The Nation Newspaper

Category: Money

  • Mainstreet Bank posts N13.2b profit

    Mainstreet Bank posts N13.2b profit

    Mainstreet Bank Limited has consolidated its return to profitability as it announced a profit before tax (PBT) of N13.2 billion in its group financial performance for the year ended December 31, 2013.

    Speaking at the bank’s second Annual General Meeting which held at the weekend in Lagos, its Chairman Board of Directors, Alhaji Gambo Ahmed, said the result is the outcome of strategies the lender put in place to build confidence, optimise costs, improve operational efficiency and  customer service delivery.

    In A statement, the lender said the financial result showed growth in all key financial indices. Gross earnings grew to a new high of N49.6 billion in 2013. The growth was largely driven by increased interest income as the bank significantly grew its loan portfolio by 63 per cent from N34.9 billion in 2012 to N57 billion in 2013.

    Despite the significant growth in risk assets, the non-performing loan ratio (NPL Ratio) remained low at 3.66 per cent; well below the five per cent regulatory limit. The bank’s operational efficiency strategy yielded a 26.6 per cent growth in net interest margin.

    “We have achieved this result in spite of the socio-economic challenges and increased competition in the Nigerian banking industry. The result clearly reaffirms that the bank is on the right track of becoming a top tier bank,” explained the bank’s Chairman.

    Group Managing/Chief Executive Officer Faith Tuedor-Matthews said the lender had within the period under review, successfully migrated to the latest version of Finacle core banking application, which has significantly improved our ability to deliver service to our customers and introduce innovative products and services.

     

     

    Also, following the impressive results achieved in 2013, the AGM approved payment of a dividend of N1 per every N1 share held in the bank, totaling N6.25 billion. This dividend will be paid to Asset Management Corporation of Nigeria upon receipt of the relevant approval from regulators.

  • CBN may keep rates unchanged as MPC meets today

    CBN may keep rates unchanged as MPC meets today

    The Central Bank of Nigeria (CBN) is expected to keep the interest rate unchanged at 12 per cent as the Monetary Policy Committee (MPC) meets today and tomorrow.

    If the MPC keeps the rate unchanged, it will be the 17th time in a row, it is taking such stance in an effort to control inflation and support the naira, a Reuters poll found.

    This week’s MPC meeting will be the first chaired by the new CBN Governor, Godwin Emefiele and will be closely watched by foreign investors and analysts.

    The former managing director of Zenith Bank struck a dovish tone on rates two days after taking office in June, saying he would seek a gradual reduction in borrowing costs, which have been stuck at 12 per cent since late 2011.

    That is much higher than the 5.75 percent in South Africa, which Nigeria overtook to become Africa’s largest economy earlier this year, and 8.50 per cent in Kenya.

    Investors perceived his comments to mark a reversal of the hawkish policies implemented by his predecessor Lamido Sanusi that were credited with curbing inflation and supporting the currency, and sold bonds and the naira.

    Emefiele has since said he would wait until after presidential elections next year before making any rate cut, and all 20 analysts polled by Reuters in the past week expected the MPC to keep the benchmark rate steady at 12 per cent.

    “Emefiele has laid out plans to cut rates in the medium term (but) we do not see any chance of this happening at July’s MPC, much less as inflation continues to creep up ahead of elections,” said Alan Cameron, London-based economist at Nigerian stockbroker CSL.

    Inflation  rose to a 10-month high of 8.2 per cent in June, closer to the CBN’s upper limit of nine per cent, after rising for four straight months this year on higher food prices and excess liquidity.

    “Higher risk premiums and fiscal profligacy related to the election will keep pressure on the currency and price growth and Emefiele and his team will not want to exacerbate that by loosening policy too aggressively,” said Matthew Searle, sub-Saharan Africa Analyst at Business Monitor International.

    “With the recent compression in fixed-income yields, as short-tenor maturities head south below the 10 percent levels, the risks of negative real rates on Nigerian assets will again resurface,” said Adedayo Idowu, economist at Vetiva Capital.

