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  • Bank to hold AGM May 30

    Bank to hold AGM May 30

    Abbey Mortgage Bank will hold its 32nd Annual General Meeting (AGM) on May 30.

    This year’s AGM is themed ‘Agile Tenacity,’ and it will highlight the bank’s financial achievements in 2023, outline strategic goals, and engage with valued shareholders.

    The virtual event will hold at the Head Office on 23, Karimu Kotun Street, Victoria Island, Lagos State, at 11am.

    In addition to presentation of the financial reports, the AGM will feature in-depth discussions on the bank’s advancements in technology, customer-focused initiatives, and sustainable banking practices.

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    The Managing Director/CEO, Mobolaji Adewumi, said: “Abbey Mortgage Bank remains at the forefront of industry trends and adapts to evolving customer needs by leveraging digital advancements to improve operational efficiency. The Bank introduced WIRE, a product tailored to support female developers in Nigeria, effectively addressing a crucial market gap. “Additionally, Abbey is poised to launch an enhanced version of its mobile banking app, AbbeyMobile 2.0, in the coming week.

    “The bank’s performance in 2023 stands as a testament to its resilience and excellence amidst the economic challenges plaguing our country. We have persisted in our remarkable journey of transformation, propelling our bank to the forefront of Mortgage Banking in Africa.”

  • Bank recapitalisation and the North

    Bank recapitalisation and the North

    SIR: Ongoing Central Bank of Nigeria (CBN)-ordered recapitalisation of banks  has serious implications for the banking sector, the equity capital market, the Nigeria Deposit Insurance Corporation of Nigeria (NDIC) and northerners.

    The recapitalisation will make the banking sector stronger and enhance its ability to finance productive economic activities that can grow the economy; the capital market may be overwhelmed  by equity stocks as Initial Public Offer (IPO) and Right Issues from  banks flood the market. The banks must complete the process of bolstering their minimum capital by  31st March, 2016.

    The banks may go for mergers and acquisitions or the unpleasantness of self-downgrading. A few of the banks may upgrade their licenses. The CBN said in its circular of March 28, 2024  that  promoters of new banks whose applications for licences were pending or have been given preliminary approvals must also meet the new minimum capital requirement.

    The new minimum capital requirements for the six categories of banking licences are ₦500 billion for banks that would operate nationwide and overseas; ₦200 billion for national licence; regional banks must have ₦50 billion capital to operate. Merchant Banks are required to have ₦50billion as capital base. Non-interest national and regional banks are required to have minimum capital of ₦20 billion and ₦10 billion respectively.

    The CBN sees the new minimum capital as vital to enable  the banks play a stronger supportive role in  growing the economy to a USD$1 trillion size.  They are also expected to buoy the economy against what the CBN called the “prevailing macroeconomic  challenges and headwinds occasioned by external and domestic shocks.”

    Justifying recapitalisation of banks, the Bank of Canada  says on its website: “Higher bank capital requirements reduce the severity of financial downturns. The higher the buffer created by capital, the higher the bank’s probability of surviving a downturn. Surviving banks are then well placed to continue providing credit during the recovery phase.”

    The required recapitalisation of banks offers an opportunity for Nigerians of the 19 northern states to buy shares in the banks, become part owners and join the boards of the institutions. This will give them influential voices in the banks and the chance to push for favourable consideration in granting  credit facilities for  viable business proposed by Nigerians from the North.

    If Nigerians from the North invest in the banks, thereby becoming stakeholders, their perennial complaints that banks in the country frequently reject their applications for credit facilities could be reduced, or even eliminated.

    Pan-northern organisations like the Northern Elders Forum (NEF), the Arewa Consultative Forum (ACF), the Coalition of Northern Groups (CNG), Northern States Christians Elders Forum, the Northern Governors Forum (NGF), Northern Senators Forum (NSF) and others should mount a sensitisation  campaign to mobilise and encourage Nigerians from the North to buy equity stocks in the banks for the numerous advantages that such would entail.

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    Now, it is appropriate to highlight  the role of the NDIC  as banks navigate the downturn while trying to up their minimum capital.

