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  • Fidelity Bank Profit Before Tax Inclines By 72.4% In First Half Of 2021

    Fidelity Bank Profit Before Tax Inclines By 72.4% In First Half Of 2021

     

    Fidelity Bank Plc has posted a profit before tax (PBT) of N20.6 billion for the six months ended June 30, 2021.

     

    The Managing Director/Chief Executive Officer of Fidelity Bank, Mrs. Nneka Onyeali-Ikpe, disclosed this in the bank’s audited half-year (H1) results released to the Nigerian Exchange (NGX) Limited on Sunday in Lagos.

     

    Onyeali-Ikpe said that the bank’s PBT represented a 72.4 percent growth when compared to N12.0 billion recorded in the comparative period of 2020.

     

    She added that profit after tax (PAT) rose to N19.31 billion from N11.30 billion recorded in the corresponding period.

     

    She said the growth was on the Back of Increased customer transactions and improved operational efficiency.

     

    “We sustained our impressive financial performance with double-digit growth in profit as increased customer transactions drove non-interest revenue while improved operational efficiency continued to moderate cost-to-serve,” she said.

     

    Onyeali-Ikpe also said that the financial result for the period indicated that Gross Earnings increased by 6.2 percent Year-on-Year (YoY) to N112.3 billion on account of 27.8 percent growth in Non-Interest Revenue (NIR) to N23.8 billion from N18.1 billion in H1 2020.

     

    She added that the bank’s NIR was driven by strong growth in commission on banking services by 57.7 percent, account maintenance charges by 50.6 percent, digital banking income by 49.4 percent, and trade income by 33.7 percent among others.

     

    Total customer-induced transactions across all distribution channels increased by 58.0 percent YoY and 21.2 percent QoQ.

     

    The bank showed a good appetite in funding the real sector with net loans and advances increasing by 15.8 percent YTD to N1.53 billion from N1.32 billion in 2020FY.

     

    However, the actual growth was 14.7 percent while the impact of the currency adjustment (2020FY: N400.3/dollars-H1 2021: N410.6/dollars) accounted for a 1.1 percent YTD growth in the loan book. Cost of risk came in at 0.3 percent and the NPL ratio (stage 3 loans) dropped to 2.8 percent from 3.8 percent in 2020FY.

     

    Other regulatory ratios remain well above the minimum requirement: capital adequacy ratio at 18.8 percent from 18.2 percent in 2020FY.

     

    Total Deposits increased by 16.5 percent YTD to N1.98 billion from N1.69 billion in 2020FY, driven by increased deposit mobilization across all deposit types.

     

    “Digital Banking gained further traction as we now have 55.1 percent of our customers enrolled on the mobile/internet banking products and 89.3 percent of customer-induced transactions were done on digital platforms.”

     

    She also explained that the bank’s foreign currency deposits increased by 23.1 percent YTD at 149 million dollars and now accounted for 18.5 percent of total deposits from 17.5 percent in 2020FY.

     

    According to her, this is as the bank continues to harness the benefits of its renewed drive in the diaspora banking space.

     

    “We look forward to sustaining the current momentum in H2 by optimizing our balance sheet and lowering our cost–to–serve.

     

    “This will translate to improved earnings while we remain committed to our medium to long-term strategic objectives,”  Onyeali-Ikpe said.

     

     

  • COVID-19 Fear Grips GTBANK, Workers Told To Get Vaccinated Or Get Sanctioned

    COVID-19 Fear Grips GTBANK, Workers Told To Get Vaccinated Or Get Sanctioned

    The fear of the dreaded Covid-19 seems to be ravaging GTBank as the financial institution has threatened to sanction its workers who refuse to get vaccinated.

     

    BUSINESS BELLS learnt that a protracted COVID-19 emergency among its staffers has forced the Guaranty Trust Holding Company Plc (GTCO), owners of GTBank, to impose a mandatory vaccination policy as defaulters risk a 50% pay cut.

     

    In an internal memo, titled -‘Deadline for Covid-19 Vaccination’, and dated Tuesday, September 13, 2021, the financial institution directed its staffers to take the mandatory COVID-19 jab or face the consequence.

     

    The memo signed by the bank’s Operational Risk Management Team in Ajose Adeogun office area of Lagos State stated;

     

    “All staff have been mandated to ensure they receive their vaccines in their various locations on/before 30th of September 2021.

     

    “Please be informed that starting October 2021, any staff that fails to comply will no longer be allowed into the bank’s premises and may be placed on half salary,”

     

    See the memo addressed to staff by GTBank below:

    Covid-19 Fear Grips GTBANK, Workers Told To Get Vaccinated Or Get Sanctioned

    It would be recalled that earlier in the year (2021), COVID-19-related symptoms affected a large number of staffers of GTBank branch located at 42 Oyin Jolayemi St, Victoria Island, Lagos.

