Banking
GCR Affirms FCMB A-(NG) Rating with Negative Outlook
By Modupe Gbadeyanka
One of the local rating agencies, Global Credit Ratings (GCR), has affirmed the national scale credit ratings assigned to First City Monument Bank (FCMB) of A-(NG) and A2(NG) in the long term and short term respectively; with the outlook accorded as negative.
GCR disclosed in a statement issued on Friday, August 25, 2017, that the ratings are valid until August 2018.
Explaining the rationale behind the ratings, GCR the ratings reflect the lender’s financial and competitive position as a mid-sized (Tier 2) bank in Nigeria based on its key financial performance metrics.
Despite improved operating performance in FY16, the bank remains exposed to ongoing challenges in the domestic operating environment including slow economic growth, currency weakness, foreign exchange (forex) shortages and policy uncertainty, that continue to exert pressure on banks’ (including FCMB) asset quality and earnings, the rating agency said.
It noted that shareholders’ funds grew by 9.6 percent at FY16, underpinned by retained earnings. Capital adequacy was, however, impacted by inflated risk weighted assets (mainly due to the effect of naira depreciation on the balance of risk-weighted assets denominated in foreign currency) which led to a slight decline in the risk weighed capital adequacy ratio (CAR) to 16.5 percent at FY16 (FY15: 16.9 percent), although remaining above the 15 percent statutory minimum requirement. At 1H FY17, the ratio was reported at an improved 17 percent.
Although the gross non-performing loan (NPL) ratio improved to 3.7 percent in FY16 (FY15: 4.2 percent), this was chiefly supported by the loan book clean-up exercise undertaken by the bank, with impaired credits totalling N32.5 billion written off the bank’s loan book during the year.
Given these write offs, specific coverage of impaired loans declined to 25.5 percent at FY16 (FY15: 45.2 percent).
The NPL ratio rose to 4.7 percent at 1H FY17, but remained within the regulatory limit of 5 percent. Management has tightened lending criteria, established a dedicated unit to focus on recoveries, and committed to diversify the loan book by targeting lending to less susceptible sectors to contain NPL formation and ensure a quality loan book going forward.
A matching of assets/liabilities maturities at FY16 showed cumulative liquidity gaps across the ‘less than 12 months’ maturity buckets.
The liquidity gap stood at N253.7 billion in the ‘less than 30 days’ maturity bucket and equated to 1.4x capital at FY16.
Furthermore, although the bank closed with 31.2 percent statutory liquidity at FY16, liquidity pressure was evidenced as zero buffer was maintained above the 30% statutory requirement at some points during the year.
This pressure has persisted into 1H FY17, with the statutory liquidity ratio at 30.1 percent, GCR said.
Notwithstanding, it added, the 150.4 percent escalation in impairments charges to N35.5 billion, net profit after tax grew 3.4x to N12 billion during FY16.
Growth was mainly supported by large one-off revaluation gains booked on net foreign currency positions arising from Naira devaluation during the year.
Accordingly, ROaE and ROaA ended stronger at 10.4 percent (FY15: 4 percent) and 1.4 percent (FY15: 0.5 percent) in FY16 respectively.
Unaudited financial results at 1H FY17, reported pre-tax profit of N2.5 billion, representing an annualised 63.8 percent decline.
GCR said upward movement in the rating(s) or outlook could result from sustained improvement in the bank’s profitability, asset quality, capital and liquidity metrics, as well as an enhanced competitive position.
It noted that negative rating action may follow pressure on asset quality, profitability, capital and/or liquidity metrics.
By Aduragbemi Omiyale
The creative industry in Nigeria may have nothing to worry about with the likes of Stanbic IBTC Bank around the corner.
The financial institution, which has not hidden its love for the sector, has promised to continue with its strategic investment in the country’s designers and artists.
Speaking at an event, An Evening of Fashion, Art & Lifestyle, the Executive Director for Personal and Private Banking at Stanbic IBTC Bank, Mr Olu Delano, represented by the Head of its Private Banking Segment, Ms Layo Ilori-Olaogun, said the company was proud to be associated with the programme, which it also sponsored.
“At Stanbic IBTC, we recognise Nigeria’s creative sector as a vital driver of economic diversification, employment, and global cultural influence.
“We are proud to support the individuals behind these platforms that elevate African excellence and provide visionary talents the visibility that they deserve.
“Nights like this reaffirm our commitment to continued strategic investment in our artists and designers,” he stated.
The invitation-only ceremony, which was held at The Garden, Federal Palace Hotel, Victoria Island, Lagos, hosted by Africa’s leading luxury fashion house, 2207bytbally, in collaboration with the acclaimed art collective Torrista, brought together high-net-worth individuals, art collectors, designers, media personalities, and luxury brand executives for an unparalleled showcase of creativity and sophistication.
