The Nation Newspaper

Tag: First Bank

  • First Bank, UBA, Fidelity, Ecobank sell forex to 350 BDCs

    First Bank, UBA, Fidelity, Ecobank sell forex to 350 BDCs

    Not less than four commercial banks yesterday disbursed the first batch of Diaspora inflow-related foreign exchange (forex) to over 350 bureaux de change (BDCs), it was learnt.

    First Bank, United Bank for Africa (UBA) Plc, Fidelity Bank Plc and Ecobank Nigeria Limited, sold the regulatory $30,000 weekly to each of the beneficiary BDCs, nearly three weeks after they got the Central Bank of Nigeria (CBN) directive on the matter. About $10.5 million was disbursed to beneficiary BDC operators at the interbank rate.

    In a continued effort to ensure stability of the exchange rate and to encourage participation of all critical stakeholders in the foreign exchange market, the CBN had directed through a circular to authorized dealers that all agents to approved International Money Transfer Operators (IMTOs) sell foreign currency accruing from inward money remittances to licensed BDCs.

    The foreign currency proceeds of IMTOs sold to BDC operators shall be retailed to end users in accordance to CBN regulation. Only BDCs that have been cleared by the compliance department of the banks as fully compliant with the KYC requirement were allowed to buy.

    The CBN issued a follow-up circular to all the banks, asking them to sell dollar to BDCs. In the circular titled:  Re: Sales of Foreign Currency Proceeds of International Money Transfers to Bureaux De Change Operators, CBN Acting Director, Trade and Exchange, W.D. Goting, said the authorised dealers shall sell foreign exchange cash to BDCs subject to a maximum of $30,000 to a BDC per week.

    He explained that a BDC shall nominate its preferred authorized dealer, a commercial bank, and can only procure the said amount from only that bank of its choice in a week. The CBN warned that any breach of this condition will attract appropriate sanction.

    The commercial banks, which are the authorized dealers, have been giving stringent conditions to the BDCs finally bowed to pressure from both the CBN to disburse the first set of cash. Nearly 2,600 BDCs are yet to get their allocations, and are at different stages of documentation.

    The banks had also obtained compliance set guidelines commitment from the BDCs before selling to them. Part of the commitment were that the BDCs would not purchase forex from any other bank, except its bank of choice; foreign currency cash purchased by the BDCs shall be sold to forex end-users at a rate not exceeding two per cent margin above the buying rate.

    The BDCs also pledged to ensure that purchased funds would be disbursed to end users and for eligible transactions only and shall render weekly returns on purchases from the banks to Trade and Exchange Department of the CBN.

    The BDCs further promised to ensure strict compliance to the provisions of the anti-money laundering laws observance of appropriate KYC principles in the handling of foreign exchange transactions.

    Reacting to the development, President, Association of Bureau De Change Operators of Nigeria (ABCON) Aminu Gwadabe, said: “It is a good development and I am happy that our members are meeting the banks’ and CBN’s documentation requirement on the matter. I want the remaining operators to update their Know Your Customer details to enable them access their own funds”.

    Gwadabe, who confirmed buying dollar from Ecobank Nigeria Limited, said some operators are yet to apply, urging the banks to extend the disbursements to BDCs operating outside Lagos.

    “It is only in Lagos that we have seen disbursements. Kano, Abuja, Port Harcourt and Benin operators are yet to benefit. I want the banks to also extend the disbursements to BDCs across the country,” he said.

     

  • NLC to shut banks for sacking workers

    NLC to shut banks for sacking workers

    The Nigeria Labour Congress (NLC) on Wednesday threatened to shut down the six banks that recently sacked their workers, giving the affected banks two weeks ultimatum to recall the sacked workers and allow unionization.

    The workers’ sack has already pitched labour against employers of labour in the country with the umbrella body of the employers, the Nigeria Employers Consultative Assembly, saying the government has no right to ask the banks not to sack workers.

    Labour on its part threatened to picket the banks if they fail to halt the mass sack of workers, accusing them of not allowing unionization and reneging on the principles of collective bargaining.

    In a letter to the management of the six banks and signed by its Deputy  General Secretary, Chris Uyot, the NLC said  labour will be forced to close the banks and their branches nationwide if they fail to recall the affected workers.

    The affected banks are – Fidelity Bank, Diamond Bank, First City Monument Bank, First Bank, Ecobank and Skye Bank.

