First Bank Boosts CAR With N25 Billion Capital Injection
FBN Holdings Plc announced it has boosted the Capital Adequacy Ratio (CAR) of its commercial banking subsidiary, First Bank of Nigeria Limited by N25 billion.
According to the statement released by the bank on the Nigerian Stock Exchange website, the capital injection represents part of the net proceeds of the company’s divestment from FBN Insurance Limited.
It noted that the capital injection upped the bank’s Capital Adequacy Ratio to 16.53 percent –before capitalising year to date profit– as at June 2020.
Oyewale Ariyibi, the Chief Financial Officer of the Company, was quoted as saying “the divestment is in line with the Group’s medium to long term strategic objectives. The divestment has unlocked significant value embedded in the former subsidiary which is being leveraged to strengthen the core banking business for which the Group is renowned“.
Ariyibi further stated that the Company’s objective is to increase capital across the Group in order to drive business growth, enhance efficiency and improve overall shareholders’ value.
Uk Eke, the Group Managing Director, who commented on the company’s performance for the first half of 2020 said “The H1 2020 financial results are impressive and reconfirm our consistent focus on enhanced shareholder value. Despite the difficult operating environment, the results demonstrate our capacity to deliver exceptional services to our customers in these uncertain times. Looking ahead, we remain cautious, but confident that our business is fundamentally strong to surmount any future challenge towards delivering superior financial performance“.
UBA’s Unwavering Reward for Loyalty, Customer Growth
Symbiotic relationships are often key in sustaining commitment between two or more people. For the United Bank for Africa (UBA) Plc, its symbiotic relationship with its customers is sacrosanct.
Infact, one of their key derivatives is passion for overall development and success of its customers. This they have constantly shown over the years through several economic empowerment programmes, essentially giving back to the customers who have entrusted their money to the bank.
By placing value on their customers, the bank has shown its commitment to its partners, thereby helping them attain their goals and dreams, particularly at a difficult and trying economic time as this.
Putting action to words, the Pan African financial institution recently rewarded 10 of its loyal customers with a total sum of N10million in the quarterly draws of the ongoing UBA Savings Promo.
Reward for Loyalty
This promo, which is held every quarter, is intended to appreciate loyal customers of the bank, who have stayed with the bank over the years, and offers fresh opportunities for potential and intending customers to join the growing number of UBA millionaires who have in the past benefitted from several Promo.
This unique promo intends to appreciate loyal customers of the bank, who have stayed with the bank over the years, and will also offer fresh opportunities for potential and intending customers to join the growing number of UBA millionaires who have in the past benefitted from the ongoing Promo.
Requisite for Qualification
To qualify for the promo, new and existing customers of the bank are expected to make a one-time deposit of at least N30,000 before each draw date. Savings account holders eligible for this draw include Target, Bumper, Next Gen, Savings, Teens & Kiddies.
Apart from the savings promo which is held every three months, the bank also has the UBA Bumper Promo which is held monthly, where the first three winning customers are rewarded with N2million, rent for a year at N1.2m and N500,000; with 20 others winning N100,000 each as consolation prices.
Some past winners who cut across all regions of the country and have previously benefitted from the promo include; Nnadumije, Ebube Dawn; Onwochei Christiana Okwukwe; Eze Mathias Nnaji; Christian N Orie; Uka, Okwudiri; Okata Stephen Uche; Okafor Onyinye Esther; Nwanekezi Chimezie Jude; Ayomide V Yahaya and Olanegan, Oyetunde Keji.
Others are Emmanuel Onu Chidozie; Mohammed Fatima; Aminu, Mustapha; James Nanre; Pahinti Albert; Emmanuel O Adeniji; Jaki Movihinze Mercy; Saminu Muritala Mohammed; Ezeh Raphael Uballa; Uchenna Iheji. Already the winners have claimed their cash prizes and are currently spreading the news so others can take advantage of this once in a life time opportunity.
Prior to the 2021 promo, UBA’s Head, Personal Banking, Ogechi Altraide, said that without a doubt, UBA’s passion for the growth and overall success of its customers cannot be overemphasised, adding that this has consistently been proven in numerous ways. She explained that the bank has consistently invested in cutting edge technology to improve its service delivery and its overall aim of delighting customers.
She said, “With customer-centric promos like the UBA Savings Promo, we have created an ever increasing list of millionaires who continue to join the UBA customer millionaire club. For this edition of the promo, we decided to pick the month of May, which is the month that workers are celebrated across the world for their efforts at contributing to the growth of the economy. We know that this promo will put lasting smiles on the faces of our customers and will also assure them that UBA truly values them'” Altraide said.
