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Banking Sector

CBN and Bankers Committee In Plans To Digitize Sales of Dollar Through An App

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Naira Dollar Exchange Rate - Investors King

The Central Bank of Nigeria (CBN) and the bankers’ committee have made move to digitize dollar sales for legitimate needs through creating an App.

Such legitimate needs include Business Travel Allowance (BTA), Personal Travel Allowance (PTA), school fees and medicals. This was the outcome of the 357th meeting of the banker’s committee meeting held virtually on Thursday.

The committee also disclosed that anyone engaged in fraudulent practices would be reported to the CBN for sanction.

“The committee discussed a number of issues, updates were provided on the State of the economy and FX policy following the stoppage of FX sales to the BDCs. There were also discussions on the ongoing rehabilitation of the National art theatre which is going to be a game-changing development to reposition the theatre to reposition Nigeria on the global tourism map,” Haruna Mustapha, CBN director of banking supervision, said while briefing journalists on the outcome of the meeting.

Segun Agbaje, Group chief executive officer, Guaranty Trust Holding Company (GTCO) Plc, who spoke on the CBN’s latest foreign exchange policy said, the new FX policy with regards to Invisibles – BTA, PTA, school fees and health is working very well.

“The banks are taking it upon ourselves along with the regulator to make sure that this works. Most of the things you are doing today involve going into the branches to do most things. We are going to try also to digitize this whole thing the way the world is going,”  he said.

He said an App is being created by NIBSS where customers will be able to buy online. “You have to bring your ticket so we are sharing this information on the portal. This is very important information because if we find that people are trying to defraud the system, we will track it on the portal. The banks will report the individuals to the CBN.

“The likely punishment is that your account will be PMDied. PMD of your account means that you won’t be able to do anything in the banking system. This is for people who have genuine needs so fraudulent transactions or fraudulent individuals will be reported to the CBN and the portal will help us this,” Agbaje said.

In addition to digitizing the dollar sales, he also hopes that all the transactions will not just be cash as the world today is not completely friendly about arriving in countries with cash. “So we are hoping that people will be able to put this on a card, put it into your card account, you travel, you will use it for medical, school fees and so on,” he said.

The committee believes that most people who qualify for medical or school fees or for BTA, PTA will be people who have bank accounts and therefore encourage customers to go to their own banks because all banks are the same and customers can access BTA, PTA in their own bank.

“Progress today is very good, completely committed to doing this is for people who have legitimate needs, their needs will be met. We do not want fraudulent transactions taking place in this space and we will continue to make it quicker, faster and cheaper and more efficient by digitizing things, putting them in the cards and so on and so forth. I think that is the kind of things that we have decided around BDCs and the use of Invisibles,” Agbaje said.

Buttressing, Ireti Samuel-Ogbu, managing director of Citibank, said, there will be sanctions where people abuse the system because it is all about ensuring the foreign exchange is fairly allocated among legitimate users.

“We have digital means of being able to to determine if people are using fraudulent documentation or wanting to gain the system in a way that was not intended. We are here to support the demand, to make sure people get their foreign exchange. It is important that people realize that there is a responsibility that comes to that,” she said.

Other bank’s CEOs that spoke included Herbert Wigwe, Group managing director/CEO, Access Bank Plc, Demola Sogunle, managing director, Stanbic IBTC, Oluwatomi Somefun, managing director/CEO Unity Bank Plc, and Yemisi Edun, managing director/CEO, FCMB.

Wigwe said Banks have been criticized for not being able to handle PTA, BTA transactions. “This is just to let people know that we will continue to the due diligence required with respect to KYC compliance.

Foreign exchange is a very scarce resource if we find people trying to come up with tickets that have expired or that they are going to cancel or passports that are not legitimate by any way or people coming to buy more than they are supposed to buy using all the banks, we will report them to the law enforcement agency for them to deal with these people,” he said.

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Banking Sector

Ecobank Grows Profit After Tax by 324 Percent in 2021

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Ecobank - Investors King

Ecobank Transnational Incorporated, a pan African bank, continues to grow as key metrics hit record highs in the year ended December 31, 2021. Ecobank’s gross earnings rose by 13 percent to N952.951 billion from N841.143 billion recorded in 2020.

This was revealed in the bank’s unaudited financial statements seen by Investors King.

Revenue surged by 11 percent from N641.753 billion achieved in the same period of 2020 to N712.933 billion in 2021.

Similarly, operating profit before impairment losses stood at N294.302 billion, representing an increase of 23 percent when compared to N239.059 billion filed in 2020.

Profit before tax rose by 52 percent to N195.720 billion in the period under review, up from N129.088 billion recorded in the corresponding period of 2020.

The bank’s profit before tax rose by an astonishing 194 percent to N195.720 billion. After income tax, profit for the year jumped by 324 percent from N33.742 billion in 2020 to N143.109 billion in the 2021 financial year.

