The Nation Newspaper

Category: Money

  • FCMB extends anniversary promo, promises more rewards

    FCMB extends anniversary promo, promises more rewards

    Following the success recorded in the first phase of the 30th Anniversary Promo of First City Monument Bank (FCMB) Limited, which ended last month, the bank is set to reward more of its customers within and outside the country through an extension of the promo till September 2014.

    Tagged ‘’FCMB 30th Anniversary Promo Re-loaded’, the second phase of the promotion will run from till September 30 across the 26 Zones and three regions of the bank nationwide during which various exciting prizes, including three Hyundai IX35 Sport Utility Vehicles (SUVs), cash and other gifts, will be won by customers. The qualified customers will be rewarded through electronic selection of winners at the monthly zonal and regional draws in June, July and August, while the grand finale draws will take place in October. The extension of the promo, according to the bank, is to further thank its current and potential customers for their loyalty over the years.

    In a statement, FCMB explained that the promo is targeted at all segments of the society across all age groups. These include professionals, market men and women, artisans, students, workers among others who have adopted and are enjoying the benefits of FCMB’s banking products and services such as basic savings, premium savings, Nairawise, Kids Account,  FlashMeCash, among others.

    On how to participate in the ‘promo , all an FCMB customer needs to do is to save N10,000 in any savings account of his or her choice for 30 days to qualify for the monthly draw of winners where the star prize of N1million and other fantastic prizes like generators, LCD television and DVD players will be won.

    Multiple savings of N10,000 will increase chances of qualifying for the zonal draws.

    To qualify for the grand finale draws in October, where the star prizes of three Hyundai SUVs will be driven home by three customers of the bank at the Lagos & Southwest, Southeast/Southzsouth and North Regional draws, customers are to save N10,000 monthly incremental over five months or have an incremental average balance of N50,000 in September, 2014.

    Speaking on the FCMB promo, its Senior Vice President/Divisional Head, Retail Banking, Mr. Olu Akanmu, said: “the extension of the promo is in response to the request of our customers who were excited about the success and rewards they received during the first phase of the exercise.”

  • Bank to boost e-payment

    Bank to boost e-payment

    Fidelity Bank Plc is working  on Information Technology  (IT)-driven transformation projects to boost  electronic banking, its Managing Director, Nnamdi Okonkwo, has said.

    Speaking at the bank’s Annual General Meeting in Uyo, the Akwa Ibom State capital, he said the projects would be handled by experts.

    Okonkwo said: “We have also restructured our sales force into a flatter and more nimble organisation, which is closer to the customers and aggressive enough to drive our market share aspirations in order to achieve our corporate strategy. We are centralising our processing functions which will reduce our cost to serve and improve uniformity of customer service.”

    He said the bank’s shareholders okayed a 14 per ordinary share of 50 kobo dividend payout for its investors.

    Okonkwo said the bank has adopted a mantra tagged: “Back to the basics, forward to the future.” This, he explained, involves its drive to build a performance-driven organisation on the back of product innovation, superior customer service and to enable it compete fiercely in the retail and electronic banking segment with technology driven innovation.

    He said the bank’s resolve to support the productive sector and grow a new generation of passionate entrepreneurs led to the creation of the Fidelity Managed SME team that provides financing, business advisory services, capacity development and shared technology platform to SMEs.

    “We hope to remain steadfast in encouraging Nigerian entrepreneurs through delivering special products and services, and improved platforms for knowledge sharing and business advisory services,” he added.

    Last year, he said, the bank expanded its foray into some new and key sectors by establishing and growing a relatively balanced and sustainable business portfolio that would provide a consistent revenue stream in the years ahead, adding that its collection of business in both public and private sectors has continued to improve on the back of the redeployment of more efficient platforms.

     

  • Why banks will not increase lending, by RenCap

    Why banks will not increase lending, by RenCap

    Banks are still hunted by the 2007 meltdown, when they gave out non-performing and delinquent loans that triggered the global financial crisis, a report by Renaissance Capital (RenCap), has shown.

    In the report tagged: “Global Emerging and Frontier Markets: Which markets can boom?”  RenCap said those fears made it difficult for the lenders to increase their loans.

    It said despite the problems, banks must improve on their lending to support equity prices.

