Zenith Bank launches eazybanking solution

Zenith Bank Plc has launched a new mobile banking solution to make banking simpler and interesting.

The bank’s *966# Eazybanking solution, which was recently launched into the Nigerian market, will complement the effort of the Central Bank of Nigeria (CBN) to build a cashless economy and enhance financial inclusion.

The Unstructured Supplementary Service Data (USSD) banking solution enables people to perform financial transactions on all known mobile phones (Feature, Smartlite or Smart), without having to go on the net or download a mobile app.

USSD is a Global System for Mobile (GSM) communication technology used to send texts between a mobile phone and an application program in the owner network and the adoption of this technology allows people to do a lot of banking transactions even on the most basic of mobile phones.

The simple solution allows anyone with a mobile phone to do transactions such as buy airtime, transfer money, pay bills, check your balance and even open a Zenith Bank account, anytime and anywhere.

It positions the bank for future growth as internet penetration continues to deepen in Africa and the use of mobile phones becomes the new and preferred banking channel.

The USSD banking solution will complement the Zenith Mobile Banking application, already well accepted among its discerning customers.

Customers register by dialing *966# from their registered mobile numbers and following a simple set-up as prompted by a string of instructions after which they can easily carry out banking activities anytime, anywhere, from the comfort of their mobile phones.

To open a Zenith Bank account, potential customers are required to dial *966*0# and follow the prompts, following which an account number is automatically generated for the customer and they can start running the account after a short visit to any of the bank’s branches.

Some of the other transactions that can be performed via the bank’s *966# Eazybanking product and their respective codes are: account balance enquiries (*966*00#); airtime purchase (*966*Airtime Amount*Mobile Number#) and funds transfer (Dial *966*Amount to Transfer*Beneficiary Account Number#).

Banking Wema goes easy with *945#

Wema Bank Plc has recently launched an "easy-banking" platform  with the code *945# to keep up with the paste of providing mobile banking solutions on-the-go to its customers who are but to stay compliance in a world being driven by digital technology.

The disclosure was contain in a press statement the bank made available to Nigerian NewsDirect to officially announce the launch of its special Unstructured Supplementary Service Data (USSD) banking platform *945#.

Whilst revealing that it upgraded its former USSD code to provide additional features for customers' benefit, the bank defines USSD as "A GSM communication technology that sends text messages between mobile phones and network platforms."

Briefing attendees at the launch, Wema's Head of e-Business, Mr. Dele Adeyinka maintained that the introduction of the latest 945 USSD code has added to the lender's long list of value propositions to the general public.

Adeyinka, who expressed that Wema bank's  family would be excited about the new development, stated 945 USSD platform will enable customers and non-customers alike gain easy and simple access to banking solutions 24/7.

He said, “Everyone can access the simple banking solutions provided by *945#,” adding also that “*945# provides services like airtime top-up, account opening, money transfer, cash-on-the-go, payment of bills, and balance enquiry.”

The new mobile application Adeyinka shared comes with a reward as both new and existing Wema account holders stand a chance to win lots of prizes by using the code in the days following the launch.

Unveiling the USSD easy-banking code, the bank's  Managing Director/Chief Executive Officer, Mr. Segun Oloketuyi, disclosed that 945 is unique as it was derived from 1945, the year the bank was established.

Oloketuyi said, “Convenient banking has always been in our genes. We have strived in over 7 decades to ensure that our customers receive the best of banking solutions. *945# is our latest avenue to provide excellent service to Nigerians." Maintaining further that "It is safe and convenient."

The MD added, "It aims to promote financial inclusion in the economy as people in the grassroots can now gain access to banking services through the 945 platform.”

Recall that in recent times, Wema had won two (2) ISO awards, and the bank has experienced a flurry of innovative banking solutions which the statement underscored were coming on the heels of the unveiling of a new brand identity, the issuance of a National License by the Central Bank of Nigerian and the opening of new branches in various parts of the country.

The statement added, 945 is a way of life targeted at everyone who wants to live an Easy Life with a Mobile Phone that offers convenient banking at your fingertips. Just dial *945# to get started.

With these quick codes instructions you can enjoy Wema's USSD mobile platform: Open a Wema Bank Account, simply dial *945*1#; for Instant Recharge dial *945*AMOUNT#; for Funds Transfer, dial *945#, for Balance Enquiry dial *945*0#; and foir Change PIN dial *945*00#.

Fitch Affirms GTBank’s rating at B+ with Stable Outlook

Guaranty Trust Bank remains one of the top two rated Banks in Nigeria as shown by the recently released Rating Report by Fitch, a global rating agency.

Fitch revised the Outlook on the Bank’s Long term Issuer Default Rating (IDR) from Negative toStable citing the Bank’s continuing strong earnings, and stronger-than-expected liquidity as the reasons for the revised outlook.

