The Nation Newspaper

Tag: Stanbic

  • Stanbic IBTC highlights benefits of mutual funds

    Chief executive officer, Stanbic IBTC Asset Management Limited, Mr. Olumide Oyetan, has advised retail investors to put their money in collective investment schemes, otherwise known as mutual funds, in order to safeguard their returns.

    Stanbic IBTC Asset Management Limited, a subsidiary of Stanbic IBTC Holdings Plc, will today launch a nationwide multi-media investor education campaign to improve penetration and awareness of mutual funds. The campaign is specifically aimed at publicizing the unique benefits of mutual funds, while demystifying the erroneous impression that mutual funds are only meant for the wealthy.

    Oyetan said there were numerous benefits associated with investing in mutual funds including the advantage of professional management of investors’ money.

    He noted that Stanbic IBTC’s experience and expertise are based on in-depth research that identifies unique opportunities designed to deliver on reasonable and consistent superior returns without taking undue risk.

    According to him, the concept of buying mutual funds allows investors to sit back, relax and outsource the management of their money to professional portfolio managers. The portfolio managers or fund managers then channel the money into investments in the appropriate assets class selected by the investor based on their investment objective, time horizon and tolerance of risk.

    He explained that mutual funds are similar to the way a co-operative schemes or the local thrift clubs, Esusu, Adashe or Ajo system are operated as many people pool their money together and invest the pool in purely or a combination of money market, equities, bonds or other assets.

    “With an initial minimum investment amount of N50,000, you derive the benefit of pooling other investors money to attract the most competitive interest rates available on sums in excess of N100 million that was hereto only available to big investors or institutions like if it was N500 million therefore achieve higher returns ordinarily available only to “institutional” investors,” Oyetan said

    He noted that as an industry leader, Stanbic IBTC Asset Management has a responsibility to help enhance awareness about mutual funds so as to enable Nigerians benefit from the opportunities derivable from investing in such instruments.

    He pointed out that Stanbic IBTC’s expertise and experience in asset and wealth management as well as corporate and investment banking garnered over many years, in addition to Standard Bank’s rich heritage, are pivotal in guiding investment decisions thereby ensuring that investors derive value from their investments.

    Mutual funds currently managed by Stanbic IBTC Asset Management include  Stanbic IBTC Nigerian Equity Fund; its flagship fund, Stanbic IBTC Ethical Fund; Nigeria’s first socially responsible quoted mutual fund which allows subscribers to make profitable long-term investments without compromising their religious beliefs and/or principles, Stanbic IBTC Guaranteed Investment Fund; a mutual fund that guarantees principal of investments after holding the instrument for a minimum of three months, Stanbic IBTC Balanced Fund; which allows investors benefit from a balanced combination of  equities and fixed income assets, Stanbic IBTC Bond Fund; which provides easy unrestricted access to Nigeria’s rapidly developing bond market, Stanbic IBTC Umbrella which consists of several distinct sub funds namely the Aggressive Fund, the Conservative Fund and the Absolute Return Fund which are traded as individual investment funds. The umbrella fund structure enables investors to invest in any one or a combination of the various sub-funds towards achieving their investment objectives and most recently the Stanbic IBTC Imaan Fund which is an investment where funds are invested only in businesses with high moral values. It’s for people with high ethical standard that conforms to their religious belief in some instance though open to the general public to invest in. The funds are invested in sharia compliant equity and non-interest bearing fixed income securities.

    Stanbic IBTC Asset Management Limited is a wholly-owned subsidiary of Stanbic IBTC Holdings Plc, while Stanbic IBTC Holdings Plc is part of the Standard Bank Group, Africa’s largest bank by assets. Standard Bank Group has been in operation for 151 years and has direct, on-the-ground representation in 20 African countries.  Stanbic IBTC Holdings Plc provides the full spectrum of financial services with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management.

  • Stanbic launches executive service

    Stanbic IBTC Bank has launched its executive bank ing services to cater to the banking and other financial needs of high networth individuals and busy professionals.

    Executive Banking is a personalised banking service that allows clients to be served 24 hours on one-on-one by a bank executive, who helps to evaluate the client’s specific banking needs and then assists him in a timely and professional manner.

    At the launch in Lagos, Executive Director, Personal and Business Banking, Obinnia Abajue, said the service offers considerable benefits to customers adding that it was designed to save clients and their loved ones money and time “At Stanbic IBTC Bank, we realise that people have different banking and financial needs and that the busy professional needs a specialised banking service that is safe, secure and convenient during and after office hours,” he said.

    He said the Executive Banking service provides the busy executive with convenient banking locally and internationally, with an array of products and services to satisfy diverse needs for clients and their families. He assured that as an end-to-end financial solutions provider backed by the experience of the Standard Bank Group, to which Stanbic IBTC belongs, clients are guaranteed a safe, secure, and speedy financial services experience.

