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Banking Sector

Global Banking Sector Reaching Almost Pre-pandemic Heights, Market Cap Jumped by 20% Quarter-over-Quarter and Hit €7.3T

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Global Banking - Investors King

The economic recovery from the COVID-19 accelerated in the first half of 2021, causing the global banks’ market cap to almost completely recover and reach pre-pandemic levels.

According to data presented by StockApps, the market capitalization of the global banking sector jumped by nearly 20% since December and hit €7.3trn in the first quarter of 2021.

Global Banks` Market Cap Surged by 48% YoY, Top 100 Banks Up by 43%

Before the pandemic struck, the market capitalization of the global banking sector floated around €7.3trn, revealed the BankingHub data. In the fourth quarter of 2019, this figure rose to €7.6trn, despite the global economic downturn and geopolitical tensions.

However, the COVID-19 outbreak changed that, causing the lowest quarterly value since the 2008 financial crisis. Statistics show that in the first quarter of 2020, the global banking market cap slumped to €4.9trn, a 31% decrease year-on-year. After floating around €5.2trn in the following months, this figure recovered to €6.1trn in Q4 2020, still a 20% drop year-over-year.

As the improving economic outlook and ongoing expansive monetary policies worldwide continued driving global capital markets to new heights, global top 100 banks emerged as one of the winners in Q1 2021.

Statistics show the market cap of the global banking sector hit €7.3trn in the first quarter of the year, up from €6.1trn in December. Compared to the same period in 2020, this represents a massive 48% increase in a year.

The market cap of the world’s top 100 banks jumped by nearly 19% quarter-over-quarter reaching €5.6trn in Q1 2021. Compared to €3.9trn in the first quarter of 2020, this represents a 43% jump YoY.

Global Top 100 Banks` Total Shareholder Return Jumped by 16.8% QoQ

The BankingHub data also revealed that in Q1 2021, global bank shares made up for the 2020 losses. Statistics show the total shareholder return or TSR of the global top 100 banks outperformed the market, growing by 16.8% quarter-over-quarter, the best TSR across all industry sectors.

In comparison, the energy sector ranked second with a TSR of 9.4% between January and March. Basic materials, industrial sector, and real estate market followed with 7.1%, 6.2% and 5.1%, respectively.

This recovery was especially driven by the strong performance of the US banks whose TSR grew 22.6% year-over-year. Western European banks witnessed an 18.2% YoY increase.

Statistics show ING Group was the top performer among the European banks, with a TSR of 38.4% between January and March this year. Société Générale, Swedish SEB Group, and Barclays followed with 31.1%, 30.8%, and 27.5%, respectively.

Credit Suisse was the only European bank to show a negative TSR of -13.1% in this period.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Banking Sector

Safaricom, Access Holdings Forge Partnership to Revolutionize Remittance Corridor in Africa

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Access bank

Safaricom, the leading telecommunications company in Kenya, has entered into a strategic partnership with Access Holdings, spearheaded by Aigboje Aig-Imoukhuede.

The collaboration aims to revolutionize the remittance corridor between East and West Africa, marking a significant step towards enhancing financial inclusion and empowering millions of individuals across the continent.

The partnership comes on the heels of Access Holdings’ recent acquisition of the National Bank of Kenya Limited, signaling the company’s ambitious expansion into the East African market.

Leveraging Safaricom’s extensive network and expertise in mobile money through M-Pesa, which currently dominates the mobile money market in Kenya, the alliance seeks to create seamless and efficient channels for remittance transactions.

Aigboje Aig-Imoukhuede, the driving force behind Access Holdings, expressed enthusiasm about the collaboration, highlighting its potential to transcend traditional boundaries and foster greater economic connectivity between East and West Africa.

He highlighted the fusion of collective expertise and resources between the two entities, underlining their shared commitment to driving financial inclusion and empowerment across the continent.

The partnership holds promise for addressing the challenges faced by millions of Africans in accessing affordable and reliable remittance services.

