The Nation Newspaper

Category: Money

  • Diamond Bank sharpens entrepreneurs’ skills

    Diamond Bank sharpens entrepreneurs’ skills

    Diamond Bank Plc yesterday held its 51st BusinessXpress Enterprise Series during which its executives and other facilitators helped Small and Medium Enterprises (SMEs’) operators in horning their entrepreneurial skills.

    Retail Manager, Diamond Bank Plc, Aisha Ahmad told the participants that the bank provides proposition for every of its customers on how they can succeed in the business. She said issues the lender takes access to capital, improved human capital development and people’s skills very seriously.

    She said SMEs operators are expected to keep proper accounting to enable them have access to the right funds that will drive their businesses.

    Ahmad said seminar is an opportunity for participants to share ideas and learn from strengths and weaknesses of each operator. “Diamond Bank continues to improve what it gives to customers. We have listening earns and I therefore urge you to keep faith with us,” she advised.

    Co-Founder & Executive Director, Falcon Corporation Limited, Mrs. Audrey Joe-Ezigbo who was the keynote speaker, said most companies started as SMEs and that it is the small companies that grow to become multinationals in the future.

    She advised the participants to be resilient and committed to their businesses ensuring that they build solid pillars on which the enterprise stands. She said that working and having a determination to succeed makes one to succeed.

  • Wema promises to do better

    Wema promises to do better

    Wema Bank Plc has assured the shareholders the lender will make more profit in 2015, its Chairman, Mr. Adeyinka Asekun said. He said the bank will consolidate last year’s successes this financial year.

    He said the 2014 financial year was an eventful one, as the first half of the year went on well, with buoyant growth and a stable Nigeria economy.

    However, by the second half of the year, the nation was initially faced with a viral epidemic that was eventually contained. He said despite the regulatory tightening and sociopolitical headwinds, the bank was able to make progress during the year.

    Asekun said the bank will continue to evolve even in the coming months as it explores new frontiers in business development, service delivery and settlement platforms. “We will expand our footprint in 2015 in an efficient manner in order to get maximum returns on investment,” he said.

    He said the bank remained focused on its core areas of expertise especially the retail and commercial segment of the market as it navigated the systematic headwinds of the second half of the year.

    Specifically, the Coordinator Ibadan Shareholders Association, Mr. Shola Abodunrin said, “We want dividend for our investments. We cannot be investing our money without anything to show for it. We have exercised patient enough and we want the bank to do all it can to pay us dividend next year,” he said.

  • Fidelity Bank pays 18 kobo dividend to shareholders

    Fidelity Bank pays 18 kobo dividend to shareholders

    Fidelity Bank yesterday obtained shareholders’ endorsement to pay 18 kobo per ordinary share of 50 kobo dividend to investors whose names appeared on the bank’s Register of Members as at the close of business on April 17.

    The bank’s directors have proposed the dividend for the financial year ended December 31, 2014. This makes it a decade the lender has consistently paid dividend to shareholders.

    Speaking yesterday at the bank’s annual general meeting held in Lagos, its Managing Director/Chief Executive Officer, Nnamdi Okonkwo noted that the 2014 performance is a positive reinforcement of the medium term strategic objectives anchored  on improving the efficiency of the balance sheet; growing the retail and SME businesses; focusing on niche corporate banking segments; increased migration of customers to electronic channels and improving the customer experience across all service channels.

    He explained that the bank has a solid platform for growth, underpinned by strong customer loyalty and significant investments in physical and electronic distribution channels. “Our retail banking strategy gathered increased momentum in 2014 with the bank acquiring  over 471,000 new retail customers, consumer loans growing by over 21 per cent and core low-cost retail deposit by 18 per cent which lowered our average cost of customer deposits,” he said.

    The bank chief said that operational efficiency improved as the bank leveraged on alternative electronic channels to reduce the cost of operations adding that the efficiency gains saw operating expenses, excluding regulatory costs, grow by just three per cent in 2014 which was significantly below the inflation rate.

