Connect with us

Finance

AfDB, Fidelity Bank to Fund MSMEs With $50m

Published

on

akinwumi-adesina
  • AfDB, Fidelity Bank to Fund MSMEs With $50m

The African Development Bank and Fidelity Bank Plc have signed a $50m financing agreement aimed at the funding and promoting the growth of Micro, Small and Medium Enterprises in the country.

At the signing of the agreement in Abuja on Tuesday, AfDB disclosed that the board of the development finance institution had approved the fund on October 10, 2018, to boost the development of small businesses in Nigeria.

It also disclosed that at least 30 per cent of the fund must go into promoting businesses that were owned and ran by women entrepreneurs.

Senior Director/Country Representative at AfDB, Ebrima Faal, signed the agreement on behalf of the DFI while Deputy Managing Director of Fidelity Bank, Mohammed Balarabe, signed for the commercial bank.

Speaking at the event, Faal described Fidelity Bank as a niche player in the MSME sector. According to him, the $50m funding will strengthen the bank’s performance in advancing credit to small businesses.

The AfDB boss said, “We are excited about this partnership. The lines of credit tended to be general support for SMEs. This one has a strong emphasis on gender. It can be considered as a vanguard credit for us.

“Our main focus is to reach out to SMEs to give the much-needed impact. We count on you to ensure that the requirement for loan disbursement is okay to enable it to reach out to the target audience.”

Balarabe, on the other hand, said that businesses at the lower level had the capacity to catalyse the development of the economy, adding that the funding was unique because of the gender specification.

He said, “The AfDB has found us fitting to be one of the banks that will be benefiting for onward lending to MSMEs. Fidelity is one of the leading lenders to the segment, but for us, it’s not all about lending.

“Our engagement with MSMEs is more. We take time to find the needs of such businesses, and work with them on how to run the businesses.”

Our correspondent learnt that Fidelity Bank had in 2001 received the sum of $18m from AfDB for onward lending to small businesses while in 2013 it received $75m for the same purpose.

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

Published

on

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.

Continue Reading

Finance

Stanbic IBTC Obtains Approvals, License to Establish Life Insurance Subsidiary

Published

on

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.”

 

Continue Reading

Finance

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

Published

on

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.

Continue Reading

Trending