Otunba Olasubomi Balogun, founder of First City Monument Bank (FCMB), has passed away in a London hospital. Here are seven things to know about him: he was born in 1934, studied law in London, founded FCMB, held chieftaincy titles, and made significant contributions to education and healthcare.
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Togo: Shareholders approve lower dividend, capital increase
Shareholders of Ecobank Transnational Incorporated (ETI) approved a dividend of $28 million, or $0.11 per share, at their general meeting in Lomé, Togo, on Wednesday, May 17. The dividend level for this year represents a 32.25% decrease compared to the previous year. The new CEO attributed the company’s robust performance to its diversified business model, expertise in the digital field, innovative approaches, and operational efficiency. During an extraordinary meeting following the ordinary general meeting, shareholders authorized the executive management to mobilize $500 million in 2023 to strengthen the institution’s sustainable resources.
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Nigeria: Stanbic offers discounted loans for women in business
Stanbic IBTC Bank is offering a 50% discount on loan fees to female entrepreneurs in the Blue Blossom Community. The community provides training, mentorship, and networking opportunities to help women succeed in business. Women above 18 years of age can join the community and access various financial solutions. The bank emphasizes financial dignity and encourages early investment and savings for sustainable income.
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Uganda: Female bankers more numerous, male more successful
A report by the Uganda Bankers Association, an umbrella association of the banking sector, reveals that while many financial institutions have a significant number of women employees, men still dominate executive positions. Only eight out of 36 institutions have female CEOs. Some banks, like Brac, have a larger proportion of women staff, but others, including Centenary Bank and Post Bank, are still male-dominated. Affirmative action programs and upcoming initiatives aim to promote gender equity in employment.
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Nigeria: Access Bank to open Paris office
Access Bank, one of Nigeria’s leading banks, has obtained regulatory approval to operate in France, marking its expansion into the French market. The move is part of Access Bank’s strategy to replicate its success in international trade finance from London to Paris. The bank aims to serve as a bridge for international companies looking to enter or expand their business in Africa. Access Bank has a presence in multiple African countries and plans to expand further, with a goal of becoming one of the top five largest institutions on the continent in the next five years.
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South Africa: Absa Group to open Beijing office
Absa Group plans to establish its first office in China by the end of this year, aiming to connect Chinese companies doing business in Africa with the bank. The move reflects the bank’s commitment to China and its belief in the country’s future growth. China is Africa’s largest trading partner, and Absa Group sees strong revenue growth potential in the China Corridor. In addition to the new office, the bank has signed an agreement with China Development Bank for a working capital facility, further solidifying its relationship with Chinese partners.
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Kenya: KCB overtakes Equity Bank as #1 by assets
KCB Bank has overtaken Equity as Kenya’s largest lender by asset size due to aggressive expansion of foreign subsidiaries. KCB’s total assets reached KES 1.55 trillion, surpassing Equity’s KES 1.44 trillion. However, Equity outperformed KCB in profitability. The competition between the two banks intensifies as they focus on regional expansion and vie for dominance in the banking industry. KCB also leads in customer deposits, net customer loans, branch network, and employment in the sector.
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Nigeria: Telcos to suspend USSD services for banks
Mobile operators in Nigeria, including MTN Group and Airtel Africa, will disconnect text message services for banks until $259 million in debt is paid. The dispute over pricing and unremitted fees has been ongoing for two years, with the operators hoping that the withdrawal of services will prompt a resolution. Banks argue they do not owe arrears to mobile-phone companies.
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Capitec: Higher profits despite increased impairments
Capitec CEO Gerrie Fourie has warned customers to “live within their means” as the South African lender has reported an 80% increase in credit impairments to ZAR6.3bn ($404m) amid a tough economic climate. Net loans and advances grew by 17% to ZAR78.2bn. Fourie attributed the credit losses to the deteriorating economy and inflation. Meanwhile, Capitec has cut its credit limit for customers by ZAR3.5bn, and only approves 45% of loan applications, down from its previous low of 60%. The lender has invested ZAR1.4bn in strategic initiatives including the expansion of Capitec Connect and the creation of an insurance business.