The evening opened with a breathtaking runway presentation featuring three signature segments from the Evolve collection by 2207bytbally: Denim, Ethnic, and 2207 Prints. Each piece exemplified the meticulous craftsmanship, bold innovation, and cultural storytelling that has established the brand as a standard-bearer in African luxury fashion.
Complementing the couture was a curated exhibition by Torrista, transforming the venue into an immersive gallery. Commissioned artworks exploring themes of culture, femininity, and evolution created a robust visual dialogue with the collections, demonstrating the seamless harmony that can result when fashion and fine art converge.
“This evening was about more than clothes or canvases; it was about showing the world that African creativity is limitless. When fashion and art share the same space, magic happens, and tonight, Lagos felt that magic,” the Creative Director of 2207bytbally, Tolu Bally, stated.
By Modupe Gbadeyanka
The six edition of the Hackaholics of Wema Bank Plc has produced 20 top finalists shared equally between two streams, Ideathon and Hackathon.
The Hackathon finalists are Rapid DEV, Secure IT, Neurafeed, Trust Lock Babcock, Pulse Track, IlluminiTrust, Trust Lock FUTA, Fix Fraud AI, KASH Flow and VOC AI.
The Ideathon finalists include PLOY, Fertitude, VarsityScape, Mama ALERT, StockMed, Chao, All Arbitrate, FarmSlate, Sane AI and Cycle X.
They emerged after a two-day pre-pitch held on December 16 and 17, 2025, for the grand finale slated for Friday, December 19, 2025.
They grand finale of Hackaholics 6.0 will convene the top players in Africa’s tech and innovation ecosystem, creating an avenue for these finalists to not only put their creativity to the ultimate test but also give their solutions visibility to potential investors for additional funding opportunities beyond the prizes to be won.
The prizes to be won for the Ideathon include N25 million for the winner, N20 million for the first runner-up, N15 million for the second runner-up and N5 million each for two women-led teams.
In the Hackathon category, the first to fourth-place winners will receive N20 million, N15 million, N10 million and N5 million, respectively.
The pre-pitch saw the top 43 contenders battle in a game of innovation and problem solving, presenting compelling pitches for a chance to make it to top 10 in their respective streams.
After a rigorous stretch of pitches and presentations, the top 20 emerged, securing their spot in the grand finale of Hackaholics 6.0.
“Hackaholics started off as a hackathon and morphed into an ideation. For Hackaholics 6.0, the sixth edition, we decided to give both the builders of new solutions and the refiners of existing ones, an opportunity to make meaningful impact.
“For us at Wema Bank, we understand that innovation isn’t just building from scratch. Sometimes, it’s looking at what exists and developing new ways to optimise that and create more efficiency. This is the idea behind our two-stream Ideathon-Hackathon structure.
“Every year, Hackaholics shows us just how eager and motivated Nigerian youth are when it comes to exploring creativity and innovation, and we are honoured to be the institution that provides them with the platform and resources to put this drive to good use.
“We toured seven cities, indulged 1,460 participants and discovered hundreds of remarkable ideas; some of which needed some refining and some of which deserved to move to the next stage.
“For those who needed to go back to the drawing board, we provided useful guidance and for the top contenders, we were able to shortlist to the top 43, who proceeded to the pre-pitch. To every participant, Wema Bank is proud of you. This is just the beginning,” the chief executive of Wema Bank, Mr Moruf Oseni, said.
By Adedapo Adesanya
The Nigeria Customs Service (NCS) says it will enforce penalties against designated banks that delay the remittance of customs revenue, in a move aimed at strengthening transparency and safeguarding government earnings.
This was disclosed in a statement on the NCS official account on X, formerly known as Twitter and signed by its spokesman, Mr Abdullahi Maiwada, who said the delays undermine the efficiency, transparency, and integrity of government revenue administration.
“The Nigeria Customs Service has noted instances of delayed remittance of customs revenue by some designated banks following reconciliation of collections processed through the B’odogwu platform,” the statement read.
“Such delays constitute a breach of remittance obligations and negatively impact the efficiency, transparency, and integrity of government revenue administration.
“In line with the provisions of the Service Level Agreement executed between the Nigeria Customs Service and designated banks, the Service hereby notifies stakeholders of the commencement of enforcement actions against banks found to be in default of agreed remittance timelines.”
Mr Maiwada disclosed that any bank that fails to remit collected Customs revenue within the prescribed timeline will be liable to penalty interest calculated at three per cent above the prevailing Nigerian Interbank Offered Rate for the period of the delay.
He added that affected banks would be formally notified of the delayed amounts, the applicable penalty, and the deadline for settlement.
“Accordingly, any designated bank that fails to remit collected Customs revenue within the prescribed period shall be liable to penalty interest calculated at three per cent above the prevailing Nigerian Interbank Offered Rate for the duration of the delay.
“Affected banks will receive formal notifications indicating the delayed amount, applicable penalty, and the timeline for settlement,” the statement read.
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