FCMB Group Plc released its FY-2017 financial statement, showing decline in top and bottom line performance in the full year.

Gross Earnings declined by 3.66% to NGN169.88 billion, while pre-tax and post-tax profits were lower by 29.47% and 34.38% at NGN11.46 billion and NGN9.41 billion respectively. Compared to Bloomberg’s polled estimates, PBT was 10.03% higher than expected, while PAT was short by 12.71%.

Net interest income inched higher by 1.43% to NGN70.53 billion, with interest expense (+11.26%) reporting a faster growth than interest income (+5.79%) during the year. Interest earned on cash and cash equivalents were higher by 17.86%, while interest income via investments in government and corporate securities grew by 7.29% to NGN24.70 billion.

NIM was 20 bps lower at 8.30%, following a 4 bps decrease in asset yield to 15.20%, and a 75 bps upturn in cost of funds to 7.15%.

NIR also came lower by 32.73% to NGN32.12 billion, owing to 57.82% and 51.94% drop in net trading income and other income respectively, despite a 14.40% increase in net fees and commission income. The decline in trading income was largely driven by the significant decrease in forex trading income by 79.51% to NGN28.26 billion, muting the growths recorded in the gains from treasury bills (+81.21% to NGN1.23 billion) and options and equities (NGN28.26 billion gain in 2017, from NGN2.81 billion loss in 2016) trading.

Despite decrease in total loans and advances to customers by 1.84% to NGN647.80 billion, the NPL to total loan ratio was 116 bps higher at 4.90%. However, cost of risk was 145 bps lower at 3.61%, against 5.06% in the previous year.

Total opex increased by 4.51% during the period, while the cost-to-income ratio surged to 67%, against 56.08% in the previous year.

Tax charge was 7.33% higher at NGN2.05 billion, while the effective tax rate rose 614 bps to 17.90%, from 11.76% in the previous year.

A new study from Habitat for Humanity says that housing microfinance can and should become a mainstream offering for financial institutions in Sub-Saharan Africa as they respond to growing housing needs in the region, particularly from poor people.

The business case study, released yesterday, was entitled “Building the Business Case for Housing Microfinance in Sub-Saharan Africa”. It builds on a project carried out over six years in Kenya and Uganda called “Building Assets Unlocking Access”. The project was a partnership between Habitat’s Terwilliger Center for Innovation in Shelter and the Mastercard Foundation. So far, the project has reached over 47,000 households and mobilized more than US$43 million in capital to benefit over 237,000 individuals.

The business case study argues that housing microfinance, small non-mortgage backed loans for short terms, can become a mainstream offering in the market to address growing housing needs in the region, incremental building patterns, and the land tenure realities of low-income households.

There are an estimated 1.6 billion people in the world living in substandard housing. This figure is climbing, especially as the world becomes more urbanized and people migrate to cities for economic opportunity. In Sub-Saharan Africa, however, as much as 99 percent of people do not have access to formal financing –  credit, savings, mortgages – that can let them start building or improving their homes.

Traditionally, they build homes gradually as their resources allow. Developer-built, bank-financed homes are rare in Africa, serving fewer than five percent of households in most countries.
“Solving the housing challenges in Africa will require a massive amount of capital investment and most of that will need to come from the private sector,” said Patrick Kelley, Vice President of Habitat’s Terwilliger Center for Innovation in Shelter. “Financial institutions of all kinds have a role to play, especially those already deeply embedded in communities and who understand people with informal sector livelihoods.”
Habitat’s Terwilliger Center for Innovation in Shelter partnership with the Mastercard Foundation sought to motivate local financial service providers in Kenya and Uganda to develop housing microfinance loans to fund the incremental building process common among low-income households. The results have proven that there is demand for housing microfinance among families or individuals earning as little as US$5 a day who are seeking to build, extend, or renovate their home.
“At the Mastercard Foundation, our focus is on helping economically disadvantaged people, especially young people in Africa, to find opportunities to move themselves, their families and their communities out of poverty,” said Ruth Dueck-Mbeba, Senior Program Manager at the Foundation.

“This project has provided access to appropriate finance for decent housing. We believe that decent housing can provide more than four walls and a roof over one’s head. It offers people hope, dignity, and a place in their communities.  This report should help financial service providers to scale these products, which would benefit their enterprises as well as the lives of many poor people in Africa.”
Financial institutions in the region that have ventured into housing microfi­nance have often reported it to be a popular product with their clients. To understand the demand side factors, the value proposition of these products, the competitive advantage of financial service providers offering it, and the differentiated features that make housing microfinance a strategic product, the business case study surveyed the work of two financial institutions: Kenya Women Microfinance Bank, or KWFT, and Centenary Bank in Uganda.
The study argues, through the lenses of these two institutions in different geographies, that success and profitability of a housing microfinance product relies on a number of factors: connection with the financial service provider’s mission, good marketing, a clear pricing structure, understanding of land tenure realities, an opportunity to attract new clients, and secure long-term capital to fund the expansion of such portfolios.
“Financing incremental housing solutions is a natural step in the progress of greater financial inclusion. Centenary and KWFT are providing a great example of how financial institutions will benefit from understanding their clients and developing products that serve them well,” said Patrick Kelley.

