Banking

FCMB to Sustain Conservative Dividend Policy to Boost Capital Position

Published

7 years ago

07/04/2018

By Modupe Gbadeyanka

Group chief executive of FCMB, Mr Ladi Balogun, has disclosed that the group will continue to maintain a conservative dividend policy so as to improve its capital position.

Mr Balogun made this disclosure during a conference call to stakeholders of the banking group on Friday.

According to him, the financial institution does not have plans to raise funds this year due to high funding costs, especially for borrowing in Dollars.

In its 2017 financial statements released this week, the board of FCMB proposed the payment of 10k per share dividend to shareholders.

As at Friday, April 6, 2018, the shares of FCMB were sold on the floor of the Nigerian Stock Exchange (NSE) for N2.35k per share.

Speaking on how the firm plans to make a possible impact this year, Mr Balogun said the tier-two lender expects its non-performing loans to rise in the course of the year but would be within a regulatory target of five percent.

In 2017, the financial institution recorded non-performing loans (NPL) to total loans ratio of 4.9 percent.

Also last year, FCMB booked a 50 percent impairment of N2.3 billion on loans to debt-laden 9mobile, which is in talks with investors to take over the telecoms firm.

This year, the bank expects loan growth to be flat, down from last year’s 5.4 percent rise, as oil companies pay down debt.

“We expect to see large repayments in the oil and gas sector this year. We agree that the (economy) will be improving but largely because of chunky paydowns, we don’t think we would be able to replace those quickly,” Mr Balogun stated.

The bank chief disclosed that FCMB would focus on retail banking with a higher margin this year to make up for a drop in government bond yields as the lender may not be able to write large loans quickly enough to counter-balance repayments by oil firms.

He said the economy was improving after Nigeria experienced its worst recession in a quarter of a century in 2016, which should boost consumers.

“We are pushing more in the area of retail banking,” he said.

According to him, the lender was seeking to convert its wholesale banking unit in Britain, FCMB UK, into a retail bank, as part of its push to grow its balance sheet and tap into non-institutional customers in Britain.

He said the impact of the British strategy would not be immediate but would enable the lender to achieve incremental growth.

Mr Balogun disclosed that the earnings contribution in Naira terms from the British unit will be around N500 million for 2018. FCMB UK grew pre-tax profit by 250 percent to N300 million last year.

“We’ve decided to slow down right now on asset growth and focus more on changing the mix of the asset and getting out some of the low margin upstream oil and gas business,” he said.

In its 2017 earnigns, FCMB achieved a gross revenue of N169.9 billion, a 4 percent decrease from N176.3 billion in 2016.

The decrease was primarily driven by the exceptional FX revaluation income in 2016.

The lender also posted a non-interest income of N32.0 billion for the full-year ended December 2017, a decrease of 33 percent Year-on-Year (YoY) from N47.7 billion for the same period prior year.

In addition, the net impairment on loans reduced by 33 percent YoY to N21.3 billion for the twelve-months ended December 2017, from N31.8 billion for the same period prior year, while the operating expenses increased by 5 percent to N68.7 billion for the full-year ended December

2017, due to contingent expenses.

During the year under review, the bank posted a profit before tax (PBT) of N11.5 billion, declined by 30 percent from N16.2 billion for the twelve-months 2016.

Banking

Ecobank Partners CreditCorp for Flexible Loans to Customers

Published

2 days ago

20/01/2025

Dipo Olowookere

By Dipo Olowookere

Ecobank Nigeria Limited has taken a significant step to ensure its customers get cheap personal loans by partnering with the Nigerian Consumer Credit Corporation (CrediCorp).

The service is available to civil servants and private-sector employees whose salaries are paid through Ecobank.

New customers can also benefit upon presentation of employer undertaking to pay subsequent salaries through Ecobank.

Starting this January, the initiative provides flexible repayment options and a streamlined loan application process.

These loans can be used to finance a variety of personal needs, including paying school fees, rent, maintenance costs, medical bills, car purchase and repairs, asset purchase, and more.

The loans come with affordable interest rates, a two-year term, and a repayment plan that ensures equal monthly instalments, including principal and interest, do not change throughout the life of the facility, regardless of the economic situation of the country.

According to the Head of Consumer Banking at Ecobank Nigeria, Ms Adeola Ogunyemi, the loans will provide salary earners, both in the public and private sectors, with better access to financial products.

“This collaboration is an excellent opportunity to serve our customers, and we believe it will improve the quality of life for many Nigerians.

“Eligible customers can use the loans to purchase electronics, solar systems, or CNG vehicle conversions, as well as for other essential expenses like school fees, rent, upkeep, medical bills, and car maintenance.

“We encourage working-class Nigerians to open an account with Ecobank to benefit from this initiative,” Ms Ogunyemi stated.