    The NDIC establishment act  empowered it to administer the Deposit Insurance Scheme (DIS) in Nigeria, which was  established by government to shield depositors against the loss of their insured deposits in member-institutions should a member-institution fail to meet its obligations to depositors.

    The  law empowered the NDIC to supervise banks so as to protect depositors; foster monetary stability; promote an effective and efficient payment system; and promote competition and innovation in the banking system. The banking supervision role of the NDIC  reduces the potential risk of failure.

    However, if an insured bank fails, creditors and shareholders could be paid liquidation dividends after depositors had been fully reimbursed. This implies that becoming a shareholder in a bank comes with some protection from the NDIC. So northerners should buy bank shares.

    • Salisu Na’inna Dambatta wrote from Dambatta.
  • Recapitalisation: Analyst sees positive outlook for bank stocks

    Recapitalisation: Analyst sees positive outlook for bank stocks

    A financial analyst has predicted a positive outlook for bank stocks as recapitalisation of the banking sector takes off.

    The two-year recapitalisation exercise, which commenced on April 1, 2024, and is expected to end on March 31, 2026, requires minimum capital of N500 billion, N200 billion, and N50 billion for commercial banks with international, national and regional licences respectively.

    Likewise, the CBN also raised capitalisation baseline for merchant banks (N50 billion) and non-interest banks (National: N20 billion and Regional: N10 billion).

    A capital market expert, Ambrose Omordion, said the financial services sector, particularly the banking sector, remains the most relevant on the Nigerian Exchange Limited (NGX).

    Speaking in a TV programme monitored in Lagos, he called on the Central Bank of Nigeria (CBN) to allow banks to pay 2023 dividends to investors.

    According to him, the unaudited 2023 financial year results, banking stocks continue to be among some of the best performers based on sound fundamentals. He said outside of the FBN Holdings, UBA Plc, Guaranty Trust Bank, Access Bank and Zenith Bank (FUGAZ), he was impressed with Fidelity, Wema, Jaiz, and Sterling Banks’ results and that they are promising stocks.

    Omordion said banks not paying 2023 dividends will send the wrong signal to the investing public and may work against the planned recapitalisation exercise since it is the same investors and shareholders the banks will turn to for fresh capital injection.

    According to him, most of the banks are solid enough to pay dividends. For instance, Fidelity has for 15 years paid dividends to its shareholders and its declared financial year 2023 results can support dividend payment.

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    “At the end of the day, if you really want these banks to recapitalize, you need to let them reward their shareholders. If you prevent them from paying dividends, you will send the wrong signals to investors.

    “Most of them are solid to pay because outside of their FX gains, their interest income and earnings from trading activities are impressive,” says Omordion.

    According to the analyst, the banking sector may not be in the trillionaire club yet (quoted stocks with very high capitalisation and or earnings) but in terms of liquidity, volume of trade, active trading, and consistent payment of dividends over the years, banking stocks remain the best on the exchange and a must-have in any portfolio.

    “These days, because of the new listings of big tech and energy companies, we are seeing some changes in the market.

    “But still the banking sector remains the most active in the market in terms of liquidity, volume and consistent payment of dividends.”

    The analyst called on the apex bank to speedily approve the release of the financial year 2023 results the banks submitted to it for vetting, adding that dividend payment is what will encourage investors to buy into the proposed recapitalisation exercise.  

    He said: “Most of the results have been delayed with CBN. Investors wonder why. Is it that the CBN is still screening, examining, or querying the numbers? At the end of the day, if you really want these banks to recapitalise, you need to let them reward their shareholders.”

  • Bank marks 32 years of impacting lives

    Bank marks 32 years of impacting lives

    Abbey Mortgage Bank has celebrated its 32nd anniversary.

    In  three decades, the bank has made an impact on individuals and communities.

    Since 1992, Abbey has been a pioneer in the sector, providing mortgage services and retail banking to serve customers’ needs.

    “Through dedication and innovation, our workforce has been the driving force behind Abbey Mortgage Bank’s transformative journey,” said Mobolaji Adewumi, managing director/chief executive officer.

