Business
COVID-19: FirstBank Keeps Faith with Customers, Stays Ahead
Amid shutting down of various activities, especially commercial services, through lockdown measures aimed at containing the coronavirus pandemic, FirstBank has proven that as long as its customers require services, they will be served, and satisfactorily.
As key enablers of the economy, banks are providers of essential services to customers and communities.
Sequel to the pandemic outbreak, the Minister of Finance, Budget and Planning and the Governor of the Central Bank of Nigeria obtained Presidential approval to permit critical financial services to function during this period.
CBN further urged the general public to limit their use of cash and avail themselves of alternative payment channels such as mobile banking, internet banking, mobile money, Point of Sale (POS), and USSD banking; assuring that financial institutions will remain operational during this period and therefore people should guard against panic withdrawals from their banks.
The assumption that banks will be able to deliver services during this period, was no doubt predicated on the fact that institutions like FirstBank already had a fully functional digital infrastructure, to serve its customers through electronic channels.
In a statement to customers, FirsBank’s CEO Dr. Adesola Adeduntan, categorically made this promise to them: “COVID-19 will not slow us down”.
“These are unprecedented times,” acknowledges Adeduntan “We therefore promise that now more than ever we will remain steadfast, showing up for all Nigerians; we would always be there for you.
“As I reflect on the last two weeks, I am comforted by the resilience of our people. I look back at our commitment and contribution to keeping commerce going and enabling businesses.”
These reassuring words of Dr. Adeduntan, do not go without tangible proofs of the bank’s unrelenting efforts to stay ahead of the situation many customers feared would cripple banking transactions and further exacerbate the pains brought on by the pandemic.
Indeed, since the enforcement of the lockdown measure, regular and unique ancillary services continue to be seamlessly delivered by FirstBank.
The impressive achievements of FirstBank in service delivery, during this unexpected disruption to lives and businesses on a global scale, has been nothing short of the extraordinary.
Or how would you explain over 53,000 agents bringing banking services right to your doorsteps, processing over 5 million transactions with different and large monetary values in the week preceding 10 April.
How about an approximate 2.5 million withdrawals amounting to N35billion across FirstBank’s ATMS in a single week?
On record, FirstBank’s larger corporate customers have done over 1,700 transactions successfully on the bank’s e-bills platform worth N6.8billion during this challenging period.
Nigerians with FirstBank cards have used them 21 million times for payments or withdrawals, worth N268 million.
Customers have made transfers over 10 million times with a total value of about N615billion naira across FirstBank’s digital channels all in one week.
How does a bank get all these done under the prevalent lockdown and disruption of regular routine?
“Expertise and resilience are in our DNA,” explains the Bank’s CEO, “we are working tirelessly to ensure that your banking transactions continue seamlessly and will remain so; COVID-19 will neither slow us down nor defeat us.
We are holding up our side, and now more than ever we will uphold our promise to you to be here for you and put You First.”
Indeed, the capability of banks to render uninterrupted digital services and investment advisory across many channels, especially during a crisis, projects economic stability.
More than ever before, the importance of the services banks provide to individuals and communities extends beyond commercial interests, especially now that cash withdrawals far outstrip deposits.
As an unprecedented challenge to financial institutions like banks, the current coronavirus pandemic serves as a litmus test for them to prove their role as systemic stabilizers, delivering services at least in part for social good.
As the crisis lingers with no end in sight, FirstBank staff remarkably are in place to attend to customers’ needs, in spite of the social distancing measure.
The bank continues to maintain all pre-existing channels of communication including receiving emails through its firstcontact@firstbanknigeria. com address and urging customers to contact their Relationship Managers or Private Bankers for banking services guidance and advisory.
Despite the extra efforts banks may put into rendering uninterrupted services in times like this, they are doing nothing more, than to meet the expectations of customers and maintain economic stability.
From a tactical level, financial institutions like banks can do a lot to reduce consumer and business stress, because as deposit gatherers, credit grantors, and payment facilitators, banks play a vital role in the functioning of the economy.
However, delivering solutions tailored to each individual customer at this critical time, also engenders trust and brand loyalty.