    The letter to one of the affected banks management reads: “I have been directed to inform you that, it has been brought to our notice by our affiliate union, the National Union of Banks, Insurance, and Financial Institutions Employees (NUBIFIE) that your bank is one of those that have arbitrarily sacked a large number of workers in recent times contrary to laid down procedures and the country’s extant labour laws.

    “Also, of concern has been that these blatant retrenchments were carried out without recourse to several correspondence, including letters and circulars sent to you by the union to retrace your steps in line with best practices in labour relations and laws of the land.

    “By this letter, we are giving your bank 14 days  ultimatum commencing  from Thursday, 16th June, 2016 to recall all the sacked workers or face industrial action, which  may include ensuring that your bank and all its outlets are closed for business nationwide. While looking forward to your honouring our request, please, accept our goodwill and best regards.”

  • First Bank admits EFCC investigation over ‘Diezani funds’

    First Bank admits EFCC investigation over ‘Diezani funds’

    The Economic and Financial Crimes Commission (EFCC) is investigating possible lodgement and distribution of the slush political funds distributed by the former Minister of Petroleum Resources, Mrs Diezani Allison-Madueke, in First Bank of Nigeria.

    FBN Holdings Plc, the parent and holding company for First Bank of Nigeria and its former subsidiaries, at the weekend confirmed that the EFCC is investigating the bank because of alleged connections to Diezani’s funds.

    In a regulatory filing at the Nigerian Stock Exchange (NSE) yesterday, the company stated that EFCC has invited an executive director of First Bank, Mr. Dauda Lawal in connection with the Diezani’s funds and he has been cooperating fully with the anti-corruption agency.

    EFCC had two weeks ago also visited Access Bank and Sterling Bank in what appeared to be an industry-wide investigation of the use of the banking system to launder and distribute slush political funds. EFCC had earlier arrested the managing director of Fidelity Bank in connection with the ‘Diezani’s funds’.

    Both Access Bank and Sterling Bank had clarified that the visits by the EFCC were not connected to the Diezani’s slush political funds or the alleged diversion of arm funds linked to the former National Security Adviser, Col Sambo Dasuki (rtd), otherwise known as Dasukigate.

    In a statement to the NSE, Sterling Bank had affirmed that it did not hold account for “the public officer from the previous administration to which this matter (EFCC’s visit to the bank) has been linked either officially or otherwise”.

    Sterling Bank explained that while the reason for the visit by the EFCCwas not immediately clear, it has now been confirmed that the investigation is related to the banking relationship of a non-bank financial institution that is a client of Sterling Bank Plc.

    “We affirm for the public records that the bank does not hold the account of the public officer from the previous administration to which this matter has been linked either officially or otherwise; the non-bank financial institution (Asset Management Company) in question purchased a number of loans on a recourse basis from Sterling Bank Plc on commercially acceptable terms and this is the link of the concern raised by the EFCC to Sterling Bank Plc,” Sterling Bank stated.

  • First Bank awaits CBN’s approval on 2015 earnings

    First Bank awaits CBN’s approval on 2015 earnings

    The Board of Directors of FBN Holdings Plc, the holding company for First Bank of Nigeria and its former subsidiaries, has approved and transmitted the company’s audited annual report and accounts for the 2015 business year to the Central Bank of Nigeria (CBN) for the apex bank’s review and approval.

    A regulatory filing at the weekend indicated that the company’s much-awaited results would be released soon. The CBN approval is the final stage of the approval process, after which the results will be submitted to the Nigerian Stock Exchange (NSE) for onward transmission to the general investing public.

    FBN Holdings’ share price dropped by 4.57 per cent at the weekend to close at N3.34 per share, underlining the anxiety of the investing public that the earnings may further lead to depreciation in the company’s valuation at the stock market.

    The board of FBN Holdings had recently issued a profit warning that its earnings for the year ended December 31, 2015 would fall significantly below targets.

    In a profit warning, FBN Holdings stated that preliminary review of its management account for the business year ended December 31, 2015 has shown that investors should expect “that earnings will be materially below that of the prior year”.

    The holding company said the reduction in earnings was due to the recognition of impairment charges on some specific accounts resulting from a reassessment of the loan portfolio within the group’s commercial banking business.

    It noted that the reassessment was driven by the challenging macro environment, coupled with fiscal and monetary headwinds which have resulted in marked reduction in domestic output.

    “This is a prudent measure being taken while the bank has commenced active remedial action on the specific impaired accounts. Our merchant banking and asset management as well as insurance business remain strong and resilient,” the group said.

