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ETI, Zenith Bank, FBN Holdings, 3 others D-SIBs report N32.89trn in total assets



Story by Kayode Tokede

A total of six Domestic- Systematic Important Banks (D-SIBs) of the Central Bank of Nigeria (CBN) have reported N32.89 trillion total assets in 2018, data gathered by Nigerian NewsDirect has revealed.

The six DIBs in 2017 reported N28.96 trillion in total assets, the data further revealed.

Further Findings by our correspondent revealed that Ecobank Transnational Incorporated (ETI) has one of the highest total assets, followed by Zenith Bank plc and FBN Holdings Plc.

ETI, a pan-African financial institution reported 19.7 per cent increase in total assets to N8.19 trillion in 2018 from N6.84 trillion in 2017.

The increase in ETI growth in total assets last year was driven by 17 per cent increase in loans and advances to customers and 25 per cent increase in deposit from customers.

With 6.4 per cent increase, Zenith Bank reported N5.96 trillion in total assets in 2018 fromN5.59trillion reported in 2017 while FBN Holdings reported 6.3 increase in total assets to N5.6 trillion from N5.2 trillion in 2017, driven by 33.3per cent increase in investment securities to N1.7 trillion as against N1.2 trillion reported in 2017.

The other two D-SIBs, Access Bank and United Bank for Africa Plc (UBA) have total assets above N4trillion mark.

For the 2018 financial year, Access Bank, without Diamond bank’s total assets reported N4.95 trillion in total assets last year, 21 per cent increase over N4.1 trillion in 2017. UBA’s total assets rose by 19.7 per cent to N4.87 trillion in 2018 from N4.1 trillion in 2017.

S & P Global Ratings in March said, “We believe the Diamond Bank deal will cement Access Bank’s market leading position in the top-tier of the competitive Nigerian banking sector. The combined entity has total assets of about N6.1 trillion, representing almost a 20per cent total market share.

“The combined entity boasts the largest franchise by customer base, loans, and customer deposits. We believe the deal could expand Access Bank’s customer and loans base compared with peers, underpinning stronger revenue stability during an economic downturn in Nigeria (relying on its non-interest revenues base) and earnings growth as Access Bank deploys its scalable banking platform effectively.

“Over the medium term, we believe that the deal will help Access Bank strengthen its franchise and revenue generation capabilities. On Dec. 31, 2017, Diamond Bank had over 6.5 million retail customers with the retail business accounting for approximately 70per cent of deposits and 35per cent of revenues.”

In addition, Guaranty Trust Bank plc was the only financial institution with N3.35 trillion in total assets, 7.5 per cent increase over N3.12 trillion in 2017.

The apex bank in its fourth quarter economic report of 2018 noted that total assets and liabilities of commercial banks stood at N37.2 trillion as at November 31, 2018, representing 0.4 per cent decrease below the level at end-September 2018.

According to CBN report, funds were sourced, largely, from foreign liabilities, draw down on reserves and acquisition of credit from Central Bank. The funds were used, mainly, for payment of matured demand deposits, and settlement of claims on Central Bank and Federal Government.

“Total specified liquid assets of the banks was N12.16 trillion as at the end of November 31, 2018, representing 56.8 per cent of the total current liabilities,” the report explained.

Money market

FMDQ Exchange records 6.75% MoM decrease in secondary market turnover



By Sodiq Adelakun

In October, FMDQ Exchange reported a total secondary market turnover of N21.70 trillion, a decrease of 6.75 percent (N1.57 trillion) from the previous month and an increase of 60.27 percent (N8.16 trillion) from the same period last year.

The Spot and Derivatives Market contributed N20.48 trillion and N1.22 trillion respectively to the total turnover.

 The Spot FX Market turnover was $4.66 billion (N3.66 trillion), a decrease of 14.96 percent ($0.82 billion) from September 2023.

Further, the US Dollar appreciated against the Naira in the FX market, with the exchange rate ($/N) increasing by 5.34percent ($/N40.41) to close at an average of $/N797.43 in October 2023 from $/N757.02 recorded in September 2023, trading within a range of $/N741.85 – $/N993.82.

Similarly, in the Derivatives Market, total turnover in the FX Market segment was $1.55billion (N1.22trillion), representing a MoM decrease of 39.27percent ($1billion) from September 2023 figures.