The upgraded version of Ecobank’s revolutionary mobile app has attracted 3 million new customers in just 6 months, taking the total number of users to 4 million.
The app builds on the core functionality that saw the original version applauded as a game changer for African banking by using digital technology to combat many of the financial inclusion barriers faced by those on the continent. This includes the dearth of rural branches, affordability of products, high transaction costs and minimum opening balance requirements.
Ade Ayeyemi, Ecobank Group CEO, says Ecobank’s strategic mission is built around using mobile banking to deliver innovative, efficient and cost-effective services to those who have typically sat outside of the formal economy, and therefore goes far beyond the reach of the traditional branch and ATM networks. Subsequently, while the app won one million customers in its first year of launch, upgraded features have seen the rate of sign-ups treble in half of the time. So far this year, app usage has been growing at an average 700k new customers per month.
“Customers can use the app on their mobile to instantly open Ecobank Xpress Account™, which doesn’t have any account fees, paperwork or minimum balance requirements, or to send and receive money across 33 African countries,” he explains. “Therefore, our app not only removes the barriers that have financially excluded so many Africans but offers next generation functionality to help them send money, make withdrawals or pay for goods and services.”
Patrick Akinwuntan, Ecobank’s Group Executive, Consumer Banking, says that Ecobank is committed to providing all Africans with access to financial services, but doing so in a way that conjoins functionality with convenient, accessible and efficient banking channels, such as the rollout of Ecobank Xpress ^™ Point Agents.
“We want to be the digital bank of choice for all Africans,” he said. “Functionality is one thing – giving our customers unrivalled convenience is another. The Ecobank Xpress ^™ Point Agents that can now be found in your local neighbourhood enable you to deposit money into your app-based Ecobank Xpress Account™ and begin to make digital payments on the app using Ecobankpay. You can also withdraw funds in local currency that may have been sent to you from friends or relatives using our innovative instant transfer or Xpress Cash capabilities.”

Guaranty Trust Bank Plc has released its audited financial results for the year ended December 31, 2017 to the Nigerian and London Stock Exchanges.

A review of the results shows positive performance across all financial indices, reaffirming the Bank’s position as one of the most profitable and well managed financial institutions in Nigeria.

Gross earnings for the year grew by 1.1% to ₦419.2billion from ₦414.6billion reported in the December 2016; driven primarily by growth in interest income as well as e-payment revenues.

Profit before tax stood at ₦200.2billion, representing a growth of 21.3% over ₦165.1billion recorded in the corresponding year ended December 2016.

The Bank’s loan book dipped by 8.9% from ₦1.590trillion recorded as at December 2016 to ₦1.449trillion in December 2017 while customer deposits increased by 3.8% to ₦2.062trillion from ₦1.986trillion in December 2016.

The Bank’s balance sheet remained strong with a 3.9% growth in Total Assets and Contingents as the Bank closed the year ended December 2017 with Total Assets and Contingents of ₦3.845trillion and Shareholders’ Funds of ₦625.2Billion. In terms of Assets quality, NPL ratio increased to 7.7% in December 2017 from 3.7% in December 2016 largely as a result of classification of a single exposure within the Nigerian Telecommunications Industry.

However, non-performing loans would moderate to 4.6%, which is below regulatory threshold, if we exclude this name from NPL ratio computation. Overall, asset quality remains stable with adequate coverage of 119.6%, while Capital remains strong with CAR of 25.7%.

On the backdrop of this result, Return on Equity (ROAE) and Return on Assets (ROAA) closed at 35.4% and 6.2% respectively. The Bank is proposing a final dividend of 240k per unit of ordinary shares held by shareholders in addition to interim dividend of 30k per unit of ordinary share bringing total dividend for 2017 financial year to ₦2.70 per unit of ordinary share.

Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank Plc, Mr. Segun Agbaje, said: “2017 was a pivotal year for the bank. We delivered a strong result in a challenging environment; achieving record growth in earnings, carefully managing cost margins and leveraging our digital-first customer-centric strategy to deliver world-class services that are simple, cheap and easily accessible.”

He further stated that “The result demonstrates the fundamental strength of our franchise as well as the progress we are making in transforming our organization into a platform on which our customers could build their businesses, connect with their consumers and access all the resources that they need to make their lives better.”

GTBank has continued to report the best financial ratios for a Financial Institution in the industry as revealed by its return on equity (ROE) of 35.4% and cost to income ratio of 38.1% evidencing the efficient management of assets and operational efficiency.

Overall, the Bank has enshrined its position as a clear leader in the industry. In recognition of its innovation and hard work, the Bank received over 20 international awards in 2017.

Across the globe; societies, establishments, groups, and people were making an unwavering #PressforProgress as they championed international women’s day and took phenomenal actions geared towards being gender inclusive and this also included celebrating the diverse achievements of women over the years and across all ages.

FirstBank has undoubtedly been an unparalleled advocate of gender inclusion through its gender equity policies and its recently launched account; FirstGem, which aims to empower women to achieve all their business goals.

To commemorate the International Women’s Day celebration, FirstBank took the time to celebrate & appreciate the input of its female workforce by hosting 125 members of staff across the country to a spectacular event held in Lagos.

The choice for the number of people in attendance was strategic as the bank prepares to celebrate its quasquicentennial (125th) anniversary in 2019.

After guests were treated to a sumptuous breakfast, the event kicked off with an official opening remark and launch of the FirstBank Women’s Network conducted by the Managing Director, Dr. Adesola Adeduntan.

One could not but be mesmerised by Ms. Cecelia Akintomide, Board member FBN Holdings, as she delivered the keynote address with grace and this was followed by a Q &A session held by the Chairman, Mrs. Ibukun Awosika.

There were other activities that were crucial in making sure the universal theme of the day #PressforProgress was not lost in sight.

These included master classes and speed coaching sessions. The former was aimed at driving conversations around financial independence and professional etiquette while the latter was centred around Welfare, Empowerment, Ethics and Financial management.

In all, the event was a huge success that ended with the declaration of pledges by the guests. We do hope that we would all push for equality until every woman has found her voice. Just as the women pledged, what’s your pledge?