Q3 earnings: Banks set to sustain positive performance

As another earnings season gets underway, there are indications that deposit money banks (DMBs) will sustain the impressive performance reported for the first half of the year, writes Tony Chukwunyem With Q3 earnings season already underway, financial analysts are  looking out  to see whether Deposit Money Banks (DMBs) will be able to replicate the positive results they reported for the first half of the year especially given the fact that the economy came out of recession in the second quarter of 2017. Improving macro environment In fact, in a recent…

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World Bank signs $1.3bn pact to aid Ethiopia’s devt

The World Bank and the Ethiopian government have signed two agreements amounting to $1.3 billion to support Ethiopia’s development. Ethiopian Minister of Finance and Economic Cooperation, Abraham Tekeste, said during the signing ceremony in Ethiopia’s capital Addis Ababa that the two agreements will support long-term system building and capacity development together with human development and poverty reduction endeavors. The first agreement, involving $700 million, will finance the ongoing Ethiopia’s Enhancing Shared Prosperity through Equitable Services (ESPES) programme, which aspires to improve basic service delivery in education, health, agriculture, water supply…

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Expert cautions on Ghanaian banks’ mergers

As banks in Ghana mull various options of how to raise their minimum capital as required by the regulator of the industry, the former Director General of the Ghana Securities and Exchange Commission (SEC), Dr Adu Anane-Antwi, has said that the public should not expect many lenders to choose mergers as a desired option. According to agency reports, he said it would be difficult to record some numbers of mergers among the banks due to the lack of trust among Ghanaians. He explained that the lack of trust among businesses…

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‘Banks to sustain H1 2017 performance’

Having posted generally impressive results in the first half of the year despite Q1 data showing that the economy was still in recession at the time, Nigerian banks are likely to sustain this performance in H2 2017 due to the improving macro environment and latest positive Gross Domestic Product (GDP) figures, analysts at FBNQuest Research have predicted. In a note obtained by New Telegraph, the experts stated: “The recession of 2016 and the devaluation of the naira have led to a heightened risk environment for the banking sector. Loan growth…

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Banking: Modest progress on financial inclusion Modest progress on financial inclusion

With about 40 per cent of Nigeria’s estimated 180 million population still not having a bank account 57 years after independence, the country’s banking industry still has a long way to go with respect to the provision of financial services. As can be deduced from the fact that six Nigerian banks were ranked among The Banker Magazine’s Top 25 Banks in Africa and among top 1000 global banks in the magazine’s 2017 Global Banks’ ranking released in July, local banks have come a long way since 1960 when the country…

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Concern mounts over Nigeria’s rising debt profile

Latest data released by the National Bureau of Statistics (NBS) on Nigeria’s rising debt profile has reignited concerns that the country could be headed for a debt meltdown. TONY CHUKWUNYEM writes President Muhammadu Buhari’s letter to the National Assembly on October 25 last year, seeking approval to borrow $29.9billion to finance infrastructure development from 2016 to 2019, clearly pushed the issue of sustainability of the nation’s debt profile to the front burner. Analysts had pointed out at the time that Nigeria’s total external debt stock could rise to a record…

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‘Nedbank can still thrive in Africa’

There is still a business case for First Rand and other South African banks to continue their operations on the continent despite the mixed-performance of their African operations, the global professional services group, EY has said.  Analysis on interim results of the big four banks, by EY, shows that earnings were barely positive, up 0.3per cent in real terms. Earnings growth slowed to 5.7per cent for the first half of the year compared to 6.6per cent reported in the same period last year. Low revenue growth is behind the low…

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FirstBank gears up to achieve customer growth target

F irst Bank Nigeria Limited is stepping up efforts to ensure that it meets its growth target of 30million customers over the next three years, the lender has said. Managing Director/Chief Executive, FirstBank Limited, Dr. Adesola Adedutan, had announced last May that the Tier 1 lender had begun implementing a three year strategy that would result in its increasing its customer base to 30million. He said: “The strategy is focused on significantly growing our customer base. We plan on having minimum of 30 million customer account over the three years.…

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2017 Q2 GDP reignites debate on interest rates

With the release of 2017 second quarter (Q2) Gross Domestic Product (GDP) data by the National Bureau of Statistics (NBS), last Tuesday, members of the Central Bank of Nigeria (CBN)’s Monetary Policy Committee (MPC) will again face the key decision of whether to cut or retain interest rates when they meet in Abuja in a fortnight, writes TONY CHUKWUNYEM.   Despite the euphoria that greeted the announcement by the National Bureau of Statistics (NBS) last Tuesday that the Nigerian economy had officially exited recession with a marginal 0.55 per cent…

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Banks show resilience amid sluggish economy

Contrary to forecasts that the economic downturn will significantly impact their bottomline in the short and medium term, deposit money banks (DMBs) in the country generally posted positive results for the first half of this year. Tony Chukwunyem reports Concern about how the banking industry is faring in the face of a struggling economy certainly eased a bit following the release of impressive half year 2017 results last week by one of the country’s key mid-tier lenders, Fidelity Bank. Fidelity Bank The audited results, which were eagerly anticipated given that…

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