     

  • Diamond, Sterling, Stanbic, Wema to raise N209b capital

    Diamond, Sterling, Stanbic, Wema to raise N209b capital

    Four banks have unveiled plans to raise fresh funds to drive their operations and remain competitive.

    The lenders are Sterling Bank, Diamond Bank, Wema Bank and Stanbic IBTC Holding Company. They will be raising N209.2 billion in the coming months.

    Sterling Bank told its shareholders that it was planning to raise additional capital this quarter.

    Specifically, the bank will raise tier 1 capital through a rights issue of N12 billion and a private placement of N19.2 billion.

    The bank’s Group Managing Director, Mr Yemi Adeola, said the fund was necessary to implement medium to long term strategic objectives.

    Adeola, who spoke at the bank’s Annual General Meeting (AGM) in Lagos, said the process of raising the fund began in the first quarter of the year. He added that the lender would continue to drive growth strategies domestically, focusing on building long-term relationships and creating sustainable value for customers.

    Stanbic IBTC Holding Co, the Nigerian unit of South Africa’s Standard Bank Group, plans to raise N22.5 billion ($150 million) in new capital this year, its Chief Executive Officer Sola David-Borha had said.

    She said the bank plans to use the Tier 2 capital for investments in infrastructure and lending. “Loans and advances are planned to grow by 15 per cent by end of 2013, from six per cent in 2012,” she said.

    Stanbic’s net income for the three months through March rose to N3.6 billion from N2.5 billion a year earlier, it said. Revenue climbed to N26.6 billion from N20.4 billion. The lender is seeking to boost its deposit base by 25 per cent this year, David-Borha said.

    Diamond Bank will be raising N118 billion ($750 million) from an undisclosed source to expand its operations while Wema will secure N35 billion through special placing and listing of additional shares for same purpose. Already, Wema has therefore held a completion board meeting to issue 23,333,333,334 Ordinary shares of 50k each at N1.50 per share.

    Diamond Bank’s Chief Financial Officer (CFO) Abdulrahman Yinusa said the lender will raise the money through a share sale or debt offering this year. The bank’s shareholders have already approved the proposal.

    Wema Bank’s management also said it got regulatory approval to raise N35 billion through special placing and listing of additional shares. The fund raising comes a year after the lender raised its annual loan-growth target to 40 per cent from 20 per cent.

    In a statement, Wema said a regulatory approval from the Nigerian Stock Exchange (NSE) and Securities & Exchange Commission (SEC) had been secured. It said with this development, it is expected that the bank would complete the process of raising the required capital before April 30, 2013.

    Managing Director, Wema Bank, Segun Oloketuyi, said the lender was delighted at the development. He said it signifies a milestone in the entire process which began last December.

    “The completion of the placement process will further enable Wema Bank compete more effectively in the banking industry and also enhance the quality of products and services being offered to an increasing customer base. We will remain focused on efficient service delivery whilst scaling our business organically and strategically for superior returns to all stakeholders,” he said.

    Oloketuyi also expressed his appreciation to regulators who have supported the ongoing transformation process in the bank and also praised the painstaking efforts of all parties to the offer in ensuring strict compliance and adherence to all regulatory requirements by the bank that has made the approvals possible.

    The bank expects to use the funds realised from the special placing to grow its business, invest in information technology infrastructure and expand its operations.

    On seeking a National Banking Licence to enable it to expand its scope of physical operations beyond the geographical boundaries, Oloketuyi said the process of exploring available options to securing a National Banking Licence from the Central Bank will commence on completion of the special placing.

    In December last year, Wema Bank announced plans to raise capital by way of a special placing with commitment from investors already secured to the tune of the N35billion offer size. From all indications and with already high interest and demand, the placing will be fully subscribed.

    Analysts said the banks are returning to profitability after Central Bank of Nigeria (CBN) Governor Lamido Sanusi fired the CEOs of eight of the country’s 24 banks in 2009 and gave them a N620 billion ($3.9 billion) bailout, after lending to equity speculators and fuel importers pushed the industry to near collapse.

  • Stanbic IBTC Pension records one million customer milestone

    Stanbic IBTC Pension records one million customer milestone

    Stanbic IBTC Pension Managers, a subsidiary of Stanbic IBTC Holdings PLC, recently celebrated its achievement of one million retirement savings accounts, thus maintaining its position as the leading pension fund administrator in the country.

    At a forum to celebrate this achievement, the company described the industry-first milestone, accomplished in less than a decade of record-breaking growth in the country, as a sign that customers views the company as safe haven for investment and as an institution that delivers exceptional service to its clients.

