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Tag: Standard Bank

  • Standard Bank speaks on global trade

    Standard Bank has said that significant technological disruptions are reshaping world trade and, driving deeper global integration.

    Head of Trade at Standard Bank,  Vinod Madhavan, said new technologies that manage information and risk more effectively are quietly enabling the participation of a much broader set of players in global trade. These less visible developments point to the steady emergence of a much more integrated and multilaterally inclined global trading system than current headlines predict.

    It said that

    Brexit, United States-China, and trade talks between the United States and its traditional European Union allies get a lot of attention, pointing to a potential fragmentation of the post-World War II multilateral order. Other geopolitical shifts, like deeper integration in Africa, evidenced by 44 African countries signing of the African Continental Free Trade Area (AfCFTA) agreement in 2018, and the hosting of the ICC Banking Commission’s centenary in Beijing in April this year, however, paint another narrative.

     

     

    Despite the headlines, and growing division and unilateralism in the developed West, in the developing world, and especially in Africa, “integration is actually deepening – with China emerging as champion of multilateralism in a new global configuration,” says Mr Madhavan.

    Within these new shifts, new opportunities are emerging – especially for Africa.

     

     

  • RMB, Standard Bank lead on fees, says Reuters report

    Thomson Reuters, a source of intelligent information for businesses and professionals, yesterday released the Investment Banking Sub-Saharan Africa (SSA) region review which showed that Rand Merchant Bank (RMB) and Standard Bank led on fees collection in the first half of this year.

    “The most notable feature of the Sub-Saharan Africa Investment Banking fees verified in the first half of 2018 is that investment banking fees were 12 per cent less than the value recorded in the first half of 2017. This year, they only reached an estimated $241 million,” says Sneha Shah, Managing Director for Africa at Thomson Reuters.

    She adds; “Fees from completed Mergers and Acquisitions (M&A) transactions totaled $33.7 million, a 60 per cent decrease year-on-year and the lowest first half since 2005. On the other hand, Equity Capital Markets (ECM) underwriting fees reached $71.2 million, the highest value since 2007.”

    It said Rand Merchant Bank’s (RMB) continues to lead the chart on most investment banking fees received this year in SSA with a total of $27.4 million or a 11.4 per cent total fee pool. RMB also leads completed M&A and Syndicated Loans fee rankings in second half of 2018.

    Standard Bank, also known as Stanbic, leads the Equity Capital Markets (ECM) underwriting fee ranking with a 25.1 per cent share of the market and Citi leads the Debt Capital Markets (DCM) underwriting fee ranking with a 15.7 per cent market share.

    In comparison, the total Sub-Saharan Africa fees from DCM underwriting fees accounted for 27 per cent of the overall SSA investment banking fee pool, the highest since 2003. Completed M&A and ECM generated 14 per cent and 30 per cent of the total fee pool, respectively, and Syndicated Lending fees accounted for 30 per cent.

     

     

  • Standard Bank, ICBC commit $8.5b to Africa projects

    The Standard Bank Group and Industrial and Commercial Bank of China Limited (ICBC) have provided $8.5 billion financing support for 35 projects in Africa, Standard Bank Group said yesterday.

    According to a report provided at the ongoing Standard Bank Group trans-regional conference in Lagos, the deal, which involves Chinese companies,  is a product of five-year strategic alliance between both lenders.

    Standard Bank has also called for increasing general trade between African countries and reassured on its commitment to connecting clients to opportunities in Africa.

    The bank is escalating its highly successful trans-regional trade and business conferences into a broadly inclusive pan-African initiative aimed at driving collective growth across the continent.

    Standard Bank has hosted two previous conferences in 2016: in Accra focusing on West Africa, and in Nairobi focusing on East Africa. These separate gatherings brought together clients, trade experts and client relationship managers from the countries in each of these regions.

    “Our previous conferences showed us the scale of the opportunity for growing intra-African trade, especially the potential for cross-border trade, to change the growth trajectory of the continent,” Chief Executive Personal and Business Banking at Standard Bank, Zweli Manyathi said.

    In addition to providing critical insight into how best to help clients leverage Africa’s full cross-border potential, “we also realised that increasing trade was a pan-African, and not just a regional opportunity, for the continent,” he added.

