Moniepoint, the African business banking platform, has appointed Pawel Swiatek, former managing vice president of Capital One, as its new COO. Swiatek will be responsible for building policies, tools, measurements and culture to enable the business to grow, working closely with CEO Tosin Eniolorunda and the senior management team. Moniepoint offers payments, banking, credit and business management tools to more than 600,000 businesses and is currently Nigeria’s largest card payments operator with over $10bn processed monthly.
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Nigeria: Equity Bank shuts down its instant loan service
Equity Bank has suspended its instant loan service, EazzyLoan, offered through online platforms without prior notice, leaving customers stranded and unhappy. Some customers who had repaid their loans in anticipation of renewal have been affected. The bank is investigating a possible breach and system compromise by suspected fraudsters. There have been previous cases of customers losing money through the bank’s online platforms.
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Nigeria: Zenith Bank receives approval to form holding company
Zenith Bank has received approval in principle from the Central Bank of Nigeria to become a holding company, with the aim of acquiring other companies and ultimately controlling them. The bank will change its name and operating structure, and will have a banking group with subsidiaries in the financial services industry. Jim Ovia will serve as the new chairman of Zenith HoldCo and continue as Zenith Bank chairman until the new company becomes operational.
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Kenya: Somalia’s Premier Bank takes over First Community Bank
Somalia’s Premier Bank has acquired a 62.5% stake in Kenya’s shariah-compliant First Community Bank for KSh 2.8 billion. The deal was approved by the Competition Authority of Kenya and is aimed at boosting the capital levels of the troubled lender, which is currently in breach of the Central Bank of Kenya’s regulations. The remaining stakeholders will hold a 37.5% share in the bank.
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South Africa: Nedbank chief criticizes government inaction
Nedbank CEO Mike Brown has criticised the South African government’s lack of action in dealing with various crises, including electricity supply and distribution, transport and logistics, and water infrastructure. Brown said that the economy had deteriorated in the final quarter of 2022 due to these issues and that urgent and decisive leadership was needed. The bank predicted that the impact of load shedding would continue to have negative effects on GDP growth in 2023, with the global economic environment also expected to deteriorate further.
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Kenya: Central Bank freezes interest hikes by private banks
The Central Bank of Kenya has put a hold on major banks’ request to increase loan costs for borrowers. Six out of nine tier-1 banks have yet to receive approval for their new loan pricing formulas, which will set interest rates when the government stops controlling loan costs. The freeze has protected most borrowers, particularly those in the informal sector.
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Kenya: Nigerian fintech Umba starts offering digital banking services
Umba, a Nigerian fintech company, has launched its digital banking services in Kenya following the acquisition of a controlling stake in Daraja Microfinance Bank. Umba is now the second licensed digital bank in Kenya and is offering complete banking solutions including opening and operating current, interest-bearing savings, and fixed deposit accounts, as well as lending and payments services. The company sees Kenya as a significant untapped market due to the more rigorous licensing regulations in place, and has raised $18m in funding to date.
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Nigeria: Zenith Bank deputy MD resigns to comply with new CBN rule
Adaora Umeoji, Deputy Managing Director at Zenith Bank Plc, has retired from her position in adherence to new tenure limits for bank executives released by the Central Bank of Nigeria (CBN). Umeoji’s retirement became effective on February 24th, 2023, and is in obedience to the CBN’s new rule that limits the tenure of bank directors. The CBN has stated that the new rule will strengthen corporate governance practices in the banking industry.
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South Africa: FirstRand CEO slams alliance with Russia
South Africa’s banking industry is at risk from geopolitical issues arising from the government’s close relationship with Russia, according to the CEO of FirstRand, Africa’s largest lender by market value. The country’s stance on Russia could affect its access to international markets and global clearing and settlement, he warned. The government’s indifference to the conflict in Ukraine and friendship with Russia is “foolhardy in the extreme,” he added.