    Chief Executive Officer of Stanbic IBTC Pension Managers, Dr. Demola Sogunle, said that the organisation’s achievement of this historic milestone demonstrates its leadership position in the industry, being the first pension fund administrator to reach and surpass the one million customer mark. “One million customers in less than a decade is an important achievement and reflects well on the solidity of Stanbic IBTC Pension Managers as Nigeria’s leading pension fund administrator.

    We are very optimistic about the future and the assurance that we give our present and our future clients is that we will continue to manage their funds in a very responsible manner,” he said.

    With the achievement of the milestone in June 2012, Sogunle added, Stanbic IBTC Pension Managers now has over one million retirement savings account holders and assets under management of more than N865billion, paying about N1.5 billion to over 23,000 retirees monthly.

    “Over N112 billion has been paid regularly to retirees since we commenced operations in 2005. Our aim is to continue to set ever higher standards of service delivery and ensure that our retirement savings account holders derive maximum value from their investment,” he explained.

    On her part, Chief Executive Officer of Stanbic IBTC Holdings Plc, Mrs. Sola David-Borha, credited the organisation’s success to its understanding of local needs, driven by a vast pool of sound and experienced personnel, coupled with its membership of Standard Bank Group, Africa’s biggest banking conglomerate.

    According to David-Borha, Stanbic IBTC Pension Managers leverages on Standard Bank’s over 150 years of experience and pedigree in offering its clients excellent services. This foundation, coupled with the organisation’s strong customer understanding, drives its ability to succeed through the right use of insights on its clients’ needs.

    “This is a key historical milestone in Stanbic IBTC Pension Managers’ successful growth story. The achievement reflects the collective focus and commitment of the organisation. It also illustrates the power of our shared values and vision, enabling us to drive these results and also ensuring the safety of clients’ investments. I congratulate all of our employees, partners and customers who contributed to this incredible success story. The milestone will inspire us to achieve even greater success in the years ahead,” she said.

    David-Borha assured customers of Stanbic IBTC Pension Managers’ commitment to delivering exceptional value to retirement savings account holders and retirees and on that basis, reinforces its leadership of the pension fund administration segment of the economy.

     

  • Why Stanbic was picked to sell bonds, by govt

    Stanbic/IBTC was selected on merit as the government stockbroker to sell bonds in the retail market, the Debt Management Office (DMO) has said.

    Its Director, Market Development Department, Mrs Patience Oniha, told The Nation that the bank was selected out of the 17 institutions that applied for the job, after a rigorous screening.

    She said the bank’s strong position in the industry, performance in the stock market and capacity to maintain investors’confidence, among others, were some of the qualities that got it the job.

    She said: “We received 17 applications, following the placement of advertisements for the position of government’s stockbroker for retail bond trading. What we did was that we reviewed all the applicants’ vis-à-vis their ability to meet the requirements stated in the prospectus. In all these, the bank is the only institution that met the requirements.”

    Vice-Chairman, Anchoria Securities and Investments Limited,Dr Olusola Dada, said DMO’s decision to unveil the broker did not come as a surprise.

    Dada said the financial market operators, especially stockbrokers had been looking forward to the announcement, adding that the development has further buoyed confidence in the financial market.

    He said the management of the Nigerian Stock Exchange (NSE) last month ordered stockbroking firms wishing to engage in retail trading of bonds at the secondary market to provide a minimum shareholders’fund of N500 million.

    “The announcement has since generated interest in the market. You know that it is not every firm that trade in bonds, but the issue has elicited joy among some brokers who have the capacity to meet the threshold of N500million as directed by the NSE and, subsequently, play at the secondary end of the bond market. Before bonds were traded only on wholesales, but bonds would henceforth be trading on both wholesale and retail. This means that brokers can buy and sell bonds on behalf of the clients, after getting approval from NSE.” he said.

    Also, the Managing Director, BGL Securities Limited, Mr Sunday Adebola said the market had long expected the commencement of retail bond trading, adding that some brokers have shown interest on the issue.

    Adebola said the announcement did not come as a surprise because a meeting of capital market committee, the Securities and Exchange Commission (SEC) was held on the issue among others last month.

    He said DMO was not only represented at the meeting, but told  the participants that it was finalising the appointment of a  government stockbroker that would engage in retail bond trading.

    He said the market operators still need to meet the DMO on the frameworks for trading on retail segment of the bonds market.

    “Certain issues need to be resolved before the trading commences. How are bonds going to be traded at the retail segment?  What is the minimum size or units that can be traded in the primary market? What is the minimum size to be traded at the secondary market? Is it 1,000 or 10,000 units at each section of the market? I think DMO, NSE and the operators still need to meet on the issue,” he added.