By connecting more than 60 million customers and 5 million businesses across eight countries, the collaboration aims to facilitate over $1 billion in daily transaction value, significantly boosting the flow of remittances within and outside Africa.

With the first phase of the collaboration focusing on key markets such as Nigeria, Kenya, Ghana, and Tanzania, stakeholders anticipate a transformative impact on the remittance landscape, paving the way for greater intracontinental trade and economic integration in line with the objectives of initiatives like the African Continental Free Trade Area (AfCFTA).

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Banking Sector

EFCC Urged to Repatriate Recoveries to NDIC for Depositors’ Relief

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The Nigeria Deposit Insurance Corporation (NDIC) has made a fervent plea to the Economic and Financial Crimes Commission (EFCC) to expedite the repatriation of recovered funds to its coffers to facilitate the timely reimbursement of depositors affected by bank failures.

During a recent meeting between the Managing Director of NDIC, Bello Hassan, and the Executive Chairman of the EFCC, Ola Olukoyede, at the NDIC headquarters in Abuja, Hassan stressed the importance of enhanced collaboration between the two agencies in recovering depositors’ funds lost due to bank failures.

Hassan emphasized that the return of recoveries made by the EFCC on behalf of the NDIC would significantly contribute to the prompt reimbursement of affected depositors.

He commended the EFCC for its unwavering efforts in combating corruption and financial crimes, highlighting its crucial role as a key member of the Taskforce on Implementation of the Failed Banks Act chaired by the NDIC.

The NDIC boss also highlighted the existing partnership between the two organizations, which led to the establishment of the NDIC Help Desk at the EFCC in 2022.

He disclosed that several high-profile cases referred to the EFCC were currently under investigation.

In response, Olukoyede reiterated the EFCC’s commitment to collaborating closely with the NDIC to combat financial crimes and safeguard the integrity of the Nigerian banking sector.

He pledged to intensify efforts to repatriate recovered funds promptly, acknowledging the interconnectedness between criminal activities and bank failures.

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Banking Sector

FBN Holdings Announces Key Director Appointments

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Femi Otedola

FBN Holdings PLC, a leading financial services group in Nigeria, has disclosed significant appointments within its Board of Directors.

FBN Holdings Plc Appointments:

  1. Mr. Olusola Adeeyo – Non-Executive Director: With an illustrious career spanning over four decades in Corporate Banking, Treasury, Financial Advisory, and transformational leadership, Mr. Olusola Adeeyo brings a wealth of experience to his new role. He is currently the Chairman of Astral Waters Limited, a prominent water bottling and delivery company licensed by NAFDAC. Mr. Adeeyo’s extensive background includes founding management team involvement in building and nurturing Investment Banking & Trust Company Limited (IBTC), now Stanbic IBTC Bank Plc.
  2. Mr. Viswanathan Shankar – Independent Non-Executive Director: With over 44 years of global financial sector experience, Mr. Viswanathan Shankar brings a wealth of expertise to FBN Holdings. He is the Co-founder and CEO of Gateway Partners, a private equity and alternative investments manager focused on dynamic growth markets. Previously, Mr. Shankar served as CEO – Europe, Middle East, Africa, and Americas, and was a member of the global board of Standard Chartered Plc.

First Bank of Nigeria Limited (FirstBank) Appointments:

  1. Mrs. Remilekun Adetola Odunlami – Non-Executive Director: Mrs. Odunlami boasts over 30 years of extensive experience in enterprise risk management, compliance, and general management. She has held leadership positions at CitiBank Nigeria Limited and served as Executive Director, Chief Risk Officer at FirstBank.
  2. Mr. Anil Dua and Mrs. Fatima Ibrahim Ali – Independent Non-Executive Directors: Mr. Dua brings over 50 years of vast experience in portfolio and risk management, while Mrs. Ali has over 15 years of experience in strategic business planning, marketing communications, and socio-economic development.

These appointments underscore FBN Holdings’ commitment to strengthening its governance structure and positioning for sustained growth in Nigeria’s financial.

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