    The management of the group however, reaffirmed that it would focus in 2016 on restoring shareholder value by driving improvements in underlying asset quality, cost efficiency, enhancing revenue generation and extracting synergies across the group, as well as growth through innovation.

    Audited report and accounts of FBN Holdings for the year ended December 31, 2014 had shown that gross earnings rose by 21.3 per cent to N480.6 billion in 2014 compared with N396.2 billion in 2013. Interest income had grown by 12 per cent from N323.6 billion to N362.6 billion. Net interest income rose to N243.9 billion in contrast with N230.1 billion recorded in previous year. Profit before tax rose marginally from N91.3 billion to N92.9 billion. Profit after tax also grew by 17.3 per cent from N70.6 billion to N82.8 billion.

    With these, earnings per share had improved from N2.16 in 2013 to N2.55 in 2014, representing an increase of 18 per cent. Total assets rose by 12.1 per cent from N3.87 trillion in 2013 to N4.34 trillion in 2014. Shareholders’ funds improved by 10.8 per cent from N471.78 billion to N522.89 billion.

    FBN Holdings distributed a bonus share of one new share for every 10 shares already held and a dividend per share of 10 kobo for the 2014 business year.

  • Zenith Bank WBL: First Bank BC takes on Benue Princess

    •Dolphins take on Customs

    First Bank Basketball Club will take on Benue Princess today at 3pm in their opening game of second phase of Zenith Bank Women Basketball League, which began in Asaba yesterday.

    First Bank’s coach, Peter Ahmedu said that game would afford his team the opportunity to showcase what they have learnt when the league went on recess after the first phase in Abuja. He stated that they would take the games one after the other.

    “Of course, we observed that the players made some mistakes in the first phase, but since we got to Asaba, we have worked on the players ad hopefully, we will be in the right frame of mind to perform at optimum level.

    “Though we won all our games in the first round, there is always room for improvement and that we hope to achieve that when we start the second round game today. It is always difficult to be at top level throughout the season, but we hope to be at our outmost best during the finals in Lagos.

    “I must confess that the atmosphere is not conducive. The upright is not made of fibre, the playing surface is too strong, while the hall is hot because the roof is made of zinc. I am happy we got to Asaba early and we have acclimatised.

    Meanwhile, Dolphins’ coach Ochuko Okworogun said her team arrived in Asaba on Friday and her players were not able to train on Saturday because the floor of the hall was being worked on. She, however, assured that her players were ready to continue their winning streak in Asaba.

    “We won all our games in Abuja, but some teams gave us a scare, but we have also corrected all the lapses noticed and we hope to do better in Asaba. Like I said in Abuja, some of the smaller teams have really improved, but we are up to the task.

    Dolphins takes on Custom by 5pm today.

  • First Bank, Dolphins in pole position

    First Bank, Dolphins in pole position

    Favorites Dolphins and First Bank Basketball Club lead their respective groups as the first phase of the Zenith Bank Women Basketball League comes to an end tomorrow in Abuja.

    Both teams are yet to drop a game, with Dolphins topping Group A, while First Bank dominates Group B. Both teams have been kept apart in the draws and will likely meet in the grand finale in Lagos.

    The first game for today will involve Benue Princess and IGP Queens, Custom will take on a youth First Deepwater team in the second game, Zamfara Babes will take on AHIP in the third game, while Coal City Queens Taraba Hurricanes will slug it out in the fourth game.

    Also, Immigration will take on GT 2000, Sunshine Angels will tackle First Bank, Delta Force will take on Dolphins while the last game will be between FCT Angels and Plateau Rocks.

    Meanwhile, First Bank Basketball Club have began plans to hit the venue of the second phase, which is expected to begin on April 9 or 10.

    According to Coach Peter Ahmedu, the coaching crew has met with Segun Odegbami, who is the consultant to the bank on sports, on the need to arrive in the venue of second phase instead of coming to Lagos. Three cities, Asaba, Port Harcourt and Ilorin are jostling to host the second phase.

    He said: “We have met with Odegbami and we have told him about why we need to be at the venue of the second phase early just like we arrived in Abuja two weeks before the first phase commenced. I also want to put the team in a position in a position of advantage by arriving early at venue of competition.”

    He also commended the players for their performance so far, urging to continue putting in their best as they aim to win the title this season.”We are meeting our expectation with the performances we are churning out in Abuja and I have told them not to rest on their oars. We are also correcting our mistake so that we can improve with each game.”