Ecobank Group Financial Highlights for 2021

– Gross earnings up 6% to $2,327.3 million (up 13% to NGN 953.00 billion)
– Revenue up 4% to $1,741.1 million (up 11% to NGN 712.9 billion)
– Profit before tax and goodwill impairment up 41% to $478.0 million (up 52% to NGN 195.7 billion)
– Profit before tax up 174% to $478.0 million (up 194% to NGN 195.7 billion)
– Profit after tax up 296% to $349.5 million (up 324% to NGN 143.1 billion)
– Total assets up 5% to $27.3 billion (up 11% to NGN 11,560.3 billion)
– Loans and advances to customers up 4% to $9.6 billion (up 10% to NGN 4,066.4 billion)
– Deposits from customers up 7% to $19.5 billion (up 13% to NGN 8,283.2 billion)
– Total equity up 5% to $2.1 billion (up 11% at NGN 902.9 billion)

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Banking Sector

FCMB Thrives Despite Headwinds, Realised N20.9 Billion Profit in 2021 FY

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FCMB - Investors King

First City Monument Bank (FCMB), one of Nigeria’s fast-growing financial institutions, has reported impressive numbers for the Financial Year (FY) ended December 31, 2021. FCMB grew profit after tax by 6.5 percent to N20.894 billion, up from N19.610 billion filed in the 2020 FY.

The lender disclosed in its unaudited financial statements obtained by Investors King.

Gross earnings also inched higher during the period, rising by 4.6 percent from N199.438 billion in the corresponding period of 2020 to N208.528 billion in the period under review. Despite the interest and discount income expanding by 6.9 percent to N161.581 billion, the jump in interest expense from N60.256 billion in 2020 to N71.112 billion weighed on the bank’s net interest income.

Net interest income moderated to N90.469 billion, a 0.32 percent below N90.758 billion recorded in 2020.

Fee and commission income grew by 17.4 percent from N30.163 billion to N35.424 billion while fee and commission expense improved to N7.492 billion, down from N10.608 billion incurred in 2020. Therefore, net fee and commission income jumped by an astonishing 42.8 percent to N27.933 billion in the period under review.

A 59.4 percent reduction in impairment losses on financial instruments from N22.308 billion in 2020 to N9.057 billion in 2021 helped reduce the carried-over amount on a declining asset value. The reopening of branches increased personnel expenses by 5.82 percent to N31.236 billion.

Other operating expenses rose by 38.3 percent to N23.205 billion. The increase in the lender’s expenses eat into profit before tax as profit before tax stood at N23.926 billion, still higher by 9.2 percent when compared to 2020 profit before tax.

FCMB spent a total of N3.033 billion on taxes in the 2021 financial year to post N20.894 billion in profit after tax.

Earnings per share grew from 98 kobo to N1.04.

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Banking Sector

Stanbic IBTC Showcases Strong CSI Through Together4ALimb Initiative, Others

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Stanbic IBTC - investorsking.com

As a socially responsible organisation, Stanbic IBTC Holdings PLC is big on positively impacting lives within its host communities in Nigeria through its Corporate Social Investment (CSI) initiatives.

Stanbic IBTC’s CSI is hinged on three core pillars: education, health, and economic empowerment, and aims to meaningfully contribute to enhancing the wellbeing of Nigerian communities, especially at the grassroots.

One of such is the Together4ALimb initiative, where the company provides support to enhance the quality of life of children with missing limbs. Through the provision of prosthetics and educational trust funds worth millions of naira, Stanbic IBTC ensures these young people can live a normal and productive life like their counterparts.

The Organisation understands the need to make an impact in the lives of children living with missing limbs, either by birth or via accidents, and is determined to do so through its signature CSI. It is important to give these children hope for the future, and enable them see the endless possibilities for greatness in life, irrespective of societal prejudices they face owing to their circumstances,  which could pose a threat to the achievement of their dreams and aspirations. The educational trust support provides a platform for young people to access quality education needed to enable them maximize their potential and become whatever they want to be.

The signature CSI comes with an awareness drive, “Together4ALimb charity walk”, which is designed to draw attention to this health challenge and hopefully garner financial and government support for survivors. The annual Together4ALimb walk has recorded over 5,000 participants since inception.

Stanbic IBTC reiterates its commitment to empowering and creating better narratives for communities in Nigeria. In 2021, the Organisation took on several value-driven charitable initiatives such as school renovations, orphanage, nursing homes and special needs centre visitations, , all targeted at empowering and enriching the lives of less privileged Nigerians.

A memorable CSI initiative taken on last year by the organization was a visit to the Ketu Special Children Centre, where the organisation presented medical and physiotherapy equipment to the facility. The donations made will go a long way to help improve the wellbeing of children living with cerebral palsy, a condition which causes other health issues like vision impairment, hearing and speech problems, and learning disabilities.

Other CSI initiatives taken on by Stanbic IBTC last year include the presentation of hospital equipment to Batagarawa Primary Health Care, Katsina; presentation of a CT Scan room and other medical facilities to Mother and Child Hospital, Kano State; the donation of medical items to Mother and Child Hospital, Ebonyi State; the commissioning of a borehole donated to the LEA Primary School FCT Abuja; renovation of the Antenatal Care Unit at General Hospital, Mushin, Lagos, as well as empowering young people via financial knowledge on the World Savings Day in various schools nationwide and mentoring sessions for students at Estate Senior Grammar School, Ilupeju, amongst others

Stanbic IBTC is focused on delivering relevant and impactful CSI projects in communities where development is most needed. In 2022, Stanbic IBTC promises to deliver more social and economic initiatives to facilitate growth and improve the welfare of the Nigerian communities, especially those in rural areas.

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