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CBN, EFCC Freeze Fund Managers’ Bank Accounts

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Achike Udenwa

Diamond Bank Plc says the Central Bank of Nigeria and the Economic and Financial Services Commission have frozen the bank accounts of Cashflowabi Cooperative Society and Cashflowabi Networks Limited for allegedly operating as fund managers without operating licences.

It said the directive to freeze their banks accounts with Diamond Bank came on the heels of a court order obtained by the EFCC in November 2012.

In a statement on Tuesday, Diamond Bank made the clarification following complaints that some of the fund managers’ customers besieged some of its branches, demanding for their funds.

The customers were said to have protested at some branches of Diamond Bank across the country.

However, Diamond Bank maintained the aggrieved protesters were customers of the fund managers.

The statement read, “It has been brought to the attention of the management of Diamond Bank Plc that some clients of Cashflowabi Cooperative Society and Cashflowabi Networks Limited acting on an SMS broadcast to their respective telephone lines by one Dr. Philemon Gora have besieged some of the bank’s business locations ostensibly to collect cash from the accounts of Cashflowabi at Diamond Bank.

“Following numerous complaints from the clients of Cashflowabi Cooperative Society and Cashflowabi Networks Limited, the CBN in August 2012 directed the bank to stop withdrawals from the accounts of the two companies as they were operating as fund managers without registration and operating licences from the appropriate authorities.”

It further said, “Subsequently, the EFCC obtained an order in November 2012 in suit No: FHC/KD/CS/69/2012 to freeze the accounts of the Cashflowabi companies. Sequel to this, the accounts of Cashflowabi Cooperative Society and Cashflowabi Network Limited domiciled with the Bank were closed in 2014 after a series of garnishee orders and court injunctions by various claimants on the accounts.

Diamond Bank noted that the two fund managers were aware of the closure of their accounts with it.

It added, “The clients of Cashflowabi are not customers of Diamond Bank Plc and therefore have no direct dealing with the bank but seem to be unaware that the SMS broadcast to their telephone lines asking them go to Diamond Bank to cash the cheques issued to them by Cashflowabi is false information constructed to divert attention and deceive as the company has no account or funds at Diamond Bank.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

FCMB Reports 16.4 Percent Increase in Profit After Tax in Q3 2020

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FCMB

FCMB Group Plc, one of the leading financial institutions in Nigeria, reported a 16.4 percent increase in profit after tax for the third quarter of the year.

In the unaudited financial statements released through the Nigerian Stock Exchange (NSE), the lender’s profit before tax grew by 10.2 percent year-on-year to N4.8 billion while profit after tax increased by 16.4 percent to N4.2 billion.

FCBMB Group Plc expanded gross earnings by 4.8 percent to N48.3 billion during the period under review. Similarly, the bank’s net interest income rose by 30.03 percent year-on-year to N22.7 billion.

The strong performance continued across the board as net fee and commission income increased by 0.29 percent to N5.2 billion. Net trading income rose by 39.4 percent year-on-year to N1.82 billion.

Personnel expenses dropped by 7.9 percent to N6.9 billion during the quarter while general and administrative expenses declined by 7.52 percent year-on-year to N7.6 billion. Largely due to the COVID-19 lockdown.

Loans and advances to customers rose by 10.8 percent to N793.14 billion between December 2019 and September 2020. Total desposits from customers during the same period grew by 26.7 percent to N1.2 trillion.

The bank’s total assets increased by 22.12 percent to N2.04 trillion.

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Stanbic IBTC Obtains Approvals, License to Establish Life Insurance Subsidiary

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stanbic IBTC Insurance

Stanbic IBTC Holdings Plc on Friday announced that it has obtained all required Regulatory Approvals and a license from the National Insurance Commission to establish a wholly-owned Life Insurance subsidiary, Stanbic IBTC Insurance Limited (SIIL).

In a statement signed by Chidi Okezi, Company Secretary, Stanbic IBTC and released on Friday, the bank said “The establishment of this new subsidiary essentially complements the bouquet of product offerings by Stanbic IBTC as it continues its goal of being the leading end-to-end financial solutions provider in Nigeria. In this regard, SIIL will aim to facilitate long term insurance for already financially included individuals and will seek to become the preferred Insurer in the Life Insurance Business.

“Stanbic IBTC Holdings PLC, a member of Standard Bank Group, is a full-service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20.1% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade deals between Africa, China and select emerging markets. Standard Bank Group is the largest African financial institution by assets. It is rooted in Africa with strategic representation in 21 countries on the African continent.

“Standard Bank has been in operation for over 158 years and is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa; and connecting selected emerging markets to Africa by applying sector expertise, particularly in natural resources, power and infrastructure.”

 

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World Bank to Discuss New $1.5 Billion Loan Request From Nigeria

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Zainab Ahmed

The Finance Minister, Budget and National Planning, Mrs. Zainab Ahmed, on Friday said the Federal Government has met all the conditions for a fresh loan of $1.5 billion from the World Bank.

The minister disclosed this on Bloomberg TV.

She said the multilateral financial institution is in the final stage of approving the loan. The minister explained that the loan will be discussed in the bank’s next meeting and possibly be approved in the same meeting.

In June, the Senate approved the borrowing plans but the World Bank pushed back demanding Nigeria fulfill the conditions attached to the $3.4 billion loan received from the International Monetary Fund (IMF) in May.

Some of the conditions were to increase revenue generation by upping VAT, the introduction of tariff reflective electricity bill, the removal of subsidy and the unification of the nation’s foreign exchange.

Most of which the Federal Government has done despite protests from most Nigerians who called the new policies anti-people given their current situation.

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