  • Financial inclusion: CBN praises Sterling Bank, Osun

    Financial inclusion: CBN praises Sterling Bank, Osun

    Sterling Bank Plc and the Osun State Government have been commended by the Central Bank of Nigeria (CBN).  This commendation comes as the apex bank advised other financial institutions to ensure that more Nigerians currently ‘unbanked’ are financially serviced.

    Speaking at a workshop organised for banks and other financial institutions on Financial Inclusion and Agent Banking, the CBN Assistant Director, Payment Policy & Oversight Banking Payment System; Mr. Olushola Agboola lauded the efforts of the bank and called for more to be done to ensure wider reach. Sterling Bank has empowered over 100 indigenes of Osun State and a larger number of others.

    Sterling Bank’s Head of Financial Inclusion, Mr. Richard Osungboye who also spoke at the just concluded Workshop in Oshogbo, said with the collaborative efforts between the CBN and the Osun State government , the percentage of rural people yet to be captured in the financial system will reduce drastically.

    He particularly commended the Osun State government’s plan to adopt the “Cooperative Model” for the establishment of MFBs as approved by the CBN. Further plans of the Government include collaborating with the Microfinance Institutions (MFIs) & Deposit Money Banks to increase the number of Point-of sales [PoS] and Automated Teller Machines (ATMs) in all 30 LGAs, encourage civil servants and other individuals or companies that do business with it to use available financial institutions and establishment of  Entrepreneurship Development Centers across the state.

    Oshungboye further stated that conducting regular seminars on financial inclusion,  regularly monitoring the implementation of various programmes in all states of the federation and undertaking necessary reviews will go a long way to achieving the goal of ensuring a larger percentage of our population are captured under the financial inclusion programme.

  • PayPal accepts Union Bank’s cards

    PayPal accepts Union Bank’s cards

    Union Bank of Nigeria Plc yesterday announced that its card offerings – Visa and MasterCard are now accepted on the PayPal platform. PayPal is an international e-commerce platform that facilitates online payments and money transfers to over 190 countries.

    The bank in a statement, described PayPal as one of the fastest and safest ways of paying and getting paid online. It said the platform, also allows users send money and make payments without sharing financial information, now includes the flexibility to pay using Union Bank Visa and MasterCard.

    Head of e-Business, Union Bank,  Fatai Baruwa said: “We are glad that PayPal has extended its services to Nigeria. With the push towards a more cashless society in Nigeria, and the growth and increased awareness of online shopping on local and international sites, Union Bank customers now have another safe and secure payment option to enable them concludes their online transactions.”

    The Union Bank MasterCard is accepted worldwide and can be used to pay for goods and services at 32.7million merchant locations worldwide. The Union Bank Visa Card, issued in both Naira and US Dollars is also accepted worldwide.

    Union Bank has been upgrading its use of technology across all banking platforms. The Bank earlier announced that it will be rolling out its Bank of the Future branches, which will rely on technology and innovation to simplify the banking experience for customers. The bank is also doubling its ATM footprint and enhancing its mobile banking platforms.

  • Fashola lauds Ecobank on Premier Banking

    Fashola lauds Ecobank on Premier Banking

    Lagos State Governor, Babatunde Fashola has described Ecobank as one that has done well in its contribution and support to the development of the state.

    In his remark at the unveiling of Premier Banking by Ecobank in Lagos, he said banks and other businesses have contributed immensely towards making the state a Center of Excellence and West Africa’s commercial capital.

    “Ecobank and other banks continue to find our land and our state a place where they can call home, a place where entrepreneurship can take place, a place where commercial and mercantile exchange can take place, a place where those exchanges can bring jobs, dignity of labor and put food on people’s table,” he said.

    He commended the bank for introducing the new product, stating that “this milestone represents a major statement in innovation indicates  the direction in which the bank is headed.”