UBA’s Head, SME Banking, Sampson Aneke, spoke of UBA’s continuous commitment to give back to its customers especially during these challenging economic periods, where people need all the support they can get to make life more meaningful.
“With this in mind we decided to prioritise them in as we always do at UBA, by giving them plenty to cheer about and that is the reason for the Promo. I have been privileged to visit some of the customers who won in January, and we were more than fulfilled to see happiness and gratitude on the faces of the lucky ones when their cash prizes were presented to them. That feeling is special. So I enjoin those who are yet to join the winning team, to do so. You never can tell, the next big millionaire could be you,” Aneke said.
This year, the virtual and transparent electronic draw which was held last week Friday, was transmitted live via zoom and the Facebook platform in strict compliance with social distancing rules as directed by the Federal and Lagos State governments.
UBA’s Head Personal Banking, Osita Ede, who addressed participants just before the draws, said there is no better time to give back and delight customers than this challenging economic period where people need all the support, they can get to make life more meaningful.
He said, “As a bank, UBA has been rewarding customers, we have been doing this for several years now; from the Wise Savers Promo, Bumper Draws, and now this. We have been doing this to touch lives and to show appreciation to our customers to tell them we are grateful for their business. This is also an opportunity to reward them for their loyalty to the bank.”
Ede, who stressed that the promo is a way of encouraging savings in a bid towards promoting financial inclusion, as statistics show that a lot of Nigerians are still largely under-banked, added
“our key objective is to encourage our customers to save regularly. We are here to support them and encourage them to save and ultimately grow as well, because we are aware that they are invaluable to all that we do”.
A representative of the National Regulatory Commission, Peace Ibadie, who witnessed the draws, congratulated the 10 winners and commended the bank for its efforts at rewarding loyal customers especially in the tough economic and business environment.
“Congratulations to all the winners, I am glad to be a part of this; UBA is always transparent in their promos and we can fully attest to this. It is important that the bank is also actively encouraging the savings culture. Again, I say congratulations,” she said.
The winners who cut across all the zones of the country are Emeka Onyemauche; Ezeigbokwe Oluebube Purity; Omoniyi A Jaiyeola; Olawale Omotayo Idowu; Zaharadeen Yandaki Umar; Aliyu Yaro Bakari; Samuel Enan Esua; Joseph Eze; Deborah Folusho Adebayo and Lucia Chinyere Adim.
When contacted via their mobile phone, the winners expressed their gratitude to the bank as they said the winnings will go a long way in meeting their pressing needs especially in these trying times.
One of the winners, Samuel Enan Esan, who was delighted at the news that he just won N10million was full of praises. “Thank you UBA,” he stated.
Aliyu Yaro Bakari, who was extremely excited at the news, said, “Oh I am very happy, UBA is the best, you are the best, thank you very much,” he remarked when he learnt he was also one of the beneficiaries of N1million.
United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twenty million customers, across 1,000 business offices and customer touch points, in 20 African countries. With presence in New York, London and Paris, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.
Accion MFB Supports School Owners With Interest-Free Loans
The Managing Director, Accion Microfinance Limited, Mr. Taiwo Joda, has disclosed that the bank gave out interest-free loans totaling N160 million in the past five months to school owners.
Joda, who revealed this in Lagos, recently, during the corporative social responsibility (CSR) activity of the bank, said despite the company’s interest rate reduction, it was determined to do more support for students to grow.
He also noted that education was key to fighting poverty and tackling unemployment.
The Accion boss further explained that the bank remains passionate about education while expressing confidence that Morit International School would continue to strive.
He said the uniqueness of the proposition of the school was how school fees are paid, stating that the pupils collect used plastic bottles and submit to the school to pay their school fees, “the school, in turn, gives the plastics to recycling companies.”
According to him: “We are here to support the vision of the founder of Morit International School who also is a customer of the bank. He has been our customer for over six years. We keyed into the vision of education for all, especially for children. “We have helped him to grow and have up to 172 school pupils of the poor and vulnerable. The founder’s overriding vision is to have education for every child and every family who cannot afford school fees in Ajegunle.
“The uniqueness of the proposition of the school is how school fees’ are paid. The pupils use plastic bottles to pay their schools which is then recycled.
“The founder of the school will move the plastic bottle to recyclers for recycling. So when we heard this story, we were excited and ensured that we mobilized bottles and containers. We have a truckload of bottles and containers and hoping that it is able to school fees for 50 pupils in a term.
