Banking
Stanbic IBTC Writes Off Delinquent Loans, Plans Significant Investment
By Dipo Olowookere
Chief Executive Officer of Stanbic IBTC Holdings Plc, Mr Yinka Sanni, has disclosed that some delinquent loans have been written off by the company.
Mr Sanni made this known while reacting to the release of the firm’s financial statements for the period ended September 30, 2018.
According to him, this was the reason behind the significant decline in the company’s non-performing loans (NPLs) ratio to 4.7 percent from 8.6 percent in December 2017.
“We have seen significant improvement in our risk asset portfolio with gross loans and advances up by 14 percent year-to-date while non-performing loans (NPL) portfolio decreased by 39 percent, thereby improving our NPL ratio to 4.7 percent from 8.6 percent in December 2017.
“The decrease in non-performing loans is on account of the declassification of some loans following positive outcome on recovery and rehabilitation efforts.
“This is coupled with strategic decision to write-off some delinquent loans,” the bank chief was quoted as saying in a statement made available to Business Post.
Also, Mr Sanni said the company plans to invest heavily on its digital platform in order to deliver end-to-end financial solutions to its customers.
During the period under review, Stanbic IBTC recorded a 2 percent drop in total customer deposits, which Mr Sanni attributed to “the competitive yield environment and continued drive to reduce cost of funds which resulted in a 25 percent decrease in expensive term deposits.”
Speaking further, the bank executive said, “Our business continued to thrive in the third quarter of 2018 amid industry-wide headwinds, bearish capital market aided by emerging market sell-off and attendant repatriation of foreign capital.
“Our performance shows steady growth in our balance sheet position, sustained improvement in revenue from fees and commissions and trading lines, though at a slower pace against a backdrop of reduced financial market volumes/trades and reduction in fee income rate particularly for our Wealth business due to the implementation of the multi-fund structure.”
Going forward, Mr Sanni said, “We are focused on delivering end-to-end financial solutions to our customers through our enhanced digital platforms as significant investment is being made to achieve this stride.
“Volume of transactions carried out on our digital platform continues to increase and we are encouraged by the robust transactional volumes from the various platforms.
“The drop in our net interest income is due to lower yield on government securities compared to the same period in 2017 but the sustained growth in loans and advances will douse the impact on net interest income line in the near term.
“We remain on track to achieve our guidance by the end of the year. Our focus for the rest of the year is to maintain the momentum in improving the quality of the asset book and to further grow our non-interest revenue line.”
Concluding, he said, “We remain well positioned and sufficiently capitalized to support future growth ambitions.”
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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