    On average, regional trade accounts for about 50 per cent of most regions’ trade flows. In Asia – the world’s fastest growing region – regional trade accounts for up to 70 per cent of some countries’ trade flows.

    Since intra-regional trade in Africa currently accounts for only 12 per cent of trade flows, Standard Bank has identified the rapid promotion of continental trade as a key priority in achieving the kind of growth that will transform the lives of ordinary Africans.

    “If the continent can increase trade between African countries to the global average – that is from 12 per cent to 50 per cent – the continent will be far less reliant on global trade and investment for its own growth. This will also mean that, for the first time in history Africa will be able to set and drive its own investment and growth agenda – independently”.

  • David-Borha named Standard Bank Chief Executive

    David-Borha named Standard Bank Chief Executive

    Stanbic IBTC Holdings Plc yesterday announced major executive appointments and changes in its management structure as part of strategic positioning to sustain its growth into the future. It appointed Sola David-Borha, former Chief Executive, as Chief Executive, Rest of Africa, Standard Bank  Group effective immediately.

    Yinka Sanni was also named the Chief Executive of Stanbic IBTC Holdings Plc. He was until his latest appointment the Chief Executive of Stanbic IBTC Bank PLC.

    He joined Stanbic IBTC Bank in 1990 and rose through the ranks, holding several senior management positions within the organization including that of Co-Head, Corporate and Investment Banking. He also held the position of Executive Director & Head, Corporate and Investment Banking.

    He was the pioneer Chief Executive, Stanbic IBTC Pension Managers Limited and the pioneer Chief Executive Officer, Stanbic IBTC Asset Management Limited. He has a wealth of experience in banking and financial services covering Banking, Stockbroking, Pension, and Asset Management spanning over 26 years.

    As Chief Executive of the Group, Sanni is expected to drive the next phase of growth and execution of its strategy of being Nigeria’s leading end-to-end financial services provider. He holds an MBA from the Obafemi Awolowo University Ile-Ife, having also undertaken the Harvard Business School, Boston’s Advanced Management Programme. He is a graduate of the University of Nigeria, Nsukka; with Bachelors in Agricultural Economics. Similarly, Demola Sogunle has been appointed Chief Executive, Stanbic IBTC Bank Plc.

  • Standard Bank, TMT Finance promote investment opportunities

    Standard Bank, TMT Finance promote investment opportunities

    Standard Bank is partnering with international news and events provider TMT Finance for the inaugural TMT Finance Africa Conference 2016, which is holding in Lagos.

    The event comes at a time of accelerating investment, innovation and mergers and acquisition activity across Africa, and in particular Nigeria, with Lagos widely viewed as the central hub for technology innovation and investment in Africa

    The event will be bringing together the leading decision makers in African telecoms, media and technology (TMT) to Lagos on September 20.

    The event will feature over 60 key C-level speakers from the most active and innovative companies, investors and advisers in Africa, including: Standard Bank, IHS Towers, Airtel, Etisalat, MTN, Vodacom, Africa Internet Group, Ringier, iRoko, MainOne, iPNX, Spectranet, Fibersat, Citi, Convergence Partners, Standard Chartered PE, Carlyle, Africa Capital Alliance and Emerging Capital Partners.

    “As one of the leading TMT banks in Africa, we are excited to partner with TMT Finance for this event, which will bring the key telecom, media and technology companies, investors and advisers to Lagos in Nigeria,” said Standard Bank’s Global Head of TMT, Nina Triantis, who will be speaking on the TMT M&A Panel at the conference in one of the key sessions of the day.

    The event comes at a time of accelerating investment, innovation and mergers and acquisition activity across Africa, and in particular Nigeria, with Lagos widely viewed as the central hub for technology innovation and investment in Africa.

    “Investment and mergers and acquisitions in TMT continues to be especially active in Africa, with many companies across the continent considering strategic options, growth along diverse verticals, private debt and equity financing rounds, mergers and acquisitions, and public listings,” said Standard Bank’s Triantis. “The debt markets continue to be supportive for the right companies in Africa, despite macro challenges in many African countries as well as global uncertainty, though the funding currency and medium will inevitably reflect these challenges,” she added.

    Current deals in Africa being reported by TMT Finance News include MTN’s Nigerian IPO, the sale of South Africa’s Neotel to Liquid Telecom, Millicom’s strategic review of its African assets, several fibre investment projects and fundraisings, and the potential listing/ sale of Nigerian fintech firm, InterSwitch.

