The Nation Newspaper

Category: Money

  • FirstBank expands footprint to Ghana

    FirstBank expands footprint to Ghana

    Following the agreement reached by First Bank of Nigeria Limited and International Commercial Bank Financial Group Holdings Ag (ICBFGH) for the acquisition of a 100 per cent equity interest in ICB Ghana, FirstBank yesterday announced the launch of FBN Bank Ghana.

    As a result of this acquisition FirstBank has consolidated its position as the largest corporate and retail banking financial institution in sub-Saharan Africa, excluding South Africa.

    The transaction is in accord with FirstBank’s stated ambition to win significant market share, expand its pan-African footprint and diversify earnings while delivering value to shareholders.

    Speaking at the launch in Ghana, Managing Director of FirstBank, Bisi Onasanya, said: “The acquisition of ICBGFH assets in Ghana fulfills the first stage of our ambitions to steadily build a broader and more diverse footprint across Africa. We are committed to developing a multi-local business model that broadens our geographic revenue base while providing enhanced service delivery to our new customers and equity participation to local investors.”

    CEO, FBNBank Ghana Seyi Oyefeso said having built value for Nigeria over the last 120 years, FBNBank is poised to do even more in the Ghanaian financial markets.  FBNBank provides customers with a collection of banking solutions that make their financial lives less cumbersome and stressful.

    Head, Marketing and Corporate Communications, Folake Ani-Mumuney said the bank’s brand is at the heart of the holistic experience it seeks to deliver to its stakeholders, an essential part of retaining patronage and the competitive edge that keeps the lender at the coveted position of market leader.

  • Skye Bank pays 20% deposit for Mainstreet

    Skye Bank pays 20% deposit for Mainstreet

    Skye Bank Plc has paid the initial 20 per cent of the bid price for the purchase of 100 per cent shares of Mainstreet Bank from the Asset Management Corporation of Nigeria (AMCON).

    The bid price, The Nation learnt, is estimated at N120 billion ($741 million), 20 per cent of which would amount to about N24 billion.

    The payment, the bank said in a statement, followed the successful signing of Share Purchase Agreement (SPA) with AMCON at the Lagos office of the corporation two days ago.

    Skye Bank’s executive management team led by its Group Managing Director/Chief Executive Officer, Timothy Oguntayo, signed on behalf of the lender while AMCON was represented by its Head, Communications Strategy, Kayode Lambo.

    Skye Bank said the payment, made well ahead of the deadline, confirmed its commitment and ability to complete the transaction. The Tier 2 bank also confirmed its ability to meet the remaining financial commitment on the acquisition, within the specified time frame.

    Skye Bank  reported June 2014 total Capital Adequacy Ratio (CAR) of 18.5 per cent, against the 15 per cent minimum requirement (which rises to 16 per cent by March 1, next year for systemically important banks),showed that the lender had a buffer estimate of N25 billion, representing 21 per cent of the deal price.

    AMCON had announced Skye Bank as the preferred bidder for the acquisition of all its interest in Mainstreet Bank. It emerged the preferred bidder after a rigorous bidding exercise that spanned five months which saw 25 bidders jostling for the soul of the bridged lender.

    Skye Bank said the acquisition is part of its strategic plan for growth, adding that it had emerged from the very successful merger and integration of five banks in 2006, following the first phase of the banking industry consolidation.

    The bank said it intends to leverage its wealth of experience from the successful integration of five banks to drive efficiency, increase market share and ultimately ramp up stakeholder value from the acquisition of the bank.

    “The acquisition will avail the bank many benefits, including cost leadership, business optimisation, and greater ability to offer business convenience to its teeming retail and commercial customers, with a combined branch network of over 450 across all the states of the federation,” the bank’s statement said.

    Cedar One Investment Partners Limited emerged as the first reserve bidder while Fidelity Bank Plc was named the second reserve bidder. The competitive bidding process was coordinated for AMCON by Barclays Africa Group Limited and Afrinvest West Africa Limited (Financial Advisers) and Banwo & Ighodalo (Legal Advisers).

    The completion of the transaction is, however, subject to the fulfillment of the conditions precedent as stated in the SPA to be executed with Skye Bank Plc, as well as the receipt of all required regulatory approval from the Central Bank of Nigeria (CBN)and the Securities and Exchange Commission (SEC).

  • N40b debt: Unity Bank to submit defaulters’names to CBN

    It the end of the two weeks deadline for its debtors to pay up, Unity Bank has threatened to submit the names of defaulting debtors to the Central Bank of Nigeria (CBN) to have them blacklisted.

    The bank has also vowed to publish the names of such debtors to name and shame them thereby ensuring that they no longer would be able to access future loans from other banks in the country.

    Its Managing Director, Chief Executive Officer (CEO), Mr Henry James Semenitari who spoke during the bank’s celebration of customer service week in Abuja, said the debt owed the lender was huge.

    Semenitari said the value of the debts owed the bank was “in excess of N40 billion about N40 billion to N50 billion, with the interests unserviced over the years.”