    According to the investment and research firm, banks have become cautious following their experience in lending 14 per cent of the Gross Domestic Product (GDP) in 2007. It predicted a modest rise in nominal growth from 13 per cent last year to 16 per cent this year. “We expect a modest uptick in nominal growth, from 14 per cent in 2013 and 16 per cent in 2014,” it said.

    According to the report, the growth index suggests the main bid for equities will continue to come from rapidly rising local pension fund money and frontier cash. “It explained that in the first quarter of 2014, and perhaps the entire first half of 2014, we see Nigeria outperforming Kenya, due to movements by frontier investors,” it said.

    RenCap said Nigeria’s rising weight in the Morgan Stanley Capital International (MSCI) index, up from 14 per cent to 20 per cent  is one factor behind this, adding that assumption of naira stability remains critical.

    It said analysis of debt cycles shows that credit booms have tended to drive equity returns. “Conceptually, we think this makes sense, as credit booms have tended to coincide with accelerating economic activity, periods of low interest rates and strong corporate earnings,” it said.

    It said the magnitude of the credit expansion is key, especially when credit is growing faster than GDP is expanding, there is a greater opportunity for equity and other assets to perform well.

    Put simply, excess growth of credit tends to spill over into asset prices, including property and equity and can eventually feed through into inflation,, he added.

    “Nigeria, Mexico and Turkey also have a somewhat supportive credit-growth trend although Turkish credit growth and pricing are increasingly dependent on the availability of funding,” it said.

  • CBN’s monthly credit to banks hits N653.7b

    CBN’s monthly credit to banks hits N653.7b

    The Central Bank of Nigeria (CBN) credit to banks and discount houses has hit N653.7 billion, The Nation has learnt.

    There are 21 banks and five discount houses in the country.

    The fund, which came as Standing Lending Facilities (SLFs), attracted N1.8 billion interest.

    The fund was given at 14 per cent interest. The SLF is an overnight CBN credit available on banking days between 2 pm and 3.30 pm, with settlement done on same day value. Funds were sourced from savings and foreign currency deposits, as well as accretion to unclassified assets.

    The CBN said credit to the domestic economy rose by 2.2 per cent to N12.2 trillion above that of the preceding month. This was attributed to the 2.6 per cent increase in banks’ credit to the private sector, which  offset the 4.9 per cent fall in credit to the Federal Government during the period under review.

    Total specified liquid assets of the DMBs stood at N5.9 trillion. The liquidity ratio fell by 1.1 percentage point below that of the preceding month and was 15 percentage points above the stipulated minimum ratio of 30 per cent.

    The loans-to-deposit ratio, which stood at 55.5 per cent, was two percentage points higher than of the preceding month, but was 24.5 percentage point below the prescribed maximum ratio of 80 per cent.

    Total assets and liabilities of the discount houses stood at N177.9 billion, an increase of 48.7 per cent above that of January. The development was accounted for by the 59.6 and 67.4 per cent rise in cash and balances with banks and claims on the Federal Government. The increase in total liabilities was attributed to the 116.2 per cent growth in money-at-call.

    Also, discount houses’ investment in Federal Government securities of less than 91-day maturity rose to N86.35 billion and accounted for 60.2 per cent of their total deposit liabilities. Hence, investments in Federal Government Securities was 0.2 percentage point above the minimum level of 60 per cent.

    Discount houses’investments on treasury bills rose by 134.5 per cent over that of the preceding month. Total borrowings by the discount houses stood at N42.4 billion, while their capital and reserves was N23 billion.

    Data indicated mixed developments in banks’deposit and lending rates.

    With the exception of the average savings, seven-day and over 12 months deposit rates, which declined from 3.27 to 9.80 in January to 3.26 to 9.68 per cent, other deposit rates of various maturities rose from 8.21  per cent to 9.40 per cent in the previous month to a range of 8.41 to 9.60 per cent.

    At 8.49 per cent, the average term deposit rate rose by 0.06 percentage point above that of the previous month. Similarly, the average maximum lending rate rose by 0.31 percentage point to 25.83 per cent.

    However, the average prime lending rate fell by 0.02 percentage point to 16.93 per cent during the review.

    Also, the margin between the average savings deposit and maximum lending rates increased by 0.32 percentage point to 22.57 per cent.

    In the interbank call segment, the weighted average rate, which stood at 11.98 per cent in the previous month, fell to 10.50 per cent in February.