    He commended his assistants, Chris Okoh and Taye Adeniyi, for the good job they are doing, the players and the management, noting that all the units work together to make the team great.

  • Tough macro economy, impairments weigh down First Bank’s earnings

    Tough macro economy, impairments weigh down First Bank’s earnings

    The board of directors of FBN Holdings Plc, the holding company for First Bank of Nigeria and its former subsidiaries, yesterday alerted the investing public that the group could record significant decline in earnings in the immediate past business year ended December 31, 2015.

    In a regulatory filing at the Nigerian Stock Exchange (NSE) signed by FBN Holdings’ company secretary, Tijjani Borodo, the holding company stated that preliminary review of its management account for the 2015 business year has shown that it should be “expected that earnings will be materially below that of the prior year”.

    FBN Holdings attributed the reduction in earning to the recognition of impairment charges on some specific accounts resulting from a reassessment of the loan portfolio within the group’s commercial banking business.

    “This reassessment was driven by the challenging macro environment, coupled with fiscal and monetary headwinds which have resulted in marked reduction in domestic output. This is a prudent measure being taken while the bank has commenced active remedial action on the specific impaired accounts. Our merchant banking and asset management as well as insurance business remain strong and resilient,” the group stated.

    The group however reiterated that its focus in the current business year remains restoring shareholder value by driving improvements in underlying asset quality, cost efficiency, enhancing revenue generation and extracting synergies across the group, as well as growth through innovation.

    FBN Holdings’ share price dropped by 4.41 per cent to close yesterday at the NSE at N3.47 per share.

    FBN Holdings had distributed a bonus share of one new share for every 10 shares already held and a dividend per share of 10 kobo for the 2014 business year. Key extracts of the audited report and accounts of FBN Holdings for the year ended December 31, 2014 showed that gross earnings rose by 21.3 per cent to N480.6 billion in 2014 compared with N396.2 billion in 2013. Interest income had grown by 12 per cent from N323.6 billion to N362.6 billion. Net interest income rose to N243.9 billion in contrast with N230.1 billion recorded in previous year. Profit before tax rose marginally from N91.3 billion to N92.9 billion. Profit after tax also grew by 17.3 per cent from N70.6 billion to N82.8 billion.

    With these, earnings per share had improved from N2.16 in 2013 to N2.55 in 2014, representing an increase of 18 per cent. Total assets rose by 12.1 per cent from N3.87 trillion in 2013 to N4.34 trillion in 2014. Shareholders’ funds improved by 10.8 per cent from N471.78 billion to N522.89 billion.

    FBN Holdings’ profit warning came on the heels of earlier profit warning by FCMB Group Plc, the holding company for First City Monument Bank and its former subsidiaries. FCMB Group stated that it would report lower earnings for 2015 financial year.

    In the profit warning, FCMB said its earnings in third quarter 2015 will be materially below earnings for the corresponding period in 2014. It added that the fourth quarter 2015 earnings also followed a similar trend with the third quarter 2015.

    Managing director, FCMB Group Plc, Mr. Peter Obaseki  said the slowdown in the third quarter continued in fourth quarter 2015 and largely emanated from wholesale banking activities, although retail banking showed greater resilience and earnings momentum.

    “Third quarter 2015 earnings as at September 2015, will be materially below earnings for the same period in 2014, due to two factors: a spike in impairments particularly in the energy sector and the significant reduction in trade finance-related revenues due to foreign exchange illiquidity,” Obaseki said.

  • FIBA Africa Zone 3 Championship: First Bank eyes trophy despite changes

    FIBA Africa Zone 3 Championship: First Bank eyes trophy despite changes

    • Mark Mentors, Pillars rekindle rivalry

    New coach of First Bank Basketball Club, Peter Ahmedu has promised that he would improve the fortunes of the club despite the changes that took place before he was appointed the coach.

    Ahmedu, who led Mark Mentors Basketball Club to victory in the DStv Premier Basketball League this year, stated that his desire is to take the team to a greater height and bring back the winning mentality into the team again.

    “I must say that the team I meet in Cotonou is relatively a new one, but with time it will become a unit capable of winning titles. It is clear that we are in transition, however, we will still contest for the FIBA Africa Zone Three crown,” Ahmedu said.

    The coach also expressed happiness that the players and the team officials welcomed him with open arms and noted that the relationship would make his work easier. “I got a fantastic reception when I arrived in Cotonou and I believe that this will help me do a good job as I try to take the team to a new level.”

