Banking
Abbey Mortgage Bank Bounces Back to Profitability With N622n PAT
By Dipo Olowookere
One of the leading players in the mortgage industry in Nigeria, Abbey Mortgage Bank Plc, has demonstrated that it has all it takes to find its way out of any situation.
In the 2020 fiscal year, the company reported a loss of N4.3 billion influenced by the shutting down of the nation’s economy to contain the dreadful COVID-19 virus. This wrecked activities in the construction industry, where it plays a leading role.
But like a true champion, the lending firm dusted itself off to restrategize and in the end, this paid off as it posted a post-tax profit of N622.2 million. This was after it improved its pre-tax profit to N661.1 million from the loss before tax of N4.3 billion a year earlier.
In the 2021 financial year, according to the results analysed by Business Post, the bank improved its interest income by 137 per cent to N3.3 billion from the N1.4 billion recorded in 2020. This was largely driven by mortgages, construction finance, and treasury investments.
It was observed that a significant contributor to this triple-digit growth in interest income was cash and short-term funds, which recorded N2.4 billion compared with the N616.4 million a year ago.
But as expected, the interest expenses jumped during the period under review by 212 per cent to N1.7 billion from N539.4 million in 2020, leaving the net interest income at N1.6 billion in contrast to the previous year’s N860.1 million.
In the year, Abbey Mortgage Bank reported a decline in fees and commission income to N135.3 million from N601.2 million as a result of lower mortgage fees from services provided over time.
However, the firm made up for this slip in other operating income, which grew to N239.2 million from N120.3 million due to more earnings from other income amid a decline in rental income and loss on financial investments at fair value through profit or loss (FVTPL).
Despite the double-digit inflation in Nigeria, the company was able to boost its total operating income to N2.0 billion from N980.1 million on the back of the gradual improvement in construction activities and government spending on infrastructure to stimulate the economy after the 2020 lockdown.
Consequently, the net operating income closed the year at N2.2 billion compared with the negative of N2.9 billion recorded in the COVID-ravaged year.
Last year, the bank’s expenses increased marginally to N1.5 billion from N1.3 billion a year before due to increased personnel and other operating expenses.
In the year, the lender improved its total assets by 86 per cent to N34 billion from N18.5 billion and on the stock exchange, its market capitalisation closed on Tuesday, May 31, 2022, at N18.3 billion, with a share price of N1.80 per unit.
Recall that last month, Abbey Mortgage Bank announced Mobolaji Adewumi as its acting Managing Director/CEO, following the appointment of its former MD/CEO, Mr Madu Hamman by President Mohammad Buhari as the new MD of the Federal Mortgage Bank of Nigeria.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
By Adedapo Adesanya
The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.
The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.
Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.
Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.
“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”
Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.
“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.
Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.
By Aduragbemi Omiyale
In recognition of its unwavering commitment to fostering access to financing for Nigerian micro, small and medium enterprises (MSMEs), Development Bank of Nigeria Plc has been rewarded with the Financial Inclusion Leadership Award at the Champions of Inclusion Nigeria Financial Inclusion Awards.
This was at the 2024 International Financial Inclusion Conference (IFIC) organised by the Central Bank of Nigeria (CBN) in collaboration with the World Bank and other stakeholders.
The chief executive of the lender, Mr Tony Okpanachi, said the recognition affirms the company’s efforts in expanding access to financial services for MSMEs in Nigeria.
“We are honoured to receive the Financial Inclusion Leadership Award, which is a testament to our bank’s commitment to expanding access to financial services for all Nigerians. This award recognises our efforts to bridge the financial inclusion gap, particularly for a priority sector like the MSMEs.
“Additionally, this award is a validation of our strategic focus on driving financial inclusion for small businesses, and we are proud to be at the forefront of this initiative that drives that. We will continue to innovate and expand our financial inclusion programmes, ensuring that more Nigerian small and startup businesses have access to services,” he stated.
On his part, the Chief Operating Officer of DBN, Mr Bonaventure Okhaimo, said the accolade demonstrates the firm’s dedication to driving financial inclusion and economic growth in Nigeria.
“This award acknowledges our Bank’s innovative approach to widening opportunities for MSMEs in Nigeria to grow and scale their businesses,” he said.
“This award will motivate us to continue pushing the boundaries of financial inclusion, exploring more innovative solutions and partnerships to expand our reach and impact.
“We are committed to ensuring that more small businesses and startup enterprises in Nigeria have access to financial services, this award will further inspire us to accelerate our efforts in this regard,” he stated.
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