Credit Suisse Group AG plans to eliminate an additional 2,000 jobs this year and deepen cuts at the investment bank, five months after Chief Executive Officer Tidjane Thiam announced an overhaul of the Swiss lender.
Under the plan, the bank plans to cut risk-weighted assets in global markets, which houses securities trading, to about $60 billion this year, compared with a previous target of about $83 billion, with the unit projected to post a loss in the first quarter, the company said in a statement Wednesday. The Zurich-based lender is targeting 6,000 job cuts this year, with gross savings of 1.7 billion francs ($1.7 billion).
Thiam is seeking to stem a slump in shares, down about 41 percent since he announced the company’s overhaul in October, as a drop in energy costs, record-low interest rates and cooling emerging-market growth eroded trading revenue. At Deutsche Bank AG, Europe’s largest investment bank, co-CEO John Cryan said last week that he doesn’t expect to post a profit this year.
The bank said it’s targeting net cost savings of at least 3 billion francs by 2018, up from 2 billion francs, with while costs at global markets will be cut to 5.4 billion francs in that period from 6.6 billion francs at the end of last year.
At Credit Suisse, global markets performance had a “disappointing” fourth quarter, with “continued pressure” in the following three months. Bonuses for the businesses bankers were cut by about 35 percent in 2015, according to slides on Wednesday.
Credit Suisse said on Wednesday that equities will remain “a core area of focus” and that it will continue to build on cash, prime and equity capital markets businesses, while exiting most of the distressed credit, European securitized product trading and long-term illiquid funding.
FINANCIAL LITERACY: Unity Bank Kick-Starts One Minute Genius 2.0
In its drive to boost financial literacy among students in primary and secondary schools across the nation, Nigerian lender, Unity Bank Plc has flagged off Season 2 of its pioneer educational gameplay, the One Minute Genius, OMG.
The OMG 2.0 gameplay, which kicked off on May 3, 2021, on the Unity Bank’s Website is an expanded version of the maiden edition to be played virtually.
Over 200 winners will emerge at the end of the 25-day contest. To win prizes in any of the categories, participating students can play the virtual game from Monday to Friday between 8 AM – 6 PM.
The One Minute Genius (OMG) is an initiative that underscores Unity Bank’s commitment to the development of the next generation, as it seeks to connect with their aspirations and reinforce the importance of education as a vehicle to empower the Nigerian child. Children and students between the ages of 6 –17 years can participate in the game.
According to the Divisional Head, Retail/SME & E-business, Unity Bank Plc, Mr. Olufunwa Akinmade, the idea is to enable the participants to improve their intelligence quotient and unleash the genius in them.
Mr. Olufunwa further explained that the game will be played as a blend of quizzes containing spelling Bee and Arithmetic questions. “The children that answer the questions correctly within the one-minute stipulated timeframe will be rewarded with cash prizes”, he quips.
Throwing more light on the initiative, Mr. Olufunwa said, “the Bank has decided to continue investing in the gameplay because it is pleased with the impact which the previous editions of the contest had created being a vehicle for reinvigorating the values of education through gamification and fun”.
Still speaking, Mr, Olufunwa stated: “Unity Bank remains committed to playing a critical role in advancing learning for a better society by developing the minds of our children. And this virtual, participatory learning and reward contest has proved quite effective in achieving the goals of motivating the students towards subject mastery using a branch of reinforcement model”
He added: “On the heels of COVID-19 pandemic, which has impacted negatively on the education sector in Nigeria by disrupted learning, an activity such as the OMG provides a veritable opportunity to boost learning, even as all stakeholders continue to make deliberate efforts to cater to the needs of our future generation.
“We hope that parents and guardians will encourage their wards with every support needed to enable the students to explore the opportunity that this provides.”
Recall that the 2o20 edition of the OMG attracted massive interests from across Nigeria, producing no fewer than 120 winners who coasted home with millions of naira in cash rewards.
FG Borrowed $5.9B To Fight COVID-19 and Implement Budget – Minister of Finance
The federal government borrowed about $5.9 billion in 2020, to tackle the COVID-19 pandemic and implement its budget. The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, revealed this yesterday.
A statement issued by her Special Adviser, Media and Communications, Mr. Yunusa Abdullahi, yesterday, indicated that the minister told the Collaborative Africa Budget Reform Initiative (CABRI) General Assembly during a webinar, that the federal government had to move quickly to save the economy.
Speaking on Nigeria’s fiscal response – short term interventions and impact on public finances, as an immediate fiscal response, Mrs. Ahmed said: “We did the following: Procured a $3.4 billion loan from the International Monetary Fund (IMF) and about $2.5 billion in local currency from the domestic capital market to support the 2020 budget implementation), among others.”
She noted that the government then packaged a N500 billion for COVID-19 Crisis Intervention Fund in the 2020 revised budget, as part of a N2.3 trillion Economic Sustainability Plan.
Mrs. Ahmed said that the government had begun the process of moving the economy away from its primary dependence on oil for revenues and foreign exchange, and making steady gains in addressing infrastructure and human capital challenges before the pandemic hit the global economy.
With COVID-19, Nigeria’s Bonny Light crude oil price fell from a peak of US$72.2 per barrel on January 7, 2020 to below US$20 by April 2020.
She said, “In effect, the US$57 crude oil price benchmark approved in the 2020 budget became unrealistic triggering the need to adjust the following variables: reduction of crude oil benchmark price from US$57 per barrel to US$28 per barrel; reduction of daily crude oil production benchmark from 2.18 million barrels per day (mbpd) to 1.9 mbpd; adjustment of the official exchange rate to N360/US$1 from N305/$.”
Mrs. Ahmed revealed that part of the federal government Supplementary Budget on COVID-19 would be spent on the procurement of 29. 588 million doses of the Johnson & Johnson vaccine.
Union Bank CEO, Godson Chukwuemeka Okonkwo Acquires 2.4 Million Shares in the Bank Ahead of Acquisition
The Chief Executive Officer, Union Bank Plc, Godson Chukwuemeka Okonkwo, has purchased 2,431,917 ordinary shares of the bank, according to the latest disclosure filing from the lender.
The CEO acquired the 2,431,917 shares of Union Bank at N4.90 per share on Thursday 6th May 2021 from the floor of the Nigerian Exchange Ltd.
Okonkwo’s N11.916 million investment was after Investors King reported a possible acquisition of the bank by Zenith Bank or Access Bank following sources cited by Bloomberg.
Bloomberg said, “Atlas Mara Limited, the London Stock Exchange-listed pan-African banking group started by Mr. Bob Diamond has received a number of approaches for its 49.97 per cent holding in Lagos-based Union Bank of Nigeria.”
It also stated that Atlas Mara received interests from Nigerian and Middle Eastern lenders for its remaining assets on the continent, according to Bloomberg sources.
The sources claimed the banks in talks with Atlas Mara asked not to be identified as talks are private. But they mentioned Nigeria’s Zenith Bank Plc, Access Bank Plc and Morocco’s Attijariwafa Bank as some of the banks that have so far expressed interests in acquiring Union Bank.
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