29042019 - Economy bleeds as power system collapses

22 — Vanguard, MONDAY, APRIL 29, 2019
FINANCIAL VANGUARD
From Left: Managing Director, Ecobank Nigeria, Patrick Akinwuntan; Founder/CEO,
PricePointe Wholesale Club, Tayo Williams and Executive Director/Chief Risk Officer, Ecobank
Nigeria, Biyi Olagbami during the launch of PricePointe flagship warehouse in Ilupeju, Lagos.
CBN introduces special intervention
fund for MFBs
•Seeks 20% microcredit ratio by 2020
•New MFB policy in the offing
By Babajide Komolafe
and Emma Ujah
THE Central Bank of
Nigeria (CBN) has
introduced a special
intervention fund for
microfinance banks (MFBs) in
the country, even as it assured
that it will soon issue a new MFB
policy.
Meanwhile the apex bank
said it aims to increase the
share of micro credit as
percentage of total credit to at
least 20 percent by 2020 from
the current ratio of five percent.
CBN Governor, Mr. Godwin
Emefiele, disclosed this in a
keynote address delivered at
the just concluded seminar
organised by the apex bank for
finance correspondents and
business editors held in
Gombe State.
Emefiele said that while the
apex bank recognises the
challenges of the MFBs, it is
also aware of their
contributions to extending
credit to the economically
active poor.
He said: “Data from the
licensed credit bureaus
indicate that the operations of
microfinance banks have
helped to improve financial
inclusion amongst smallholder
peasant farmers, artisans and
other small business operators.
As at December 2018,
aggregate loans granted by
MFBs was N482.896 billion. Of
this amount loan sizes below
N 1.4 million accounted for 72
percent. We equally observed
that small businesses have
been more successful in securing
credit from the microfinance
institutions rather than
conventional deposit money
banks (DMBs).
“There are challenges,
nevertheless. They include;
inadequate spread in the
location of the MFBs in relation
to their target beneficiaries,
demand for immoveable
collaterals for loans, high
interest rate, and absence of a
credit reporting system. We are
committed and working
assiduously to address these
limitations.”
Reiterating the apex bank
commitment to increasing
FBNQuest
Merchant
Bank, a subsidiary of
FBN Holdings Plc has
recorded 56 percent growth
in profit before tax to N16.4
billion for the financial year
ended December 2018.
Chairman of the bank,
Mallam Bello Maccido,
disclosed this at the bank’s
annual general meeting held
in Lagos last week.
Noting that the operating
environment in 2018 was
particularly challenging for the
business, he said: “The year
was characterised by
contracting spreads in the
fixed income market, a
sluggish equity/mergers and
acquisition (M&A) market,
fewer transactions, and a
competitive landscape that has
access to financial services for
the economically active poor,
Emefiele said: “The target is to
increase the share of micro credit
as percentage of total credit to
at least 20 percent by 2020. “The
bank remains committed to the
economic empowerment of
disadvantaged groups including
women and actively seeks to
achieve this through the
instrumentality of microfinance
amongst other initiatives.”
Speaking earlier in a
presentation on entitled,
“Appraisal of the new
microfinance policy framework,”
Director, Other Financial
Institutions Supervision
FBNQuest Merchant Bank raises
profitability by 56% to N16.4bn
become more intense.
“Nonetheless, the
investment and banking group
(IBAM) business group
maintained profitability and
recorded steady growth in
certain business lines.
RAND Merchant Bank
Nigeria (RMBN) has
launched RMBN Digital, a
banking solution aimed at
enhancing the transactional
banking experience of clients.
Speaking on the features of the
platform, Taiwo Shote, “Head of
Corporate Banking, RMBN, said:
“RMNB is living up to its slogan
of being “an innovative and
solutions-driven bank. We are
Fidelity Bank grows profit
by 34% in Q1’19
•Shareholders commend 2018 performance
By Elizabeth Adegbesan
FIDELITY Bank Plc’s profit
before tax rose 34 percent
to N6.7 billion in the first
quarter ending March 2019
(Q1’19).
Meanwhile, shareholders who
spoke at the bank’s annual
general meeting (AGM) held
on Friday, commended the
bank for its efficient cost
management strategy as
growth in its total operating
expenses remained below the
average headline inflation rate
in 2018. The shareholders,
however, seek for a higher
dividend for the next financial
year, even as they applauded
its Board of Directors for
declaring 11kobo dividend per
share for the financial year
Department, CBN, Mrs.
Tokunbo Martins disclosed that
the apex bank has introduced a
special intervention fund for
MFBs adding that the CBN is
currently reviewing the
microfinance bank policy with
the aim of releasing the third
edition of the policy which was
first introduced in 2005.
Lamenting the poor
performance of MFBs in
deposit mobilisation, Martins
said: “The CBN has approved
a special intervention framework
for qualified micro finance banks
and our hope is that it will
incentivise other microfinance
banks to get their house in order
so they can also qualify to access
these funds. The CBN is
working tirelessly so that the
banks that are doing well can
grow and multiply.”
Speaking further, Martins said
that, “The SMEs are making
great contributions to the gross
domestic product (GDP) but
they don’t have access to credit
such that would boost their
operations in the massive way
needed by the economy.
“We have had two earlier
Microfinance Policy
Frameworks: in 2005, 2011 and
the current one.”
ended December 31, 2018.
In a statement announcing
the unaudited financial
statement of the bank for
Q1’19, the bank said: “Gross
earnings rose by 11.8 percent
from N43.3 billion in 2018 to
N48.4 billion in the period
under review, whilst profits
surged by 34.0 percent from
N5.0 billion in Q1 2018 to N6.7
billion in 2019. Similarly, the
bank recorded growth in
deposits, loans and other
performance indices during
the period.”
Speaking on the financial
results, the Fidelity Bank
CEO, Mr. Nnamdi Okonkwo
said the double digit growth
in earnings and profits further
demonstrates a positive start
for the new financial year. “We
remain focused on the
execution of our medium-term
strategic objectives and
targets for the 2019 full year
while we look forward to
sustaining the momentum and
delivering another strong set
of audited results for half year
2019 (H1 2019FY)”, Okonkwo
stated.
He further revealed that the
bank’s earnings grew by 11
percent on the back of growth
in fund and fee-based income.
“We recorded double digit
growth across key income
lines: FX income (334.4
percent), digital banking
income (34.6 percent), account
maintenance charge (25.5
percent) and interest income
on liquid assets (10.1 percent)”
he disclosed.
According to the Okonkwo,
digitalization and the bank’s
retail strategy continues to
positively impact on its
fortunes with “43 percent of
customers are now enrolled on
the mobile/internet banking
products and more than 81
percent of total transactions
done on digital platforms,
resulting in 25 percent in feebased
income, coming from
digital banking.
“Savings deposits which now
accounts for 24 percent of total
deposits in the period
increased by 6.2 percent to
N242.1 billion indicating that
the bank is on a steady march
to achieving the 6th
consecutive year of doubledigit
savings growth.”
RMB Nigeria launches online transactional banking platform
ensuring that our clients enjoy a
seamless and secure digital
banking experience.
“RMBN’s online banking
offering is aimed at efficient cash
management through adequate
and accurate financial reporting as
well as the timely processing of
transactions.
“We understand the desires of our
clients, top of which is to be able to
access and activate banking
transactions on the go while having
a full view of transactions as they
do business across different sectors
and markets.
“Understanding the needs of our
clients enables us to partner with
them across the entire value chain,
enabling us to provide the
appropriate corporate banking,
advisory, financing, trading and
risk management solutions”.