Our attention has been drawn to an online report on the purported sale of Polaris Bank Limited. 

This publication is speculative, deliberately intended to create panic and should be disregarded by the banking public. 

Stakeholders may recall the regulatory intervention in the erstwhile Skye Bank by the CBN and the subsequent injection of capital via the Asset Management Corporation of Nigeria (AMCON) through a bridge bank process, which birthed Polaris Bank in 2018. The bank has since stabilised its operations following the intervention; improving its balance sheet, customer base and profitability. 

Whilst the intention has always been to return the bank to private ownership, such a sale would occur following regulatory approvals with formal notification to all relevant stakeholders. The Bank is committed to ensuring timely communication to the public in such an event.
The Board and Management hereby reassure its customers, staff and the general public that Polaris Bank remains a stable, strong and credible financial institution, positioned to deliver sustainable value to all its stakeholders.

Signed
Management

A return to growth in output and stronger inflows of new orders helped underpin a further improvement in operating conditions in the Nigerian private sector during July. In turn, businesses increased their purchasing activity at the strongest rate for five months while stocks increased sharply.

Despite stronger inflows of new work, employment growth eased and was marginal amid elevated costs and subsequent pressures on profits. Purchase and output price inflation accelerated to four-month highs in July, with unfavourable exchange rate movements and higher fuel costs behind the latest round of inflation.

Nevertheless, sentiment improved from June, and firms reported hopes of securing greater business investments.

The headline figure derived from the survey is the Purchasing Managers’ Index™ (PMI®). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

The headline PMI registered at 53.2 in July, up from 50.9 in June, signaling an improvement in business conditions in Nigeria’s private sector. The latest figure rose from June’s 17-month low but was still muted compared to the historical average.

A renewed increase in output supported the latest improvement in business conditions in July. Output rose solidly, albeit at a rate that was weak by historical standards. Agriculture recorded the strongest uplift in output during July, followed closely by manufacturing. Services and wholesale & retail followed, where rates of growth quickened from those seen in June. Stronger client demand was behind the uplift in output with new orders rising sharply across all four sectors in July.

To support higher output, companies increased their purchasing activity for the twenty-fifth month in a row. Consequently, stocks of purchases rose markedly as firms intensified efforts to build up their inventories. Moreover, the rate of growth was the steepest in seven months.

Vendor performance improved in July, but to the least extent for over two years amid reports of busier road conditions.

Outstanding business fell at the softest rate since August 2020 in July. Sufficient capacity combined with rising costs led firms to raise their headcounts at the slowest pace for seven months.

Turning to prices, overall input price inflation was robust amid a quicker uptick in purchase costs. Staff costs rose only marginally, however. Firms passed on a large part of the burden by lifting their selling prices at the quickest rate in four months.

Finally, firms remained optimistic about output growth in the year ahead amid hopes of acquiring greater investment and expanding business operations.

Executive Director, Asset Management Corporation of Nigeria (AMCON), Dr. Eberechukwu Uneze (right) handing over the title documents of Standard Shoe Company Limited, Imo State to Imo State Governor, Senator Hope Uzodimma in the Boardroom of AMCON on Friday in Abuja.

As part of its strategy to partner, support, and help revitalize businesses in its portfolio over huge debt, the Asset Management Corporation of Nigeria (AMCON) in Abuja on Friday, handed over the original title documents of Standard Shoe Company Limited, a footwear manufacturing factory co-founded by the Imo State Government to Governor Hope Uzodinmma of Imo State.

The handover of the asset to the good people of Imo State through their governor followed the full resolution of the indebtedness of Standard Shoe Company Limited to AMCON.

Ever since it took over the factory, AMCON had continued the engage the government of Imo State because of the critical impact resuscitating such a massive factory would make in the manufacturing sector of the Nigerian economy.

In a brief remark before handing over the documents to governor Uzodimma, Dr Eberechukwu Uneze, an Executive Director in charge of asset management at the Corporation who represented the MD/CEO, Mr Ahmed Lawan Kuru said AMCON was not only happy that the Imo State government under the leadership of Uzodimma finally resolved indebtedness with AMCON, but because the factory would now go back to the good people of Imo State and contribute to job creation, and improve the internally generated revenue of Imo State, which in line with AMCON mandate.

Uneze who commended the Imo State governor for making efforts to resolve the outstanding loan obligation owed AMCON by the Imo State government, added, “My governor, we appreciate this effort because other governments in Imo State have come and gone but none of them had made this much effort to resolve this debt. So, it is a huge impact you have made. I hope this will energize the State and encourage the good people of Imo State.”

In his own acceptance speech after signing and receiving the documents on behalf of the government and people of Imo State, Uzodimma who recounted the pleasant experience he had with AMCON all through the negotiation process encouraged other obligors to approach AMCON freely and willingly because the Corporation is not hostile, but only interested in their recovery mandate and in genuine growth as well as development of the country.

The governor added, “I approached the Management of AMCON and discussed with them. I want the public to understand that AMCON is not a hostile outfit. With my experience with them, AMCON is interested in the genuine growth and development of the Country. This is what I saw during negotiation period concerning what Imo State was owing AMCON.