Fitch Ratings also affirmed GTBank plc's Long-term Issuer Default Rating (IDR) at 'B+' with a Stable Outlook and Short-term IDR at 'B'. In addition, the agency affirmed the Bank's Viability Rating (VR) at 'b+', Support Rating (SR) at '4' and GTB Finance BV's senior notes, guaranteed by Guaranty Trust Bank: affirmed at 'B+'/'RR4'

Fitch revised the Bank’s Support Rating Floor (SRF) to 'B' from ‘B+’ as a result of the Sovereign’s weak foreign currency position.

The IDR rating and outlook reflects Fitch’s opinion of the Bank’s relative ability to meet its financial commitments and the Bank’s rating of B+ remains the highest credit rating in the industry. The Viability Rating (VR) which is a component of the IDR measures the Bank’s intrinsic credit quality and capacity to maintain ongoing operations and to avoid failure.

Fitch affirmation of the Bank’s VR shows that despite the tough operating environment, GTBank’s strong and stable financial metrics as indicated by its profitability track record, healthy liquidity state, strong asset quality and capital ratios, have continued to impact positively on the Bank’s VR rating of b+ which remains the highest in the industry.

The Bank’s Long and Short term National Rating remain affirmed at AA- and F1+ respectively, also the best in the industry. This rating denotes expectations of very low default risk and strongest capacity for timely payment of financial commitments relative to other issuers or obligation in the country. The F1+ rating also denotes a particularly strong liquidity profile.  

GTBank’s VR, SR, IDRs, National and Senior Debt ratings reflect the Bank's strong earning potential, excellent management strategy and corporate governance, solid track record in managing credit risk, strong liquidity management and sound capital ratios.

The Bank will continue to improve its financial profile and strengthen its risk management capabilities to improve its overall creditworthiness.

GTBank gets double honours at Euromoney Award

GTBank gets double honours at Euromoney Awards

….. Wins Best Bank in Nigeria & Best Digital Bank in Africa

Guaranty Trust Bank plc reaffirmed its position as a leading global brand with its recent recognition as the ‘Best Bank in Nigeria & Best Digital Bank in Africa’ during the 2016 Euromoney Awards which held in London last week at the prestigious Tower of London.

Now in its 25th year, the Euromoney Awards for Excellence covers more than 20 global product categories, best-in-class awards and the best Banks in over 100 countries around the world by recognizing institutions that have demonstrated leadership, innovation, and momentum in the markets they operate. In selecting its recipients, Euromoney combines quantitative and qualitative data to honor institutions that have brought the highest levels of service, innovation and expertise to their customers.

According to Euromoney Magazine’s Editor, Mr. Clive Horwood, “Competition for the awards this year was tough, arguably the toughest it has been since the start of the global financial crisis. In winning these awards, GTBank stands out not only because of its stellar performance but by its ability to define what its core strengths are, abide by these strengths and build its business around them. According to him, banking in the future will be about what you do, as well as what you don't do. GTBank stands out as Euromoneys’ best bank in Nigeria & Africa’s Best Digital Bank for its ability to adapt to local situations while maintaining international standards of best practice."

Receiving the award on behalf of the Bank, Managing Director/CEO of GTBank, Segun Agbaje, said "We are humbled and proud to emerge double award winners for Best Bank in Nigeria & Best Digital Bank in Africa. Winning these awards is an acknowledgement of the hard work and dedication of our staff, management and Board. It also represents our commitment to serving our customers and making banking simpler and more accessible for them.

 He further stated that, winning the “Best Bank in Nigeria” award a record nine times is a reflection of the loyalty of our stakeholders which enables us consistently deliver superior performance.

Nigerian Breweries declares 11% decline in profit

Nigerian Breweries Plc has declared 11 per cent decline in profit after tax to N19 billion for the six months ended June 30, 2016 from N21.5 billion posted in prior six months.

The unaudited condensed interim financial statements posted on The   Nigerian Stock Exchange official website, showed that the group profit before tax also dropped by 18 per cent to N25.5 billion from N30.99 billion recorded in six months ended June 30, 2015.

Major contributors to the company plunge in profitability include eight per cent increase in cost of sales from N77 billion to N83.39 billion while finance cost significantly rose by 151.5 per cent to N8.6 billion as against N3.4 billion recorded in six months ended June 30,2015.

The company noted that interest expenses for the six months period of 2016 amounted to N1.6 billion as against N2.5 billion in six months ended June 30, 2015.

Other net finance expenses for the six months period June 30, 2016 amounted to N7 billion as against N0.9 billion expenses in six months of 2015.

The breweries manufacturing company revenue for the period increased marginal by four per cent from N151.67 billion in six months of 2015 to N157.37 billion in the current six months period

 A statement signed by the company’s Secretary/Legal Adviser, Mr. Uaboi Agbebaku, said, “The market and the operating environment during the last three months were more difficult than the First Quarter of the year.