    The conference includes five Leadership Panel Debates, five Visionary Keynote Speeches, 8 Peer to Peer Round Tables and Five Networking Sessions.

    Key session themes announced include: Telecom Leadership Africa: Broadband Infrastructure Investment; Digital Africa; Mobile Infrastructure Strategies; Mergers and Acquisitions; Private Equity Africa Roundtable; Regulation and Policy; Financing Telecoms; Broadband Infrastructure.

  • Standard Bank gets licence to operate in Côte d’Ivoire

    Standard Bank, trading as Stanbic Bank, has been formally awarded a banking license in Côte d’Ivoire.  The Group opened a representative office in December 2013, signaling a drive towards establishing a presence in Francophone West Africa, and is now gearing up to commence banking operations in a market which stands out for its diverse, rapidly growing economy and business friendly reputation.

    The country currently enjoys one of sub-Saharan Africa’s fastest Gross Domestic  Product (GDP) growth rates, expected to maintain seven per cent or more over the next three years.

    “We are delighted to be actively expanding into this attractive market alongside many of our existing multi-national corporate clients and look forward to partnering them and other players, as well as supporting enterprises considering entering Côte d’Ivoire and the wider region for the first time”, Stanbic Bank CEO Hervé Boyer said.

    Boyer said Stanbic Bank in Côte d’Ivoire will provide the same high quality Corporate and Investment Banking products, advice and service experience that customers have come to expect across the continent.

  • Standard Bank showcases Nigeria’s economy to investors

    Major domestic and global investors, fund managers, regulators, technical experts and other stakeholders would review the growth opportunities in the Nigerian economy next week.

    The potential of the Nigerian economy will be the main focus at the 7th Standard Bank West Africa Investors’ Conference, to be held in Lagos from February 23 to 25.

    With the theme: Unlocking Nigeria’s Potential…growth through diversification, discerning investors are expected to get hints of growth opportunities in the economy.

    Chief executive, Stanbic IBTC Holdings Plc, Mrs. Sola David-Borha, said that major domestic and global investors as well as fund managers will have access to information on the key economic issues which would enable them make well-informed investment decisions about the country.

    The focus of the event, according to David-Borha, who was represented by Yinka Sanni, chief executive, Stanbic IBTC Bank, is to highlight growth opportunities in critical areas such as power, agriculture, SME, manufacturing and energy, among others.

    She outlined that Nigeria’s burgeoning population, rapid urbanisation, abundance of talents and natural resources, vast consumer market and a vibrant labour force are key pillars to drive the country’s economic renaissance and need for diversification, shifts made imperative by challenging economic conditions due to falling commodity prices in the last two years.

    According to her, the conference, which is built on the successes recorded in the previous editions, will also avail policy makers a platform to unpack Nigeria’s economic direction with a view to deciphering how to move the economy forward.

    Chief executive, Stanbic IBTC Stockbrokers Limited, Mrs. Titi Ogungbesan, identified oil and gas, agriculture, power and macro-economic stability as some of the issues for discussion at the event, which is expected to attract institutional investors from across the globe who will meet with most of the top rated corporate companies in West Africa.

    “Besides the direct impact which these exchanges will make on the Nigerian economy, the conference will provide both local and international investors with opportunities to meet with some of the companies they have investments in, or in which they hope to make investments. It will also serve as a bridge to connect these investors to opportunities inherent in Africa’s biggest economy, which has been opened up for private sector participation,” Ogungbesan said.

    She pointed out that a key lesson derived from previous editions of the conference is the need to consistently put in the public domain the African story where rapid transformation and impressive returns have propelled global growth, which in turn provides sufficient motivation to invest in the continent.

    Key insights on various economic issues would be provided by headline speakers from the Ministry of Finance, Ministry of Power, Works and Housing, Central Bank of Nigeria, Securities and Exchange Commission, Nigerian Stock Exchange, National Pension Commission and Debt Management Office.

     

  • Standard Bank showcases Nigeria’s economy to investors

    Standard Bank showcases Nigeria’s economy to investors

    Major domestic and global investors, fund managers, regulators, technical experts and other stakeholders would review the growth opportunities in the Nigerian economy next week.