    “Our commitment has played a role in shaping Abbey into what it is today.”

    Abbey has leveraged technology to enhance services. It has mobile apps for customers convenience and secure banking solutions.

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    The bank addresses societal needs through innovative products and initiatives.Last year, it launched WIRE, to bridge the gap in the real estate industry for women. WIRE empowers women to thrive in the sector.

    Abbey Mortgage Bank commits to its corporate social responsibility initiatives, contributing to society, including Abbey Walk for Environment 2022 and donations to address medical challenges.

    The bank supports arts, recognising culture and creativity,  including student stage productions as Lipstick Fever and Duke of Shomolu Plays.

    The bank has also achieved a remarkable decrease in non-performing loans (NPL), reducing from 70 per cent in 2020 to an impressive 7.35 per cent as at (current year). This achievement reflects the bank’s prudent risk management practices and dedication to maintaining a healthy loan portfolio.

  • Bank rewards workers’, customers’ loyalty in campaign

    Bank rewards workers’, customers’ loyalty in campaign

    Wema Bank has launched its 2024 Love Adventure campaign, offering customers and employees rewards and cash prizes in February.

    The campaign will promote a culture of love and appreciation among the bank’s audiences, while showcasing the role it plays as a support system for customers.

    Love Adventure Campaign hopes to empower the bank’s customers with resources and opportunities to enrich the love season, with rewards via its digital platform, ALAT.

    Executive Director of Retail and Digital Business, Tunde Mabawonku, noted  the bank’s resolve to providing exceptional experience for customers and a support system for stakeholders.

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    “Every day is Valentine’s Day for our customers but that doesn’t mean we would settle for the minimum in celebrating the season. We brought a twist to Valentine with this celebration and made the decision to be our customers’ ‘Val’, reinforcing our commitment to supporting lives…

    “I encourage everyone to tap into this opportunity by. downloading ALAT to enjoy discounts and financial rewards… ‘‘, he said.

    The campaign runs through February and will transform the experiences of customers, creating an unforgettable love season for all.

  • Bank refutes distress report, pledges customer loyalty

    Bank refutes distress report, pledges customer loyalty

    Wema Bank has said it is not in distress and its depositors are not in panic

      It dismissed unsubstantiated reports in sections of the media. 

    The bank said rather than bow to pressure from peddlers of distasteful news, customers and shareholders are impressed with its 2023 performance captured in Q3.

      Wema’s Profit Before Tax skyrocketed by 130 per cent in 2023, with N21.76 billion against N9.46 billion in 2022.

    It earned commendation of customers  for its success in combating fraud and ensuring financial security for customers, as results showed it reported legal claims of N8 billion and recorded the least reported fraud losses of N239.92 million in 2023.

      The bank said its depositors are not in panic because this information is not a discovery. These are disclosure items required of banks in their AFS, which Wema has made public in  its financial statements.

      It said following its growth and progress, customers and shareholders applaud it in anticipation of the success to be unravelled as the trajectory of Wema’s journey soars.

     The bank said Wema continues to exceed expectations and hit impossible targets, earning the loyalty of Nigerians.

    It noted  the initiatives and diverse solutions offered by Wema gives substance to its rising numbers.

  • Bank gets director unveils growth plans

    Bank gets director unveils growth plans

    Abbey Mortgage Bank kicks off 2024 with fresh developments.

    In addition to the appointment of a new chairman, the bank welcomes Mrs. Adenike Kuti as a new independent non-executive director to the board. This sets the stage for a year ahead filled with opportunities and exciting directions for the bank.

    Mrs. Kuti is a chartered accountant and corporate finance professional, with a background in business development, mergers & acquisitions, and investment banking.

    She obtained her first degree in accounting from the University of Lagos and a Master’s degree in finance and investment with first class honours from Nottingham University Business School. She also holds an MBA from the University of Oxford.

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    Mrs. Kuti has worked for Leapfrog Investments Limited, Africa Finance Corporation, KPMG and Vetiva Capital Limited. As an associate director of Leapfrog Investments, she structured, executed and managed its investment portfolio of 350m USD in Ghana, Kenya and Nigeria.

