Banking
Shareholders Furious Over FBN Holdings High NPL Ratio of 22.8%
By Modupe Gbadeyanka
The board and management of FBN Holdings Plc have been tasked to make efforts within their reach to recover almost all the Non-Performing Loans (NPLs).
Expressing their frustrations at the firm’s Annual General Meeting (AGM) in Lagos on Tuesday, the shareholders said the bad loans were affecting performance of the company.
They said the N150.4 billion reflected in the group’s 2017 financial statements as payment for impairment charges was too high despite being lower than the N226 billion paid in 2016.
As at December 31, 2017, the NPL of FBN Holdings stood at 22.8 percent, which shareholders said was very high.
But responding to this issue, Group Managing Director of FBN Holdings Plc, Mr Urum Kalu Eke, assured shareholders that something would be done to address the NPLs.
He said the company was also worried about the issue because it had affected its performance in the past.
According to him, the management was taking necessary strategies to recover the bad loans, saying these steps were yielding results as seen in the reduction of the NPL to 22.8 percent in 2017 from 24.4 percent.
“Even though we have not recorded a full resolution of our NPLs, we have made significant progress in dealing with a number of these names and more fundamentally, ensured a strong asset quality from recent credits.
“As a result, NPL for the period declined from 24.4 percent in 2016 to 22.8 percent in 2017,” the bank chief said at the meeting.
On his part, Chairman of FBN Holdings Plc, Mr Oba Otudeko, said the institution made significant progress last year.
According to him, the group’s flagship subsidiary, First Bank Nigeria Limited, sustained its leadership position in the e-payment space, emerging as the first financial institution in Nigeria and West Africa to issue 10 million cards to customers.
He added that the bank was recognised as the first financial institution in Nigeria to achieve an electronic transaction volume of 100 million in a month.
Mr Otudeko said FBN Holdings would consolidate on the progress made in the previous year to deliver a strong and sustainable performance that enhances returns to shareholders.
Also at the Tuesday’s event, the shareholders approved the payment of N8.974 billion dividend proposed by the board. This represents 25 kobo per share for the 2017 financial year.
A look at the firm’s performance last year showed that its gross earnings grew by 2.3 percent to N595.4 billion from N581.8 billion in 2016, while its profit before tax appreciated to N56.3 billion from N22.9 billion.
Furthermore, its customer deposits went up to N3.14 trillion from N3.10 trillion in 2016, while the total assets increased to N5.2 trillion from N4.7 trillion two years ago.
Also, the group posted a net-interest income of N331.5 billion against N304.4 billion in 2016, while the non-interest income dropped by 31.3 percent to N113.7 billion from N165.5 billion a year earlier.
The operating income during the year went down to N444.8 billion from N469.9 billion in 2016, while the operating expenses increased by 7.7 percent to N238 billion from N220.9 billion two years ago.
Last year, its impairment charge for credit losses stood at N150.4 billion in contrast to N226 billion in 2016, while the profit after tax went up by 178.8 percent to N47.8 billion from N17.1 billion in 2016.
As at the close of transactions on the floor of the exchange yesterday, shares of the company were traded at N11.50k per share.
By Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance 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.
The 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.
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.
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