    On sustaining efficiency and cost effective service quality, Okonkwo explained that the bank communicated and implemented a service programme centered on building a superior customer service franchise on the back of product innovation and service turnaround time early in 2014.

    He stressed that the programme was designed to improve the quality of services by speeding up processes and reducing response time to customer enquiries/complaints

  • CITN’s tax confab to focus on economic devt

    CITN’s tax confab to focus on economic devt

    The President, Chartered Institute of Taxation of Nigeria (CITN), Chief Mark Anthony Dike has  announced the group’s commitment to hold the 17th Annual Tax Conference which will focus on economic development.

    Speaking yesterday on the forthcoming conference holding next week in Abuja, he said the theme of this year’s conference is “Inclusive economic growth and sustainable development: fiscal Iiperatives, prospects and challenges”. Various factors contributed to the choice of this theme.

    The second is to create an avenue to relate directly with our friends in the media business to specifically review our collaborative efforts in ensuring that Nigeria evolves a viable tax system that would not only translate to increased revenue to the government but also and more importantly better the welfare of the citizens.

    He explained that economic development requires sound foundations adding that economists understand that economic growth and economic development are not synonymous, and inequality could be a barrier for growth.

    “Several opinions had been expressed on the importance of redistribution of income as the most effective way to poverty eradication and sustainable development. Put more succinctly, economic growth is a narrower concept than economic development. While economic growth is quantitative measured by an increase in a country’s gross domestic product (GDP), economic development is qualitative, and is measured by an increase in the per capita income of the citizens, nay , the standard of living,” he said.

    Dike said universal access to education and health services, access to financial services, new technologies, affordable mortgage facilities, access to bank loans and more equal distribution of resources could all support economic development.

  • BoI’s profit rises to N5.19b

    BoI’s profit rises to N5.19b

    Efforts by the Bank of Industry (BoI) to re-jig its system within the last financial year may have paid off, as the bank’s profit after tax moved up to N5.19billion at the end of December 2014 financial year.

    Specifically, the bank’s profit after tax rose by 138 percent year-on-year, representing an increase of N3.01billion from N2.2billion in  2013 to N5.2billion in 2014, according to the financial results released by the bank.

    Similarly, the lender grew its profit before tax by 233 per cent from N1.7billion in 2013 to N5.6billion in 2014.

    The growth in profitability, according to the bank, is attributable to an increase in its loan portfolio last year, and a decrease in its overheads.

    Its MD/CEO, Rasheed Olaoluwa, said: “The bank’s results for 2014 represent the outcome of our deliberate revenue and cost-optimisation strategies as well as improved staff productivity. We’re focused intensely on our core mandate as a development bank.

    “New loans processed exceeded N127billion to companies in various sectors such as agro processing, metals, gas distribution, plastics, pharmaceuticals, general manufacturing, creative industry, and SMEs generally. We continue to make developmental impact in key economic sectors.’’

  • Access Bank’s ‘W Initiative’ partners Audrey Pack

    Access Bank’s ‘W Initiative’ partners Audrey Pack

    The Access Bank ‘W Initiative’ is partnering with Business Direct and Services on the Audrey Pack project in Nigeria to support its value proposition to women at the different stages of their lives.

    The project is focused on the reduction of Maternal and Child Mortality.

    The group said that Nigeria loses about 2,300 under-five year olds and 145 women of childbearing age, daily. This makes the country the second largest contributor to the under–five and maternal mortality rate in the world.

    The Audrey Pack is a free co-branded bag distributed to expectant and new moms in government and private hospitals nationwide. It contains free products samples from multi-nationals, antenatal and healthcare information and of course, information on managing family finances.

    With this collaboration, Access Bank ‘W Initiative’ will be liaising with both private and government owned hospitals to deliver free Audrey packs to expectant and new mothers.