    She is the founder of Oakheirs Limited, which played a pivotal role in the merger of CAP Plc and Portland Paints Plc.

    Mrs. Kuti also sits on the board of E-finance Limited as a non-executive director.

  • Sterling Bank appoints Mayaki as new board chair

    Sterling Bank appoints Mayaki as new board chair

    Sterling Bank Limited has announced the appointment of Mr. Olatunji Mayaki as the Chairman of the Board effective January 1, 2024, following the resignation of Mr. Asue Ighodalo, effective December 31, 2023.

     In a statement released by the Company Secretary, Temitayo Adegoke, “The resignation of our erstwhile Chairman is in line with the best corporate governance practices as Mr. Ighodalo has offered himself for public service.”

     Ms. Adegoke continued by saying, “Mr. Mayaki takes on the leadership of the Board to continue the progressive growth and lead the Bank onto even greater success.”

     Mayaki assumes the board’s leadership after serving as a non-executive director. His extensive background spans the practice of Law with the firm formerly known as Ajumogobia, Okeke, Aluko & Oyebode. He further served as the pioneer Vice President of Legal & Compliance of ARM Limited, Country Head of Legal and Group Company Secretary for all Shell Petroleum companies in Nigeria, and Deputy Managing Director of Addax Petroleum Nigeria.

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     He sits on the Governing Council of a Nigerian private university, Davidson, and a UK-based NGO and charitable organisation, Chestrad, from where he has championed the establishment of several programmes in Nigeria to support health systems, social development, women, and the girl child.

     An alumnus of the prestigious University of Ibadan, as well as Harvard and INSEAD business schools, Mayaki’s background in Law, Finance, and Investment and overall career experience further strengthens the Bank’s dedication to strong corporate governance.

  • Bank robberies

    Bank robberies

    • Ikere-Ekiti and Lagos prove that different approaches to security have different consequences

    Coincidentally, the recent daylight bank robberies in Ikere-Ekiti, Ekiti State, happened as Lagos State made the headlines for zero bank robbery in the last four years. The coincidence provided a context for comparison.

    About 20 masked robbers armed with dynamite and sophisticated firearms had attacked two banks in Ikere-Ekiti, broke into their vaults, made away with unspecified sums, and killed at least seven people in operations said to have lasted about 45 minutes. The presence of military checkpoints and Police Area Command in the town was of no consequence.

    The robbers were reported to have attacked the Ikere command of the Amotekun Corps, a state-owned security outfit, before moving to the Wema Bank and Access Bank branches located in different areas of the town. Two members of Amotekun were killed. The attacks on the banks were carried out simultaneously.  

     A briefing by the state Commissioner of Police, Dare Ogundare, indicated that the robbers were still at work when men of the Tactical Command and nearby divisions of the Nigeria Police Force (NPF) were deployed to back up those in Ikere to overpower the criminals. It is puzzling that they failed to apprehend the robbers. All the police could do, with support from soldiers, was prevent them from moving their vehicles.

     The Ekiti State Command of the NPF said it had stepped up investigation of the robberies, but there has been no update about two weeks after the incidents. The police in the state must ensure that the bank robbers are brought to justice.

    It is a markedly different story in Lagos State, where Governor Sanwo-Olu attributed the non-occurrence of bank robberies in the last four years to the continuous review of the state’s security architecture. Sanwo-Olu made this linkage at the 17th Town Hall Meeting on security organised by the Lagos State Security Trust Fund (LSSTF), where stakeholders met to evaluate security in Lagos between October 2022 and September 2023. This is a testimony to the state government’s focus on security.

    He said: “LSSTF, fuelled by voluntary donations, has significantly strengthened our security architecture, providing essential vehicles and equipment. While challenges still persist, our state’s security landscape is notably more stable than many other parts of the country.”

    He also unveiled security-related plans for 2024, saying the state government, in collaboration with local government authorities, would provide 300 patrol vehicles through the LSSTF at the beginning of next year. He added that Lagos Neighbourhood Safety Corps (LNSC) had been repositioned to gather actionable intelligence to support security responses.