    The potential of the Nigerian economy will be the main focus at the 7th Standard Bank West Africa Investors’ Conference, to be held in Lagos from February 23 to 25.

    With the theme: Unlocking Nigeria’s Potential…growth through diversification, discerning investors are expected to get hints of growth opportunities in the economy.

    Chief executive, Stanbic IBTC Holdings Plc, Mrs. Sola David-Borha, said that major domestic and global investors as well as fund managers will have access to information on the key economic issues which would enable them make well-informed investment decisions about the country.

    The focus of the event, according to David-Borha, who was represented by Yinka Sanni, chief executive, Stanbic IBTC Bank, is to highlight growth opportunities in critical areas such as power, agriculture, SME, manufacturing and energy, among others.

    She outlined that Nigeria’s burgeoning population, rapid urbanization, abundance of talents and natural resources, vast consumer market and a vibrant labour force are key pillars to drive the country’s economic renaissance and need for diversification, shifts made imperative by challenging economic conditions due to falling commodity prices in the last two years.

    According to her, the conference, which is built on the successes recorded in the previous editions, will also avail policy makers a platform to unpack Nigeria’s economic direction with a view to deciphering how to move the economy forward.

    Chief executive, Stanbic IBTC Stockbrokers Limited, Mrs. Titi Ogungbesan, identified oil and gas, agriculture, power and macro-economic stability as some of the issues for discussion at the event, which is expected to attract institutional investors from across the globe who will meet with most of the top rated corporate companies in West Africa.

    “Besides the direct impact which these exchanges will make on the Nigerian economy, the conference will provide both local and international investors with opportunities to meet with some of the companies they have investments in, or in which they hope to make investments. It will also serve as a bridge to connect these investors to opportunities inherent in Africa’s biggest economy, which has been opened up for private sector participation,” Ogungbesan said.

    She pointed out that a key lesson derived from previous editions of the conference is the need to consistently put in the public domain the African story where rapid transformation and impressive returns have propelled global growth, which in turn provides sufficient motivation to invest in the continent.

    Key insights on various economic issues would be provided by headline speakers from the Ministry of Finance, Ministry of Power, Works and Housing, Central Bank of Nigeria, Securities and Exchange Commission, Nigerian Stock Exchange, National Pension Commission and Debt Management Office.

     

  • How banks can stimulate SMEs’ growth, by Standard Bank chief

    With Nigeria’s small and medium enterprises (SMEs) sector buffeted by a myriad of challenges, banks have the capacity to reverse the trend and put the sector on the path of sustainable growth, Head, Personal and Business Banking West Africa, Standard Bank, Lincoln Mali, has said.

    He said SMEs in Nigeria face diverse challenges such as management, finance and business environment. In the area of management are issues such as skills shortage, management expertise, financial management, business support and access to markets, while in the area of finance, the SMEs are confronted with cost of capital, lack of collateral, information requirements, regulation impact and culture clash.

    Mali noted that SMEs have underperformed, despite that they constitute over 90 per cent of Nigerian businesses, and their contribution to the nation’s Gross Domestic Product (GDP) is below 10 per cent.

    Also, MSMEs are estimated to contribute 10 per  cent of the employment level in Nigeria, a level well below that of several other countries, including United Kingdom (UK) at 54 per  cent; United States (US) at 50.3 per cent; Bangladesh 80 per  cent; India 80 per cent; Belgium 66.6 percent; South Africa 60 per cent; Malaysia 57.7 per cent, and China 58.8 percent.

    Enhancing financial inclusion according to Mali, is a major driver for moving SMEs from survivalist mode to formal entrepreneurship, and this is where banks have a pivotal role to play. Among other areas that banks can make the difference, according to him, include facilitating basic business trainings and various capacity development programmes; up-skilling relationship managers to become professional business advisors; providing various lending solutions and linkages between corporates and the SMEs in their value chain and strong partnership with MFIs to drive inclusive growth.

    Others include having a real financial inclusion focus with the capacity to understand the market and properly de-risk it; providing some infrastructure to identified SME clusters as CSR (internet access, warehouses, trade portals); advocating for standardised measures of taxation and levying of SMEs in local markets; and leveraging on international affiliations to sponsor knowledge sharing between local SMEs and their foreign counterparts.