    Specifically, there will be educative sessions where women will be equipped with resources to help them make informed choices before, during and after pregnancy.

    In addition, the project is also poised to provide access to better health care services with the Maternal Health Service Support (MHSS) which is specially designed to support women and families with easy and convenient options to pay for medical expenses.

    According to Ope Wemi-Jones, the Group Head of Inclusive Banking at Access Bank, the ‘W Initiative’ is the home for everything Access Bank offers to women and transcends just a banking relationship.

  • CBN’s weekly sales to BDCs hit $79.8m

    CBN’s weekly sales to BDCs hit $79.8m

    The Central Bank of Nigeria (CBN) disburses $79.8 million to 2,660 Bureau De Change (BDC) operators weekly. This follows the approval of over 80 BDCs after the regularisation deadline elapsed last July. Each BDC takes $30,000 weekly, down from $50,000 before the new guideline came into force.

    The regulator had pointed out that on the expiration of the deadline on July 31, it would cease to fund any BDC that failed to comply with the new requirements, adding that “only BDCs that meet the new requirements would qualify to be engaged as agent by the licenced international money transfer operators for inward and outward transfer business in Nigeria’’.

    However, the continuous approval of additional BDCs by the CBN after the deadline elapsed last December is causing ripples in the subsector.

    Older operators are alleging compromise on the part of the apex bank after it yesterday, and for the fourth time in a row, raised the number of BDCs that met the regulatory requirement to 2,660.

    President, Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, told The Nation yesterday that the action of the CBN raises issues for concerns.

    He said the group had approached the regulator to complain about the continuous updating of operators’ list as it keeps depleting the volume of foreign exchange allocated to each operators due to the increasing number of BDCs.

    The CBN, Gwadabe said, had claimed that the newly approved list of members were those that met the deadline, but had their names cut off, until it carried out internal reconciliation.

    The CBN had in February, published a list of 2,586 licensed BDC firms which it said had complied with its new capital requirements of N35 million as at last July 31.

    There were 3,208 registered BDCs in the country before the expiration of the deadline. The CBN had last June announced a new minimum capital requirement of N35 million for the operation of BDCs in the country, up from the N10 million it was previously.

    To ensure that the forex dealers comply with the new capital requirements, the CBN had extended the deadline to July 31.

  • Wema Bank’s leap of faith

    Wema Bank’s leap of faith

    Wema Bank Plc has improved its profit and customer growth despite intense competition in the industry. The regional lender, which marked its 70th anniversary on May 2, intends to reapply for a national banking licence to enable it serve its customers better. Its Group Managing Director/CEO, Segun Oloketuyi unfolded the bank’s plans at the anniversary grand ball held in Lagos last weekend, COLLINS NWEZE reports.

    For Wema Bank Plc, 70 years is a milestone worth celebrating. So, the bank saw the landmark as an opportunity to assure customers, shareholders and regulators that it is moving to greater heights.

    It’s Group Managing Director/CEO, Segun Oloketuyi said he is humbled that the mantle fell on him to steer the bank to its 70th anniversary. The bank chief also told stakeholders that the bank is taking giant steps that will move it from a regional lender to national bank.

    Oloketuyi unveiled a new logo and look of Wema Bank, which he described as “a contemporary symbol that is youthful”. He said just as the bank was committed to offering quality services to its customers in 1945 when it first started business, so it is doing today, and will continue to do. He said the new logo depicts the bank as modern, bold, good business partner and forward looking.

    Oloketuyi said the lender needs a national banking licence to enable it meet the increasing financial needs of its customers, adding that it has already secured the needed regulatory capital that will aid its comeback as a national bank.

    “We will come back as a national bank. We now have the required capital to achieve the feat,” he told guests at the grand ball anniversary.

    The bank chief reiterated that as a regional bank, the bank has been able to boost its e-payment infrastructure, and now has over 200 Automated Teller Machines (ATMs) that make banking easier for its customers. He said the bank is also always willing and committed to offering its customers the best quality of services through its e-payment channels and face to face transactions.

