MTN
Nigeria Provides WAN Solution For CBN Branches
Nigeria's
leading telecommunications company, MTN, has signed an agreement
for the provision of wide area network solutions to support 21 Central
Bank of Nigeria (CBN) branches across the country.
MTN Nigeria recently signed agreements providing similar services,
with FCMB and GT Bank.
The wide area network solution provided by MTN should assist the
CBN for effective and efficient communication infrastructure, real
time connectivity and as part of achieving CBN financial system
strategy FSS2020.
The wide area network data solution will bring a host of benefits
to CBN in terms of cost effectiveness, improving the quality and
speed of data network within Central bank organization.
It will be recalled that MTN Nigeria is the largest telecommunications
company in Nigeria with coverage in over 200 towns, and more than
10,000 villages and community across the 36 states of the federation.
MTN has built in excess 3,400 base stations in Nigeria, and its
3,600 fiber optics is the largest private infrastructure of its
kind in Africa. The company is poised to consolidate its achievements
in telecommunications by offering superior products and services.
Why
Nigerian Banks Are Solid Soludo
Governor of Central
Bank of Nigeria, Prof. Chukwuma Soludo, has once again stated
that Nigerian banks are healthy and free from crisis from
external source.
He disclosed this at a media parley to address recent developments
in the nation's financial system.
Soludo said: “There is no crisis in Nigerian banks.
The era of not knowing which bank is safe and which is not
safe is gone, or which is in clearing and which is out of
clearing. The Nigerian banking system has gone past that stage.
The total shareholders fund for Nigerian banks stood at N2.7trillion
post consolidation, whereas before consolidation the total
shareholders fund of the 89 banks was just N293million.
“Even if all the entire exposures of the banks at the
capital market go bad, and the banks are to write it off as
bad debts, the banks will still be
left
with N2 trillion (which means the total exposure of the banks is
just N700 billion, and this includes values of shares deposited
with a bank as collateral for credit facilities).”
The governor revealed: “Our banks are
well capitalized, relative to their exposure at the capital market,
so if all these exposures are written off, we will still have a
strong and robust banking sector, none of our banks will fail, and
we will support the banks no matter what happens.” He maintained
that “the consolidation exercise that was carried out in Nigeria
about three years ago has prepared the Nigerian banking system for
the ongoing financial meltdown,” adding “I can assure
you that our banks can weather the global financial storm without
experiencing any crisis.”
Speaking on liquidity in the system, Soludo
said: “Our banks can operate efficiently with N25billion and
some have more than just the regulatory requirement. At the last
Bankers Committee Meeting, CBN asked the banks if any of them is
under any liquidity pressure. CBN insisted that any such bank must
declare it because the system must not fail as it is the engine
of the economy.
“As we speak today, none of our banks
is out of clearing, so there is no basis to say we have sick banks.
At any case, the CBN is the lender of the last resort and whatever
it would take to preserve our common wealth in any of the banks
would be done to ensure that our banks are preserved.”
Zenith
Bank's Shareholders' Funds Hit N346bn
Zenith Bank's 2008
audited result that was released recently showed that the
bank has shareholders' funds of N346.6 billion, a 198 per
cent rise from N116.4 billion the previous year.
The bank is also making a dividend payout of N28.5 billion,
the highest ever by any bank in Nigeria. This amounts to N1.70k
per share as against N1.10k per share last year.
The result, which was released on the floor of the Nigerian
Stock Exchange (NSE) in Lagos, shows pre-tax profit of N56
billion, up from N25 billion the previous year. Gross Earnings
rose to N208 billion, a 120 per cent increase
from N94 billion
recorded the previous year, indicating an increasing market share.
The result was commended by financial analysts and
investors as “outstanding” as it shows the ability of
Zenith Bank “to sustain its performance, raise the bar of
competition and continuously meet the expectation of shareholders”,
a statement from the bank said.
