Category Archives: STANBIC IBTC

Nigeria stocks lower at close of trade; NSE 30 down 0.64%

Nigeria stocks lower at close of trade; NSE 30 down 0.64% – Nigeria stocks were lower after the close on Wednesday, as losses in the Oil & Gas, Banking and Food, Beverages & Tobacco sectors led shares lower.
At the close in Lagos, the NSE 30 fell 0.64%.

The best performers of the session on the NSE 30 were Wapco (LAGOS:WAPCO), which rose 2.47% or 0.99 points to trade at 41.00 at the close. Meanwhile, Fidelitybk (LAGOS:FIDELIT) added 2.33% or 0.020 points to end at 0.880 and Zenithbank (LAGOS:ZENITHB) was up 0.14% or 0.02 points to 14.40 in late trade.

The worst performers of the session were Stanbicibtc Hl (LAGOS:IBTC), which fell 4.95% or 0.74 points to trade at 14.30 at the close. Dangsugar (LAGOS:DANGSUG) declined 3.80% or 0.24 points to end at 6.24 and Unilever Nig (LAGOS:UNILEVE) was down 2.78% or 1.00 points to 35.41.
Rising stocks outnumbered declining ones on the Lagos by 20 to 16 and 59 ended unchanged.

Crude oil for February delivery was down 0.47% or 0.25 to $53.05 a barrel. Elsewhere in commodities trading, Brent oil for delivery in February fell 0.60% or 0.33 to hit $55.02 a barrel, while the February Gold contract fell 0.03% or 0.35 to trade at $1133.25 a troy ounce.

EUR/NGN was down 2.99% to 317.400, while USD/NGN rose 0.40% to 316.500.

The US Dollar Index was down 0.27% at 102.98.

Deposit money banks as a key finance partner to the construction industry

Deposit money banks as a key finance partner to the construction industry

The construction sector has been a very significant contributor to Nigeria’s GDP, adding as much as 3% to national output. Although the sector has been severely affected by macro-economic headwinds in the recent past quarters, the sector still has great potential to contribute significantly more, in the short term, given the government’s current focus on investing in infrastructure as well as Nigeria’s demographic dynamic.

High construction demand

Nigeria’s position as Africa’s second largest economy and the economic hub of West Africa makes its construction industry a promising market for activities such as residential construction, commercial construction, and infrastructure construction. Due to its large population, the high rate of urbanization and the resulting perennial housing deficit, the demand for affordable housing is robust. There is also latent demand for commercial and industrial construction such as standard office spaces in key states like Lagos & Abuja, and industries in the country’s Free Trade Zones and Business Parks.

Current challenges

Operating in Nigeria’s construction industry is not a walk in the park, hence construction industry players have had to, and are continuing to rely on the support of Deposit Money Banks (DMBs). Nigerian construction companies often face tough challenges, some of which are:high cost of land, expensive imported materials and machinery, protractedgovernment documentation and certification processes, numerous fees and taxes, and cash-flow shortfalls due to the government’s delay in paying contractors. Funding mismatch also constitutes a challenge, as contractors typically need medium to long-term funding to execute construction projects, as opposed to short term funding.

DMB’s participation

Deposit money banks in this case have been a source of invaluable support for players in this industry by facilitating short term intervention funds, long term financing, and advisory services. Banks have now also gone on to provide clients with deep financial management and investment advice, to ensure that clients make sound investment decisions, and project finances are managed efficiently, with the goal of achieving significant cost savings and faster turnaround times.

Some Deposit money banks that have participated immensely in Nigeria’s construction sector include FCMB, First Bank and Guaranty Trust Bank who are partnering with private sector investors and the Lagos state government in the development of the Nigeria International Commerce city, also known as Eko Atlantic City. The city will help meet the demand for world-class financial, commercial, residential and tourist real estate.

The project is indeed seen as a game changer and will greatly enable Lagos state achieve its aspirations of becoming the financial capital of Africa. It is expected to attract at least 250,000 residents and a daily flow of around 150,000 commuters. It also contributes to saving the environment, as it will help in halting the erosion of Lagos State’s coastline. According to David Frame, Managing Director of South Energyx, the project developer, credit facilities from local banks have been increasing yearly, and this in turn has opened up confidence from the global community, causing international financiers to look to Nigeria as a viable opportunity for investment.

Deposit money banks also participated in the provision of capital for the construction of a Jetty for Nigeria’s largest fertilizer plant Indorama Eleme Fertilizer Chemical Limited, which was built as part of the Group’s expansion plan in Africa. As a result of the successful injection of capital for the required infrastructure investments, Nigeria is set to become a net exporter of fertilizer pro­duced by the company. The company produces up to 4,000 metric tonnes of urea per day. Some of the participating banks in this infrastructure project are Stanbic IBTC, Standard Chartered Bank and Access Bank.