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Nigeria: UBA profits jump
United Bank for Africa (UBA) has released its Q1 2023 unaudited results, showing significant growth across its major income lines. The bank’s gross earnings rose by 47.5% to ₦271.2bn ($658m) from ₦183.9bn in Q1 2022, while interest income grew by 53.4% to ₦191.9bn. Operating income also rose by 39.6% to ₦175.7bn. UBA’s profit before tax (PBT) rose by 38.2% to ₦61.4bn, and its profit after tax (PAT) jumped by 29.1% to ₦53.6bn. UBA CEO Oliver Alawuba attributed the growth to the bank’s digital offerings and uptick in interest rates.
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Standard Chartered, IFC sign $700m trade finance program
Standard Chartered and the International Finance Corporation (IFC) have signed a $700m investment in IFC’s Global Trade Liquidity Programme to support global trade finance. The facility is expected to support up to $6.4bn in trade over three years across Asia, the Middle East, Africa and Latin America by supporting about 850 importers and exporters involved in critical commodities, basic goods and other essential materials. The GTLP programme continues to evolve to reflect changing market dynamics and now features a significant climate component as well as seeking greater activity in the areas of IDA markets and food security.
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Kenya: KCB Bank Kenya appoints CEO
Annastacia Kimtai has been appointed as the managing director of KCB Bank Kenya, becoming the first individual to hold the position separately. She has been serving as the acting managing director and the retail banking director since December. The move is aligned with the Central Bank of Kenya’s Prudential Guidelines on Corporate Governance, which requires separation of the management of subsidiaries from that of the holding companies.
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Kenya: Egypt’s Commercial International Bank opens branch in Nairobi
Egypt’s Commercial International Bank (CIB) has opened its first branch in Nairobi, Kenya after acquiring Kenyan “Mayfair” Bank in January. The move is expected to strengthen bilateral relations between the two countries and reduce logistical obstacles for investors and businessmen on both sides. CIB is one of Egypt’s leading private sector banks and the first to enter the Kenyan market.
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Cote d’Ivoire: IFC partners with Bank of Africa for $77m SME finance facility
The International Finance Corporation (IFC) has invested $77m in a risk-sharing facility for the Bank of Africa Group, aiming to increase lending to small and medium-sized enterprises (SMEs), including women-owned businesses, in Ghana, Benin, Burkina Faso, Côte d’Ivoire, Mali, Niger, Senegal, Tanzania, Togo, and Madagascar. The investment is expected to guarantee BOA Group 50% of a loan portfolio up to $154m, which will be distributed to businesses in the agriculture, trade, energy, construction, and other sectors. The investment is also supported by the Global SME Finance Facility (GSMEF) and Women Entrepreneurs Finance Initiative (We-Fi) among others.
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Uganda: dcfu Bank appoints new CEO
Charles M. Mudiwa has been appointed as the new Managing Director and CEO of dfcu Bank Limited, effective from 11th April 2023. With over 26 years of banking experience and a track record of successfully turning around businesses and increasing profitability, Mudiwa will lead the Bank at a critical time as it implements a customer-focused strategy to transform lives and businesses with innovative solutions and empowered people. Mudiwa is also known for being a staunch champion for gender and diversity.
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Kenya: Branch Microfinance remains branchless
Branch Microfinance, which acquired Century Microfinance Bank in 2020, will continue to operate as a branchless lender, despite being a micro-bank. The neobank, which closed two of its three branches following the acquisition, will maintain a single branch to serve as its headquarters, as required by law. According to Branch International Managing Director for East Africa Rose Muturi, the neobank has over four and a half million users, who rely on its digital platform and do not need physical branches.
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Kenya: Premier Bank of Mogadishu takes over First Community Bank
First Community Bank (FCB) has revealed a core capital shortfall of more than KES1bn ($9m), leading to its owners selling a majority stake to Premier Bank Limited of Mogadishu in a rescue deal for KES2.8bn. FCB’s core capital fell from KES1.65bn in September to negative KES331m in December, triggering a breach of the Central Bank of Kenya’s capital strength ratios. FCB has been in breach of capital ratios for the past five years and customer deposits dropped by 36% to KES13.74bn from KES21.48bn a year earlier.