    Oloketuyi said the bank has survived the worst of times, and attributed the feat to the great support it enjoyed from customers, shareholders and regulators. “Seventy years in the life of a man, if he looks back, he will see ups and downs. Same thing applies in the life of a bank. There have been ups and downs but we have reasons to come out and celebrate. We have gone through circles, but we are here celebrating,” he said.

    He said the bank’s first priority remains providing superior returns to its shareholders, adding that in the last few years, it has been carrying out some internal restructuring on its processes, people and technology.

    He said that Wema Bank continues to record year on year, improvement in its financial performance adding that it has improved significantly on its profitability and customer growth despite shrinking margins and intense competition.

    The bank’s Chairman, Adeyinka Asekun, praises the customers for their loyalty and commitment to the success of the lender. “It has been seventy years of building business relationships with customers, shareholders and other stakeholders. We delight in giving every customer a memorable service experience. Experience can accomplish a lot but true professionalism and exceptional service delivery will bolster customer satisfaction. At Wema Bank, we breed professionals who strive valiantly to deliver a delightful and memorable service experience,” he said.

    Former Managing Director/CEO of the bank, Tunde Lemo, who represented past CEOs attributed the survival of Wema Bank to divine mercy. He said the bank is celebrating the faithfulness of God, who has preserved it in the midst of storms. He praised the bank’s management for its visionary leadership and commitment to customers’ needs.

    Lemo, who was Central Bank of Nigeria (CBN) Deputy Governor, Operations, said the future of the bank remains bright, adding that the lender has a good brand that is widely accepted. “Wema Bank is a giant in the making. It has a bright future,” he said.

    A representative of the bank’s Founding Family, Alaba Okupe, said his family has by founding Wema Bank, contributed to the development of the Nigerian economy. He thanked the management of the bank for recognising the family at this milestone, even when it is not bound to. “When people talk about a bank, they never related it to who the founder is. God enlightened the founder of Wema Bank. The family has contributed to the development of Nigeria’s economy by founding the bank. Thank you for recognising us because you are not bound to,” he said.

     

    Banks’ groupings

    Although it obtained a regional banking licence in the wake of the regime of classification of banks by the CBN, the management of Wema Bank Plc has lined up processes to go for a national licence.

    In Nigeria, international banks require minimum capital of N100 billion under the new regulatory regime. National banks require minimum capital of N50 billion while regional banks, which can operate in only six to 12 states are required to have about N25 billion.

    Banks that got international banking licence include Access Bank Plc, Diamond Bank Plc, Fidelity Bank Plc, and First Bank of Nigeria Plc, First City Monument Bank Plc, Guaranty Trust Bank Plc, Skye Bank Plc, Zenith Bank Plc and United Bank for Africa Plc.Under the national banking category are banks, which include Citibank Nigeria Limited, Ecobank Nigeria Plc, Stanbic IBTC Plc, Standard Chartered Limited, Sterling Bank Plc and Unity Bank Plc.

    Wema Bank Plc and the defunct Equitorial Trust Bank applied for a regional banking licence. The latter has since merged with Sterling Bank Plc. Other banks that were being speculated for regional licence were Societe Generale Bank Limited and Savannah Bank. The two institutions were said to be at the verge of returning back to business although nothing concrete has happened in that direction so far.

     

    Financial highlights

    Wema Bank Plc announced its full year audited results for the 12 month ended December 31, 2014 during which it declared a 58.8 per cent growth in profit before tax from N1.95 billion in 2013 to N3.09 billion in 2014.

    The bank recorded a 19 per cent growth in customer deposit volumes largely from the commercial and retail space despite the tightening government regulation on cash-reserve. Its loans and advances to customers increased by 51 per cent, as the bank was able to lend more to productive sectors of the economy. In addition, it has continued to ensure strong risk management, and this is evidenced by the level of non-performing loans ratio at 2.5 per cent.