     

  • JUST IN: Buhari Seeks National Assembly Approval For Fresh External Loans

    JUST IN: Buhari Seeks National Assembly Approval For Fresh External Loans

     

    President Muhammadu Buhari has requested the National Assembly to approve for it $4,054,476,863 and €710 million.

     

    Buhari is also seeking the nation’s legislature’s approval for grant components of $125 million in the 2018-2020 external rolling borrowing plan.

     

    This is contained in a letter addressed to both chambers of the National Assembly and read on the floor at the resumption of plenary by the presiding officers on Tuesday.

     

    Part of the letter read, “I write on the above subject and submit the attached addendum to the proposed 2018-2020 external rolling borrowing plan for the consideration and concurrent approval of the senate for the same to become effective.

     

    “The distinguished Senate President may recall that I submitted a request on 2018-2020 borrowing plan for the approval of the senate in May 2021.

     

    “However, in view of other emerging needs and to ensure that all critical projects approved by Federal Executive Council as of June 2021 are incorporated, I hereby forward an addendum to the proposed borrowing plan.

     

    “The projects listed in the external borrowing plan are to be financed through sovereign loans from the World Bank, French Development Agency, EXIM Bank and IFAD in the total sum of $4,054,476,863 and €710 million and grant components of $125 million.”

     

    Details later…

     

     

  • Heritage Bank, Others Bankroll SCOA Handover of Trucks, Equipment Worth N15.5bn To Julius Berger

    Heritage Bank, Others Bankroll SCOA Handover of Trucks, Equipment Worth N15.5bn To Julius Berger

    Heritage Bank Plc, Nigeria’s Most Innovative Banking Service provider and seven other banks have provided a total of N15.5billion to assist SCOA Nigeria Plc for the importation and supply of MAN Platform Trucks and equipment to Julius Berger Nigeria for construction of 380km Abuja-Kaduna-Kano roads and many others across the country.

     

    Specifically, Heritage Bank availed SCOA Motors an Advance Payment Guarantee (APG) N4.64 billion for the project.

     

    Whilst, other banks – Zenith, Wema, UBA, Union, Unity, Coronation and Providus Banks complemented the global total sum.

     

    The sum total covers for 33 trucks and technological equipment.

     

     For the first phase during the ceremony, 16 of the trucks were handed over to Julius Berger and the second phase of delivering will be executed next month.

    Heritage Bank SCOA
    R-L: Mother Dan-Egwu, Regional Head, Lagos Mainland, Lagos Mainland Zone of Heritage Bank Plc; Henry Agbamu, Chairman of SCOA Nigeria Plc; MD of Julius Berger Nigeria Plc, represented by Ralph Brendicke and GMD/CEO of SCOA Nigeria Plc, Dr. Massad Boulos, during the Official Handover Ceremony of State-of-the-Art Man Trucks and Wirtgen Equipment to Julius Berger Nigeria Plc with Heritage Bank being one of the lead financiers, weekend in Lagos

    Commenting on the Official Handover Ceremony of State-of-the-Art Man Trucks and Wirtgen Equipment to Julius Berger Nigeria Plc, the MD/CEO of Heritage Bank Plc, Ifie Sekibo stated that the support efforts through project financing in the various sectors of the economy is one of the platforms that underscores our resolve and readiness to make a mark in the financial sector as a major pivot of socio-economic transformation of the country.

     

    The Regional Head, Lagos Mainland Zone of Heritage Bank, Mother Dan-Egwu, who represented Sekibo, said the bank partnered to support SCOA Nigeria Plc for its long and outstanding presence in the automobile market, by retaining the cutting edge in their line of business.

     

    Dan-Egwu disclosed that the Heritage Bank’s philosophy is to support businesses to grow in their discharge of duties; she was quoted as saying, “For us at Heritage Bank, our core business philosophy as a timeless wealth partner to our customers is captured in our mission to create, transfer and preserve wealth.”

     

    According to her, the bank’s field of engagement of support has so far been diversified, covering economic sectors such as Micro, Small and Medium Enterprises, agriculture, entertainment and arts, education, oil and gas, aviation and haulage as well as the public sector.