    Though the commercial banks have the capacity, but they lack penetration, as they are largely concentrated in Lagos, Abuja and a few commercial hubs. This makes it imperative for banks to create workable partnerships and innovations for deeper penetration, leveraging existing capital to empower businesses and in turn drive economic growth.

    “There will always be opportunities for those with the proper business skills to build a real future for themselves and the economy. At Standard Bank, we are extremely proud to help facilitate this process by helping to structure the financial packages that will help advance the success of SMEs in Nigeria and elsewhere in Africa,” Mali stated.

     

  • Investors likely to be cautious of equities, says Standard Bank

    Investors are likely to be cautious of equities and may probably reduce exposure to equities.

    However, Nigeria still stands a good chance as an attractive destination for Africa-focused investors, Standard Bank’s emerging market strategist-Samir Gadio, has said.

    In a response to enquiry by The Nation, London-based Gadio said global investors could be edgy about Nigeria’s political, currency and transitional risks.

    According to him, there may be limited interest from global emerging market funds, and more generally, investors would likely to be cautious, if not underweight Nigeria, ahead of the 2015 elections, and considering the uncertainty surrounding the transition at the CBN and concerns about the currency.

    “Moreover, the expensive valuations of consumer names and even somewhat less attractive metrics of the banking sector-those have to be increasingly differentiated, represent a constraint on further offshore appetite.

    Gadio noted that the domestic pension funds which have remained largely underweight in equities, may not likely change the disproportionate skew towards fixed-income securities given the high yields on offer in the fixed income market.

    He however noted that there is a favourable technical bias from the growing frontier market investor community and Africa-focused funds that simply cannot ignore the attractiveness of the Nigerian Stock Exchange (NSE).

    He pointed out that the Nigerian market had recorded more than a double of the average return by frontier markets. Nigerian stock market benchmark-the All Share Index (ASI), had recorded a year-on-year return of 47.19 per cent in 2013 as against 20.3 per cent recorded by the MSCI Frontier Markets (MSCI FM) index.

    The 2013 business year set the Nigerian stock market on a new high with average full-year return of 47.19 per cent, its best performance since 2007. Aggregate market capitalization of all quoted equities on the Nigerian Stock Exchange (NSE) closed 2013 at N13.226 trillion as against its opening value of N8.974 trillion for the year. This represented a whooping increase of N4.252 trillion.

    The ASI-a common value-based index that tracks all quoted equities, recorded full-year return of 47.19 per cent rising from its opening index for the year of 28,078.81 points to close the year at 41,329.19 points. The performance in 2013 significantly surpassed the much applauded return in 2012 when equities posted average return of 35.45 per cent, equivalent to capital gains of N2.44 trillion.

    The stock market had closed the first half of 2013 with average return of about 28.8 per cent, equivalent to N2.45 trillion in capital gains. Aggregate market value of all equities on the NSE had closed the first half at N11.426 trillion while the ASI had closed the first half at 36,164.31 points.

    Foreign investors still dominate Nigerian stock market, although Nigerian investors have increased their participation in recent months. Value of foreign portfolio transactions on the NSE increased from N808.4 billion in 2012 to N1.04 trillion in 2013. In both years, Nigeria retained net inflow from foreign investors. However, net inflow dropped considerably from N94.4 billion in 2012 to N20.48 billion in 2013, reflecting the speculative and edgy nature of foreign portfolios during the year.

    But while foreign investors gradually reduced their dominance, Nigerian investors regained more confidence and created a near-balance market situation. Foreign investors had accounted for about 61.4 per cent of total turnover on the NSE in 2012 while domestic investors accounted for 38.6 per cent. However, domestic investors stepped up their participation with 49.2 per cent in 2013 while foreign investors slowed down to 50.8 per cent. Foreign portfolios were the main drivers of transactions on the NSE between 2011 and 2012, with foreign investors accounting for average of two-thirds of equity transactions between 2011 and 2012.

    Total foreign inflow increased from N451.40 billion in 2012 to N531.26 billion in 2013 just as foreign outflow correspondingly increased from N357 billion in 2012 to N510.78 billion in 2013.

    Recent portfolio flow analysis has however shown a consistent trading pattern in foreign transactions. While foreign investors flowed in more funds than they took out in the first half, they have taken more money out than they invested since the beginning of the second half, showing a sustained trend of profit-taking in the second half.