Banking

GCR Affirms A-(NG) Rating on Coronation Merchant Bank

Published

7 years ago

04/08/2018

By Dipo Olowookere

Indigenous rating agency, Global Credit Ratings (GCR), has announced according its national scale long term and short term ratings of A-(NG) and A2(NG) respectively to Coronation Merchant Bank Limited, with the outlook stable.

In a statement issued by the firm, it explained that the ratings reflect Coronation MB evolving competitive position in the merchant banking subsector since commencement of operation in the second half of FY15.

The bank has been able to leverage off its experience and track record of over two decades in the financial services industry. Furthermore, cognisance is taken of the fact that the bank has engaged a pool of experienced professionals to drive its new strategic intent, GCR said.

According to the statement, capitalisation is considered adequate for the current level of operation and while shareholders’ funds grew to N29.2 billion at FY17, capital adequacy ratio (CAR) equated to a lower 24.8 percent (FY16: 40.1 percent) due to increase in risk weighted assets, but remained above the required minimum of 10 percent for merchant banks.

Also, management has also commenced the process to raise debt capital in 2H FY18 to further support operations.

GCR noted that asset quality metrics remained sound as the bank is yet to record any delinquent asset since commencement of its merchant banking operation.

It said further that the loan book has been largely characterised by short-dated trade finance facilities granted to large corporates. Total loan loss provision stood at N8.2 million, following a write back of N51.6 million in FY17.

The rating company explained that the bank’s regulatory liquidity ratio stood at 53.4 percent at FY17 (FY16: 51.3 percent), against the required minimum of 20 percent for the subsector.

However, liquidity gap of N25.1 billion (FY16: N36.7 billion) was reflected in the less than one month matching of assets and liabilities.

Further supporting the bank’s liquidity profile is the cash and equivalent of N24.4 billion as at FY17 and a sizeable 66.6 percent of its investment securities in treasury bills (T-bills) and Federal Government of Nigeria bonds (FGN bonds).

Also, Coronation MB successfully raised funds through commercial paper (CP) issue in 1H FY18 which received 180 percent subscription level, equating a total of N18.2 billion. This is to further aid balance sheet management, and considered additional support to the rating.

Performance metrics moderated in FY17, underpinned by increase in cost of funding which was largely triggered by the high interest rate in operating environment during the period. As such, while the bank recorded a 66.6 percent rise in interest income, interest expenses rose by a higher 166.8 percent and resulted in 3.5 percent decline in net interest income. Furthermore, profitability was constrained by 29.6 percent increase in operating expenses, given the increase in staff and IT upgrade cost. As such, pre-tax profit equated to N4.9 billion in FY17, representing 5.1 percent decline from FY16 level.

Consequently, return on average equity and assets (ROaE and ROaA) closed the year at 16.8 percent and 3.9 percent respectively from 21.6 percent and 5.6 percent respectively in FY16. Also, performance as at 1H FY18 appears somewhat in line with FY17 actual, albeit below budgeted figures on annualised basis.

An upward movement in the ratings may follow a sustained improvement in profitability and earnings, while maintaining sound asset quality metrics. Furthermore, a downward review of the ratings may result from a significant decline in the asset quality, capitalisation or liquidity profile of the bank. Furthermore, a significant decline in earnings or profitability, such that the bank is unable to compete with peers, may lead to a negative rating action.

Banking

Secure IT, StockMed, 18 Others Make Wema Bank Hackaholics 6.0 Top 20 List

Published

2 days ago

18/12/2025

Modupe Gbadeyanka

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.

Banking

Customs to Penalise Banks for Delayed Revenue Remittance

Published

2 days ago

18/12/2025

Adedapo Adesanya

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.

Banking

First Bank Deputy MD Sells Off 11.8m First Holdco Shares Worth N366.9m

Published

2 days ago

18/12/2025

Aduragbemi Omiyale

By Aduragbemi Omiyale

The deputy managing director of First Bank of Nigeria (FBN) Limited, Mr Ini Ebong, has offloaded some shares of FBN Holdings Plc, the parent firm of the banking institution.

A regulatory notice from the Nigerian Exchange (NGX) Limited confirmed the development on Thursday.

It was disclosed that the transaction occurred on Friday, December 12, 2025, on the floor of the stock exchange.

The sale involved about 11.8 million shares, precisely 11,783,333 units traded at N31.14 per share, amounting to about N366.9 million.

Mr Ebong, who studied Architecture from University of Ife and obtained Bachelor and Master of Science degrees, became the DMD of First Bank in June 2024. Prior to this appointment, he was Executive Director, Treasury and International Banking since January 2022.

He was previously the Group Executive, Treasury and International Banking, a position he held since 2016 after serving as the bank’s Treasurer from 2011 to 2016.

Before joining First Bank, he was the Head of African Fixed Income and Local Markets Trading, Renaissance Securities Nigeria Limited, the Nigerian registered subsidiary of Renaissance Capital. He also worked with Citigroup for 14 years as Country Treasurer and Sales and Trading Business Head.

He has a passion for market development and has worked actively to drive change and internationalisation of the Nigerian financial markets: foreign exchange, fixed income and securities.

He has worked closely with regulatory bodies such as the Central Bank of Nigeria (CBN) and the Debt Management Office (DMO) in assisting with the development of fresh monetary and foreign exchange policies, to broaden and deepen markets and open them up to international practices.

At various times he has facilitated and delivered courses and seminars on a wide variety of subjects covering Money Markets, Securities and Foreign exchange trading and market risk management subjects to regulators, corporate customers, banks and market participants.