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Afreximbank Records Improvement in Operating Efficiency in Q1 2024

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Afreximbank

By Adedapo Adesanya

The African Export-Import Bank (Afreximbank) has released its consolidated financial statements for the first three months of 2024, recording growth in the face of challenging geopolitical and macroeconomic conditions.

According to a statement, the Cairo-based lender demonstrated year-on-year growth and improvement in operating efficiency, with a lower cost-to-income ratio of 14.5 per cent in Q1 2024 compared with the 16.8 per cent recorded in the same period of 2023, achieved despite a 10.6 per cent increase in operating expenses to $61.4 million from Q1 2023’s $55.5 million.

In the period under review, the company grew its Net Interest Income by 31.7 per cent to $393.4 million from $298.6 million as a result of a 40.1 per cent increase in interest income to $721.8 million on the back of the growth in its portfolio of Loans and advances.

Net Interest Margin improved to 4.8 per cent from 4.4 per cent in the corresponding period due to a combination of higher benchmark rates and effective management of borrowing costs.

Staff costs rose by 28.6 per cent year-on-year following an increase in staff headcount to support the growth of group business and other initiatives, in line with the Bank’s Sixth Strategic Plan, constituting 52.9 per cent of the group’s expenses.

Group Total assets closed the first quarter of 2024 at $32.8 billion compared to $33.5 billion as of 31 December 2023 (Full Year 2023).

Cash and cash equivalents closed the period at $4.9 billion (versus $5.6 billion in 2023) with the Liquidity ratio remaining strong at 14.9 per cent.

The group’s Shareholders’ Funds rose by 2.9 per cent to $6.3 billion as of 31 March 2024 (FY 2023: $6.1 billion) on the back of growth in Group Net income of $178.7 million.

Also, callable capital, a significant proportion of which was credit enhanced as part of the bank’s Capital Management Strategy was maintained at $3.7 billion as of 31 March 2024 (FY 2023: $3.7 billion).

Speaking on the results, Mr Denys Denya, Afreximbank’s Senior Executive Vice President, said, “During the first quarter of the financial year 2024, Afreximbank Group delivered a strong performance even as we expanded our subsidiary companies’ operations and our activities in the Caribbean.

“Looking ahead, we will continue to prioritise revenue and quality assets growth, and operational efficiency, while ensuring capital adequacy and adequate liquidity levels are maintained. Focusing on these key areas will enhance the Group’s ability to execute its strategy and initiatives as outlined in its Sixth Strategic Plan.”

“The implementation of the African Continental Free Trade Area (AfCFTA) strongly supported by a robust payments and settlement system like PAPSS, is poised to strengthen the continent’s economic resilience by providing a shield against volatility on the international scene.

“Consequently, Africa is projected to sustain its resilience in 2024 and attain a growth rate of approximately 4 per cent. We look forward to the rest of the year with confidence,” he added.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Banking

PalmPay, Carbon Issue Verve Cards to Customers for Seamless Transactions

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Verve Card for PalmPay Carbon

By Aduragbemi Omiyale

Top financial technology (fintech) companies in Nigeria, PalmPay and Carbon, have commenced the issuance of Verve cards to their customers.

This allows millions of Carbon and PalmPay customers access to Verve’s extensive payment network, bringing digital payment solutions to previously underserved populations.

They began issuance of the cards following the approval of the Central Bank of Nigeria (CBN), underscoring the apex bank’s commitment to empowering fintech companies and advancing financial inclusion across the country.

The issuance of Verve cards by these firms will bring digital payment solutions to previously underserved populations.

Industry observers note that the decision by both fintech companies to align with Verve stems from the payment card’s network-wide reach and a robust infrastructure across Nigeria and beyond.

Last year, Verve marked its 15th anniversary characterized by its outstanding quality, innovativeness and vast array of options; it also announced that it has issued over 70 million cards, establishing itself as a dominant player in Nigeria’s payment ecosystem.

The domestic card scheme’s impressive penetration makes it a natural choice for fintech platforms seeking to rapidly expand their payment offerings while supporting the CBN’s financial inclusion goals.

Other fintech companies that have previously followed this line in issuing Verve cards include Opay and Moniepoint.

As a homegrown card scheme, Verve has continued to innovate its service offerings to compete effectively with international payment networks.

The company has integrated advanced features, including contactless payment technology and enhanced security measures, such as biometric authentication through other sophisticated recognition systems such as fingerprints.

Through collaborations like this, Nigeria’s journey toward a more inclusive financial ecosystem will be shortened, providing more Nigerians with access to modern banking and payment services through the combined technological capabilities of these financial service providers.

