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FCMB Expands Operations

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  • FCMB Expands Operations

First City Monument Bank (FCMB) Limited said it has opened two additional branches in Lagos and Ogun states.

The bank in a statement, explained that the latest touch points are located at Oniru, Victoria Island in Lagos and within the RCCG Redemption Camp (popularly known as Redeem Camp) along the Lagos-Ibadan Expressway in Ogun state. These bring to 205 the number of branches of the Bank spread across Nigeria.

FCMB explained that the development was part of its strategic expansion plan to ensure that existing and potential customers continuously enjoy the excellent service offerings.

It added that the location of the branches at Oniru and Redemption Camp took into consideration convenience for people in Oniru, parts of Victoria Island and Lekki in Lagos and Mowe, Ibafo and adjoining areas in Ogun state along the Lagos-Ibadan Expressway, which is a major gateway to other parts of Nigeria.

Speaking on the opening of the new branches, the Managing Director of First City Monument Bank, Mr. Adam Nuru said ththn ank is pleased to open additional branches in Lagos and Ogun states to further extend the lender’s reach and promote financial inclusion by bringing the Bank’s services closer to customers, businesses and the general public in line with its position as a leading retail and commercial bank.

“Though most of our customers prefer to carry out transactions from wherever they are, using our alternate channels such as FCMBMobile, FCMBOnline, USSD Quick Recharge and ATMs widely spread across the country, some customers still prefer human interactions when banking. These additional customer touch points will deepen our commitment in providing customers with simple, helpful and reliable banking services’’, he stated.

Adam assured that FCMB, ‘’will continue to raise the bar in the manner in which customers are served and the kind of environment under which such services are rendered so as to effectively empower Nigerians and our customers in particular’’.

In his comment, the Vice President and Divisional Head, Service Management and Technology of FCMB, Mr. Oluwakayode Adigun, reiterated the bank’s commitment to deploy smart branching and technology to attain its strategic network expansion.

Foreign Exchange Gains Boost FCMB’s Profit to N14.3 Billion

FCMB Group Plc yesterday reported a profit after tax (PAT) of N14.3 billion for the year ended December 31, 2016, showing a jump of 204 per cent from N4.7 billion in 2015.

However, the profit was boosted by N27.8 billion other income that came from foreign exchange gain. According to the audited results released by the Nigerian Stock Exchange (NSE), FCMB Group posted gross earnings of N125.1 billion, compared with N123.5 billion in 2015.Net interest income stood at N69.53 billion, from N63.9 billion in 2015. Net fee and commission income fell from N15.83 billion to N14.2 billion, while net trading income was N5.68 billion, up from 940 million the previous year.

But other income (foreign exchange gain due to the devaluation of the naira) soared from N8.8 billion in 2015 to N27.85 billion in 2016.Consequently, net operating income rose from N9.9 billion to N33.53 billion. Although net impairment loss also rose by 136 per cent from N15 billion to N35.5 billion, profit before tax remained high at N16.2 billion in 2016, compared with N77 billion in 2015. FCMB ended the year with PAT of N14.33 billion, up from N4.7 billion in 2015. The board of directors has recommended a dividend of N1.9 billion which translates to 10 kobo per share.

The financial institution had given an indication of the impressive full year performance when it reported an increase of 453 per cent in PBT for the nine months ended September 30, 2016.

The Managing Director of FCMB Group Plc, Mr. Peter Obaseki had then said the performance reflected their focus on key soundness ratios and the need to maintain buffers against a sustained adverse operating environment.

Also, Group Managing Director of FCMB Limited, Mr. Ladi Balogun commented: “The nine months audited results of the bank reveal that the extraordinary performance of Q2 2016 offset the loss recorded in Q3 of N2.4 billion, thereby resulting in strong year-on-year profit growth of 913 per cent.

In order to avoid an unsustainable, non-cash, spike in earnings from further revaluation gains in Q3, the bank also significantly stepped up its loan loss provisions. The macroeconomic climate is taking a significant toll on the bank’s borrowing customers across all segments.

Accordingly, the bank will maintain high provision coverage ratios (currently 131 per cent), continue to strengthen our capital adequacy ratio (currently 16.9 per cent) and our liquidity ratio (currently 36.8 per cent).”

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.

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FG to Ease Economic Burden of 1.7m Small Businesses, Individuals

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FG to Provide Financial Support for 1.7m Small Businesses and Individuals

The Federal Government has said it will provide financial support for 1.7 million businesses and individuals in the next three months.

The Minister of State for Industry, Trade and Investment, Ambassador Mariam Katagum, disclosed this at the virtual commissioning of the Fashion Cluster Shared Facility for Micro, Small and Medium Enterprises (MSMEs) held at Eko Fashion Hub, in Lagos.

According to the minister, the initiative was borne out of the government’s continued effort at cushion the negative impact of COVID-19 on the people by protecting present jobs while simultaneously creating new opportunities.