    Heritage Bank
    R-L: Ralph Brendicke, Representative of the MD of Julius Berger Nigeria Plc; Mother Dan-Egwu, Regional Head, Lagos Mainland, Lagos Mainland Zone of Heritage Bank Plc; Engr. Amresh Shrivastava, Deputy CEO of SCOA Nigeria Plc and Federal Republic of Germany’s Head of Mission in Lagos, H.E Ambassador Dr. Von Munchoe-Pohl, during the Official Handover Ceremony of State-of-the-Art Man Trucks and Wirtgen Equipment to Julius Berger Nigeria Plc with Heritage Bank being one of the lead financiers, weekend in Lagos

    Earlier in his address, the GMD/CEO of SCOA, Dr. Massad Boulos commended Heritage Bank and the other banks’ roles, as the transactions were made possible through their solid partnership.

     

    “I will also thank Heritage bank, their Directors, MD; Unity Bank and other senior bankers official & the entire team of banks, they’ve worked closely together with us on this project, same with Providus Bank, they all have worked together tirelessly for the success of this project,” he said.

     

    According to him, this partnership is like no other considering the parties involved especially SCOA Motors and Julius Berger in the official hand over of state of the art modern trucks for use on the road constructions’ equipment for the execution of the biggest and the most significant project in Nigeria; the Abuja/Kaduna/Kano express way.

     

    SCOA Motors Plc has been operating in the Nigeria Market since 1922. The company has over the years expanded from Automobiles to other lucrative ventures such as importation and assembling of Vehicles and Generating plants, Agriculture /Food processing.

     

  • Obiano Threatens To Seal Banks, Sanction Market Leaders Over IPOB’s Sit-at-home

    Obiano Threatens To Seal Banks, Sanction Market Leaders Over IPOB’s Sit-at-home

     

    The Anambra State Governor, Willie Obiano, has threatened to seal banks and punish market and motor-park leaders who will dare stay at home on Mondays or any day so declared by the Indigenous People of Biafra, IPOB.

     

    He directed banks, markets and motor parks in the state to be in operation on Monday.

     

    The governor, who said the sit-at-home compliance adversely affected the Gross Domestic Product and the general economy of the state, maintained that banks that failed to open on such days would be sealed for a week, adding that if such banks refused to open subsequently, they would be permanently closed.

     

    While addressing transport leaders at the Governor’s Lodge, Amawbia, on Sunday the governor cautioned against further adherence to the order which he said had become inimical to the state.

     

    He said, “I urged the commuters to feel free to ply their usual routes across the state on Monday, whether they ride or drive motorcycles, keke, shuttle, buses.

     

    “If markets don’t open, I will sack the leadership of the market. If the market and park leaders don’t comply, their leadership will be changed within two weeks.”

     

     

  • LASAA Holds Conference, Exhibition For Stakeholders

    LASAA Holds Conference, Exhibition For Stakeholders

     

    By Adejuwon Osunnuyi

     

    Lagos State Signage and Advertisement Agency, LASAA, has announced plans to host the 2021 Out-of-Home Advertising Conference and Exhibition for stakeholders.

     

    According to a statement signed by LASAA Managing Director, Mr Adedamola Docemo, the event, with the theme ‘Roadmap for the growth of signage and out-of-home advertisement post-Covid-19, is scheduled to hold on the 23-24 September 2021 at Eko Convention Center, Eko Hotel, Victoria Island Lagos, Nigeria.

     

    Docemo said the conference aimed to find innovative solutions to the issues affecting the outdoor advertising industry since the pandemic started.

     

    He said, “This conference opens the opportunity for all advertising stakeholders to come together in search of a new future for outdoor advertising in line with Lagos’ Smart City plans and the THEMES Agenda of Governor Babajide Sanwo-Olu of Lagos State, who is expected to be the special guest at the event.

     

    “It will also provide an opportunity for the exchange of ideas, debates and deliberations between representatives from the public and private sectors and key players in the outdoor advertising industry, both locally and internationally.”

     

    “It will be an honor and privilege to have your esteemed self and members of your association to participate in this landmark event.”

     

    You are enjoined to visit www.lasaaoutdoorconference.com to register and be a participant at the Conference and Exhibition.

     

  • Agrolog, Mastercard Foundation Partner To Empower 60,000 Ginger Farmers in Nigeria

    Agrolog, Mastercard Foundation Partner To Empower 60,000 Ginger Farmers in Nigeria

    Agrolog General Services Limited in collaboration with the Mastercard Foundation will support 60,000  smallholder farmers in vulnerable indigenous ginger farming communities in Kaduna State.

     

    The partnership will provide immediate materials, capacity, and structural support to boost ginger production and increase work opportunities for young people and adults in Nigeria.

     

    Agrolog has been investing in the development of the ginger value chain since 2018.