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Money market

Naira’s floating exchange rate brings uncertainty for investment banking in Nigeria — Ex-AIHN president



The former President of the Association of Issuing Houses of Nigeria, Ike Chioke, has stated that the currency reforms implemented by the Central Bank of Nigeria have brought about both challenges and opportunities for the investment banking industry.

Chioke made this statement at the Investment Banking Awards Night held in Lagos.

He further mentioned that the floating exchange rate of the naira and the elimination of fuel subsidies have had a significant impact on various sectors of the economy.

“Nigeria is bracing up to the impacts of the new government and they are already making changes to what I will call non-unorthodox policies. These policies had also introduced pain and hardship with the free-floating of the naira and removal of fuel subsidy forcing their weaknesses on various sectors of the economy,” he said.

Chioke added that despite the hiccups in the implementation of these reforms, they have thrown up major opportunities for investment banking.

He urged members to apply their best skills and expertise to make the best of the opportunities.

“As you know, the investment banking industry is a critical one for the Nigerian economy and we represent the best brains and the best expertise in that space,” he said.

Meanwhile, in the Debt Capital Market Category of the award, Chapel Hill Denham Advisory Limited won the Private Company Bond House 2022 Award; Best Commercial Paper House 2022 Award, and Best Bond House 2022 Award while the Best Commercial Paper House 2022 Award went to StanbicIBTC Capital Limited.

In the Equity Capital Markets Category, the Equity Deal of 2022 Award was won by three companies- namely Stanbic IBTC Capital Limited, UCML Capital, and Rand Merchant Bank.

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Money market

SMEs contribute 46.31% to Nigeria’s GDP — SMEDAN CEO



The Director General/CEO of SMEDAN, Charles Odili, has highlighted the significant contributions of small and medium enterprises (SMEs) to the Nigerian economy.

According to Odili, SMEs make up 46.31 percent of the national GDP and contribute 6.21 percent to exports. These findings were revealed in the recent nMaSMEs survey, which estimated that there are approximately 39.6 million nMSMEs in Nigeria, employing 62.5 million individuals.

This accounts for a substantial 80.2 percent of the country’s labor force. In another development, 50 rural enterprises in Gombe State are participating in a three-day training program organized by SMEDAN and the Gombe State government.

Speaking at the opening ceremony of the training, in Gombe on Wednesday, the Director General and Chief Executive of SMEDAN, Charles Odili said that the programme was designed to provide an end-to-end business development service to the rural entrepreneurs.

Charlie Odili, who was represented by the Ag. Director of Partnership and Coordination, Prof Adeyinka Fusha, also said that the training was targeted at business owners who were at the bottom of the pyramids as a supportive mechanism to enhance rural entrepreneurship, competitiveness, job creation and financial inclusion.

According to him, “As you may be aware, the Nano, Micro, Small, and Medium Enterprises (nMaSMEs) sub-sector has played an important role in contributing to the economic development of many countries around the world.

“The sub sector accounts for the majority of the enterprises in Nigeria and also accounts for the highest number of jobs created in Nigeria’s economy.”

The DG also said that the training has three components, namely; sensitisation, capacity building and empowerment grant.

While declaring the training open, Gombe State Governor, Muhammadu Inuwa Yahaya, said that the programme was timely, following the economic hardship in the country.

“The programme would contribute to the economic development of the state and the country at large,” the Governor said.

Inuwa Yahaya, who was represented by the Permanent Secretary, General Services, office of the SSG, Alhaji Abdulkadir Adamu, appreciated SMEDAN and reiterated the government’s commitment to work with it for more opportunities for rural businesses.

He also said that the state government had organised an investment summit which attracted many investors into the state, saying, “This may not be unconnected with the business friendly environment of the state.”

In his remarks, Commissioner of Trade, Industry and Tourism, Alhaji Nasiru Mohammed, said that the training would enable the rural enterprise to acquire the needed business techniques as well as empower them with knowledge and skills.

He further said that Governor Inuwa Yahaya had empowered over 2,000 Small and Medium Enterprises in the state and also established 1,000 hectares of land Industrial park to serve as an export processing zone.

He said, “This is a platform that will attract domestic and foreign investors to come and invest.”

He commended SMEDAN for organising the training and also encouraged the participant to be attentive, learn the techniques that will improve their businesses.

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