E-Financial
Shareholders Applaud Union Bank for Sustained Profitability Inspite of COVID-19 Pandemic
Shareholders of Union Bank of Nigeria Plc have approved the group’s 2020 annual accounts and commended the board and management for sustained profitability in spite of the COVID-19 pandemic.
The shareholders gave the commendation at the company’s 2020 Annual General Meeting held on Tuesday by proxy in Lagos due to coronavirus.
The shareholders at the meeting also approved the recommended dividend of 25k per 50k ordinary share declared by the company for the financial year ended Dec. 31, 2020.
They applauded the nank’s resilience in these times and its focus on sustaining shareholder value.
Addressing the shareholders at the meeting, Mrs Hamza Bassey, the bank’s Chairman, highlighted key achievements of the bank in 2020.
Bassey said the bank during the period focused on digital innovation for high-quality service delivery across touch points.
“Our commitment to delivering high quality earnings remains unwavering.
“I am pleased to announce that the bank delivered a resilient set of results in 2020 notwithstanding the challenging macroeconomic operating environment.
“Our overall performance demonstrates our resilience and ability to adapt to the constantly changing business environment to maximise shareholder returns.
“We remain committed to delivering value to our shareholders as we continue to drive growth and profitability of our business,” she said.
Also speaking, the bank’s Chief Executive Officer, Mr Emeka Okonkwo, said that the company delivered strong performance in spite of the headwinds caused by the pandemic.
“In 2020, despite the headwinds caused by the pandemic, Union Bank continued to deliver a strong performance that has enabled the Board of Directors propose a dividend payment for the second consecutive year.
“This indicates resilience and affirms the strong foundation that was rebuilt over the past eight years.
“As we begin a new chapter, we will continue the journey to becoming a leading financial institution in Nigeria.
“Sustaining value to our shareholders remains at the core of our continuous drive and we remain committed to delivering improved profitability and higher returns in 2021 and beyond,” Okonkwo said.
He added that the bank would continue to execute its strategy to achieve the vision of being Nigeria’s most reliable and trusted partner.
The bank’s profit before tax grew by 2.8 per cent to N25.4 billion from N24.7 billion posted in the comparative period of 2019.
Customer deposits also increased by 27.6 per cent to N1.13 trillion compared with N886.3 billion in 2019.
The increase in customer deposits reflects the bank’s agility in delivering a compelling range of products to its customers during the pandemic and increased adoption of digital channels.
Similarly, non-performing loans ratio reduced to four per cent from 5.8 per cent in 2019, driven by a disciplined recoveries strategy, robust loan book and key restructurings to support customers during the pandemic.
E-Financial
Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme
“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.
MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.
Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.
The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.
The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.
E-Financial
CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering
Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.
The inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.
In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN, disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.
“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.
The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.
However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.
Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.
Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.
E-Financial
CBN Urges Banks to Expedite Action on Recapitalisation
Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.
Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.
The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.
Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.
“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”
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