around identification has been an impediment to personal banking in the country in the past.

    The Central Bank of Nigeria (CBN) is requiring customers to provide fingerprint identification, a system it started introducing with commercial lenders in February 2014. A deadline for customers to get bank verification numbers has been extended to October 31 so that Nigerians living abroad can enroll. People who don’t comply will lose access to their accounts, the regulator says on its website.

    The system, combined with a growing network of credit bureaus that collect information on customers, “makes the consumer proposition fairly viable,” Dawodu said.

    An entry into consumer banking would enable lenders to market products like personal loans and mortgages in Nigeria which has 170 million people, where the New York-based bank provides corporate banking services. The economy in Nigeria, Africa’s biggest oil producer, is forecast by the government to grow 3.9 per cent this year.

    Citi itself doesn’t plan to enter consumer banking in the country, Jeffrey French, a London-based spokesman, told Reuters.

    The Central Bank said in June last year that the absence of a unique identifier had curbed growth in credit cards and credit-related products. The bank verification number system is intended to combat cybercrime and identity theft, among other offences, it said.

    The credit bureaus were conceived to strengthen risk management at banks after a debt crisis caused by loans to stock speculators and fuel importers threatened the industry with collapse in 2008 and 2009.

  • Stanbic IBTC posts N68b gross revenue in Q2

    Stanbic IBTC Holdings Plc has announced its six months unaudited results for the period ended 30 June 2015, with gross earnings at N68.3 billion, an increase of 11 per cent over the N61.7 billion recorded in the comparable period of last year.

    According to the result, which was presented at the Nigerian Stock Exchange in Lagos, profit before tax during the period stood at N9.5 billion, while profit after tax was N9.6 billion. Total assets went up by nine percent to N1.03 trillion from N944.5 billion in December 2014.

    The Group maintained adequate capital to support its business in the first half of the year which is well above the regulatory requirement. The group’s total capital adequacy ratio closed the period at 15.3 percent (Bank 13.9 per cent), while the tier 1 capital adequacy ratio stood at 12.6 per cent (Bank 10.6 per cent). These ratios are well above the 10 percent minimum statutory requirement.

    Chief Executive Officer, Stanbic IBTC Holdings Plc, Mrs. Sola David-Borha, stated that the group is seeking to raise N20.4 billion in rights issue to support its planned growth opportunities as well as business risks and contingencies.

    “Stanbic IBTC’s performance recorded in the first half of 2015 was characterised by steady growth in its balance sheet whilst our strong focus on cost containment helped to mitigate the impact of rising cost of funds and credit impairments on our operating performance,” she stated, adding that “our focus for the rest of 2015 is to reduce cost of funds and continue to resolve impaired risk assets to ensure increased profitability by year end. We remain optimistic that we can achieve these goals.”

    Following the adoption of the holding company structure in 2012, the operating subsidiaries of Stanbic IBTC Holdings Plc are Stanbic IBTC Bank (including Stanbic Nominees Nigeria Limited), Stanbic IBTC Pension Managers Limited, Stanbic IBTC Asset Management Limited, Stanbic IBTC Stockbrokers Limited, Stanbic IBTC Trustees Limited, Stanbic IBTC Ventures Limited, Stanbic IBTC Capital Limited, Stanbic IBTC Investments Limited, Stanbic IBTC Capital Limited, and Stanbic IBTC Investments Limited.

  • Sterling Bank commits N50m to tractor funding

    Sterling Bank Plc has financed the purchase of tractors for members of the Tractors Owners and Hiring Facilities Association of Nigeria (TOHFAN). The lender puts the cost of the financing at N50 million.

    The bank noted that its involvement in the agricultural sector was based on the need to reposition the sector as the mainstay of the economy given the dwindling oil revenue.

    The bank said it finances the purchase / acquisition of tractors from reputable manufacturers such as Massey Ferguson, Mahindra, New Holland, John Deere and Tak tractors who will also provide basic training on utilisation and offer after sales maintenance services.

    The tractors which have been distributed to members of the association following the first disbursement would help in the adoption of mechanised agriculture, leading to additional hectare coverage, higher yields and enhance food security in the country.