    Also speaking at the event, Managing Director, Ecobank Nigeria, Mr. Jibril Aku, said the initiative gives customers the privilege of having a variety of exclusive lifestyle benefits, including preferential airline and hotel rates and rewards from luxury brand retailers across the world. He said the high net worth customers would also have the added assurance of purchase protection, safe custody and private services.

  • AfDB inaugurates N5.6b public financial mgt project

    AfDB inaugurates N5.6b public financial mgt project

    The African Development Bank (AfDB) has launched a  $35 million (N5.66 billion) public financial and macroeconomic management capacity-building project approved by the bank’s board last December.

    The inauguration came at a workshop held in Khartoum, Sudan, presided over by the State Minister of Finance and National Economy, Magdi Yasin, and attended by high government officials from the Ministry of Finance and National Economy, Central Bank of Sudan, Taxation Chamber, Khartoum Stock Exchange, and Customs Authorities.

    The AfDB was represented by  the Officer-in-Charge (OIC) of the Sudan Field Office,  Suwareh Darbo, who presented a speech at the opening ceremony on behalf of the Resident Representative.

    In a statement, the bank said that the workshop was also attended by its staff, including  the Project Task Manager, Camille Karamaga, Financial Analyst, Tadesse Melaku and the Head, Procurement, Asaye Adal Fasil.

    The project’s overarching objective is to build and enhance transparency, accountability and efficiency in the use of public resources, macroeconomic policy and debt management through institutional strengthening and capacity building.

    In his opening remarks at the workshop, the State Minister, commended the Bank’s continuous support for Sudan and promised to provide the utmost support to the project’s team to effectively implement, what he termed, “this important project.”

    The State Minister further underscored that this project is essential for better management of public resources in the overall context of the government’s Poverty Reduction Strategy Paper. For his side, the OIC of the Sudan Field Office, underscored the fact that the realisation of the project bears is a concrete testimony to both the bank’s and the Government’s commitment to financial governance, which is critical for the country to realise its development aspirations.

    The OIC also emphasized the project’s alignment with the pillars of the Interim Poverty Reduction Strategy Paper (I-PRSP) and the National Development Plan (2012 to 2016), both of which strengthen governance and institutional capacity in the public sector.

     

     

  • Fidelity Bank inaugurates Save-for-Scholarship promo

    Fidelity Bank inaugurates Save-for-Scholarship promo

    Fidelity Bank Plc inaugurated a save for scholarship promo targeted at seeing underprivileged Nigerians acquire education to enhance their lives.

    The Managing Director/CEO, Nnamdi Okonkwo, who made this known at a briefing in Lagos, said, the Save-for-Scholarship  promo will enable 200 winners emerge overall, while 33 persons will get scholarship on monthly basis till January 2015.

    He said 16 persons are expected to get scholarship of N2 million each, while 46 others will get N1 million each in a monthly draw to be held across the branches.

    The scholarship is payable over five years, but can be converted to cash as it is open to both new and existing customers of the bank.

    Okonkwo said the need to get more  Nigerians educated triggered the initiative adding that all facets of education is involved, from creche, primary, secondary, university and skills acquisition programmes are involved. He said the exercise also encourages savings culture among citizenry.

    Commenting on the promo, the executive director, shared services, Mrs Chijioke Ugochukwu, said the promo became necessary as more people become interested in acquiring quality education and skills that will enhance their status in the society.

    Ugochukwu said the bank has made necessary arrangements to ensure that the promo becomes a success adding that it will also help in addressing the notion that education is for the elite because of the high cost of acquiring quality education.

    On the eligibility to partake in the promo, the head, savings group and promo manager, Mrs Janet Nnabuko, said old customers should top up their accounts with N10,000 per month while new customers can participate by opening a savings account with N20,000 and maintaining that amount throughout the month.

  • Wema Bank records N1.7b profit

    Wema Bank records N1.7b profit

    Wema Bank Plc yesterday announced its half year 2014 unaudited financial results, with a 266 per cent increase in Profit Before Tax (PBT) to N1.7 billion.