“We recognize our role in keeping the engine going, keeping society going and recognize further, it is our responsibility to remain at the forefront of this; true to our name and in keeping with the incontrovertible fact that we are fully woven into the fabric of society. Our unparalleled network and total coverage of this nation serve us all well at this time ensuring service across the country via our safe, user friendly and convenient alternative channels are available for you 24/7,” says Adeduntan.
While Nigeria is Africa’s largest economy, large portions of the economy are in the informal sector and depend constantly on cash movement.
As the financial consequences mainly for MSMES become more serious due to paucity of inflows, (some major players in the economy – oil, aviation and tourism too are not spared) people will expect their banks to look out for them and protect them from imminent financial catastrophe.
Indeed, bank clients would like to see the pandemic brought under containment as soon as possible, in order to resume work and commercial activities. For them, a stable and reliable financial partner like FirstBank that has shown resilience and reliability would be an institution that can be leveraged on, to get business back on track and rolling as fast as possible, once this is over.
Adeduntan in concluding his statement says to the bank’s customers: “Rest assured that we are in this together, and together we will emerge stronger at the end of this period because this too shall pass. We have all it takes; your support, patronage and trust. We will always put You First”.
Business
UBA Expands Operations to Saudi Arabia, France, to Focus on Digital Transformation, Others in 2025
Africa’s Global Bank, United Bank for Africa (UBA) Plc, has outlined its roadmap for the 2025 financial year, with a strong focus on innovation, digital transformation, physical and financial strength as well as its global reach.
On the back of its full-year financial performance for the year 2024, which was released to stakeholders on Tuesday, the bank disclosed plans to accelerate growth through strategic investments in technology, enhanced risk management frameworks, and capital efficiency.
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, who was speaking to its global investors during the Full year 2024 Investors Conference Call, which held at the UBA Head Office on Thursday, explained that the performance reflected broad-based growth across its core businesses, surpassing previous records and reinforcing its status as a leading global financial institution.
At the end of the 2024 full-year, the bank delivered an exceptional financial performance as the results showed an impressive rise in the bank’s profit after tax which went up by 26.14 percent to close the year at N766.6 billion up from N607.7 billion recorded at the end of the 2023 fiscal year.
Its Gross earnings also grew significantly from N2.07tn recorded at the end of the 2023 financial year to N3.187tn in the period under consideration, representing a 53 percent growth.
Despite the highly challenging global economic and business environment, UBA recorded a profit before tax of N803.72 billion representing a 6 percent increase from N757.68 billion recorded at the end of the 2023 financial year.
Consequently, UBA Group Shareholders’ Funds rose from N2.030 trillion as at December 2023 to close the 2024 financial year at N3.419 trillion, achieving an impressive growth of 68.39 percent.
As a result of the impressive performance the bank proposed a final dividend of N3.00 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2024.
Alawuba told the investors at the meeting that the bank is set to further surpass its growth projection through strategic investments in technology, enhanced risk management frameworks, and disciplined capital efficiency.
“We will continue to push the frontiers of innovation and technology adoption to build sustainable value for shareholders by making strategic investments in technology. Our team of committed and motivated workforce will continue to work assiduously to sustain our performance and propel the bank in delivering high-impact, customer-centric product offerings,” Alawuba stated.
He disclosed that the bank is on course to sustain the momentum that it has achieved in the past years, adding that “We shall remain focused on best-in-class risk management strategies in navigating emerging market uncertainties while ensuring financial strength, full regulatory compliance, and long-term sustainability.”
This performance underscores UBA’s ability to generate sustainable revenue growth through core operations, including increased loan book growth, deposit mobilization, and transaction banking.
While disclosing the Bank’s finalisation of its planned expansions to France and Saudi Arabia, he said that the Bank’s ex-Nigeria (Rest of Africa & International) operations have expanded significantly over the past five years, now contributing 51.7% of Group revenue, up from 31% in 2019, “delivering diversification benefits and further boosting long-term shareholder value. This will continue to grow, as we further explore strategic markets that align with our overall vision.”
UBA’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, said the bank recorded triple digit growth in net interest income, resulting in remarkable improvement in net interest margin from 6.83 percent in 2023 to 9.14 percent, while also recording strong double-digit growth in fee and commission income lines of 91.66 percent.
He explained that as the bank navigates evolving risks, its management remains focused on responsible growth, delivering customer-focused value propositions, whilst ensuring compliance with regulatory requirements in all jurisdictions.
