15042019 - North now land of bandits, says Northern Elders Forum

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22 — Vanguard, MONDAY, APRIL 15, 2019

FINANCIAL VANGUARD

AMCON seeks support on

recovery of N5trn debt

From left: Oluwaseun Adesanya, Group Head, Innovation & Strategy, SystemSpecs; Olufemi

Awoyemi, Member, FintechNGR GovCo/Founder & CEO, Proshare; Adedapo Adekoje,

President, Chartered Institute of Stockbrokers; Ibrahim Hassan,Deputy Director, Consumer

Protection Department, Central Bank of Nigeria, CBN; Dr Segun Aina, President,

FintechNGR; Ade Bajomo, Vice-President, FintechNGR/ ED, IT & Operations, Access Bank

& Dr Yele Okeremi, President, Institute of Software Professionals Association of Nigeria

during the Annual General Meeting & Social Meet of the Fintech Association of Nigeria,

FintechNGR hosted by the Nigerian Stock Exchange in Lagos.

FBN Holdings raises profitability by

31% to N59.7bn

By Babajide Komolafe

FBN Holdings, the parent

company of FirstBank of

Nigeria Limited has recorded

31.4 percent increase in

profitability which grew to

N59.7 billion in the financial

year ended December 31, 2018.

The company disclosed this in

its audited financial statement

released on Friday.

The statement showed that

profit after tax (PAT) rose by

31.4 percent to N59.7 billion

in 2018 from N45.5 billion in

2017. This followed from 19.7

percent increase in profit

before tax (PBT) which rose to

N65.3 billion in 2018 from

N54.5 billion in 2017.

The increased profitability

was driven by growth in noninterest

income which

moderated impact of marginal

decline in net interest income

and gross earnings on the

performance of the company.

According to the company,

gross earnings dropped

marginally by 2.0 percent to

N583.5 billion in 2018 from

N595.4 billion in 2017. This

was occasioned by 14.3

percent decline in net interest

income to N284.2 billion from

N113.7 billion.

The decline in net interest

income was occasioned by

slow down in lending activities

in 2018 as well as declining

yield on fixed incomes

resulting to decline in

investment securities income.

The financial statement

showed that the company

reduced loans and advances to

customers by 15.9 percent to

N1.7 trillion in 2018 from N2.0

trillion in 2017.

However, the company

enjoyed increased public

confidence during the year

resulting to 10.9 percent

increase in customers’ deposit

to N3.5 trillion in 2018 from

Fidelity bank chairman calls for greater board

participation in cybersecurity

CHAIRMAN, Board of

Directors of Fidelity

Bank Plc, Mr. Ernest Ebi, has

called on directors of listed and

private companies in the

country to play active roles in

their respective organisation’s

cybersecurity framework and

operations.

The call is coming against the

backdrop of high-profile and

sophisticated online attacks on

large commercial banks.

Ebi made this call while

speaking in Lagos at the 2019

Bank Directors’ Association of

Nigeria (BDAN) conference on

cybersecurity.

Whilst stating that

organisations have become

completely dependent on

cyber networks to run their

processes, Ebi pointed out that

boards need to understand and

approach cybersecurity from

enterprise-wide risk

perspectives rather than

Information Technology (IT).

He said rapidly evolving data

breaches and attacks have

caused significant financial and

reputational damage to many

organisations. “The board

should develop expertise on

cyber risk; cybersecurity must

be a constant on the board’s

agenda”, he said.

President, Governing

Council of BDAN, Osaretin

Demuren, recognised the

importance of information

sharing in tackling the

growing menace of

cybercrime. Demuren noted

that sharing of relevant

information among

stakeholders in the financial

services industry would help

N3.1 trillion in 2017.

Consequently, the

company’s total asset grew by

6.3 percent to 5.6 trillion in

2018 from N5.2 trillion in 2017.

Commenting on the results,

FBN Holdings Group

Managing Director, Mr. U.K

Eke, said: “Over the course of

the 2017 to 2019 strategic cycle,

the priority for management has

been to strengthen the various

businesses across the Group

and position for sustainable

growth over the long term.

“Our three-pronged approach

has primarily been to drive longterm

revenue generation

capabilities, overhaul risk

management processes and

drive efficiency across our

businesses.

