Relief for customers as retail banking competition intensifies

The long wait and delays usually experienced at banking halls in Nigeria may soon be a thing of the past, as customers are starting to enjoy faster and more efficient services occasioned by rising competition in the retail banking market.Tony Chukwunyem writes     Owing to the congestion usually witnessed in the few branches that this leading Tier 2 bank has in densely populated suburbs of Lagos, Mr. Wilson Ogbeide, a businessman, told New Telegraph that he tries as much as possible to avoid entering the lender’s banking halls to…

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Bank stocks gain N732bn in January

Investors in banks quoted on the main board of the Nigerian Stock Exchange (NSE) reported a gain of about N732 billion in the first month of 2018 financial year following strong earnings results, improvement of micro economy and gradual stability being recorded in foreign exchange.   Checks by New Telegraph revealed that the stocks recorded a gain of N732 billion or 29.43 per cent to close at N3.219 trillion in market capitalisation on the last trading day of January 31.   This is against the opening figure of N2.487 trillion…

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Banks embrace Islamic banking amid rising competition

As competition intensifies in the banking industry, some conventional banks in Nigeria are veering into the provision of Shari’a-compliant banking products through “Islamic Windows”. In fact, one such lender recently announced that it plans to apply for a stand-alone Non-Interest Bank (NIB) license, writes TONY CHUKWUNYEM   Although the move generated quite some controversy, the Central Bank of Nigeria’s (CBN) release of guidelines for the operations of Non-Interest Banks (NIBs) in the country in 2011 and its argument that interest-free banking would play a critical role in boosting financial inclusion…

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Cost-cutting takes toll on banks’ service delivery

Tough cost-cutting measures introduced by deposit money banks (DMBs) as part of efforts to stay profitable in the face of a harsh operating environment are taking a toll on the quality of service provided by lenders, findings by New Telegraph have revealed. In the wake of the negative impact of the mid-2014 slump in oil prices on the Nigerian economy, banks had, in the last three years, adopted aggressive cost-cutting measures, such as slashing over 10,000 thousand jobs, reducing workers’ salaries/allowances, halting fresh recruitment of full time employees and hiring…

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Banks step up commitment to SME financing

As they did in the last three editions of the event, Nigerian bankers, under the aegis of the Bankers’ Committee, again seized the opportunity of this year’s 9th annual Bankers’ Committee retreat, which held in Lagos at the weekend, to focus on how lenders can improve access to finance for Small and Medium Enterprises (SMEs), writes Tony Chukwunyem   In the wake of the slump in oil prices in mid-2014 and its attendant impact on the financial system, lenders in the country clearly seem to have come to the realisation…

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ATM: Bank customers raise the alarm over criminals’ tricks

  Nigerians are presently complaining about being robbed of their money at Automated Teller Machine (ATM) points. Many of them claimed to feeling ‘hypnotized’ into parting with their money. The stories of the victims’ tallies, with many of their money ‘collected’ from them at ATM point, after withdrawal. One of such victims is Segun Adesioye, residing at Igando area of Lagos State. Just like many other Nigerians, Adesioye believed he was hypnotized and the money he withdrew calmly collected from him. Recalling the incident, Adesioye said: “That fateful day was…

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Bank stocks record N1.033trn gain in 11 months

  Investors in banks quoted on the main board of the nation’s stock market reported a gain of about N1.033 trillion in the first 11 months of 2017. This followed strong earnings results, improvement of micro-economy and gradual stability being recorded in foreign exchange. Checks by New Telegraph showed that the stocks recorded a gain of N1.03 trillion or 71.64 per cent to close at N2.475 trillion in market capitalisation on the last trading day of November 30, 2017 as against opening figure of N1.442 trillion at the beginning of…

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Diamond: Why global bank brands’ll struggle in Africa

The former boss of British banking group Barclays, Bob Diamond,   has said that the biggest opportunities for banking growth in Africa are for regional players who can build branches in several countries, as opposed to bigger, global brands. “The right model to own a bank in Africa… is a Middle East or African model,” Bob Diamond, the former Barclays executive told delegates during a panel discussion at the Africa Global Business Forum in Dubai last week. “It’s a regional play. The global banks that had a competitive advantage in…

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Bank guard, others arrested for burgling homes

A security guard, attached to one of the banks in Lagos State, has been arrested by detectives attached to the Special Anti-Robbery Squad (SARS), Ikeja, Lagos State, for burgling homes with screw drivers. The suspect, Nath Job, 36, along with his friends, Yusuf Badmus, 38, Chimezie Njinaobi, 25 and Ibrahim Dominic, 36, were arrested for breaking and entering. Job explained that he met Badmus, last year and a friendship developed. Early this year, Badmus told him that he was scouting for a cab driver that would assist him to take some…

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Outlook for bank lending brightens as T-bills’ yields fall

Although it has been largely marginal, the recent decline in treasury bills and other fixed income government securities’ yields will boost banks’ lending to the private sector, analysts have said. Deposit money banks (DMBs) in the country have come under criticism in recent years for preferring to rake in billions from their investments in high-yield fixed income government securities instead of lending to the private sector and helping to speed up economic growth. According to the 2016 Budget Implementation Report issued by the Budget Office: “Credit to government grew by…

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