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Togo: Ecobank appoints new CEO
Jeremy Awori has been appointed as the new CEO of Ecobank Group, replacing Ade Ayeyemi who had been in the role for six years. He brings with him over 25 years of experience in the banking industry, including close to a decade serving as CEO and Managing Director of Absa Bank Kenya Plc. Prior to joining Absa, Jeremy served in leadership roles at Standard Chartered Bank across the Middle East and Africa.
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Ghana: Economic crisis hurts banks’ profits
The economic crisis in Ghana has caused a significant decline in the profits of the banking industry. According to the Bank of Ghana’s latest banking sector report, the industry’s net income declined by 15.6% in 2022. The decline in profits has been attributed to various factors, including the increase in non-performing loans (NPLs) due to the pandemic. The NPL ratio increased from 14.1% in December 2021 to 16.1% in December 2022, with the agriculture and manufacturing sectors being the hardest hit. Additionally, the depreciation of the cedi against major currencies has also contributed to the decline in profits. Despite the decline in profits, the banking sector in Ghana has remained resilient.
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Nigeria: CBN revises maximum tenure of banking execs and directors
The Central Bank of Nigeria (CBN) has released revised regulatory requirements for the tenure of executive management and Non-executive Directors (NEDs) of deposit money banks (DMB) and financial holding companies (HoldCos). The new regulation is expected to help address brain drain in the banking sector and check migration of young bankers to Europe and Canada. The CBN official who disclosed this said that the new policy would pave the way for young bankers to aspire to get to executive levels, knowing that those occupying such positions would not stay there forever.
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Nigeria: PremiumTrust Bank vies to become top digital bank
PremiumTrust Bank plans to expand its services to customers and become the top digital bank in Nigeria by the end of 2023. The bank’s CEO, Emmanuel Emefienim, announced this during the opening of its eighth branch in Redemption City, Mowe, Ogun State. The bank is building a serious app that will transform the industry, providing solutions and answers to banking needs in this cashless period. The bank is also partnering with the Athletic Federation of Nigeria to develop sports in the country.
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FATF adds South Africa, Nigeria to grey list
South Africa has been added to the Financial Action Task Force’s (FATF) “grey list” of countries under scrutiny for their standards in preventing money laundering and terrorism financing. This could lead to increased monitoring and enhanced due diligence checks for South African clients at international financial institutions, as well as complications in accessing funding from multilateral development institutions and official lenders. South Africa’s central bank and National Treasury have noted the decision and committed to addressing the concerns raised by the FATF. Nigeria was also added to the grey list on the same day.
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Nigeria: New rules for banking execs and directors
The Central Bank of Nigeria has revised regulatory requirements for executive management and non-executive directors of Deposit Money Banks and Financial Holding Companies, stating a maximum tenure of 10 years for executive directors, deputy managing directors and managing directors, and a maximum period of 13 years for non-executive directors, broken into three terms of four years each. The tenure limit for all positions across the banking industry is 20 years.
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Zimbabwe: BancABC managing director stepping down
Lance Mambondiani is stepping down as managing director of BancABC, with sources suggesting his departure is linked to BancABC shareholder Atlas Mara divesting from the region. Mambondiani, who is known for his interest in financial services innovation, is expected to leave the institution over the next three months. During his tenure, he introduced key innovations, such as the local remittance service CityHopper, which processed more than $10m in one year.
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Kenya: KCB continues partnership with Sopra to drive digital offering
KCB Bank Kenya has teamed up with Sopra Banking Software to enhance its digital banking offering. Sopra will design, build and support the bank’s lending and savings product portfolio, via its KCB Vooma platform. Since 2020, the bank and fintech provider have been developing and launching digital products together, including savings and loan offerings for customers. KCB Bank Kenya claims to have distributed loans worth $3bn to 11 million customers since October 2018.