Deposit money banks have also contributed to the growth of the construction sector by providing the funding necessary for backward-integrating the sector with other key aspects of the construction value chain like quarrying, packaging and transportation.

Following the institution of the backward integration policy of the government, cement producers were required to invest in local production facilities. According to Oxford Business Group, a business intelligence consultancy, the result of this was more than $6bn in investment in the sector, and a major uptick in domestic capacity. From 2008 to 2012 the Nigerian cement industry posted a compound annual growth rate of 43.5%, with domestic production surpassing consumption by 55%, leading Nigeria to become a net exporter of cement. Some Deposit money banks that supported this drive include Access Bank, Fidelity Bank, FCMB, First Bank, Guaranty Trust Bank, Stanbic IBTC, UBA and Zenith Bank. Banks like First Bank and Access Bank further provide flexible short term facilities to meet working capital needs of the distributors of major manufacturing cement companies in the country.

Supporting a potential construction boom

As an emerging economy, Nigeria is expected to make huge investments in infrastructure to help it transit into a developed economy. Private and public sector Investing in the upgrade and expansion of critical social-economic infrastructure will help provide better lives for its citizens, as well as create significant opportunities for players in the sector. The construction industry will play a major role in ensuring that Nigeria achieves its infrastructural development goals. Deposit money banks are well positioned and determined tocontinue to provide the right financial support required to jump start Nigeria’s construction boom.

Article written on behalf of Bankers Committee of Nigeria. This is the sixth article in a series focused on raising awareness around Nigerian banks’ efforts and most importantly educating the public on opportunities available to them to foster their active participation in our nation’s diversification efforts.

Stanbic IBTC unveils 24-hour digital branch

Stanbic IBTC unveils 24-hour digital branch

Stanbic IBTC Bank has commissioned her first self-service digital branch, delivering the transformational power of digital technology to drive optimal financial services in Nigeria.

The flagship digital branch inauguration took place in Lagos on aDecember 14, with technology business pioneer, Leo Stan-Eke, founder of Zinox Technologies Limited, declaring the facility ready for business. Located at Maryland Mall, right in the heart of Lagos, the branch’s processes and systems are completely digitalised and equipped with tablets, touch screens, electronic banking devices and new digital technologies set up in designated self-service and private areas to enable customers conduct financial transactions seamlessly while enjoying a delightful banking experience.

Among other facilities available at the branch are automated teller machines, bulk note acceptor, personal teller machine, smart table, self-service kiosk, self-service smart tablets, Internet banking kiosk, and instant debit card issuance machine.

Chief Executive, Stanbic IBTC Bank, Yinka Sanni, said the digitisation of banking services is the path to the future as consumers increasingly embrace the online world to meet their needs. The benefits of digitalisation and innovation are huge for the individual, business or economy, Sanni stated, adding that as technology evolves, Stanbic IBTC Bank will keep pace with it to deliver impeccable value to its customers.

Guaranty Trust Bank a leading provider of e-payment gateway solutions has launch its Virtual Prepaid MasterCard.

Foremost African financial institution, Guaranty Trust Bank plc has reaffirmed its position as a leading provider of e-payment gateway solutions with the recent launch of its Virtual Prepaid MasterCard. The card which is issued instantly via Internet Banking, provides an added comfort for security conscious online shoppers who prefer not to use their regular debit/credit cards when making online payments.

The GTBank Virtual card has all the security features of a physical card and can be used to make both international and local online payments. It also serves as a fall back option for customers who have forgotten or lost their card, but need to perform urgent online purchases. The introduction of the virtual card has bridged the gap between traditional e-wallets and bank accounts by providing a low cost alternative to physical debit cards. Customers also have the option of converting the virtual card to a physical card.

Commenting on the launch, Segun Agbaje, Managing Director / Chief Executive Officer of GTBank said: “This marks another milestone in our quest to make banking more seamless for our customers. As a Bank, we remain firm on our objective to deliver value adding services that are tailored to meet the diverse needs of our ever-growing customer base by leveraging technology to make banking more convenient for all our customers.”
He further stated that “the launch of this product, attests to our commitment towards encouraging a cashless culture in our country by promoting the use of alternative payment channels for transacting both locally and internationally. Our desire to be at the frontier of banking excellence enables us to pioneer innovative products aimed at making banking more simple and attractive to the unbanked and unserved.”

Guaranty Trust Bank plc is one of the biggest issuers of payment cards in Nigeria. In Partnership with Mastercard, the Bank has rolled out all variants of GTBank Mastercards in all countries where it has business presence and continues to offer rewards and priceless experiences to its cardholders. One of such promos will include the POS Cash Back Promo; a loyalty reward scheme where customers can earn cash for paying for products and services on POS terminals using their MasterCards. The Bank also rewards Card Holders with shopping and movie vouchers. POS Merchants are also rewarded with several incentives to encourage patronage of the Bank’s POS terminals.