    “Sterling Bank Plc has continually restated its commitment to the strategic growth of the agricultural sector by providing adequate funding in alignment with the ongoing reforms in the sector aimed at repositioning it as an attractive business proposition, an input provider for the manufacturing sector and a key foreign exchange earner.

    “The best bank in Agric Award was conferred on the bank in recognition of its critical role in the dispensing of financial services to actors in the Nigerian agricultural value chain. This we have demonstrated again with the financing of the tractors which will add value to the sector,” it said.

    TOHFAN National Treasurer, Abdullahi Lawal, praised the bank for supporting the association and said that it would go a long way in improving the output of the beneficiaries.

    “We received a facility of N50 million from Sterling Bank to finance the purchase of 14 tractors which we have distributed to beneficiaries. The facility would be repaid within the next three years. The beneficiaries would be repaying specific amount of money monthly based on the brand of tractor obtained”.

  • Interbank rate doubles as CBN mops up cash

    Interbank rate doubles as CBN mops up cash

    •Naira trades at N240 to dollar

    The interbank lending rate doubled to 10 per cent at the weekend, as the Central Bank of Nigeria (CBN) mopped up cash to curb speculation in the naira, traders said.

    Government  had last week injected N163 billion into the banking system to help cash-strapped states offset a funding crisis. The injection drove interbank rates as low as five per cent on last Thursday, before the apex bank moved in.

    The naira hit fresh lows of N240 against the dollar on the parallel market on Friday, as individuals converted local currency on the black market to dollars, fearing further naira weakness.

    Traders said the CBN sold N179 billion in open market operation (OMO) bills on Thursday to drain liquidity while state-owned oil firm Nigeria National Petroleum Corporation (NNPC) recalled some of its deposit with commercial lenders on Friday.

    Lenders’ balance with the central bank reduced to N201 billion in credit as against a credit balance of N390 billion a week ago, traders said.

    “The system was initially liquid with rates down to four per cent in the week,” one trader told Reuters. The secured open buy back (OBB) rate rose to 10 per cent from four per cent last week, three percentage points lower than the central bank’s lending rate of 13 per cent.

    Overnight placement rose to 10.5 per cent from five per cent last week. Traders said rates could go up next week as liquidity thins out before Wednesday’s bond auction.

  • Access Bank emerges best flow house in Africa

    Access Bank emerges best flow house in Africa

    Access Bank Plc has emerged winner of the Best Flow House in Africa accolade in the Euromoney Awards for Excellence 2015, which held at the Natural History Museum in London.

    It is the first time an African Bank will be recognised as winner of this highly sought award.  Access Bank’s win comes in recognition of the Bank’s increasing transaction flows across Africa, particularly its dominance in the Nigerian financial markets, the bank said in a statement.

    According to Euromoney, the Best Flow House award is given to honour firms that have demonstrated an ability to excel across the region in the key areas of foreign exchange, equities, rates and credit. The winning firm must also have shown commitment to providing liquidity and pricing in all market conditions.  Also, such firm will have shown leadership in developing and integrating technology into its sales and trading businesses, as well as the importance of research.

    “We are delighted to be presented with this highly coveted award. This is in recognition of our regional expertise; and our continuing ability to provide customised currency and fixed income solutions to our customers across Africa,” the Group Managing Director,  Herbert Wigwe said, adding, “this award is an attestation of the bank’s determination to be the world’s most respected African bank by 2018″

    He assured that the bank will sustain this growth momentum, pointing out that the award is an honour, not only for Access Bank, but for Nigeria. “This is just the beginning of more things to come for our bank,” he concluded.

    The Euromoney Awards for Excellence, now in their 25th consecutive year, continue to be the most respected awards in the financial services industry.

  • Zenith Bank achieves three ISO certifications

    Zenith Bank achieves three ISO certifications

    Zenith Bank Plc was yesterday awarded three certifications from British Standards Institution (BSI) for Information Security Management System ISO/IEC 27001:2013, IT Service Management System ISO/IEC 20000-1:2011 and Business Continuity Management System, ISO 22301:2012.