     

  • AfDB sets development goals

    AfDB sets development goals

    The African Development  Bank (AfDB) Board of Directors has approved the institution’s Results Measurement Framework (RMF) covering 2013 to 2016.

    The RMF is a corporate management tool which helps the institution to meet its development goals.

    It is framed around 100 performance indicators organised into four interconnected levels, namely: Development progress in Africa (Level one); AfDB’s contribution to development in Africa (Level two); the bank’s operational performance (Level three); and its organisational efficiency (Level four).

    According to the bank, the exercise will further enhance the bank’s ability to maintain high standards in delivering development results on the continent.

    Also, it will track performance at all four levels through the Annual Development Effectiveness Reviews.

    “The document is based on extensive research and draws on international best practice in managing for development results. It not only builds on lessons learnt from experience in implementing the previous RMF, but also benefits from consultations from other development institutions,” it said.

    The bank’s Director, Department for Quality and Results, Simon Mizrahi said: “The Results Measurement Framework is not an end in itself: It is a development tool for the bank to achieve its objectives.”

    He said the RMF brings together evidence from the bank’s work, including its strength and weaknesses, so appropriate action could be taken to implement its programmes and successfully meet its new ambitions outlined in the 10-year strategy from 2013 to 2022.

    He said in approving the RMF, the directors expressed satisfaction, saying that it strengthens the  measurement culture in the AfDB.

     

  • Bankers discuss at CIBN forum

    Bankers discuss at CIBN forum

    The Chartered Institute of Bankers of Nigeria, will assemble top bankers and other selected stakeholders to articulate effective strategies to ensuring the entrenchment of global best practices in the industry.The gathering, which is the Presidential Address of the Institute with the theme: “Banking & Bankers: Looking Back, Looking Ahead” is scheduled to hold on Friday in Lagos and will be addressed by President/Chairman of Council, Segun Aina.The objective of the event, a statement from the bank said, is to reduce incidents of fraud, forgeries, management error and unprofessional practices while enhancing competency among practitioners in the industry. Dr. Aina will use the platform of the epoch event to present to the banking community, an ocasional paper titled: “The Economy of Financial Inclusion in Nigeria: Theory, Practice and Policy”, which he co-authored with Dr. Onafowokan, Oluyombo, Department of Financial Studies, Redeemer’s University.

  • CBN bans debtors with N250m NPL from accessing fresh loans

    CBN bans debtors with N250m NPL from accessing fresh loans

    The Central Bank of Nigeria (CBN) has banned banks from lending to all debtors  of closed banks with non-performing loans (NPLs) of a maximum of N250 million from accessing new facilities in any deposit money banks.

    This was disclosed by the Managing Director, Nigeria Deposit Insurance Corporation (NDIC) Umaru Ibrahim during the Bank Examiners’ Conference held in Lagos at the weekend.

    He said the decision followed a request from the corporation, adding that the lenders have been notified of this development while NDIC examiners are expected to ensure compliance. He said the names of the debtors will be populated through the CBN’s Credit Risk Management System and approved private sector credit bureau.

    Ibrahim said the implementation of risk-based supervision, has led to significant improvement in risk management practices such as macro prudential supervision, sustainable banking, International Financial Reporting Standards, Basel II /III and consolidated supervision have been substantially implemented in the bid to strengthen the system.

    The NDIC boss also said banking in Nigeria faces some surmountable challenges that have to be addressed to achieve seamless services.

    He said challenges of lending in Nigerian environment, corporate governance, impact of fixed income securities on financial positions of Deposit Money Banks (DMBs), technological innovations including mobile money have remained critical in providing banking services to the population.

    Ibrahim also said the conference theme: Sustaining a Safe and Sound Financial System through Effective Banking Supervision- is apt. He said there is need to focus on the challenges faced by examiners in appraising the affairs of the banks. He said the future of banking will be more complex in terms of product offerings using the latest form of Information Communication Technology (ICT) tools.

    He said that in NDIC, aside the above challenges, it continues to face challenges of debt recovery in terms of debt owed the closed banks, some of which remain unrecovered since 1994.

  • Keystone Bank set to launch Pink Account

    Keystone Bank set to launch Pink Account

    A ward-winning actress, Rita Dominic, will be the face of Keystone Bank’s soon to be launched exclusively-for-women account, the Keystone Bank Pink Account.