Zenith Bank, which recently moved its financial year end from June
to September, is known for its consistently strong financial performance
over the years.
The performance over the years has earned Zenith
Bank excellent ratings and recognitions from local and international
agencies.
Agusto & Co., Nigeria's foremost rating
agency, has for the ninth consecutive year rated Zenith Bank Triple
A (Aaa), saying “the bank is a financial institution of impeccable
financial condition and overwhelming capacity to meet obligations
as and when they fall due”, while Fitch Ratings currently
rates Zenith Bank AA- (National).
Zenith Bank was recently named “Best Global
Bank in Africa” by the African Banker at an award ceremony
held in Washington DC, United States.
Earlier, in August, the Bank was named the Best Bank in Nigeria
by the influential Euromoney magazine.
Bank
PHB Profits Hit N26 Billion
Bank
PHB has been consistent in its growth rate as is evident in
its just released financial statements. The bank in the last
three years has grown its earnings and profits higher than
the banking industry growth rate which has been sustained
in the full year results for the year ended 30 June 2008.
The results, just released, show the bank's earnings hitting
N87 billion, 141 percent higher than the N36 billion earnings
for the same period in 2007. Profit before tax continue to
rise than earnings in the last three
years, rising
153 percent from N10 billion to N26 billion within the same period.
Commenting on the results, Francis Atuche, MD/CEO Bank PHB said
“We have once more shown that we can sustain the superior
returns delivered to shareholders in the last three years as well
as maintain our above industry growth rate through the delivery
of exceptional customer services”
Last year, financial analysts had observed that Bank PHB was growing
earnings at about twice the average growth rate of earnings in the
Nigerian banking industry while profits grew at thrice the banking
industry average.
The bank has sustained the trend for the third consecutive year.The
fast pace growth rate has been backed up with strong growth in efficiencies.
Analysis of the bank's financials shows a significant six percent
reduction in cost to income ratio to 46 percent, one of the lowest
in the Nigerian banking industry. The bank's profit per naira of
earnings also shot up from 28 kobo in 2007 to 30 kobo in 2008.
“Being a low cost competitive producer of banking services
is key to our strategy, It keeps out waste and increases the dividends
we are able to distribute to shareholders of the bank” Atuche
had said.
The significant cut in cost to income ratio comes despite the bank
doubling its business size within the same period as Bank PHB phenomenally
grew its branches and pursued offshore expansion in a bid to have
more presence across the African continent.
Bank PHB has already opened for business in The Gambia where it
acquired 100 percent majority stake in a Gambian bank which has
been transformed into Bank PHB, The Gambia.
“Our pan African expansion drive is on course. We are continually
seeking viable banking and finance businesses across Africa that
will add value to our operations. We plan to announce new openings
in strategic countries in Africa within the next few months as detailed
in the prospectus of our Initial Public Offering (IPO) in November
2007” Atuche disclosed.
It will be recalled that Bank PHB had a highly successful initial
public offering (IPO) in November 2007, which was subscribed to
the tune of 263%. The bank closed its 2008 financial year with a
capital base of N168 billion, 363 percent higher than the 2007 capital
base of N36 billion.
With the conclusion of the placing of N85 billion in August 2008,
the bank's capital base is now in excess of N250 billion making
it one of the top three most capitalized banks currently operating
in Nigeria.
FirstBank
Is Quoted Company Of The Year
Nigerian
Stock Exchange (NSE) has named FirstBank Nigeria Plc as the
Quoted Company of the Year 2007.
The award was given to FirstBank for its “continuing
commitment to corporate governance and improved disclosure
levels in the reporting of its financials” at the annual
NSE dinner held in Lagos.
The bank's market capitalizations had crossed the N1 trillion
mark in February 2008, the first Nigerian company to reach
this threshold, “and the clearest evidence of the market's
estimation of its worth”, the bank's Head, Corporate
Planning & Group Coordination, Mr. Hafiz Bakare, had
said. Several
months down the line, and in spite of the downturn in the market,
the bank remains the most capitalized stock on the floor of the
NSE almost twice as big as the second most capitalized company.
