Banking and Finance

Stock Market Weekly Summary: July 19, 2013

A turnover of 1.89 billion shares worth ₦15.54 billion in 28,619 deals were traded last week by investors on the floor of the Nigerian Stock Exchange (NSE) in contrast to a total of 1.67 billion shares valued at ₦18.27 billion recorded in the preceding week in 25,367 deals.

The Financial Services sector (measured by volume) came top last week and accounted for 763.65 million shares valued at ₦7.28 billion traded in 14,740 deals, thus contributing 40.50%, 46.83%, 51.50% to the total equity turnover volume, value and number of deals respectively.

AMCON Appoints Financial, Legal Advisers for Enterprise Bank

The Asset Management Company of Nigeria (AMCON), which holds non-performing assets of troubled banks, said it had named Citigroup and Africa-focused investment bank Vetiva Capital to manage the sale of its shares in one nationalised bank.

While Citigroup Global Markets Limited and Vetiva Capital Management Limited were selected as financial advisers to the transaction, G. Elias & Company Limited emerged as the legal adviser.

IoD Advises Market Operators on Compliance

Photo L-R: Executive Director, Market Operations and Technology, The Nigerian Stock Exchange (NSE), Mr. Ade Bajomo; Chief Executive Officer, Best Foods Global Limited, Mr. Emmanuel Ijewere; Chief Executive Officer, NSE, Mr. Oscar Onyema; President, Institute of Director (IoD), Mrs. Eniola Fadayomi; Past President, IoD, Mrs. Olutoyin Olakunri; and Executive Director, Business Development, NSE, Mr. Haruna Jalo-Waziri at the courtesy visit of institute to The Nigerian Stock Exchange yesterday in Lagos.

GTB, Zenith, Others Tagged Most Profitable Tier 1 Banks

Guaranty Trust Bank Plc, Zenith Bank Plc, FBN Holdings Plc, United Bank for Africa, and Access Bank Plc, have emerged the most profitable Tier 1 banks in Nigeria in the 2012 financial year, a report by Agusto & Co., a credit rating agency, has revealed.

For the first time since 2009, no bank posted a pre-tax loss which shows that the Nigerian banking industry’s profitability has returned to pre-crisis levels.

FirstBank, CDB Seal $100m SME Facility Deal

First Bank of Nigeria Limited has signed a $100 million facility agreement with the China Development Bank (CDB), a leading bank in the Peoples’ Republic of China.

The facility was part of the bank's effort to boost lending to small and medium scale enterprises in the country to stimulate the economy.

The Group Managing Director/Chief Executive Officer, First Bank Nigeria, Bisi Onasanya, is a member of the federal government’s delegation to China. The delegation also includes four state governors and 10 ministers.

Biometric Authentication of ATMs, PoS to Commence in 2015

The Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi, has declared that the biometric authentication of Point of Sales (PoS) terminals and Automated Teller Machines (ATMs) will commence in 2015.

He said the move was aimed at addressing concerns over the safety of customers’ funds and also to avoid losses through compromise of Personal Identification Number (PIN).Statistics show that this effort has reduced the fraud incidences by 90%. Many customers are now embracing these electronic (ATM and PoS) channels in their transactions.

CBN to Review Agent Banking Rules

The Central Bank of Nigeria (CBN) has said it will be reviewing the Agent Banking Guidelines it issued some months back.

The CBN Governor, Sanusi Lamido Sanusi, at the launch of the Geospatial mapping of Financial Institutions in Nigeria in conjuction with the Bill and Melinda Gates Foundation, said it is important to review the guidelines because of initial challenges the banking practice is facing.

NSE Charges New Brokers to Be Worthy Ambassadors

The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Oscar Onyema, has admonished newly-inducted stockbrokers to stand against sharp practices in the market, having being qualified as chartered stockbrokers by the Chartered Institute of Stockbrokers (CIS) and as dealing clerks by the NSE.

Speaking at the induction ceremony for the newly-qualified stockbrokers, Mr. Onyema said, “Today marks a call to stand tall in integrity, to be impeccable in character, to be professional in service and to be high in ethics and standards.

Nigerian Banks Emerge in Top 1000 Global Ranking

Thirteen Nigerian banks emerged in this year’s edition of the “Top 1000 World Banks’ Ranking,” by the Bankers magazine, owned by the Financial Times Group, London.

Zenith Bank Plc, First Bank Nigeria and Guaranty Trust Bank Plc (GTB), in that order, were the top three Nigerian banks in the ranking.

Others were Access Bank, United Bank for Africa (UBA), Ecobank Nigeria, Fidelity Bank, First City Monument Bank, Skye Bank, Diamond Bank, Stanbic IBTC, Union Bank and Standard Chartered Bank, in that order.