Banking Sector

Japan Credit Rating Agency Reaffirms African Development Bank’s AAA Rating With a Stable Outlook

Published

3 years ago

September 3, 2021

African Development Bank - Investors King

Japan Credit Rating Agency (JCR) has affirmed the African Development Bank’s long-term rating at AAA with a stable outlook.

The agency commended the African Development Bank for its strong member-country support, as evidenced by the seven general capital increases it has carried out to date. The report reflected on the institution’s financial structure, risk management and funding, noting that JCR monitors whether multilateral development banks are financially viable enough to sustain their business in terms of financial structure, profitability and risk management.

Although the Bank’s equity investment remained limited in volume, its risks have been growing due to the impact of the Covid-19 pandemic. The Bank responded rapidly to cushion the impact of the pandemic on its member countries by establishing a Covid-19 Response Facility.

The report notes that the Bank’s “treasury investment is aimed to ensure ample liquidity and efficient management of assets, the Bank manages it in a conservative manner, limiting its investment to counterparties that have high credit standings.”

Benefiting from its high credit standing, JCR said the Bank has been raising funds from international capital markets on favorable terms.

“The Bank met almost all of its conservative internal regulations with respect to lending, equity participation, risk capital utilization, borrowing and liquidity at the end of 2020. The Bank’s risk capital utilization ratio has been close to the upper limit defined by its internal regulations due mainly to the increased risks related to its loan and investment exposures.”

However, JCR holds that the Bank will continue to comply with the regulations “as it has taken remedy measures including the special temporary callable capital increase in March 2021, the optimization of its asset portfolio, and as progress is being made in the payment of the capital increase.”

While noting that the continued impact of the Covid-19 pandemic could weaken the quality of the Bank’s assets mainly with its non-sovereign loans, JCR said that “any increased credit cost can be mostly absorbed by earnings and that its impact on the Bank’s financial base will be limited.”

The agency also discounted the possibility of the current ratings coming under downward pressure if the majority of the member countries fail to pay for the latest capital increase, or when the Bank’s non-sovereign loans expand in volume and their asset quality deteriorates significantly in the long term.

“JCR holds that such possibility is slim,” the report noted.

Bajabulile “Swazi” Tshabalala, Vice President for Finance and Chief Finance Officer of the African Development Bank, said: “Japan Credit Rating Agency’s ratings is proof of our prudent risk management policies, our solid financial performance and the robust support we enjoy from our members.”

The African Development Bank currently holds triple A ratings from Fitch, Moody’s and Standard and Poor’s.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Appointments

Keystone Bank Receives New Board Chairman, Directors From CBN

Published

1 hour ago

September 18, 2024

Bassey Marshall

It is the dawn of a new era for Keystone Bank, a top player in the Nigerian banking sector.

As part of a broader strategy to ensure sustained growth for Keystone Bank, the Central Bank of Nigeria (CBN) has approved a new chairman and board of directors for the financial institution.

The new board consists of a new board chairman, five non-executive directors, and two new directors, all carefully selected to take the bank to new heights.

The apex bank confirmed the latest development via a statement on Wednesday.

Steering the ship of leadership is Lady Ada Chukwudozie, as the new board chairman.

Lady Ada Chukwudozie, brings with her a truckload of experience.

A prominent figure in Nigeria’s corporate sector, Ada has nearly three decades of experience in business strategy, management, and administration.

Her expertise cuts across multiple industries, including De-Endy Industrial Company Limited, Dozzy Group, the Manufacturers Association of Nigeria, and Vogue Afrique Magazine.

Indeed, to whom much is given, much is expected.

With her extensive background and experience, Ada will now shoulder the responsibility of guiding the bank toward achieving its long-term goals.

The good news is that she is not alone. Joining her on the board are five non-executive directors, each bringing their unique skills to the table.

The five non-executive directors are Abdul-Rahman Esene, Mrs. Fola Akande, Akintola Ayodeji Olusoji, Obijiaku Samuel, and Senator Farouk Bello.

Together, they will play a critical role in shaping the future of the bank.

Furthermore, two new executive directors, Ladi Oluwole and Abubakar Usman Bello were also confirmed by the CBN.

Meanwhile, Keystone Bank’s Managing Director and CEO, Hassan Imam, bragged about his confidence in the new team.

To him, he was certain they would drive the bank’s growth and ensure reliable service for customers.

Imam noted that their wealth of experience would play a crucial role in the bank’s continued repositioning and growth.

His words: “We are pleased to welcome the new chairman, non-executive directors, and executive directors to the board of Keystone Bank.

We are confident that their extensive experience will be invaluable as we continue to reposition the bank to seize emerging economic opportunities while maintaining strong corporate governance and providing our customers with a secure and reliable banking experience,” Imam concluded.

Recall that in January, the CBN dissolved the board and management of Union Bank, Keystone Bank, and Polaris Bank.

Banking Sector

Zenith Bank Extends Public Offer and Rights Issue by Two Weeks

Published

1 week ago

September 10, 2024

Investors King

Zenith Bank Plc on Monday announced that it has obtained regulatory approval to extend its public offer and rights issue by two weeks.

In a statement released via the Nigerian Exchange Limited (NGX), the leading financial institution said its offers for both existing shareholders and new investors have been extended to September 23, 2024, from the initial closing date of September 9.

The bank attributed the extension to the nationwide protest that began on August 1, the same day the offers were opened.

Zenith Bank stated that the extension will provide shareholders with more opportunities to take advantage of the rights issue and allow the general public ample time to subscribe to the public offers.

Banking Sector

Unity Bank Projects N27b In Q4 Earnings, Targets N4b Profit

Published

1 week ago

September 10, 2024

Investors King

Unity Bank Plc has projected gross earnings of N27 billion and a Profit After Tax of N4 billion in Q4, 2024, in its latest earnings forecast released to the Nigerian Exchange Group.

Although the projected gross earnings represent a marginal increase from the N26 billion projected for Q3 2024, the lender continues to maintain a profitable outlook, with pre-tax profit expected at N4.2 billion.

An analysis of the earnings forecast shows that the lender also expects interest income to rise from N23 billion to N24.5 billion, with net revenue expected to rise marginally by 1.0% to N7.2 billion within the quarter compared to N6.5 billion in Q3, 2024.

Net operating income is projected at N12 billion, while cash flow from financing activities is projected to rise to N481.4 billion from N353.6 billion, a 1.3% projected increase on a quarter-on-quarter basis. This projected growth in cash flow from financing activities continues to reflect the lender’s growing liquidity position which is essential for sustained business operations.

The lender said it expects to cover the milestones with a consistent optimistic outlook in its projection, barring any significant changes in the operating environment, under which the assumptions were made.

The lender noted that it will continue to deliver top-notch customer-centric products and services, especially in the digital lending space following the roll-out of enhanced platforms and channels for superlative customer experiences.

Analysts are of the view that the Q4 forecast reflects a steady growth trajectory on the back of key performance indicators and strategic repositioning to hedge the challenging market conditions.