United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group wide and serving over 45 million customers globally. Operating in twenty African countries and the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.
In line with its upward growth trajectory, leading financial institution, Fidelity Bank Plc, has posted an impressive 120.1% growth in Profit Before Tax from N17.9bn at the end of Q1 2023 to N39.5bn for Q1 2024. This was made known in the Bank’s unaudited financial statements released on the issuer portal of the Nigerian Exchange (NGX) on Tuesday, 30 April 2024.
According to the statement, Gross Earnings increased by 89.9% yoy to N192.1bn from N101.1bn in Q1 2023. The increase was led by a combination of interest income (90.7% yoy) and non-interest income (84.0% yoy).
Growth in interest income was primarily spurred by a higher yield environment and strong earning assets base, while the increase in non-interest income was led by double-digit growth in account maintenance charges, FX-related income, trade, banking services, and remittances, supported by increased customer transactions.
Commenting on the results, Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc stated, “We are pleased to report another quarter of strong financial performance driven by our strategic focus on customer-centricity, digital innovation and operational excellence. Despite the challenging macroeconomic environment, we remained resilient and agile, delivering double-digit growth on key income lines while advancing our business sustainability agenda.”
In the period under review, the bank grew Net interest income grew by 89.5% yoy to N99.6bn from N52.6bn in Q1 2023, driven by interest and similar income as the yield on financial instruments improved to 14.7% from 10.1% in Q1 2023 (2023FY: 11.6%). In line with the steady rise in interest rates through the year, average funding cost increased by 80bps ytd to 5.2%. However, NIM came in at 8.8%
compared to 8.1% in 2023FY, as increased yield on earning assets surpassed funding cost to 15.1% from 13.3% in Q1 2023 (2023FY: 13.5%).
Similarly, Total Deposits increased by 17.2% ytd to N4.7tn from N4.0tn in 2023FY, driven by double-digit growth across all deposit types (demand, savings and term). Net Loans and Advances increased by 21.2% to N3.7tn from N3.1tn in 2023FY.
“Beginning the year on this inspiring note reaffirms our strategy of helping individuals to grow, inspiring businesses to thrive and empowering economies to prosper. We are committed to our guidance as we build a more resilient business franchise with a well-diversified earnings base in 2024,” explained Onyeali-Ikpe.
Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged customer commercial bank with over 8.5 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.
The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.
Guaranty Trust Holding Company Plc (GTCO) has announced its audited financial results for the year ending December 31, 2024, with a remarkable surge in profit before tax (PBT). The results, submitted to the Nigerian Exchange Group (NGX) and the London Stock Exchange (LSE), reveal a PBT of ₦1.266 trillion—marking a 107.8% increase from the ₦609.3 billion recorded in 2023.
The financial statement highlights GTCO’s strong earnings momentum, supported by a well-balanced revenue mix, solid risk management frameworks, and disciplined capital allocation. The company saw broad-based growth across key financial indicators, maintaining a strong and diversified balance sheet.
Key performance metrics show a 12.3% rise in the Group’s net loan book, from ₦2.48 trillion in December 2023 to ₦2.79 trillion in December 2024. Deposit liabilities also climbed by 37.8%, reaching ₦10.40 trillion from ₦7.55 trillion in the previous year. Additionally, total assets and shareholders’ funds closed at ₦14.8 trillion and ₦2.7 trillion, respectively. The Group sustained robust capital adequacy, closing the year at 39.3%, while asset quality remained stable, with IFRS 9 Stage 3 Loans at 3.5% at the Bank level and 5.2% for the Group, compared to 2.5% and 4.2%, respectively, in 2023.
GTCO’s Group Chief Executive Officer, Segun Agbaje, attributed the outstanding performance to a well-diversified earnings base spanning both banking and non-banking subsidiaries. He emphasized the Group’s ability to generate sustainable, high-quality earnings while maintaining asset quality and operational efficiency.
“Our 2024 results reflect the strength and adaptability of our business model. We have successfully provided for all forbearance loans ahead of the June 2025 deadline and fully accounted for the windfall tax, reinforcing our balance sheet and financial stability,” Agbaje stated.
GTCO continues to position itself for long-term growth, leveraging strategic investments and sound financial management to drive value creation for stakeholders.