The bank also emerged joint winner of the NSE's 2007 President's
Merit Award for the banking sector “for the presentation,
quality and depth of its annual report and accounts for the year
2007”.
The award which was inaugurated in 1972 by the NSE is aimed at
promoting corporate governance and creating healthy competition
among quoted companies. The award was received by the bank's Executive
Director, Risk & Management Control, Mr. Lamido Sansui, at the
NSE's 31st Annual President's Merit Award.
A pioneering supporter of best-fit corporate governance practice
in the country, FirstBank's disclosure levels have earned it consistent
plaudits from rating agencies, since 2003 when its annual reports
and accounts included an industry-first corporate governance section,
including considerable details on the bank's management structures
and processes, the statement said.
“FirstBank's corporate governance practice remains at the
industry's cutting-edge.
This is in keeping with the bank's commitment each year to increase
the quality and breadth of its financial and non-financial communications
with stakeholders,” Bakare said.
The bank's 2008 annual reports and accounts comprise a “Risk
Management Disclosure” section, which is said to have considerably
raised investors and analysts' expectation bar as the bank provides
responsible leadership within corporate Nigeria.
Local and international investors' enthusiasm played key roles
in one of the defining moments in the bank's annals, the floating
in 2007 of the biggest offer in the history of the country's capital
market, at the time, with a value of N100 billion (hybrid of rights
and public offer in equal proportions) and public offer subscription
of over 750 per cent.
This lifted the number of the bank's shareholders from 400,000
to well over 1.3 million. This “unequivocal testimony”
to the strength of the bank's equity is under girded by the bank's
highly diversified board, competent, reliable, and stable management,
strong economic value, and good ethical practice and high transparency
level, the statement said.
FirstBank, the first Nigerian bank to open an offshore business
location in the United Kingdom (UK) is winning this award in the
banking category for the 13th time.
Intercontinental
Bank Partners Oando on ATM
Intercontinental
Bank has entered into a strategic partnership with oil marketing
giant, Oando, which could help the frontline banking conglomerate
consolidate its dominance in Nigeria's rapidly expanding Automated
Teller Machine business (ATM).
The bank rated by the latest Switch report
as the most reliable ATM service provider and commanding the
highest number of hits has powered ahead of its major competitors
in card services and electronic payment transactions.
The
mould-breaking deal sealed recently in Lagos gives Intercontinental
bank franchise to deploy ATM at Oando service stations.
Divisional Head, E-Banking Intercontinental
Bank, Mrs. Chinyere Don-Okhuofu, said the arrangement was in keeping
with the bank's tradition of creating innovative approaches to doing
business. “At Intercontinental Bank we are always on the look
out for opportunities that we can leverage on to bring fast, reliable
and satisfactory service to our customers”.
Oando's expansive network of stations across
the country, Mrs. Don-Okhuofu said will enable Intercontinental
bank extend its cutting edge ATM services to more Nigerians. There
are over 500 Oando service stations spread across the country. The
bank in the first phase of ATM deployment will roll out 90 machines
to Oando service stations while subsequent deployment would be made
in batches.
The bank's bullish deployment of ATM and other
POS channels across the country has ensured a steady but rapid growth
in volume transactions as more Nigerians especially in the urban
areas come to embrace e-payment solutions.
Speaking at the formal signing ceremony, Chief
Operating Officer, Oando, Lara Banjoko, said the deal, which she
described as a 'win-win partnership' would not only add value to
customers of both companies, but also boost ATM usage in the country.
“We have utmost confidence going into
this partnership. The two companies involved are reputable brands
that attaches huge premium on customer satisfaction, this partnership
therefore holds huge benefits for Nigerians”, she said.
