United Bank for Africa (UBA) Plc’s share price recorded nearly the highest possible gain yesterday at the Nigerian stock market after the banking group released its latest audited results showing impressive growths across key performance indicators.

UBA’s share price rose by 9.90 per cent to N28.30 per share as investors scrambled for the shares of the bank in immediate reactions to the half-year audited results. At the stock market, share prices are allowed to move, up or down, within the limit of 10 per cent daily.

Key extracts of the audited report and accounts for the six-month period ended June 30, 2024 released at the Nigerian Exchange (NGX) showed that UBA’s gross earnings crossed the trillion naira mark to N1.37 trillion within the first six months of this year, an increase of 39.6 per cent N981.77 billion recorded in comparable period of 2023. Interest income had increased by 134.3 per cent to N1.003 trillion in first half 2024, from N428.2 billion in first half 2023, underlining the fact that the group’s top-line performance was driven by core banking operations.

The balance sheet of the bank showed that total assets grew by 37.2 per cent from N20.6 trillion in December 2023 to close at N28.3 trillion by June 2024. Customer deposits increased by 33.7 per cent in the same period to close at N23.2 trillion up from N17.3 trillion recorded at the end of 2023. Shareholders’ funds increased by 47 per cent from N2.03 trillion in December 2023 to N2.99 trillion in June 2024.

In line with the bank’s culture of paying both interim and final cash dividend, the board of UBA has declared a record-breaking interim dividend of N2 per share, 300 per cent increase on interim dividend of 50 kobo paid for the first half 2023. This is also the highest interim dividend ever paid by any bank in Nigeria. UBA’s pre and post tax profits had closed first half 2024 at N402 billion and N316 billion respectively as against N403 billion and N378 billion in comparable period of 2023.

Group Managing Director, United Bank for Africa (UBA) Plc, Mr. Oliver Alawuba said the half-year 2024 results underscored the bank’s commitment to consistently deliver value to its shareholders.

He said: “UBA Group has continued to deliver strong double-digit growth in high quality and sustainable banking revenue streams, driven by a focused growth in balance sheet, transaction and digital banking businesses across geographies in line with our strategic goals.”

According to him, the group’s performance has been buoyed by consistent strong growth in all core and sustainable banking income lines with the intermediation business showing strong growth as net interest income expanded by 143 per cent to N675 billion.

On the plans for the rest of the year, Alawuba said: “As the group intensifies its customer acquisition drive, we are making significant investments in technology, data analytics, product research and innovation to enhance our value proposition and customer experience.”

Executive Director, Finance & Risk, United Bank for Africa (UBA) Plc, Mr. Ugo Nwaghodoh, expressed delight at the milestone achieved by the bank in driving operational efficiency, as reflected in cost-to-income ratio normalizing around the 50 per cent range.

At the backdrop of sustained increases in the adoption of electronic payment system the Nigeria Inter-Bank Settlement System (NIBSS) has said that instant payments increased to N89.50 trillion in July 2024.

According to data obtained from NIBSS, the figure represents a 12.45 percent or N9.91 trillion increase, compared to the N79.5 trillion recorded in June and an 89 percent year-on-year increase compared to the N47.38 trillion recorded in July 2023.

Instant payment is an account-based, real-time electronic funds transfer (EFT) platform.

It enables financial institutions to provide online real-time funds transfer services to customers through all available electronic channels.

The instant payments recorded in July brought the value of the total electronic transactions in the first half of 2024 to N566.39 trillion.

In 2023, Nigeria recorded N600 trillion in electronic transactions.

Furthermore, the data showed that the value of cashless transactions surged to N238.61 trillion in the month under review, representing a significant increase of 4.6 percent or N10.49 trillion, compared to the N228.11 trillion recorded in June.

The data also showed 27.56 billion transactions were done through the use of electronic payment channels in July.

According to NIBSS, during the review period, the volume of transactions on the point of sale (PoS) channel was 97.8 billion, with a transaction value of N1 trillion.

NIBSS said mobile money operators (MMOs) such as Opay, Palmpay, Moniepoint, and Kuda, recorded N6.23 trillion transaction value in July.

Guaranty Trust Bank (GTBank) Limited has been named as the Best Bank in Corporate Social Responsibility (CSR) in Nigeria at the prestigious Euromoney Awards for Excellence 2024.

Euromoney disclosed that it handed over the accolade to the flagship subsidiary of Guaranty Trust Holding Company (GTCO) Plc because of its exploits in CSR initiatives that have transformed the country’s economy.

The organisers of the prestigious awards ceremony noted that these CSR initiatives of the company span education, health, community development, and financial inclusion.

Over the years, the organisation has not only led with innovation and service excellence but also consistently demonstrated a steadfast dedication to making a positive impact and creating shared value through CSR.