    He said: “So what we have said is that the official guideline is simple. But some (debtors) are willing to pay as well. You know how Nigerians relax until you put a threat then they will take it serious.”

    He said everything will be done within the law, but that “luckily, 90per cent of our customers are Nigerians; they are here; they are in this country and we know them, we know where they are.

    “While we were not going after them, everybody became complacent, I can tell you. But some are doing businesses in other banks. “And the good news for the industry today is that the current management of CBN is very serious.”

  • Sterling Bank rewards customers

    Sterling Bank rewards customers

    Sterling Bank added a new dimension to the Customer Service Week celebrations as it gave out various gift items to its walk-in customers in all parts of the country. Besides, the bank said the week has also provided it the opportunity to raise companywide awareness of the importance of customer service and reward customer loyalty.

    The Customer Service Week is a week-long opportunity to raise awareness of customer service and the vital roles it plays in successful business practice and the growth of the economy.  This year edition was celebrated worldwide between October 5 and 10.

    Sterling Bank’s Group Head, Strategy & Communications in a statement, Shina Atilola said:  “Our success story so far is attributed to the overwhelming support we have received from our customers. This is why we consider them the most important to us and hence the reason for us as a responsible financial institution to celebrate them during the Customers Service Week”.

    He said the bank has remained consistent in the provision of quality customer service excellence across its service points and “we are using the celebration to leverage on our  planned enhanced customer service initiatives during the week”.

    Some of these initiatives, according to him will include the opening of additional branches to take the Bank’s quality banking products and services to the door steps of our customers, development of additional customer oriented products and services and deployment of additional ATM points to ensure that customers have access to the Bank’s ATMs at no additional cost.

    Mr. Atilola assured that the Bank will continue to celebrate its customers and provide unparalleled banking services to ensure that their expectations are met at all times.

    His words: “At Sterling Bank, we view Customer Service Week as prime time to recognize our awesome customers through a week-long celebration with activities every day to give our loyal customer the Sterling Bank customer experience.

  • Banks’ profits to drop next year, says Fitch

    Banks’ profits to drop next year, says Fitch

    Deposit Money Banks’ asset growth and earnings will fall in the next 18 months because of the Central Bank of Nigeria (CBN’s) moves to protect the economy and bank customers, Fitch Ratings Limited, has said in a report.

    “All these moves led to weaker profitability and stemmed credit growth” in the first half of 2014, Fitch noted in the report published yesterday in London. This, it added, is likely to continue into next year.

    The CBN has increased cash reserve requirements on public sector deposits to 75 per cent from 12 per cent since July last year, to curb inflation and also limited how much banks can charge account holders when they withdraw money.

    The Asset Management Corporation of Nigeria (AMCON), a state company created in 2009 to buy bad debt from lenders after that year’s financial crisis, also last year, raised its annual levy on banks from to 0.5 per cent of their assets from 0.3 per cent.

    “A lot more money could have been made if they had not increased the cash-reserve ratio,” Herbert Wigwe, the chief executive officer of Access Bank Plc, told Bloomberg in an interview this week.

  • South Africa’s new Central Bank governor to lift bonds

    Lesetja Kganyago’s appointment to succeed Gill Marcus as head of the South African central bank is lifting bond investors, who say they’re counting on him to maintain the focus on curbing consumer-price growth.

    “If he’s going to be more hawkish than the current governor, bond investors are going to be happy,” Jonathan Myerson, who helps manage the equivalent of about $3.6 billion at Cadiz Asset Management (Pty) Ltd., told Bloomberg.  “It’s going to give security around inflation concerns, so it’s a good thing. Yields should benefit.”

    Rates on rand government bonds fell by the most after Brazilian yields among 31 emerging-market nations monitored by Bloomberg after South African President Jacob Zuma named Kganyago, who turns 49 yesterday, as the next governor. Monetary policy should retain its emphasis on inflation, Kganyago said September 30 in a speech, which Myerson described as “outstanding”.

    The Reserve Bank raised the benchmark rate twice this year to fight accelerating prices, which have exceeded the 6 percent top end of policy makers’ target range for five straight months amid a weakening rand. While the increases have weighed on the slowest economic growth since the 2009 recession, traders are betting more are in store over the next six months.

    Kganyago, who will assume office on November 9 and chair a policy meeting less than two weeks later, pledged to continue Marcus’ policy path and pursue price and financial stability. Currently the deputy governor overseeing banks and financial regulation, he was one of two favored candidates, along with Deputy Governor Daniel Mminele.

  • Rosabon urges best practice in financial services

    Rosabon Financial Services Limited, a financial intermediary and equipment leasing firm, has called for best practice in the country’s financial service industry.

    Managing Director of the company, Chukwuma Ochonogor, disclosed this at the African Financial Quality Service Award conferred on the firm by the Institute for Government Research, Leadership and Technology.

    Speaking after receiving the award, he said the success story of Rosabon “has been based on its emphasis on best practices in accordance with customer satisfaction, integrity, professionalism and commitment to excellence in dealing with our customers.”