    This, the lender said, demonstrates  the impact of efficiency gains it achieved in the last six months.

    Speaking in Lagos,  the bank’s Managing Director/CEO, Segun Oloketuyi,   said: “We are pleased to announce that WEMA Bank continuedto demonstrate strong improvements in profitability and balance sheet efficiency in the first half of 2014.

    Our Profit Before Tax leapt 266 per cent to N1.7 billion and the Bank’s Net Interest Margin has improved to 7.7 per cent reflecting a more efficient restructuring of our deposit mix in favour of cheaper funds. We continued the process of redeploying our resources into higher yielding assets while keeping a close eye on operating expenses. Loans and advances grew by 17 per cent from December 2013 whilst our cost of funds continues to reduce.

    He said the lender had secured trade lines from foreign correspondent banks and development finance institutions to support our trade finance, the real estate sector and SME lending.

    Oloketuyi said the Project LEAP, is the lender’s strategic transformation agenda, and has continued to provide it with efficiency gains.

    These, he added, have led to  improvements throughout the second half of the year putting the bank on course to produce better performance and commensurate returns to shareholders by the end of the year.

    “The goal is to continue our organic expansion programme and establish presence in areas that have significant growth potential, while making significant investments in alternative channels and diversifying the Bank’s product offerings.“

  • BDC guidelines to conserve forex reserves, says CBN

    BDC guidelines to conserve forex reserves, says CBN

    The Central Bank of Nigeria (CBN) has reiterated that its  modifications to the guidelines on the regulation of Bureaux de Change (BDCs) in the country are aimed at conserving the country’s foreign reserves, among other objectives.

    The its Governor, Mr. Godwin Emefiele who spoke during an interactive session with the House of Representatives Committee on Banking and Currency explained that modifications had to be made on the guidelines following observations that the current operations of BDCs in the country had deviated from the objectives for which they were lisensed in the first place.

    Emefiele observed that many operators were only interested in widening margins and profits from the foreign exchange market, regardless of the prevailing official and interbank rates.

    He said a cross-country survey of BDCS done by the CBN revealed that 93 per cent of them were in breach of the objectives and provisions of the guidelines. He also said majority of the BDCs had no good accounting records, many had no adequate sales document and lacked audit trail.

    While urging the House of Representatives to support the policy of the CBN, the apex bank boss said the lender’s expectation is to have in place BDCs that are well-capitalised, properly structured and can effectively perform the roles of BDCs in the economy.

    Chairman, House Committee on Banking and Currency, Hon. Jones Chukwudi Onyeriri, noted that the Committee respected the autonomy of the CBN but will work with the apex bank to ensure that it delivers on its mandate in the overall interest of Nigerians.

  • FirstBank rewards customers

    FirstBank rewards customers

    FirstBank has announced  winner of the grand prize of a completed four-bedroom detached duplex in Lekki, Lagos after the draw of the Big Splash promo which took place yesterday in Port Harcourt was announced.

    Other prizes also won at the draw were three brand new Toyota corolla cars, cash prizes of N50,000, refrigerators and standing cookers.

    Declaring the event open, the Group Head of Retail Banking Southsouth of FirstBank, Mrs. Rosemary Asiegbu, said: “The ’Big Splash savings Promo was designed to reward customers for their patronage and loyalty to the brand over the years. It is also a platform for enhancing savings culture in the nation and encouraging the youths as well as the unbanked to embrace the financial services system.

    “This year’s promo was designed to coincide with the commemoration of our 120 years anniversary of memorable banking services in the country and as such, we have kept our promise to customers by holding the bi-monthly and quarterly draws regularly where we have given out over N35million cash prizes among many other mouth-watering prizes.”

    To ensure transparency during the draws, the selection process was under the supervision of the national lottery regulatory council. The bank also partnered with world class consultants, KPMG to ensure world best practice are aligned with. The draw is fully automated and it randomly selects winners who would take home various prizes. The e-draw is also audited from the back end to ensure that the numbers are not pre-selected.