“I am very happy about the co-operation we (Imo State government) received, and I assure you that we are going to revive the industry by employing our young men and women to stimulate industrialization in the State. The people will be happy to see the industry come back to life. On behalf of myself and the people of Imo, I am very grateful to AMCON.”

AMCON had taken over the assets belonging to the Standard Shoe Company of Nigeria during the first phase of EBA purchases from Oceanic Bank in 2011, after the company stopped production in 2009 due to lack of working capital and were unable to meet up with its loan obligations.

Before now, the Corporation had made several efforts to discuss the debt with the previous Imo State administrations but never made any headway until the present government led by Uzodimma expressed interest in settling the debt obligations of the state, with the aim of rehabilitating the company to create employment opportunities and enhance the standard of living of the citizens of Imo State.

This landmark signing and handover ceremony, which will go down as a major achievement for the Hope Uzodimma-led government of Imo State, took place at AMCON Head Office in Maitama, Abuja.

From left: Dr Oluwafunsho Obasanjo, Non-Executive Director; Mr. Alaba Williams, Company Secretary; Alhaji Aminu Babangida, Chairman; Mrs Tomi Somefun, Managing Director/CEO and Hafiz Mohammed Bashir, Non-Executive Director, all of Unity Bank Plc at the 16th Annual General Meeting of the Bank in Lagos.

Retail lender, Unity Bank Plc has posted gross earnings of N27.6 billion for its 2022 half-year results, representing a growth of 17% year-on-year.

In its unaudited half-year financials submitted to the Nigeria Exchange Group Limited, the Bank also made significant improvements across key performance indicators.

The Bank grew Profit Before Tax (PBT) by 23% which rose to N1.8 billion from N1.5 billion in the corresponding period of 2021. Profit After Tax (PAT) for the period equally increased by 23% to close at N1.6 billion from N1.382 billion in H1’21.

The key highlights of the financial statements showed growth in interest and similar income, which rose 18% to N23.938 billion from N20.273 billion in the corresponding period of 2021, an indication of sustained growth in the loan book as well as improved earnings from the lender’s robust digital channels, arising from sustained investment in its digital payment infrastructure.

Similarly, the lender posted sustained asset growth as total assets moved up by 7% to N574.3 billion from N538.9 billion in 2021.

Other key highlights of the financial statement include a 12% growth in deposits, which rose to N359.5 billion from N322.3 billion in December 2021, a clear indication of the positive trend of the Bank’s innovative retail products targeting several segments of the retail market as well as enhanced customer acquisition strategies for emerging products rolled out to the market during the period under review.

In the same vein, the lender recorded an increase on its loan books to N303.632 billion from N269.270 billion in 2021, representing a 13% growth.

Commenting on the financial statements, the Managing Director/CEO of Unity Bank Plc, Mrs Tomi Somefun welcomed the H1’22 results. She noted that while the key performance indicators continue on an upward trajectory; PBT (23% YoY), Total Assets (7% YoY) and gross earnings (17% YoY); the outlook for our financial position has now moderated significantly looking at other fees and income lines which performance was hitherto characterised by volatilities in the operating environment.

“As the Bank aims to further grow all indices to double-digit regions in the coming years, one reassuring take from the financial position lies in the market confidence, as well as steadily growing retail and SME franchise arising from the development of products that resonate with different markets segments, which will enable the Bank to continue to operate and successfully navigate the tough operating environment, amid rising economic headwinds,” Somefun stated.

The Unity Bank boss also stated that having invested massively in technology to drive a major revamp in our digital Banking products and channels including the Unifi Mobile App, our USSD, *7799#, internet banking, etc., the major focus is to drive increased optimisation which will enable the Bank to provide electronic convenience in the way we support our teaming customers and market segments and more often change the way they transact business.

In the view of analysts, the key performance indicators showed that the market sentiments are responding positively to the strategies of the lender’s management to accelerate the growth momentum designed for the Bank.

L-R: United Nations Resident Coordinator, Dr. Matthias Schmale; Vice President, Public Affairs Communication & Sustainability, The Coca-Cola Company, Africa, Ms. Patricia Obazuwa; MD/CEO Sterling Bank Plc, Mr. Abubakar Suleiman; CEO of Sterling One Foundation, Mrs. Olapeju Ibekwe and Vice President and Head, Corporate and Government Relations, Olam at the premier edition of Africa Social Impact Summit held in Abuja.

The United Nations Resident and Humanitarian Coordinator, Nigeria Mr. Matthias Schmale, has commended the Sterling One Foundation for creating a convening to accelerate growth towards the 2030 Sustainable Development Goals across Africa.

This was shared during the 2-day hybrid event held on July 13-14, 2022 in Abuja which had about 4,000 registered delegates from 55 countries.

Giving a keynote address at the event on the theme, ‘Rethink, Rebuild, Recover, Accelerating Growth for the SDGs’, Mr. Schmale noted that the theme was apt, timely, relevant, and required given the economic regression across Africa occasioned by the pandemic, the volatilities caused by the Ukraine war and the fact there was just 8 years to go before 2030.