In recognition of its impressive performance
in card business Intercontinental bank was recently bestowed with
the Growth Award by Postilion, a United States based provider of
integrated solutions for self-service banking and payment processing.
According to the organization, the award was given to the bank because
it recorded the highest percentage growth in transaction volumes
over the past year.
In the last five years the bank has leveraged
on its over 300 network of branches to drive an aggressive ATM market
penetration and distribution strategy which has not only helped
in bringing ATM closer to its increasing customer base but also
growing its card and channel businesses.
Analyst said the increasing patronage of intercontinental
Bank's ATM and card services may not be unconnected with its accessibility,
reliability and efficient service delivery.
Ebong
Advises Govts On PPPs
The Group
Managing Director/Chief Executive of Union Bank of Nigeria PLC,
Dr. Barth Ebong, has called on the various tiers of government to
undertake infrastructure investments using the Public-Private-Partnership
(PPP) on a massive scale to alleviate the infrastructure deficit
in the country.
Dr. Ebong made the assertion in a presentation on Financing Infrastructure
in an Emerging Economy: The PPP Option, delivered at the First Akwa
Ibom State Infrastructure Summit held in Uyo recently.
He said the time was now ripe to undertake such infrastructure
investments, especially considering the country's buoyant financial
sector, while also stressing the need to upgrade the level of technical
expertise at all levels of government to manage the PPPs.
He noted that progress had been made in the direction of establishing
the enabling environment for PPPs in form of the requisite legal
enactments, regulatory regimes and the coming to power of a government
that “has sworn to uphold due process in transactions of government
with the private sector”.
Dr. Ebong said it had become imperative to involve the private
sector in the financing of infrastructure projects to achieve desired
rate of economic growth in the country, adding that failure to undertake
appropriate levels of infrastructure investments would constrain
further growth of the economy.
“The problems associated with the traditional mode of infrastructure
provision, even in the face of growing demand for infrastructure
services, suggest that appropriate provision/financing mechanisms
must be put in place to ensure an optimal level of infrastructure
investments in an economy”, he stated.
The Union Bank boss also noted that experience with public provision
of infrastructure services had thrown up some issues such as inadequate
cost recovery mechanisms, non-adherence to contract terms by governments,
and widespread delays in project completion.
Dr. Ebong further observed that PPPs could be exploited to expand
infrastructure investments in the country in a more efficient manner
that guarantees “value for money”; expand the range
of financing options for infrastructure investments; open more business
opportunities for the private sector; while promoting user contributions
to cost of provision of infrastructure services.
The two-day summit was declared open by the Akwa Ibom State Governor,
Chief Godswill Akpabio and attended by members of the State Executive
Council and several other captains of industries and dignitaries.
Fidelity
Bank Declared Africa’s Best in CSR
Honour
on an international scale came the way of Nigeria's Fidelity Bank
Plc at the weekend for her efforts in the area of social investing.
At a colourful ceremony at Willard Intercontinental
Hotel in Washington DC, United States, on Friday night, the 10th
of October, 2008, Fidelity Bank was declared Africa's Most Socially
Responsible Bank by the African Banker Magazine.
The Award Ceremony hosted by the 41 year-old
magazine, published out of London, was part of the events of the
2008 IMF-World Bank meetings holding in Washington DC.
According to Mr. Omar Ben Yedder, publisher of the African Banker
which also has in its stable, the African Economy and the New African
magazines, and Awards Coordinator, Anna Rosenberg, the awards are
to encourage world class practices among African Banks.
Fidelity Bank beat a Nigerian bank and three
other nominated banks from South Africa, Egypt, and Cameroon to
emerge winner in the category.
According to the organizers, Fidelity Bank emergence was not just
for spending, but focus, strategy and coordination.
They cited Fidelity's advocacy and support to
the environment, mentioning that beyond the environmental beautification
projects sponsored by Fidelity in various parts of Nigeria, Fidelity
has become the first and only bank in Africa that has shown commitment
to environmental protection by using recycled and biodegradable
papers for dispensing cash to customers as against the polythene
bags used by other banks.