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Kenya: JP Morgan Chase opening third regional office in Africa
JP Morgan Chase & Company is opening a regional office in Nairobi, Kenya, following plans that were set in motion in 2018. The move is seen as a vote for Kenya’s emerging success in the global marketplace, and the bank is thought to be targeting US multinationals entering the region, as well as wealth funds and universities. The establishment of a regional office is expected to generate employment opportunities and encourage an influx of foreign investment to Kenya. The bank already operates regional offices in South Africa and Nigeria.
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Nigeria: Regional expansion plans create risk for local banks
Fitch Ratings has warned that Nigerian banks’ expansion plans in other African countries pose near-term credit risks due to weaker operating environments and regulatory challenges. The rating agency has also noted that some Nigerian banks have struggled with profitability and asset quality in their overseas subsidiaries. However, Fitch expects these risks to be manageable given the banks’ limited international exposure and a gradual approach to expansion.
Categories: BanksTags: Nigeria -
Moody’s: Outlook for African banking sector is stable
Moody’s Investors Service predicts that African banking systems will remain deposit-funded and liquid, which will support financial stability in most countries. However, foreign currency liquidity will still pose a challenge for Nigerian and Egyptian banks. The banking sector outlooks for Nigeria, Egypt, Kenya, and The West African Economic and Monetary Union remained stable, while those for South Africa and Morocco were revised from negative to stable, thanks to their steady deposit-based funding structure, capital, and profitability despite a challenging operating environment.
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Nigeria: Stellas Digital Bank marks one year of growth
Stellas Digital Bank, a Nigerian fintech player, is celebrating its first anniversary with a pledge to continue deploying technology to enhance the financial experience of its users. Since its launch in 2022, Stellas has become one of Nigeria’s top digital banks with over a million users across the country, with features such as “ghost mode” and “Stellas vault” catering to specific needs of its users. The bank’s success demonstrates the growing demand for innovative digital banking solutions in Nigeria.
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Ecobank appoints new exec for Central, Eastern and Southern Africa
Ecobank Transnational has appointed Josephine Anan-Ankomah as the new Regional Executive for Central, Eastern and Southern Africa, and Managing Director of Ecobank Kenya. She succeeds Cheikh Travaly who retired at the end of 2022. Josephine has been with Ecobank for 30 years in various capacities, most recently as Group Executive, Commercial Banking. She holds an MBA in Finance and a Bachelor of Arts in Economics and Sociology. She is expected to lead and grow the bank’s business in Kenya and the wider CESA region, which comprises 18 of the 33 Ecobank affiliates and one representative office.
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Kenya: US EXIM Bank issues default notice over Kenya airways loan
The US Export-Import Bank (EXIM Bank) has issued a default notice to Kenya due to the delayed repayments on a $525m loan guaranteed by the Kenyan government for Kenya Airways. The Treasury has confirmed an outstanding balance of $462m, saying that it does not have enough funds to repay the defaulted loan, which was to finance the purchase of seven aircraft and one engine for the airline. This highlights the country’s struggles with mounting public debt, whose servicing costs were expected to exceed half of the projected state revenues in the fiscal year ending June 2023.
Categories: BanksTags: US EXIM Bank -
Nigeria: Neeraj Singhal joining Sterling Bank board
The State Bank of India (SBI), India’s largest bank, has appointed Neeraj Singhal to the board of Nigeria’s Sterling Bank. Singhal, who is currently the General Manager in charge of operations at SBI’s international banking group, will bring his financial tech expertise to the Nigerian bank. SBI is the second largest shareholder in Sterling Bank, and the appointment comes as Nigeria shifts from legacy banking to digitalization.
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Ethiopia: Ministry of Defense preparing establishment of army bank
The Ethiopian Defense Foundation and the Ministry of Defense plan to establish the country’s first army bank, according to the State Minister of Defense, Martha Luwiji. The feasibility study has been completed, and the army foundation is preparing for the bank’s establishment. The government recently increased the minimum paid-up capital requirement for a new bank to five billion birr, and it is not yet clear whether the Army Bank will offer shares to the public or limit shareholders to institutional stakeholders.
Tags: Ethiopia