Central to these efforts are its consumer-focused events—the GTCO Food and Drink Festival and the GTCO Fashion Weekend—both of which offer free business platforms for budding as well as established entrepreneurs to showcase their talents, share their unique stories, and connect with a broader audience.

The Annual GTCO Autism Programme, an offshoot of the Orange Ribbon Initiative, aims to provide ongoing support for persons with developmental disabilities, focusing on those with autism spectrum disorder (ASD).

“As a Proudly African institution, we recognise that our success is inextricably linked to the well-being of the society in which we operate.

“Our commitment to corporate social responsibility is deeply rooted in our belief that businesses must act as a force for good, driving sustainable progress, and fostering inclusive growth,” the chief executive of GTCO, Mr Segun Agbaje, stated.

“Over the years, we have successfully developed several free-business platforms and continue to sponsor impactful social causes that have benefited millions of people and businesses across Africa.

“This recognition from Euromoney is a testament to the far-reaching impact of our initiatives, and it reinforces our resolve to create enduring value and ensure better outcomes for all,” he further said.

GTCO said the recognition from Euromoney underscores its unwavering commitment to excellence, going beyond offering innovative financial services and creating more value for its stakeholders to enriching lives and constantly exploring new opportunities to drive positive change in society.

-BusinessPost

The Central Bank of Nigeria (CBN) has temporarily withdrawn its biennial Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for 2024-2025 following widespread media misreporting.

This decision comes in light of misunderstandings surrounding the now-suspended Cybersecurity Levy, initially mentioned in the guidelines published on September 17, 2024.

In a detailed statement, the CBN clarified that the levy had been suspended since May 2024, following public outcry and a decision by the Federal Executive Council (FEC).

The CBN explained that the guidelines were intended as a reference to past policies and directives issued up to December 31, 2023, and not as new regulations.

However, some media outlets misrepresented the information, which has prompted the temporary withdrawal of the document.

The cybersecurity levy, which had its roots in the Cybercrime Prevention and Prohibition Amendment Act of 2024, was originally mandated by the CBN for collection by commercial banks, payment service providers, and non-interest banks.

These institutions were to remit the levy to the appropriate authorities to enhance the nation’s cybersecurity infrastructure. However, due to strong public resistance, the Federal Executive Council opted to suspend the levy during its last meeting in May 2024.

In line with the FEC’s decision, the CBN formally withdrew its earlier circular instructing financial institutions to collect and remit the levy.

This development was communicated to relevant stakeholders through a circular that superseded previous directives.

The CBN stated that the withdrawal was made to “minimize risk of any further misrepresentation” and ensure clarity in the nation’s cybersecurity framework.

The CBN emphasized that the primary aim of its biennial guidelines is to provide stakeholders with a comprehensive reference for monetary, credit, foreign trade, and exchange policies.

The document, the CBN noted, is not a collection of new policies but a compendium of previously issued directives and guidelines, meant to streamline access to policy information for stakeholders.

According to the CBN, the guidelines serve three core purposes. First, they act as a single reference source for stakeholders, allowing for ease and convenience when navigating CBN policy. Second, they serve as a basis for adjudicating policy conflicts involving stakeholders, providing a valid framework for resolving disputes.

Third, the guidelines offer additional clarification on CBN policies and directives, ensuring stakeholders understand and apply the policies correctly.

The apex bank reiterated that the provisions in the guidelines are only applicable to the extent that no updates or revisions have been made to the policies contained therein.

The bank further stated that recent amendments and revisions to certain policies—particularly in 2024—have rendered parts of the guidelines outdated.

The bank pointed out that, in line with previous editions, the most recent publication (January 2024) includes policies and guidelines that were in effect up to December 31, 2023.

While some of these policies will remain relevant through 2024 and 2025, many others will no longer apply due to subsequent revisions or updates.

This clarification is critical, the CBN said, to prevent further misunderstandings about the applicability of outdated policies

The Central Bank of Nigeria (CBN) has indicated its readiness to enforce the controversial cybersecurity levy, albeit at a significantly reduced rate, for the 2024-2025 fiscal year.

The levy, initially set at 0.5% but eventually reduced to 0.005%, applies to all electronic transactions and is mandated by the Cybercrime (Prohibition, Prevention, etc.) Act of 2015.

The CBN’s latest Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines stipulate that banks and other financial institutions must deduct the levy from all electronic transactions. “The CBN shall continue to enforce the payment of the mandatory levy of 0.005 percent on all electronic transactions by banks and other financial institutions, in accordance with the Cybercrime (Prohibition, Prevention, etc.) Act, 2015,” the document states.