She further explained that the administration of President Buhari, through the Economic Sustainability Committee, had launched specific programmes to cushion the negative effect of COVID-19 on small businesses across the country.

She said, “The Federal Government is fully committed to empowering Nigerians; more so in the face of the COVID-19 Pandemic. In this regard, the government, through the Economic Sustainability Committee had announced specific programmes aimed at cushioning the impact of COVID-19 on MSME businesses.

“These programmes include among others, the N75 billion MSME Survival Fund and Guaranteed Off-take Schemes of which I have the honour to chair the Steering Committee for the effective implementation of the projects.

“The project, which will run for an initial period of three months, is targeting 1.7million entities and individuals and has provisions for 45 per cent female-owned businesses and five per cent for those with special needs. The registration portal for the schemes is set to open on Monday 21st September 2020 and I urge you all to take full advantage of the schemes.”

Katagum explained that the Nigerian Economic Sustainability Plan, which was developed by a committee headed by the Vice President, Yemi Osinbajo, was introduced to combat the health and economic challenges brought about by the COVID-19 pandemic.

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OPay, WorldRemit Partner to Deepen Mobile Money Transfer Service

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Nigerian financial service technology company, OPay has announced a partnership with leading global digital payments platform WorldRemit, to offer international money transfers directly into OPay mobile wallets in Nigeria.

The partnership between OPay and WorldRemit will provide Nigerians with a fast, easy and more affordable way to receive money from over 50 countries including the United States, United Kingdom and Canada directly into their mobile phones.

Nigerian financial service technology company, OPay has announced a partnership with leading global digital payments platform WorldRemit, to offer international money transfers directly into OPay mobile wallets in Nigeria.

The partnership between OPay and WorldRemit will provide Nigerians with a fast, easy and more affordable way to receive money from over 50 countries including the United States, United Kingdom and Canada directly into their mobile phones.

OPay also offers an exciting opportunity for customers to save and invest their money in its FlexiFixed service, which offers up to 12% returns per annum.

The service, which launches in September 2020, is immediately available to all OPay customers on KYC 2 level and above. New customers can download the Opay app from the Google Playstore or iOS store and upgrade to KYC level 2 to instantly access the service.

“This partnership ensures that customers can continue to make affordable money transfers to their family and friends in the comfort of their homes. Together WorldRemit and OPay are disrupting traditional money transfer methods by delivering services that customers can access 24/7 via smartphones at their convenience.

“I’m pleased to share that we’ve reduced prices in 48 corridors and passed the savings onto our customers. With communities across the world having to change their lifestyles due to the disruption caused by Covid-19, we’re proud to play our part in making sure our customers can continue to support their family and friends throughout this challenging time,” says Gbenga Okejimi, Country Manager for Nigeria & Ghana at WorldRemit.

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COVID-19: Africa’s Hospitality Industry Loses $50 Billion

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Hospitality Industry In Africa Loses $50 Billion to COVID-19

Global health pandemic has erased more than $50 billion in revenue from the hotel and tourism industry in Africa, according to a recent report.

African Union stated this in a report titled “Impact of the coronavirus (COVID-19) on the African economy”.

However, on Thursday Transcorp Hotel admitted suffering unprecedented losses and therefore has decided to let go 40 percent of its present staff as it moves to restructure and reposition the company for the new normal.

To this end, the hotelier is diversifying its portfolio and reducing its workforce as part of its cost management initiatives,” Transcorp Hotels Plc Managing Director Mrs. Dupe Olusola, said at a news conference yesterday.

She went on: “The impact of COVID-19 on the business is like nothing the company has ever witnessed. The hotel and hospitality industry in Nigeria has never faced a crisis that brought travel to a standstill, including the Ebola Virus Outbreak of 2014 and the recession of 2015.

“The slow pick up of international travel, restriction on large gatherings, the switch to virtual meetings and fear of the virus, has drastically reduced demand for our hotels and occupancy levels to its lowest of less than five per cent.

“Despite the losses incurred we have fulfilled our obligations to staff. At the inception of the pandemic, we maintained a 100 per cent salary payment to our over 900 employees in March and April.

“We also activated various cost-saving initiatives such as renegotiations of service contracts and restructuring of our loans. We suspended further commitment to buy fixed assets and operating equipment as well as reducing our energy consumption and maintenance costs.

Despite undertaking these, it has become apparent that more fundamental changes need to be made for the business to survive. To this end, our workforce headcount will be reduced by at least 40 per cent and our reward system will be optimised.”

Mrs. Olusola further disclosed how the company plans to adequately compensated its workers given the peculiarities of the economy at this time.

She said: “A health insurance package to reduce their health burden costs, especially during the pandemic, amongst other payment settlements, will be activated. Equally, all Executives of Transcorp Hilton Abuja have now taken a pay cut.

“As one of the leading hospitality brands in Africa, Transcorp Hotels Plc has stated its commitment to uphold service standards and ensure that all guests continue to experience the warmth and hospitality that it is known for.”

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