    In a statement, Head, Brand Management, Keystone Bank, Omobolanle Osotule, said: “The Keystone Bank Pink Account is a current and savings account for women that are resourceful, innovative and glamorous. The account is primarily designed for the empowerment of women with entrepreneurial drive and career inclination, to actualise their financial independence, lifestyle and domestic needs”.

    She said the account will create avenues for women to network and share ideas through periodic networking events, seminars and workshops, which will be anchored by Rita Dominic as the ambassador of the project.”

    Osotule explained that the choice of Rita Dominic as the face of the Pink Account “was predicated on her profile as a thoroughbred professional, a dedicated and consummate actress, and a celebrity with role model credentials and of course, because of her entrepreneurial drive.”

    Speaking on the project, Rita Dominic said she was excited about the idea of an account for women to make them financially independent as entrepreneurs, mothers and caregivers. “I am also excited about the fact that the bank considers working with me to promote this laudable project to other women in different strata of the society’s ladder.

    “I am aware that the Pink Account, as a project, will cater to the empowerment need of professional and working class women, self-employed female entrepreneurs, female lecturers, actresses, musicians, women in uniform and even female politicians and society women. This account is truly for women.”

  • Barclays Africa grows earnings by 14%

    Barclays Africa grows earnings by 14%

    Barclays Africa Group reported a 14 per cent rise in full-year earnings partly due to sharp fall in bad debt charges that showed the bank’s tighter lending policy is starting to pay off.Reuters said the African subsidiary of Britain’s Barclays reduced its exposure to personal lending over the past three years and increased bad debt provisions in response to a downturn in the country’s economy after the financial crisis.”There is no denying that our business has been through a tough period,” Chief Executive Maria Ramos said.The bank, the first of South Africa’s main four banks to publish earnings this season, reported a 21 percent drop in bad debt charges. Barclays Africa is remaining cautious even though South Africa’s economy is showing signs of picking up and could grow by as much as 2.8 percent this year, according to the central bank, from an estimated 1.9 per cent in 2013.Unemployment has fallen and the jobless rate slowed to 24.1 percent in the fourth quarter of 2013, the lowest in seven quarters. Manufacturing is also starting to look up with output rising 2.5 percent year-on-year in volume terms in December, compared with the 1.4 percent economists polled by Reuters had expected.Chief financial officer David Hodnett said Barclays expected slow loan growth in South Africa, its biggest market, in 2014. “With South Africa interest rates likely to rise further and consumers under pressure, we expect mid single digit loan growth in South Africa this year.”

  • Firstmonie subscription now one million

    Firstmonie subscription now one million

    Subscriptions to First-Monie, the mobile payment solution of First Bank of Nigeria Limited has crossed the one million customer mark.

    In a statement, the bank said the feat is coming less than two years of its operations in the country, adding that the product is aimed at enhancing service delivery for the unbanked and under-banked within the population.

    Its Head, Marketing and Corporate Communications, Folake Ani-Mumuney, said surpassing the one-million mark on the FirstMonie platform, shows the extent the bank will go to ensure that our customers have more choices of accessing banking services from any location they find themselves.

    “We are pleased by this achievement, which signifies the level of Firstmonie’s acceptance amongst subscribers. We believe that the tremendous growth it has recorded so far illustrates the important role it plays in providing easy access to financial services for customers on the go,” she said.

    She noted that the Firstmonie platform which was created to align with the Central Bank of Nigeria’s policy to promote a cashless or cash-less economy in Nigeria offers an excellent medium for subscribers to disburse funds efficiently and securely to their loved ones across the nation.

    FirstMonie was launched in September 2012 as part of the lender’s innovative drive to enhance financial inclusion and reduce the rate of unbanked adults in Nigeria. The  solution was created to provide convenient and safer banking for the under-banked and unbanked to access their bank account and transfer funds with the use of their mobile phones.

    This enables subscribers to send and receive money, pay bills, buy airtime and make sundry purchases in Nigeria without owning a bank account. The transaction on the platform has no time barriers and can be carried out at any time of the day.

    The platform also supports wealth creation by providing opportunities for thousands of entrepreneurs across the nation and has been involved in several notable initiatives worthy of note are The Bill & Melinda Gates Foundation Grant, The UNICEF Fund Disbursement Scheme among others.