    The bank’s total assets up 16 per cent to N382.6 billion compared to N330.9 the previous year while gross loans and advances to customers up 51 per cent to N149.3 billion against N98.6 billion previous year.

    Speaking from the bank’s headquarters in Lagos, Oloketuyi said: “It gives me great pleasure to report that Wema Bank continues to record year on year improvement in its financial performance. The bank has improved significantly on its profitability and customer growth despite shrinking margins and intense competition. This progress recorded is a result of the continued execution of our three-year growth strategy – Project LEAP.

     

    “The “New Wema Bank” that has now emerged is a stronger, more efficient, resilient and customer-focused organisation with a robust risk management and corporate governance structure. The bank has realigned its business focus to concentrate on its key area of strength – Retail Banking. We have used technology to our advantage, deploying in-branch solutions, mobile and internet banking applications and other social media tools to drive customer patronage and reduce our cost to serve.  We have continued to contain our operating expenses despite the increased inflationary environment while at the same time improving on our fee-based income lines,” the bank chief said.

    Speaking further, he said: “In this year that we turn 70 as the premier indigenous financial institution in Nigeria, we are glad to unveil a “New” Wema Bank that responds faster and better to customers’ needs whilst adapting more quickly to the ever-changing dynamics of the industry. We remain firmly committed to being the financial institution of choice in Nigeria whilst ensuring that we consistently deliver superior returns to all stakeholders”.

     

    Int’l trade, structured finance

    Wema Bank Plc has also reaffirmed its commitment to supporting international trade. Oloketuyi disclosed this during a forum the lender organised on trade and structured finance for stakeholders in Lagos.

    The forum, tagged: “Supporting Businesses through renewed Trade Focus” brought together regulators, various stakeholders and regulators in the international trade business in Nigeria.

    He said the trade forum was part of efforts at sensitizing stakeholders on developments within the sector as well as brings various parties – stakeholders and regulators together to discuss issues, challenges and chart a way forward for future development and policy formulation.

    Oloketuyi  said as part of the ongoing positive transformation, Wema Bank s well poised to support businesses in the areas of trade and structured finance, adding  that in recent times, Wema Bank has attracted over $100 million line of credit dedicated to foreign trade and another $50 million in structured finance line from various institutions.

    The Deputy Comptroller, Nigeria Customs Services, Aber T Benjamin spoke on the Pre-Arrival Assessment Report (PAAR) scheme, which was introduced by the Nigerian Customs Service in 2013 to fast-track the clearance of cargo and reduce costs at the nation’s ports. He also introduced the new web-based trade portal of the Nigeria Customs Services to handle a customer’s end-to-end trade needs.

    Deputy Director, Trade & Exchange Department, Central Bank of Nigeria (CBN), Onyinye Ahuchogu, commended Wema Bank for the strides it has made in recent years. She also spoke of the CBN’s partnership with other relevant institutions in making the international trade process simple and effective in Nigeria. One of the initiatives that came into being as a result of this partnership is the electronic form ‘M’.

     

    Recent transactions

    Wema Bank Plc recently secured a $10 million development finance loan to support the real estate sector for Shelter Afrique, a Pan-African development finance institution focused on financing affordable housing in Africa.

    Speaking at the signing ceremony in Lagos, Oloketuyi, said the facility underscores the confidence of local and international partners in the lender’s capacity to handle such transactions.

    He said Wema Bank is deeply committed to supporting the growth of real estate and affordable housing financing in the country, by providing access to loans as well as other value-added services, including financial advisory from its expert team of corporate banking professionals.

    Oloketuyi said Wema Bank remains a premier financial institution and Nigeria’s longest surviving lender with branches spread across 125 locations, adding that the bank provides a host of corporate banking, retail banking, electronic banking, treasury and trade services to its customers.