     

    The Managing Director of Agrolog Limited, Dr. Manzo Maigari, explained that in addition to improving yields of ginger from 18 metric tons per hectare (MT/ha) to 25MT/ha, the intervention will also create 60,000 on and off the farm jobs that will benefit the farmers and their communities by providing economic recovery, growth, and social stability.

     

    According to Dr. Maigari, only smallholder farmers that belong to existing organized cooperatives within these local government areas can participate in the initiative.

     

     Farmers who  are selected will receive support ranging from training to farming implements that they can immediately use on their farms to cultivate ginger and food crops. 

     

    “The ginger value chain, if well harnessed can transform livelihoods. Ginger products such as ginger spices, powder, oil, medicine, tea, and tonic confectioneries hold massive opportunities for smallholder farmers, young people, and women across the entire value chain. From planting, harvesting, cleaning, cutting, processing, bagging, storage, and sales, this initiative offers a ray of hope to thousands of families in their local communities who have been further paralyzed by the pandemic. Now, they will be able to rely on a steady and sustainable income stream through ginger farming and processing,” Dr. Maigarisaid.

    Ginger

    The partnership unlocks a multitude of benefits to farmers and the farming community, including mechanization, training and capacity building, farm mapping, standardization of measures, increased yields, improved processing, access to organized markets, and financial inclusion. 

     

    A participant in the initiative, Kakuta Irimiah, lauded the partnership between the Mastercard Foundation and Agrolog saying that the fertilizers and farm inputs they provided have helped to expand her business.

     

    “The Agrolog fertilizer I received helped me to produce more bags of ginger. I used to produce 30 bags per hectare  and now I produce between 50 to 100 bags. I have also received training on how to apply the fertilizers and how to construct drainages to prevent my farm from being washed away by erosion. Before this time, the colour of my produce was yellowish but now, it is greenish which is a sign of healthy and quality produce,” she said.

     

    Speaking on the initiative, Chidinma Lawanson, Country Head, at the Mastercard Foundation said; “Our partnership with Agrolog is poised to drive immense production of ginger and create work opportunities for youth across the ginger value chain.  It also will alleviate the impending threat to food security and livelihoods, which has worsened with the ongoing pandemic.”

    Ginger farm

    The intervention is being supported through the Mastercard Foundation COVID-19 Recovery and Resilience Program, which is targeted at offering timely support to mitigate the impending economic crises among the vulnerable indigenous communities.

     

    The intervention is also aimed at averting further disruptions to the ginger supply chain because of the COVID-19 pandemic.

     

    The BUSINESS BELLS reports that Agrolog Limited is a newly established agribusiness company specialized in the production and trade of agricultural commodities, agro logistics, various agricultural investments and farm management.

     

    The company seeks to entrench a culture of operational excellence that guarantees transparency from farm to table.

     

    Agrolog has contrived partnerships through Innovation Platforms (IPs) that bring farmers and investors together enabling ecosystems that allow for collaborations that build farmers capacities, provision of quality inputs and standardization of practices that ensure high productivity and quality outputs. 

     

    The Mastercard Foundation works with visionary organizations to enable young people in Africa and in Indigenous communities in Canada to access dignified and fulfilling work. 

     

    It is one of the largest, private foundations in the world with a mission to advance learning and promote financial inclusion to create an inclusive and equitable world.

     

    The Foundation was created by Mastercard in 2006 as an independent organization with its own Board of Directors and management.  

  • e-Naira Will Strengthen Banking System, CBN Reassures

    e-Naira Will Strengthen Banking System, CBN Reassures

     

    The Central Bank of Nigeria, CBN, has said e-Naira will strengthen the banking system and make it easier to comply with existing laws such as anti-money laundering, customer protection against fraud and ensuring the safety and stability of the payment system.

     

    The Deputy Governor Operations, Central Bank of Nigeria, Mr Folashodun Shonubi, said this at the Chartered Institute of Bankers of Nigeria advocacy series webinar held recently.

     

    Shonubi said, “The Central Bank in its implementation has ensured the e-Naira feeds our economy and provides greater value.

     

    “The central bank digital currency offers all the benefits of cash but in digital form. Every single digital currency is an electronic version of the cash, the legal tender. When you make a cash payment, settlement is done instantly; digital currencies entail the same promises and even more.”

     

    He added, “CBDC offers a safer option from the privately issued cryptocurrency which have been based on the possibility to enable cheaper transactions but have now been used for investment.

     

    “The intention is not to eliminate other forms of payment but to complement the current areas of payment options, thereby ensuring the stability of the payment system in the long run. I expect in the coming days we will see rapid inclusion rates.

     

    “For banks in developing nations, it will enhance their liquidity, efficiency in national remittances and challenge the high cost of remittances as the world rebounds in the post-pandemic.