“We have seen significant

results in our revenue

diversification aspiration, with

improving digital banking

offerings which have enhanced

our non-interest income from the

demystify the activities of

hackers and cyber criminals.

This, she added, will make

them less effective in

perpetuating their nefarious

deeds.

By Nkiruka Nnorom

TEAMApt, a financial

technology company that

specializes in the development,

designing and selling of digital

banking and digital business

solutions has secured

switching licence from the

Central Bank of Nigeria (CBN)

to power payment

infrastructure across the

country. The licence empowers

AptPay, one of TeamApt’s

products, to lead a financial

By Yinka Kolawole

MANAGING Director

and Chief Executive

Officer, Asset Management

Corporation of Nigeria,

AMCON, Mr. Ahmed Lawan

Kuru, has appealed to

Nigerians to rally round the

corporation in its quest to

recover the over N5trillion

bad debts owed various

financial institutions in the

country before it winds up.

Kuru described the attitude

of typical AMCON

recalcitrant debtors as a

reflection of the nonchalant

attitude of the populace,

adding that such negative

commercial banking group.

Similarly, there has been steady

growth in contribution to the

revenue pool of the Group from

the insurance business and the

merchant banking business,

helping to further reinforce the

revenue generation capacity of

the group.

“The revamp of our risk

management architecture,

which is one of the key

enablers to our shareholder

value creation aspiration, will

ensure our revenue generating

capacity translates to stronger

growth in profitability now that

we have materially progressed

in resolving the legacy issues

as evidenced by the full

provision for the largest non

performing loans (NPL) in our

loan book.

“Finally, we have also

focused on driving operational

efficiencies across the group

by leveraging technology,

improving processes and

increasing synergies across

various entities.

“In 2019, we expect growth

in interest income to

complement our growing noninterest

revenue as we

undertake guided expansion

of the loan book which

contracted in the last two

financial years.”

disposition was responsible for

the rascality experienced in the

banking sector, which led to

the creation of the corporation

in 2010.

The AMCON boss who was

represented by Executive

Director, Assets, Dr.

Eberechukwu Uneze, made

the declaration when he

received a group of cadets

from the Accounting

Department of the Nigerian

Defence Academy (NDA);

officers and men as well as

lecturers from the academy

led by Brigadier-General

Ibrahim Mohammed Jallo, the

Academy Registrar.

The cadets were at AMCON

on an excursion as part of their

mandatory requirement to

visit select financial

institutions where they are

availed the opportunity of

matching theoretical teachings

in the academy with practical

realities of accounting

principles in the real business

world.

Kuru asserted that the

challenge of recovering the

huge debt should not be seen

as AMCON’s sole headache,

because the monies in

question belong to Nigerian

taxpayers. He therefore called

on organisations and

establishments including the

security agencies, which

includes the army, to support

AMCON in its drive. Failure

to recover the huge debt, he

cautioned, will mean that the

government would eventually

have to pay back with

taxpayers’ money, which

would have been used to

provide or improve much

needed infrastructure across

the country.

He disclosed that the zeal to

make debtors pay pushed

AMCON to change its

recovery strategy from

negotiation to enforcement.

He stated: “Aside recovering

over N1trillion, our

intervention in the banking

sector protected thousands of

jobs. Along the line, we have

also created thousands of

direct and indirect jobs. The

creation of the Asset

Management Partners

(AMPs) scheme for instance

employed close to 9,000 direct

and indirect jobs as well.

TeamApt gets payment switch license from CBN

revolution as it provides

solutions for different customer

segments in Nigerian.

Commenting on the impact

of the licence during a media

tour of the company, TeamApt

Chief Executive Officer, Tosin

Eniolorunda, said: “It is the

highest licence awarded to any

fintech by the CBN because the

license allows you to put all the

banks together and be able to

debit their banking position

with the CBN. What this

translates to is that with

AptPay, TeamApt can actually

move money across the banks

without putting our money

down. This licence puts

TeamApt on the same level as

other Tier-1 financial

technology companies.”

Speaking further, he said: “If

through a payment gateway, a

buyer pays a merchant for a

product and the payment

gateway provider needs to pay

the merchant instantly, without

the licence, the provider will

have to pay with its own money.”

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