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FG Sees Moniepoint as Testament to Strength of Nigeria’s Fintech Ecosystem

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Moniepoint UK Office

By Modupe Gbadeyanka

A leading player in the digital financial services sector, Moniepoint Incorporated, has been described by the federal government as a testament to the strength of Nigeria’s financial technology (fintech) landscape.

The Minister of Foreign Affairs, Mr Yusuf Tuggar, during a visit to the United Kingdom headquarters of the company, also said the firm reflects a true Nigerian success story.

He acknowledged the significant backing Moniepoint has received from global investors, including Google’s Africa Investment Fund, Visa, and BII, further validating its position as a leader in the fintech space.

Mr Tuggar stressed that a thriving fintech sector directly translates to more jobs, increased financial inclusion, and a stronger economy for Nigeria.

The Minister highlighted the organisation’s impressive growth, citing its 2000+ employees, thousands of sales personnel, and its empowerment of millions of businesses through enhanced financial inclusion.

“Nigeria is at a vantage position in the fintech and financial services sector. With banks and fintechs operating across Africa, we must continue to instill confidence in Nigerian businesses as they expand globally. Moniepoint is a testament to the strength of Nigeria’s fintech ecosystem,” he said during the visit aimed at strengthening diplomatic ties and fostering strategic cooperation between Nigeria and the UK.

In his remarks, the chief executive of Moniepoint, Mr Tosin Eniolorunda, reiterated the company’s commitment to powering the dreams of millions of business owners while engineering financial happiness for all Africans.

He noted that the dynamic digital landscape in Nigeria presents unique opportunities to harness technology to drive real change, and Moniepoint is excited to be at the forefront of this transformation.

“By empowering individuals and businesses with financial tools that are innovative and efficient, we believe that technology can be a powerful catalyst for economic growth and social development.

“This visit by the Minister signposts the importance of cross-border collaboration and the strengthening of Nigeria’s global partnerships. We recognize the critical role that international cooperation plays in advancing innovation, especially within the fintech sector.

“As a country, Nigeria has immense potential, and through strategic alliances with global stakeholders, we can unlock new opportunities that benefit both local and international communities.

“At Moniepoint, we are deeply aligned with the Nigerian government’s vision to enhance strategic cooperation in areas like trade, investment, and technology.

“We are eager to continue contributing to the development of our country’s digital economy while fostering meaningful collaborations that will leave a lasting legacy for generations to come,” he stated.

Formerly known as TeamApt Incorporated, Moniepoint, founded in Lagos in 2015 by Mr Eniolorunda and Felix Ike, has rapidly grown into a comprehensive digital financial services provider.

Offering payments, banking, credit, business management tools, and cross-border payment solutions, Moniepoint serves over 10 million businesses and individuals across Nigeria and Africa.

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Banking

Stanbic IBTC Bank Reintroduces Private Banking Offerings

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Stanbic IBTC opens new branch

By Modupe Gbadeyanka

To help Nigerians secure their financial futures and build lasting legacies, Stanbic IBTC Bank has reintroduced its private banking offerings.

With a focus on personalised financial solutions, portfolio management, investment strategies, and estate management, Stanbic IBTC Bank empowers individuals and families to achieve their long-term goals of building lasting legacies for future generations.

By equipping families and individuals with the knowledge and tools to manage their wealth effectively, the subsidiary of Stanbic IBTC Holdings is fostering a legacy of financial resilience and prosperity.

Stanbic IBTC Bank’s private banking offerings include personalised financial planning to help clients achieve their short and long-term financial goals, investment management to enable clients access a wide range of investment opportunities, (including equities, fixed income, and alternative assets), estate and trust services through expert guidance on estate planning, wills, and trusts to ensure smooth wealth transfer, retirement planning through solutions that help clients build a secure and comfortable retirement, insurance and risk management through comprehensive protection against unforeseen events that could impact financial stability.

In a world where financial security and intergenerational wealth transfer is becoming increasingly critical, Stanbic IBTC Bank’s comprehensive suite of private banking solutions provides clients with the tools and expertise needed to navigate the complex financial landscapes.

Stanbic IBTC Bank leverages its deep market knowledge and global expertise to deliver solutions that align with clients’ unique aspirations.

“At Stanbic IBTC Bank, we understand that building a legacy goes beyond accumulating wealth; it is about creating a sustainable financial foundation that benefits future generations.

“Our innovative solutions are designed to help families protect, grow, and transfer their wealth seamlessly, ensuring their values and aspirations endure over time,” the chief executive of Stanbic IBTC Bank, Mr Wole Adeniyi, stated.

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