    The Managing Director, Shelter Afrique, James Mugerma, said his organisation remained committed to providing affordable housing in Africa, stating that the partnership with the bank through the grant of this facility, is another step in the right direction. He said strong mechanisms have been put in place to ensure that the viable projects get access to this fund. He also praised the unique nature of this transaction which not only provides project funding but also includes mortgage financing.

    Other stakeholders insist that Wema Bank has all it takes to make significant progress in the coming years.

     

  • Union Bank to fund Egboama gas plant with N4b

    Union Bank of Nigeria Plcn has signed a N4 billion agreement to finance Egbo-ama Gas Plant owned by PNG Gas Limited.

    In a statement, the bank said the facility will provide the required funding for the refurbishment and upgrade of gas plant located in Delta State.

    The Executive Director, Corporate Banking at Union Bank, Mr. Emeka Okonkwo said: “Union Bank is pleased to be supporting PNG with the financing of Egboama plant which is expected to produce about 101 tons of liquefied petroleum gas per day. This project will no doubt enhance efforts towards increasing domestic utilisation of gas in the country and reducing dependence of oil.”

    In addition to producing 101 tons of liquefied petroleum gas per day, the Egboama gas plant is also expected to produce 38 tons of propane gas per day, 750 barrels of natural gas liquids as well as 25 million standard cubic feet of lean gas per day.  The lean gas would be piped into the national gas grid to support power generation.

    Union Bank is a key player in oil and gas financing and is resolute in promoting and developing industries in the sector as part of its transformation programme.

     

  • Heritage Bank appoints directors, promises quality services

    Heritage Bank appoints directors, promises quality services

    Heritage Bank has appointed three top bankers as directors to consolidate its emergence as one of the leading banks in the country.

    The new directors are Mrs. Adaeze Udensi, appointed as Executive Director, South Directorate; Ola Olabinjo, Executive, Lagos, Southwest and Corporate Banking Directorate, and Jude Monye, Executive Director, Risk Management/Chief Risk Officer.

    Managing Director/Chief Executive, Heritage Bank, Mr. Ifie Sekibo, said the appointments  reaffirmed the bank’s commitment to offering safest banking services by engaging competent and experienced bankers with proven track record of performance.

    “The successful acquisition of Enterprise Bank has projected Heritage Bank into the leadership rank of the banking industry with huge expectation of quality, fast and efficient banking services from our customers and members of the banking public.

    “We intend to consolidate on this leadership status and exceed expectations by ensuring every customer of the enlarged Heritage Bank enjoys fast and efficient services irrespective of their location in the country.  The three new directors are bringing to Heritage Bank, over 50 years of banking experience among them, spanning various aspects of banking services across the industry, and these would contribute greatly to the achievement of this goal,” Sekibo said.

    Prior to joining Heritage Bank, Mrs. Udensi worked at Zenith Bank Plc where she earned various awards for top performance. She holds a Bachelor’s and Master’s in Banking and Finance and Business Administration from Rivers State University of Science and Technology, and has over 17 years’banking experience.

    Olabinj joined Heritage Bank from FCMB where he was Senior Vice-President and Divisional Head. He has over 18 years’ experience spanning Investment Banking, Corporate Banking, Transaction Banking, Risk Management, Treasury and Operations.

    He holds a Bachelor’s and Master’s in Economics from Obafemi Awolowo University (OAU), Ile- Ife and the University of Lagos and is also an alumnus of Lagos Business School.

    Also, Monye joined Heritage Bank from Wema Bank Plc where he was the Chief Risk Officer and Head Enterprise Risk Management division.

    He has over 25 years’experience in various areas, including Risk Management, Finance, Credit Administration, Regulatory Compliance; Control, and System Audit; Structured Finance in Upstream Oil sector, SME Development and Project management.

    He holds a B.Sc in Chemistry, MBA and M.Sc from University of Nigeria and Ibadan.