    When asked how he would tackle Dolphins, who dethroned his team as Nigerian champions, Ahmedu said: “Dolphin is a good side and they showed this by winning the league for the first time this year. They are a compact team and the defending champions of the zone, but we will do everything possible to ensure that we emerge victorious. it is not a small task, but it is achievable.”

    He, however, said that qualifying for the African championship and building a strong team are his immediate priority.

    Meanwhile, Nigerian champions, Mark Mentors and Kano Pillars will renew rivalry when the competition begins on Wednesday at Palaise des Sports de Cotonou.

    Mentors have taken the dominant role over Kano Pillars Dstv Premier Basketball League in the just concluded season. Technical Adviser, Adeka Daudu has since taken over the reign at Mark Mentors after Ahmedu joined First Bank.

    Daudu, who was a former coach of Dodan Warriors, would have his hands full against a Pillars’ side that would be seeking revenge after losing the national title to Mentors.  What is sure is that there would be a lot of fireworks when both teams meet.

    The Championship will be contested by champion and runners-up teams from the eight countries of the Zone, namely Benin Republic, Burkina Faso, Cote d’Ivoire, Ghana, Liberia, Niger, Nigeria and Togo.

  • ACCW Qualifiers: Kenyan import tips First Bank BC for glory

    ACCW Qualifiers: Kenyan import tips First Bank BC for glory

    First Bank Basketball Club Kenyan import, Lynnette Otieno has tipped her team to win the FIBA Africa Zone Three championship, which holds in Cotonou from November 4 to 12.

    Otieno told SportingLife that the players were ready to lift the trophy and travel to Angola as Zone Three champions. She also stated that the players were warming up to the new coach and that they were working in harmony to create a unified team that can vie for honours.

    “We are hoping to win the zonal championship to send a strong message to other teams on the continent that will be at the finals. However, we need to train hard and the new coach is doing everything possible to see that we are in shape for the challenges ahead.

    “What we need to do is to do is to work with the coach so that he can take the club to a greater height,” Otieno said.

    Coach Peter Ahmedu has also told the players that he would count on them to make his job easier.

    “I am happy to be with the team and I must thank the management of Mark Mentors for giving me the opportunity to work with them before my new appointment. This is another chapter in my career and I hope I will excel. I will also need the cooperation of everyone at the club to excel,” Ahmedu said.

    According to his profile on the website of Giant of Africa, Peter Ahmedu lives, eats and sleeps basketball. He has been involved in Nigerian basketball for over 20 years. He was part of the NBA’s Basketball Without Borders program as a coach for 7 years and is heavily involved in the grassroots level for basketball in Africa.

    He was the head coach of the Dodan Warriors Basketball Club in Nigeria and has been with Giants of Africa since the beginning as an instructor and is responsible for scouting and discovering young talents for Basketball Without Borders and Giant of Africa basketball camps.

  • Coach Peter Ahmedu joins First Bank BC

    Coach Peter Ahmedu joins First Bank BC

    Coach Peter Ahmedu has completed his move to First Bank Basketball Club of Lagos and had his first training session with the team in Cotonou on Saturday where the Elephant Girls are preparing for the Africa Women Champions Cup qualifiers from November 4 to 12.

    The coach, who led Mark Mentors of Abuja to the DSTV Basketball League title this season, would be hoping to deliver the Zone Three title as he begins his reign at the club after the sack of coach Adewunmi Aderemi, who guided the team to 10 league and two African titles.

    The coach could not travel with the team on Thursday, but SportingLife gathered that his arrival in Cotonou brought the camp alive as the players were eager to begin work with him. He  told the players that he would count on them to make his job easier.

    “I am happy to be with the team and I must thank the management of Mark Mentors for giving me the opportunity to work with them.  This is another chapter in my career and I hope I will excel. I will also need the cooperation of everyone at the club to excel.”

    According to his profile on the website of Giant of Africa, “Peter Ahmedu lives, eats and sleeps basketball. He has been involved in Nigerian basketball for over 20 years. He was part of the NBA’s Basketball Without Borders programme as a coach for seven years and is heavily involved in the grassroots level for basketball in Africa.

    “He was the head coach of the Dodan Warriors Basketball Club in Nigeria and has been with Giants of Africa since the beginning as an instructor and is responsible for scouting and discovering young talent for Basketball Without Borders and Giant of Africa basketball camps.”

    Ahmedu has also coached teams outside Nigeria and regularly travels abroad to update his knowledge about the slam and dunk game.