    He explained that best practice in building Nigeria’s financial service  industry, remains a critical part of domestic economy. Rosabon, he said is into sound financial packages and expert advice, adding that its products are tailored to suit customers’ needs.

    “Over the years, our strength and unique selling point has been the speed with which we close transactions and the convenience which we offer our clients. In our quest to continually deliver excellent service, we have constantly improved on our processes and have succeeded in eliminating the bottlenecks that have come to be associated with transactions in the financial services sector in Nigeria,” he said.

    He appreciated the recognition, noting that the management was indeed humbled and honoured for the award.

  • CBN advises MDAs on remittances

    CBN advises MDAs on remittances

    THE Central Bank of Nigeria (CBN) has asked Ministries, Departments and Agencies (MDAs) to adopt e-payment channels for their transactions. Salaries, pensions and suppliers and taxes are to be paid using the electronic channels. The policy applies to organisations with over 50 employees.

    In a circular, the apex bank said the process would reduce time and transaction costs, minimise leakages in government revenue receipts, provide reliable audit systems and make it comply with global payment standards. The policy is also expected to ensure confidentiality of transactions.

    CBN said, henceforth, payment instructions and associated schedules are no longer to be transmitted to banks by organisations in the public and private sectors through unsecured channels, such as paper-based mandates, flash drives, compact discs, and email attachments.

    The transactions, the bank said, must be routed through bank approved electronic platforms, which transmits the instruction to debit a payer’s account and credit that of a beneficiary, mobile account, electronic wallet or other electronic channels.

    It will include the ability of a payer to monitor and obtain electronic feedback on the status of any payment, without depending on any third party, manual or semi-manual means.

    Draft guidelines that will ratify the policy have been sent to commercial banks and payment service providers. The exercise is in line with the CBN Act, 2007, Section 47, Sub Section 2(2d).

    It said the policy aligns with the National Payment Systems Vision 2020 (NPSV), which is aimed at ensuring the availability of safe and effective mechanisms for making and receiving various payments from any location and at any time.

    The CBN said all public and private sector organisations, which relates with employees, pensioners, suppliers, taxpayers and others, are considered as stakeholders required working for the success of the policy.

  • ‘Money laundering, terrorism financing rate worrisome’

    Threats posed by money laundering (ML) and Terrorist Financing (TF) to West Africa have become pronounced over the past decade, the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), has said.

    In a statement, the agency regretted that knowledge of the two phenomena and the various dimensions of their manifestations are low in the region, adding that a critical factor responsible for this low level of knowledge in the region, is the dearth of local expertise to enable the generation and deepening of knowledge in the emerging field of ML/TF.

    To bridge the gap, GIABA initiated an Annual AML/CFT Research Grant to build regional capacity for research on ML/TF.

    The funds will assist in facilitating the conduct of short-term studies on identified research topics.

    The body has through the grant, been empowering the civil society in Ghana in the implementation of AML/CFT Measures; Financial Inclusion and Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Standards in Sierra Leone and Money Laundering Through Non-Profit Organisations in West Africa, among other interventions.

    The agency has also been involved in the development of effective civil society interventions for managing cross-border cash flows in the informal sector.

    It said the report on Financial Inclusion and Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) standards in Sierra Leone, which assessed the link between financial inclusion and AML/CFT, showed that while the former helped to lower ML/TF risks, a wholesale implementation of the latter without regard to the economic and financial peculiarities of the country, could exclude most poor individuals and households from the formal banking and financial systems and, by extension, undermine AML/CFT efforts.

  • How to facilitate financial inclusion

    The Bank Customers Association of Nigeria (BCAN), has urged the Central Bank of Nigeria and Nigeria Deposit Insurance Corporation to facilitate the realisation of CBN’s financial literacy/inclusion objective and inculcate appropriate banking habits and culture in people.

    The group stressed its commitment in rallying bank customers and consumers of banking and financial services for the promotion and protection of their interest in the face of daunting challenges against them.

    The BCAN said that banking should be conducted based on acceptable values and best practices.

    It said the group would intensify efforts at fostering mutual understanding, trust and confidence between banks and their customers through customer education so as to strengthen and ensure the realisation of CBN’s financial literacy/inclusion and other programmes.

    “The BCAN should also organise awareness programmes in the areas of Guide to Bank Charges, Financial Literacy and Inclusion as well as Banking Policies, Regulations, Products/Services for the benefit of consumers in particular and stakeholders in general. The group should also collaborate and partner with organisations and individuals who share its vision and objectives in order to be able to extend its services to the nooks and crannies of Nigeria, for positive multiplier effect,” it said.

    Continuing, the group said that henceforth, it would create sustainable platform for the provision of advisory and counseling services in banking and finance to its members and the interested public in order to deepen their knowledge and ability to make the right financial decisions and choices.

    The group would also work closely with the regulatory and supervisory authorities to ensure that banks are held accountable for any unethical, unprofessional and risky products, services and practices they introduce into the financial system and to customers/consumers.