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Ghana: Ecobank partnering with Ghana Post
Ecobank Ghana has partnered with Ghana Post to use some of its offices as agency versions of the bank, allowing customers to carry out banking transactions, as if they were in any branch. 78 Ghana Post offices have been selected for the program so far, with an additional 22 expected to be added soon. Ecobank Ghana has provided GH¢1m ($169,000) as working capital to Ghana Post to begin the programme. This partnership is aimed at deepening banking penetration and promoting financial inclusion.
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Ethiopia: KCB shortlisting possible takeover candidates
Kenyan lender KCB Group is considering purchasing shares from one of Ethiopia’s commercial banks rather than opening a branch or subsidiary. The bank already has a representative office in Addis Ababa and has been shortlisting banks based on their technological progress. The bank has acquired banks across East Africa in recent years, including Bank Populaire du Rwanda and Trust Merchant Bank. KCB Group reported a 19.5% increase in profit after tax from 2021 to 2022, reaching KSH40.8bn ($308m).
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Nigeria: First Bank changes the names of its subsidiaries
First Bank of Nigeria has begun a phased corporate name change for its subsidiaries in the UK and Sub-Saharan Africa. FBNBank UK, FBNBank Sierra Leone, FBNBank Gambia and FBNBank DRC are the first to align with the parent brand and will now be known as FirstBank UK, FirstBank Sierra Leone, FirstBank Gambia and FirstBank DRC. Ghana, Senegal and Guinea will follow in a phased implementation. The name change is intended to enhance quality-of-service delivery, achieve better brand clarity and consistency, and strengthen cross-border business opportunities.
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Nigeria: Banks make provisions for impaired Ghana bonds
Zenith Bank, Nigeria’s biggest lender, has set aside NGN 123.4bn ($267m) in part to account for its holdings of bonds in Ghana, following the country’s debt restructuring which resulted in significant impairments. Zenith is the first Nigerian bank to announce provisions, and four of Africa’s biggest lenders have collectively set aside ZAR 4.87bn ($267m) to account for the losses from Ghana’s debt restructuring.
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Zimbabwe: Gov’t borrows $193m from Standard Bank, Absa Group to expand health sector
Zimbabwe has secured a $193.3m loan from Standard Bank and Absa Group to fund public hospitals and clinics, according to Finance Minister Mthuli Ncube. The money will be used to construct five district hospitals and 22 health centres across the country’s 10 provinces, starting in June and running for three years. Zimbabwe’s debt crisis means it owes creditors more than $13bn, but has resumed repayments to help restore access to credit.
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Nigeria: Zenith Bank gross earnings rise by 24%
Zenith Bank’s gross earnings rose by 24% to USD2.06 billion in 2022, driven by a growth in interest income and non-interest income. The bank plans to expand its business in 2023 by reorganizing into a holding company structure and adding new verticals to its business. The proposed final dividend payout is USD0.63 per share, bringing the total dividend to USD0.70 per share. Zenith Bank has received multiple awards, including Best Bank in Nigeria, Best Commercial Bank in Nigeria, and Bank of the Year in Nigeria.
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Nigeria: CBN will keep open banking ‘open’
Nigeria’s central bank has changed its decision to centralise Open Banking with the National Inter-Bank Settlement System (NIBSS) and will now align with an “Open” aggregation model. NIBSS will support the central bank to develop an Open Banking Registry, but the operations of the registry will be the sole responsibility of the regulator. The decision to centralise access to Open Banking APIs with NIBSS was hotly contested by banking and fintech professionals, and the central bank has listened to feedback and hopes to receive further feedback to make Open Banking guidelines operational.
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South Africa: Nedbank launches Roblox game
Nedbank has become the first African bank to launch a game on Roblox, aimed at teaching children money management skills. Developed by Sea Monster Entertainment, the game Chow Town is a tycoon-style game that allows players to set up and expand a restaurant through incremental investment. The move comes as the gaming market in Africa is expected to grow at a compound annual rate of 12.65% between 2023 and 2028. Nedbank’s Chow Town aims to teach entrepreneurial skills and offer an educational experience for tweens.