     

    “I am of the view that the era of CBDC promotes greater opportunities, and the central bank must be aware of the risks and mitigate them.”

     

    On his part, Director-General of the Securities and Exchange Commission, Mr Lamido Yuguda said, “The pilot project on the E-Naira is about to be launched in October. People would want to position their digital currencies in such a way that many other users, beyond their borders, would use this particular currency.”

     

    Yuguda said that the digital currency would help improve the capital market when combined with vibrant inter-developmental policies, which would lead to financial inclusion, especially in the capital market.

     

    He added, “This is an opportunity for the fintech market to connect our people to existing opportunities in the financial market, connecting our people with investment opportunities in other climes. Once we do that, we would grow our market, Nigeria has 200 million people. We are blessed with a hardworking youthful population.

     

    “This capital market would in turn finance the necessary infrastructure investment that this country needs today.”

     

    President, Fintech Nigeria, Ade Bajomo, said “The digital currency brings the opportunities to reduce poverty and increase financial inclusion. There are opportunities in terms of resilience, accelerating cross border payment, and promoting financial inclusion.”

     

    Bajomo added that it provided an opportunity to explore the Fintech and the digitalisation of Nigeria and empower innovators and financial services companies to innovate.

     

  • Return Unused Forex In Two Weeks, CBN Orders Travellers

    Return Unused Forex In Two Weeks, CBN Orders Travellers

     

    Travellers who buy foreign exchange from banks for travel purposes but fail to embark on the trip two weeks after their scheduled travel date must return the forex to the banks, the Central Bank of Nigeria has said.

     

    First Bank of Nigeria disclosed this in an email to its customers titled ‘Adherence to forex sale policy’.

     

    It said, “We have been directed by the Central Bank of Nigeria to inform all our customers that unethical practices to circumvent the new CBN policy on the sale of forex, such as the presentation of false travel documents, visas, and the cancellation of flight tickets after purchasing personal travel allowance and business travel allowance, will no longer be tolerated.

     

    “Defaulting customers who present fraudulent travel credentials or cancel their tickets and fail to refund the purchased PTA and BTA within two weeks, as stated in the signed customer declaration form, will have their identities and bank verification numbers published.

     

    “We aim to implement this policy immediately as an organisation that is fully compliant with the Central Bank of Nigeria’s rules and regulations.

     

    “Our bank is committed to partnering with the CBN to ensure a transparent, efficient and stable FX Market that meets the needs of all legitimate users.”

     

  • Forex Ban: We’ll Publish Your Identities, Banks Alert Defaulting Customers

    Forex Ban: We’ll Publish Your Identities, Banks Alert Defaulting Customers

    The identities of defaulters who circumvent the Central Bank of Nigeria’s policy on Foreign Exchange will be published, banks have notified their customers.

     

    The CBN had recently directed all commercial banks to publish the names and BVNs of customers who engage in fraudulent and unscrupulous practices to obtain foreign exchange from banks on their websites.

     

    The CBN had said, “Consequently, further to the various measures already put in place, all banks are hereby directed to publish on their websites the names and BVN of defaulting customers who present fake travel documents or cancel their tickets and fail to return the purchased PTA/BTA within two weeks as stipulated in the customer declaration form signed by them.”

     

    Both First Bank and United Bank for Africa have alerted their customers on the implementation of the CBN policy.

     

    First Bank in an electronic mail to its customers said, “We have been directed by the Central Bank of Nigeria to inform all our customers that unethical practices to circumvent the new CBN policy on the sale of forex, such as the presentation of false travel documents, visas, and the cancellation of flight tickets after purchasing personal travel allowance and business travel allowance, will no longer be tolerated.

     

    “Defaulting customers who present fraudulent travel credentials or cancel their tickets and fail to refund the purchased PTA and BTA within two weeks, as stated in the signed customer declaration form, will have their identities and bank verification numbers published.

     

    “We aim to implement this policy immediately as an organisation that is fully compliant with the Central Bank of Nigeria’s rules and regulations.

     

    “Our bank is committed to partnering with the CBN to ensure a transparent, efficient and stable FX Market that meets the needs of all legitimate users.”

     

    Also, UBA encouraged its customers to adhere to all CBN guidelines as directed.

     

    An e-mail sent by the bank read, “In line with our promise to keep you up to date on policies that may affect you, please note that the CBN has directed all banks to publish a list of PTA/BTA defaulters on their website.

     

    “Customers involved in fraudulent practices such as presenting fake visas or cancelling airline tickets after receiving PTA/BTA and failing to return the funds received to the bank within two weeks will have their details published (name and BVN) on our website.”