“Nevertheless, in the first half of the year, the Company was able to deliver top line growth with Revenue increasing by four per cent compared to the first six months of 2015. Rising inflation combined with higher input costs as a result of scarcity of foreign exchange, led to a flat Operating Profit versus the prior year.

Despite a lower interest cost from the Commercial Paper programme, Profit after tax declined by 11 per cent, mainly due to foreign exchange losses which occurred in June. The operating environment is expected to remain challenging for the rest of the year.

The Company according to him remains focused on its twin agenda of Cost Leadership and Market Leadership supported by innovation, and the Board remains positive on the Nigerian market for the medium and long term.

 In addition, to the six months unaudited results, the Company acquired, plant and equipment with a cost of N6.1 billion, 56 per cent below N13.8 billion  worth of property acquired in prior six months .

SEC holds Q1 2016 CMC meeting

The Securities and Exchange Commission (SEC) is set to host the First Quarter 2016 Capital Market Committee (CMC) meeting scheduled to hold in Lagos next Wednesday (April 13, 2016).

According to a statement from SEC, the meeting is scheduled to hold at the Federal Palace Hotel, Lagos and top on the agenda would be recent initiatives of the Commission as well as updates on the Capital Market Master Plan Implementation.

The Capital Market Committee (CMC) was mainly established to serve as a medium for exchange of ideas among market stakeholders as well as for feedback to Securities and Exchange Commission (SEC) on how to continuously improve the market activities and regulation.

It is an industry-wide committee comprising members of the Commission, representatives of capital market operators and trade groups and other stakeholders. The CMC meets every quarter to deliberate on various issues affecting the market and other policy matters.

Those invited to attend the meeting are: Chief Executive Officers (CEOs) of all registered capital market firms and trade/ professional groups; Chief Executive Officers of all registered trading platforms and exchanges; and Representative observers of Government agencies and other stakeholders; and

Others are Chairmen of the Senate and House Committees on Capital Market.

8 Banks provide N86.3bn for bad loans in 2015

Eight banks on the Nigerian Stock Exchange provides N86.3 billion loan impairment charges for the financial year ended December 31, 2015

The same banks loan impairment charges was up by 38.8 per cent from N62 billion provision in 2014, an indication of Nigeria banks prudent loan portfolio management.

This provision made by the eight banks is on the heels of macroeconomic challenges due to dwindling crude oil prices, and recognition of impairment charges on some specific commercial banking businesses.

Analysis of the results of banks so far released to The Exchange in 2015 indicated that Union Bank of Nigeria Plc top the chart in loan impairment charges with a growth of 106 per cent from N4.8 billion to N9.9 billion.

While commenting on the increased loan impairment charges, the Chief Financial Officer, Union Bank of Nigeria, Mr. Oyinkan Adewale, said,“ We have taken a prudent approach to our loan impairment provisions, due to a worsening operating environment and believe that there is an opportunity for recoveries as the economy improves."

Closely followed is Guaranty Trust Bank Plc with a growth rate of 74.8 per cent to N12.4 billion from N7.1 billion recorded in 2014.

United bank for Africa Plc came third when its loans provisioning rose by 58.7 per cent to N5.05 billion, from N3.18 billion in the corresponding period of 2014.

First City Moment bank loan  impairment charges rose by 41per cent from N10.6 billion to N15 billion while Fidelity Bank Plc, witnessed an increase of 33.9 per cent in impairment charges, which rose from N4.3 billion to N5.76 billion in 2015.

The management of FCMB noted that the growth in loan impairment charges was due to an exceptional charge of N5.4 billion on a legacy receivable asset and a significant loan impairment of N6.2billion related to a customer, both reported in Q3’2015.

Also, the Chief Executive Officer, Fidelity Bank Plc, Nnamdi Okonkwo noted that the increase in impairments was due to a more prudent approach adopted with respect to a special regulatory provision which was charged directly to the Profit and Loss (P&L), causing decline in profit of the bank.

Similarly, Access Bank Plc and Zenith Bank Plc recorded a growth of 22.1 per cent and 20 per cent in impairment charges respectively.

Access Bank impairment charges moved from N11.65 billion to N14 billion while Zenith bank recorded N15.67 billion in 2015 as against N13.06 billion in 2014.

Sterling Bank of the eight banks has the lowest growth in loan impairment charges . The bank recorded 10.3 per cent growth in impairment from N7.4 billion to N8.15 billion recorded in 2015.

Since  the major banking reform embarked upon by the Central Bank of Nigeria(CBN) in 2009/2010 in the banking industry, which led to improved risk management strategies by banks, it was expected that impairment charges that have also affected the profitability of banks.

However, the operating environment continues to through up challenges that have made banks to raise their level of provisioning for bad loans.