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    Although Lagos recorded 189 cases of residential robberies under the year in review, 172 of them were foiled by security operatives and 257 suspects arrested. This is another testimony to the state’s security capacity.

    Other significant details regarding security in Lagos were presented at the meeting, including information that the Lagos State Police Command received only nine patrol vehicles from the Federal Government within two years, and the Fund used donations it received in the last 10 months to bridge the equipment shortfall within federally controlled security agencies operating in Lagos. The Fund received N318.75m in cash donations this year.  Notably, Lagos is the only state in the country with 28 functioning bullet-proof vehicles.

    The sum of N2bn raised at the event, through voluntary contributions, showed that the stakeholders, from both the public and private sectors, recognised that security is a serious issue. Indeed, it is too serious to be left to the federal authorities.

    The Lagos approach to security is innovative and exemplary. Other states in the country should learn from it, and devise their own arrangements to complement the Federal Government’s security architecture. That way, at worst, incidents like the Ikere-Ekiti bank robberies would be rare occurrences.

  • When banks fleece their customers

    When banks fleece their customers

    By Samuel Jekeli

    SIR: The banking sector plays a crucial role in the economic development of any nation. Nigeria, with its vibrant economy, relies heavily on the integrity of its financial institutions to maintain trust and stability. However, a growing concern has emerged regarding the minor and unnoticeable theft some bank workers perpetrate. This issue affects individual customers and casts a shadow on the reputation of the banks and the country as a whole. While these actions may seem insignificant in isolation, their cumulative impact can be substantial, affecting both customers and the bank’s overall reputation. In many cases, it is the unsuspecting clients who bear the brunt of such dishonest practices.

    One prevalent form of mini-theft involves unauthorized charges that customers may not immediately notice. These charges often go unnoticed until customers meticulously review their account statements.

    Another form of theft is through subtle manipulations in interest or exchange rates during transactions. These manipulations, even if slight, can accumulate into substantial losses for clients over time. Unfortunately, these acts of dishonesty not only impact individual customers but also contribute to the erosion of trust in the banking sector.

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    One alarming trend associated with bank workers is the habit of passing the blame up the hierarchy.. This not only complicates the resolution process but also tarnishes the reputation of the bank’s leadership.

    This blame-shifting culture can have severe consequences for the overall efficiency of the banking sector. It creates an environment of distrust and undermines the collaborative efforts needed to maintain a secure and transparent financial system. The blame game not only hinders the resolution of specific cases but also perpetuates a culture of dishonesty within the industry.

    The actions of a few dishonest bank workers, while seemingly isolated, collectively contribute to staining the image of the entire country. In a globalized world where perceptions matter, reports of corruption within the banking sector can deter foreign investors and damage Nigeria’s standing in the international community.

    The reputation of a nation’s financial institutions is integral to its economic growth. When stories of mini and unnoticeable theft by bank workers make headlines, potential investors may question the integrity of the country’s financial system. This scepticism can result in reduced foreign investments and hinder the nation’s progress toward economic development.

    To tackle the issue of mini and unnoticeable theft by some bank workers in Nigeria, a multifaceted approach is required. Transparency must be at the forefront of banking operations, with financial institutions proactively disclosing their fees, charges, and transaction policies. This transparency not only empowers customers but also creates a culture of openness within the sector.

    Accountability is equally crucial in addressing this challenge. Bank workers found guilty of engaging in mini theft must face consequences for their actions. Internal mechanisms for reporting and investigating such incidents should be strengthened to ensure that dishonest employees are held accountable. This includes fostering a culture where individuals feel safe reporting misconduct without fear of retribution.

    Institutions should invest in educating their employees about the consequences of dishonest practices and the importance of upholding the integrity of the financial system.

    By fostering a culture of transparency, accountability, and ethical conduct, the banking sector can regain the public’s trust and contribute to Nigeria’s sustainable economic development. It is time for the industry to take a united stand against dishonest practices and work collaboratively towards building a banking system that is fair, transparent, and resilient

    • Samuel Jekeli, Centre for Social Justice, Abuja.