    The certificates were presented to the bank’s Chairman, Jim Ovia and the Group Managing Director/CEO, Peter Amamgbo graced by the Deputy British High Commissioner, Mike Purves, top management of the bank and other employees.

    Ovia said the bank’s commitment to these internationally accepted standards, stemmed from its resolve to deepen customer experience through greater information security, an efficient IT management system and a robust business continuity plan, adding that these are targeted at protecting customers and investments in an increasingly unpredictable business environment.

    He said certifications remain strong proof of the lender’s commitment to implementing policies and practices that meet globally recognised principles.

    Amamgbo said the bank is proud to have achieved these milestones, adding that technology is at the core of its business strategy in meeting the needs of its customers.

    “For us, the customer is the reason we are in business, therefore it is essential that we deliver exceptional customer services. Certification to these standards will assist us in doing this,” he said.

    He stated that becoming certified to these three standards, provides evidence in the lender’s efforts to comply with local and international regulations relating to data protection, privacy and IT governance.

    “We hope, implementing ISO/IEC 27001 will give greater confidence to our customers and other stakeholders that the security of assets, such as financial information, intellectual property, employee details and information entrusted to us is protected securely.

    “ISO/IEC 20000-1 acknowledges our high level of efficiency in IT service provision and our ability to continuously improve the delivery of IT services,” he said.

  • Bayelsa MSMEs to get N2b CBN loan

    Bayelsa MSMEs to get N2b CBN loan

    Micro Small and Medium Enterprises (MSMEs) in Bayelsa State will soon complete accessing N2 billion MSMEs’ fund from the Central Bank of Nigeria (CBN).

    The state’s Commissioner for Trade, Industry & Tourism, Kemela Okara who disclosed this ahead of the 2015 Bayelsa Investment and Economic Forum holding between July 29 and 31, said the CBN has already disbursed N900 billion out of the fund to be channeled to the MSMEs that meet draw down guidelines.

    He said CBN guidelines stipulate that 60 per cent of the borrowers will be women, 10 per cent start-up businesses adding that MSMEs’ Fund Committee has already been set up to achieve this objective.

    “The next step is that the CBN disburses those funds to the beneficiaries. The money does not come to the state government at all. The state government provides some form of guarantee. We are sharing the risks. We are carrying 70 per cent of the risks while the Microfinance Institutions disbursing the funds carry the 30 per cent risk,” he said.

    He said it is the microfinance institutions carry out due diligence on the borrowers to ensure they are conducting genuine businesses and that they will pay back.

    “So, in terms of draw down, that is ongoing. We want to ensure that by the end of this month, 80 per cent of the borrowers draw down, so that we can access the remaining part of the money. If you want to go into business, you have to take that financial responsibility. The beauty is that the interest rate is just nine per cent which is a good rate”.

    “Our strategy has been that, for us to create private jobs in Bayelsa State, we need to move away from dependent on receipt of the Federation Account allocation Committee (FAAC) funds allocation to having an economy where proper value-chain for opportunities abound,” he said.

    “That is going to be achieved when you focus on industrialization. When you industrialise, you create secondary and tertiary levels where people could be hooked up in the value chain”.

  • Standford Microfinance Bank begins operation

    Standford Microfinance Bank begins operation

    Stanford Microfinance Bank Limited has started operation after its registration with the Central Bank of Nigeria (CBN) and other regulatory agencies. It has its headquarters in Uyo, the Akwa Ibom State capital.

    The Chairman of the bank, Mr. Unyime Idem, said the lender will address challenges facing Small and Medium Enterprises (SMEs).

    “We want to empower entrepreneurs; provide employment opportunities to the Nigerian people; provide credit to customers, especially SMEs,” he said.

    He said his investment in the private sector since 2004, has given him the edge to compliment government’s efforts at job creation and growing the economy. He said his business has grown and employing 226 workers with 3,200 appointed retailers and 901 sub distributors.

    He said the fim will boost private sector by creating more entrepreneurs in Akwa Ibom economy as well as engendering positive multiplier effects on the economy.

    “Part of our plans is to make the youths self-reliant, promote small scale investment by providing loans to entrepreneurs and low income earners. We want to be a blessing to the State by eradicating poverty or reduce it to a manageable level,” he said.