Fidelity has also shown interest in support
to creative arts, an area rarely supported by other corporate bodies.
Also in favour of Fidelity CSR programme is
what is called the Helping Hands Programme, which the organizers
recognized that when it fully takes off will make Fidelity the only
bank with a CSR structure that enables them to support every host
community.
Reacting to the news of the award, Mr. Reginald
Ihejiahi, Managing Director of Fidelity Bank, said it was encouraging
to the management and staff of the Bank that their commitment to
social investing was being recognized on a global stage.
Analysts who spoke in Nigeria yesterday said
that the honour to Fidelity Bank shows that an institution that
is strategically managed can actually be profitable while being
socially responsible as well.
Fidelity Bank's performance for the financial
year ended June 30, 2008, which was released last week, showed that
she grew her profit before tax by 219 percent from N5.11billion
last year to N16.31 billion this year.
The tier-one capital also grew 353per cent from
N30.10billion to N136.37 billion (USD1.2billion) making it one of
Nigeria's top ten capitalized banks.
According to experts, as Nigerian banks grow and become bigger corporations
and expand to the rest of Africa and beyond, they must have CSR
strategies that will enable them become and remain acceptable in
their host communities.
The African Bankers Award is one in a string
of recognitions for Fidelity Bank in recent times. In August this
year, it won the NIPR Social Enterprise Report Awards (SERA) as
Most Socially Responsible Company in Nigeria for support to the
Arts.
It also won the Telecoms Awards for Financing
Telecoms (transactions) in 2008. On an international level, Fidelity
was also the runner-up in July at the Commonwealth Business Council
Award for CSR as well.
GTB
Clinches 31st NSE President's Merit Award
Guaranty Trust Bank
plc has for the seventh time in the last twelve years won
the Nigerian Stock Exchange President’s Merit Award
for quoted companies in the banking and investment sector.
The award which was presented to the Bank at the Exchange's
31st Annual President's Merit Award dinner is reserved for
exceptional quoted companies that have shown a high degree
of adherence to statutory legislature, prompt release of financial
information and production of financial reports, prompt and
orderly conduct of annual general meetings, exceptional financial
performance and consistent returns on shareholder equity.
According
to Lola Odedina, Head, Communications & External Affairs for
the Bank, the award is a confirmation of the Bank's commitment to
uphold good corporate governance and generate value for its shareholders.
She further said that winning the award for the 7th time in the
last 12 years confirms the Bank's leadership role in the industry
and buttresses the Bank's commitment to setting new standards in
the industry. The Bank had previously won the award in 1996, 2000,
2003, 2004, 2005 and 2006.
Guaranty Trust Bank plc is one of the most service focused and
innovative financial institutions in Nigeria. The Bank which has
a bias for corporate and institution banking was the first African
Bank and Nigerian Company to be listed on the London Stock Exchange.
In 2007, it was voted as the most respected company in Nigeria in
a survey of opinions of CEOs by PriceWaterhouseCoopers and Business
Day newspaper.
The Bank presently has 143 branches in Nigeria, 4 non-bank local
subsidiaries and banking subsidiaries in The Gambia, Ghana, Sierra
Leone, and the United Kingdom. Its businesses include institutional,
investment, commercial and retail banking as well as wealth management,
financial advisory services, small to medium and medium to long
term capital financing.
Guaranty Trust Bank has a triple A (AAA) risk asset rating from
Agusto & Co, a double A minus (AA-) rating from Fitch Rating
and a double B minus (BB-) rating from Standard and Poors; the same
a Nigeria's Sovereign Rating.
In 2007, the bank was awarded an ISO 9001:2000 certification by
the international Standards Organization (ISO), and is the only
Nigerian Bank to have been the subject of business and brand reviews
by Harvard and Cranfield Business Schools.