He commended the leadership of the Sterling One Foundation stressing that there was need for intensive collaborations and partnerships among African leaders across the public and private sectors including the civil society groups to aid the achievement of not just the 2030 goals but also, the African Union’s 2063 goals.

Also speaking at the event, Mrs. Olapeju Ibekwe, CEO, Sterling One Foundation, noted that the summit had in-depth and insightful panel sessions on climate action, education access and funding, primary healthcare, youth and gender empowerment, impact investment and governance which all give a good appreciation of the 17 interlinked global goals.

She added that a recurring resolution that came through in all the panel sessions was the need for the elimination of silo executions and the embracing of collaborations by all sector players.

Financing strategies, impact measurement and evaluation of such impact were also discussed as

it was clear that the SDGs require financing to become a reality with an estimated amount of $1.3 trillion annually in Africa as shared by the UN and over $300 billion to block the gap in Nigeria.

“Various deals from 4 African countries were brought to the summit’s Deal Room with innovative solutions that cut across the education, health, construction, renewable energy, and food security sectors. Most of these businesses already have conditional commitments from our investors at the event and we expect to seal these deals in the coming weeks by working with the investees. We will continue facilitating financing for purpose and profit-driven business solutions that will help promote access to health and education for all while guaranteeing returns for impact investors locally and globally’’, she added.

She noted that the Foundation was already working with various partners and will continue in this light as the event was organized in partnership with the United Nations Global Compact Network Nigeria, Sterling Bank, the Coca-Cola Company, VFD Group, the Impact Investors Foundation, Giving.ng, the Nigeria Climate Innovation Center (NCIC), the Nigerian Economic Summit Group (NESG), Ventures Africa, Proshare and Tech Cabal.

As part of Junior Achievement Nigeria’s vision of inspiring and preparing the youth to succeed in a global economy and in alignment with Union Bank’s corporate sustainability impact strategy, the Bank in partnership with Junior Achievement Nigeria is set to implement the annual Leadership, Empowerment, Achievement and Development (LEAD) Camp for girls.

The LEAD Camp which kicks off July 25th, 2022 is a week-long programme designed to empower young girls to be high-achieving leaders in line with the United Nations Sustainable Development Goal – Gender Equality.

This year’s edition which is the 21st anniversary marks the 8th year of partnership with the Bank and is the first time the camp will be held in a hybrid mode. 300 girls will be taken through activities like leadership workshops, empowerment/panel sessions covering: financial literacy, entrepreneurship, technology, creative arts and entertainment, and development sessions such as coding, understanding sexual abuse, and personal hygiene with leading women from the private and public sectors in Nigeria and project group mentors.

Speaking about this year’s edition, Executive Director, Junior Achievement Nigeria, Foluso Gbadamosi said:

“The Junior Achievement Nigeria LEAD Camp is a transforming experience for girls. Having top women from different organisations impact our girls is not only inspiring but reassuring and a clear indication that young girls can aspire to be all they were created to be. Regardless of the career path they choose to take, they can be successful with the right guidance, mindset, skill sets and networks – this is what this program offers. We appreciate Union Bank for their continuous support in partnering with us for the LEAD Camp and we look forward to more years of inspiring girls and enabling a world of possibilities for them to thrive excellently.”

Also commenting on the Bank’s continued partnership with JAN, Chief Brand and Marketing Officer, Ogochukwu Ekezie-Ekaidem said:

“Union Bank is pleased to extend our long-standing partnership with Junior Achievement Nigeria for their LEAD Camp. As a Bank, we are committed to enabling success for the communities we serve and this partnership reinforces our commitment to the push for gender equality and our focus on supporting the girl child. We are proud to see the impact of the programme on the young girls across the country and we commend the efforts of the JAN team who work tirelessly to impact them.”

Junior Achievement Nigeria (JAN) is part of Junior Achievement Worldwide (JAWW), the world’s largest and fastest-growing non-profit economic education organisation with a 120-country network. Since its inception in 1999, JAN has reached over one million students in over 20,000 classrooms in all the 36 states across the country and the FCT through over 5000 volunteers.

As part of a global network, JAN can leverage resources and expertise to deliver localized cutting-edge experiential programs built on JAWW’s three pillars of work Readiness, Entrepreneurship, and Financial literacy, to in- and out-of-school youths, ages 5 to 27, free of charge.
Established in 1917 and listed on the Nigerian Stock Exchange, Union Bank of Nigeria Plc is one of Nigeria’s long-standing and most respected financial institutions. The Bank is a trusted and recognizable brand, with an extensive network of over 300 branches across Nigeria.

The Bank currently offers a variety of banking services to both individual and corporate clients including current, savings and deposit account services, funds transfer, foreign currency domiciliation, loans, overdrafts, equipment leasing and trade finance.

The Bank also offers its customers convenient electronic banking channels and products including Online Banking, Mobile Banking, Debit Cards, ATMs and POS Systems.