“This is going to be a continuous initiative from the bank and we are going to say that rather drop your plastic bottles in sewages, to wreak havoc, we will encourage people to bring those plastic bottles and containers and keep a child in school, so that is the excitement for us. The campaign of the bank is focused on a better environment to live in.”
Agusto & Co Forecasts $22B Diaspora Remittances for Nigeria in 2021
The pan-African credit rating agency, Agusto & Co has projected that Nigeria’s diaspora remittances will reach $22 billion by 2021, representing a year-on-year (y-o-y) rise of five percent.
The Lagos-based firm stated this in its “2021 Nigeria Diaspora Remittance Report & Survey,” presented to members of the public.
The report anticipated a further y-o-y rise of two percent in remittances inflow to $22.5 billion by 2022. According to the report, Nigeria’s diaspora remittances dropped by 12 percent to $21 billion in 2020, from about $23.8 billion the prior year.
Head of Research at Agusto Consulting, Mr. Jimi Ogbobine, while speaking during a webinar on the report, explained that the Nigerian diaspora remittances are still an under-researched subject despite its strong bankability credentials.
He said there have been very few target-market studies on diaspora remittances in Nigeria, adding that Agusto Consulting adopted a strategy by initiating research on bankable markets with poor research coverage.
Remittances are funds transferred from migrants to their home country. They represent household income from foreign economies arising mainly from the temporary or permanent movement of people to those economies.
Remittances play important roles in the economy, helping to meet the basic needs of recipients, fund cash and non-cash investments, finance education, foster new businesses, service debts and drive economic growth.
“Previous studies have also shown that about 70 percent of remittances are used for consumption purposes, while 30 percent of remittance funds go to investment-related use,” Ogbobine explained.
He pointed out that Africa’s estimated migrant remittances of $78.3 billion in 2020 represented a modest 12 percent of the global migrant remittances.
“However, only two states within the continent represent about three-fifths of the continent’s entire migrant remittances. Egypt’s diaspora remittances of $24.4 billion in 2020 are not only the largest in Africa but also represent about a third (31.1 percent) of the continent’s entire migrant remittance.
“Nigeria ranks behind Egypt with $21 billion which represents about a quarter of the continent’s global remittances. Morocco driven by its large French diaspora represents about eight percent of the continent‘s remittance inflows with $6.3 billion. Zimbabwe continues to suffer the effects of the dysfunction in its forex regime,” it added.
According to the report, all of Africa’s top seven diaspora recipients experienced dips in remittance inflows in 2020, barring Kenya alone which grew by 2.8 percent. It revealed that Nigeria recorded the worst contractions amongst Africa’s top seven in 2020 of about 11.9 percent.
“Nigeria’s domestic policy conundrum on foreign exchange creating as many challenges to the wider macro contractions caused by the pandemic. Outside Nigeria and Kenya, the other states within the top seven bracket experienced varying degrees of contraction in diaspora remittances of between five percent to 9.4 percent in 2020,” it added.
Diaspora remittances to Africa declined by an estimated 12.5 percent in 2020 to $42 billion, almost entirely due to a 27.7 percent decline to Nigeria, which accounts for over 40 percent of such flows to the region, the World Bank recently disclosed. The Bank, in its latest Migration and Development Brief, revealed that excluding Nigeria, remittance flows to Africa increased by 2.3 percent with a 37 percent growth reported in Zambia, Mozambique (16 percent), Kenya (9 percent) and Ghana (5 percent).
It stated: “Remittances to Sub-Saharan Africa declined by an estimated 12.5 percent in 2020 to $42 billion. The decline was almost entirely due to a 27.7 percent decline in remittance flows to Nigeria, which alone accounted for over 40 percent of remittance flows to the region.
“Excluding Nigeria, remittance flows to Sub-Saharan African increased by 2.3 percent. Remittance growth was reported in Zambia (37 percent), Mozambique (16 percent), Kenya (9 percent) and Ghana (5 percent).”
In 2021, remittance flows to the region are projected to rise by 2.6 percent, supported by improving prospects for growth in high-income countries.
The report noted that data on remittance flows to Sub-Saharan Africa are sparse and of uneven quality, with some countries still using the outdated Fourth IMF Balance of Payments Manual rather than the Sixth, while several other countries do not report data at all.
Giving further insight, the report said: “High-frequency phone surveys in some countries reported decreases in remittances for a large percentage of households even while recorded remittances reported by official sources report increases inflows.
“The shift from informal to formal channels due to the closure of borders explains in part the increase in the volume of remittances recorded by central banks.”
On remittance costs, the report stated that Sub-Saharan Africa remains the most expensive region to send money to, where sending $200 costs an average of 8.2 percent in the fourth quarter of 2020.
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