The levy’s proceeds would go towards creating a cybersecurity fund specifically designed to bolster Nigeria’s banking sector’s defences against online attacks. The CBN stresses the significance of cybersecurity measures and requires payment service providers (PSPs), banks, and other financial institutions (OFIs) to comply with minimal cybersecurity standards.

These standards include the appointment of Chief Information Security Officers (CISOs) to oversee cybersecurity compliance, in line with the 2022 risk-based cybersecurity framework. “Pursuant to the circular titled ‘Issuance of Risk-based Cybersecurity Framework and Guidelines for Deposit Money Banks and Payment Service Providers’ referenced BSD/DIR/GEN/LAB/11/25, and dated October 10, 2018, issued by the CBN to combat the increasing cyber security threat in the banking industry, banks and Payment Service Providers (PSPs) are mandated to adhere to the guidelines on the risk-based cyber security framework,” the document explains.

Nigerians have voiced strong opposition to the tax, warning that it places an undue financial burden on both individuals and companies. The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and the Centre for the Promotion of Public Enterprise (CPPE) are two groups that have expressed worries about the levy’s possible effects on inflation and economic growth.

The federal government had originally suspended the levy in response to public uproar, pending further review. The amendment act that introduced it was previously enacted by the House of Representatives, but they nevertheless demanded its suspension. Following this, the CBN retracted the circular directing the collection of the fee. The CBN is currently implementing the charge, albeit at a far slower rate, according to the most recent guidelines.

The Central Bank of Nigeria (CBN) has issued a strong warning to commercial banks, payment system service providers, and other financial institutions regarding delays in responding to customer complaints. According to a new directive, banks will face a fine of N100,000 per day if they fail to address customer complaints within 72 hours. This directive is aimed at ensuring quicker resolution of issues, particularly those related to Automated Teller Machine (ATM) transactions.

The CBN made it clear that failure to respond to customer or CBN inquiries about ATM-related complaints within the stipulated 72 hours will attract the hefty daily fine. In cases where a customer’s ATM transaction fails and the acquirer does not initiate an automatic reversal, the financial institution will be penalised with a total refund of the disputed amount and an additional fine of N50,000 per day.

This new directive is part of the CBN’s broader 2024/2025 monetary, credit, foreign trade, and exchange policy guidelines, which outline the standards for banks and financial institutions under its supervision. The central bank emphasised its commitment to ensuring that all entities in the payment system comply with established fees and charges, referencing the ‘Guidelines on Operations of Electronic Channels in Nigeria’ from June 2020 and the ‘Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions’ issued in December 2019.

Failure to provide camera footage for disputed ATM transactions will also carry consequences, with the financial institution required to pay a penalty equal to the refunded amount. If an ATM does not have a camera, a bank will face an initial fine of N250,000, followed by a daily charge of N50,000 until a camera is installed.

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Regarding interest rates for the 2024/2025 fiscal year, the CBN reiterated that they will remain market-driven, influencing rates indirectly through adjustments to the Monetary Policy Rate (MPR). Banks are expected to comply with several guidelines concerning interest rates on deposits. For current account deposits, interest rates will continue to be negotiable between the customer and the bank. Savings account deposits will similarly follow rates provided in the ‘CBN’s Guide to Charges’ or any future circulars or policies issued by the apex bank.

Special-purpose deposits, such as those held as collateral, will have a minimum interest rate of 30 percent of the MPR for naira-denominated deposits, with foreign currency deposits having negotiable rates. Banks are also expected to calculate interest on loans repayable in installments using the reducing balance method, as the use of other methods like the discount or straight-line methods, which can result in higher interest rates, is not allowed.

In addition, banks must issue monthly account statements free of charge to customers, which must include details of any overdrawn accounts, the amount of interest charged, and all account activities within the month. Savings deposit interest will be calculated daily and credited to customer accounts at the end of each month without any minimum balance requirement for earning interest.

The CBN also stressed that banks must ensure the accuracy of charges and interest payable on deposit accounts. In cases where errors are discovered, such as non-payment or underpayment of interest, excessive interest, or unauthorised charges, the bank is required to refund the customer within two weeks, along with simple interest at the CBN’s prevailing maximum lending rate. Additionally, a letter of apology must be issued to the affected customer, and where necessary, the customer’s account should be reconstructed. Banks failing to comply with this requirement will be subject to further penalties.

For foreign currency-denominated accounts, similar rules apply. In instances where non-payment or underpayment of interest is discovered, banks must refund the affected customer with simple interest at the CBN’s foreign currency lending rate, along with an apology. Again, non-compliance will result in penalties.

This comprehensive set of policies underscores the CBN’s commitment to protecting customer interests and ensuring that financial institutions adhere to best practices in managing customer funds and resolving disputes.