CrediCorp, a Development Finance Institution (DFI) established by the federal government, is focused on enhancing access to consumer credit for Nigeria’s workforce.

Under the partnership, CrediCorp will provide funds to Ecobank, for on-lending to qualified customers.

The arrangement covers personal loans, as well as asset financing for items like solar systems, home appliances, phones, laptops etc. and vehicle conversions to compressed natural gas (CNG).

Ecobank Nigeria is part of the Ecobank Group, a leading pan-African banking organization. The bank provides a full range of financial services to individuals, businesses, and institutions through its network of over 240 branches and 35,000 Xpress Point agencies across Nigeria.

Banking

131 Wema Bank Customers to Win N11m January 24

Published

2 days ago

19/01/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

No fewer than 131 customers of Wema Bank Plc will win N11 million in cash prize in the company’s 5 for 5 promo season 4 monthly draw fixed for Friday, January 24, 2025, in Warri, Delta State.

According to a statement from the lender, from the 131 customers, 80 of them will win N25,000 each, 40 will win N100,000 each, eight domiciliary account holders will win N250,000 each and three will get N1 million each, with one to be from Warri, venue of the event.

The 5 for 5 promo selects winners from the bank’s pool of active and transacting customers, via thoroughly regulated electronic live draws.

The first 3 seasons saw the Wema Bank 5 for 5 Promo disburse over N150 million to 2,378 Nigerians across the six geopolitical zones in Nigeria, and with the launch of Season 4 on October 1, 2024, Wema Bank raised the bar, setting aside a whopping N135 million for disbursement this season alone.

So far, over 1,000 Nigerians have won cash prizes in daily, weekly and monthly draws, with 540 customers winning in 55 daily draws, 550 customers winning in 11 weekly draws and 262 customers winning in 2 monthly draws; totalling over N27 million disbursed so far.

The third monthly draw of the season, which also happens to be the first monthly draw of 2025, is set to hold this January in Warri, and another 131 winners will emerge from the draw.

“The goal for us with the Wema Bank 5 for 5 promo is giving back, providing support and rewarding our loyal customers, it’s been one of the key means through which we say ‘thank you’ as a Bank, and four years strong so far, it’s only gotten better with each season.

“We made millionaires in December ahead of Christmas and it was heartwarming to hear from our amazing customers how instrumental these rewards were in sorting out some bills. Now, we are even more ready to kickstart 2025 on a millionaire note,” the chief executive of Wema Bank, Mr Moruf Oseni, said.

“As a tradition, the 5 for 5 Promo continues to tour different locations across the six geopolitical zones, however, our winners are always selected from across the country. So even though one of the millionaires will be from Warri where this draw will hold, there’s still room for two more millionaires and over 120 more winners of cash ranging from N25,000 to N250,000.

“The joy for us is in the smiles that are made, the stories that are positively impacted and the hope that these cash rewards bring to the winners; from students to small business owners, working professionals, and so on.

“We are all too familiar with the running ‘100 days of January’ reality that plagues a lot of us after the heavy spending that comes with December, so this draw is the perfect opportunity to support our customers beyond the daily and weekly draws that we hold every other weekday.

“I congratulate the winners in advance, and I encourage every new and existing Wema Bank customer to seize this opportunity and start transacting today. The 5 for 5 promo is as transparent as can be, so anyone can win, provided they meet the minimum requirements,” he added.

Banking

UBA Completes Routine System Maintenance on Card Service

Published

2 days ago

19/01/2025

Dipo Olowookere

By Dipo Olowookere

The United Bank for Africa (UBA) Plc has completed its scheduled routine system maintenance on its card service.

The financial institution over the weekend informed its customers of a scheduled maintenance on its card service from 12 am to 5 am of Sunday, January 19, 2025.

Customers were told that the action could make them experience service disruption while using the UBA cards for financial transactions.

The lender said it was carrying out the maintenance for better service delivery, apologising for any issue they may encounter during the period.

“In line with our commitment to provide you with exceptional experience and to enable us to serve you better, we will be carrying out a scheduled routine maintenance on our card services.

“During this period, you may not be able to use your Debit & Credit Card. Please use our alternative channels, LEO, *919#, Mobile App or Internet Banking for transactions

“An update will be provided as soon as the maintenance is completed.

“We appreciate your understanding and apologize for any inconvenience this may cause. Please be assured that we are committed to providing you with excellent banking services,” the notice earlier sent to customers said.

After the completion of the process, UBA mailed another statement to customers, informing them they could use their cards without any issue.

“We are pleased to inform you that our scheduled routine system maintenance has been completed.

“You can now enjoy safer and quicker transactions on our card service.

“We regret any inconvenience you may have experienced, and assure you of our commitment to continuously provide you with excellent service,” the statement sighted by Business Post read.