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Access Bank Divests From Stanbic IBTC Pension Managers



Access Bank
  • Access Bank Divests From Stanbic IBTC Pension Managers

Access Bank Plc has finally divested from Stanbic IBTC Pension Managers Limited following a directive from the Central Bank of Nigeria.

This development, it was learnt, was in compliance with the CBN regulation on the scope of banking activities and ancillary matters No.3, 2010.

The Board of Directors of the bank had also sold the bank’s 17.65 per cent equity shareholding in Stanbic IBTC Pension Managers to the company’s majority shareholder – Stanbic IBTC Holdings Plc.

The Access Bank Board of Directors confirmed receiving all regulatory approvals for the share sales.

The bank notified the Nigerian Stock Exchange of the transaction in view of the possible material effect it could have on the value of Access Bank’s securities listed on the Exchange.

The disclosure is subject to the provisions of Rule 17 of the NSE Rule Book 2015 and Rule 187 of the Rules and Regulations of the Securities and Exchange Commission 2013, which require the disclosure of material non-public information to the Exchange.

Access Bank grew its loans and advances by 74 per cent between 2013 and 2015, the Group Managing Director/Chief Executive Officer of the bank, Herbert Wigwe, said.

Specifically, the loans and advances’ figures of the bank rose from N810.8bn to N1.41tn between 2013 and 2015.

Wigwe said the lender also grew its total asset by 41 per cent from N1.84tn to N2.59tn between 2013 and 2015, while customer deposits rose by 26 per cent from N1.33tn to N1.68tn.

The bank’s net interest income for the period, he said, appreciated by 36 per cent from N77.7bn to N105.4bn, while profit before tax soared by 72 per cent to N75bn from N43.5bn.

Since 2013, Wigwe said Access Bank had driven its bold strategy through increased focus on the transformation of its operating model, stressing, “Our goal is to be ranked in the top-three position in our chosen markets and across key financial metrics by 2017.

“Our strategy continues to drive customer growth and profitability, and our consistent growth in the PBT is largely benefitting from improved operating efficiency.

“By 2017, we want to be the world’s most respected African bank. This year, we set the target to be a high-performing Nigerian diversified banking leader.”

Part of the bank’s strategic objectives, he noted, was to create a holistic customer experience architecture and advanced analytics; enhance account management through customer insight.

In addition, the bank’s CEO said the lender hoped to achieve optimal Information Technology resource planning and utilisation capability, while leveraging digital banking to optimise the value chain.

The bank’s key initiatives, according to him, are to develop a proactive risk management culture with moderate risk appetite; adopt risk-based performance measurement/reward through risk-adjusted return on capital methods; and operate a disciplined capital plan in alignment with the bank’s five-year rolling strategic plan.

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

Banking Sector

CBN to Extend Credit Risk Management System to OFIs



In an effort to curb growing bad debt, the Central Bank of Nigeria has said it will extend its Credit Risk Management System to Other Financial Institutions (OFIs) operating in Nigeria to protect them from bad debtors.

According to the apex bank, this is important following the successful implementation of the credit risk system in other lending institutions operating in Nigeria.

The bank disclosed this in a circular titled ‘Credit Risk Management System: Commencement of enrolment of all Development Finance Institutions, Microfinance Banks, Primary Mortgage Banks and Finance Companies’ and signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, on Monday.

In part, the circular read, “As part of efforts to promote a safe and sound financial system in Nigeria, the CBN introduced the CRMS to improve credit risk management in commercial, merchant and non-interest banks as well as to prevent predatory borrowers from undermining the banking system.

“With the successful implementation of the CRMS in deposit money banks, it has become expedient to commence the enrolment of Other Financial Institutions on the CTMS platform.

“Accordingly, all DFIs, MfBs, PMBs and FCs are required to report all credit facilities (principal and interest) to the CRMs and to update same on monthly basis.

“OFIs shall note the Bank Verification Numbers and Tax Identification Numbers are the only basis for regulatory renditions”.

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Banking Sector

BoI Grows Assets by 78.8% to N1.86 Trillion




The Bank of Industry Group concluded the 2020 financial year with a 78.8 per cent growth of assets from N1.04tn to N1.86tn between 2019 and 2020.

A statement by the bank on Monday said the increase was driven to a large extent by the successful debt syndication of €1bn and $1bn that were concluded in March and December 2020 respectively.

BoI stated that the group’s financial statement demonstrated resilience and strength, noting that the period had significant challenges in the operating environment on account of the impact of COVID-19 pandemic on the economy.

“It also indicates synergy with the various interventions developed by the Federal Government, the Central Bank as well as other strategic partners towards ameliorating the impact of the pandemic on Nigerian enterprises,” the statement said.

The group’s total equity increased by 14.8 per cent from N293.08bn in the previous year to N336.48bn in 2020.

It added that as a reflection of the adverse impact of the challenging operating environment on growth of new facilities, loans and advances grew marginally in 2020 by 1.3 per cent to N749.84bn from the 2019 position.

The bank explained that this was largely due to the economic slowdown in the year as well as the various interventions and support initiated by the bank for its customers.

“The bank reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from nine to five per cent per annum for a period of one year and moratorium extension of three months (with a possible extension up to 12 months),” it said.

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Banking Sector

TAJBank Deploys NQR Solution To Ease Customer Transactions



TAJBank, Nigeria’s non-interest bank, has announced the deployment of the NQR Payment solution, an indigenous Quick Response Code (QRC) by the Nigeria Interbank Settlement Scheme (NIBSS), for merchants and customers as the newest addition to its innovative e-business channels.

The NQR Payment solution is a secure QR-code-based payments and collections platform developed for merchants and customers to receive and make payments for goods and services in a quick, easy, contactless and secure manner.

A statement signed by the Founder/Chief Operating Officer of the bank, Mr. Hamid Joda, indicated that the ingenious solution would further drive TAJBank’s culture of innovation and create a seamless payment experience for its rapidly growing individual and corporate customers in their banking transactions.

“We are excited to have this payment channel introduced into the nation’s financial system as an addition to other innovative solutions we have deployed over the past few months.

This is a proof that, as we have said in our communications signature line, TAJBank’s interest is always in our customers”, Joda enthused.

In his remarks, the non-interest lender’s Chief Marketing Officer/Co-Founder, Mr. Sherif Idi, also maintained that the deployment of the NQR payment solution would revolutionize the e-payment experience and open new frontiers for small, medium and large scale businesses who are major stakeholders of the bank.

Since it commenced operations in the non-interest banking segment of the financial services industry, TAJBank is noted for its impeccable track record of growth and innovation, rendering exceptional quality services to customers.

The lender’s NQR solution is open to all customers of the bank, both merchants and individuals, across all its branches and digital channels globally.

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