E-Financial
11 Banks Rake in N261.99Bn Net Profit in 3 Months
Increased lending by banks to businesses and the economy jacked up interest income in the banking sector, hence, reflecting on the cumulative net profit of N261.991 billion declared by 11 banks during the first quarter (Q1) ended March 31, 2022.
This, according to Leadership findings, arose as a result of effective funding optimisation and drive for efficiency in the concerned banks.
The banks are; Zenith Bank Plc, Guaranty Trust Holding Company (GTCO), Access Holdings, Ecobank Transnational Incorporated Plc (ETI), United Bank for Africa (UBA), Fidelity Bank, Jaiz Bank, Union Bank of Nigeria (UBN), Sterling Bank, Unity Bank, and Wema Bank.
According to the results released on the Nigerian Exchange (NGX), total net profit released by the financial institutions for the period under review increased by 8.78 per cent from the N240.855 billion posted Q1, 2021 to N261.991 billion in Q1, 2022.
The performance in the first quarter reflects the resilience of banks’ business model. Despite the general turbulence witnessed in the wobbling economy, occasioned by the Russia/Ukraine war, high inflation, heightened insecurity and low investment, the banks still declared an impressive financial performance in the quarter under review.
Capital market analysts said, banks delivered a strong base for growth in Q1, 2022, through effective funding optimisation and drive for efficiency.
Leading in the profit line for the period was Zenith Bank Plc that reported N58.19 billion net profit, a growth of 9.67 per cent. Access Holdings net profit grew by 9.23 per cent to N57.991 billion in Q1, while GTCO declared profit after tax of N43.208 billion, lower than N45.546 billion in Q1, 2021.
Trust Bank, Access Bank and ETI with N49.302 billion, N41.147 billion and N30.587 billion respectively. UBA reported N28.665 billion while Stanbic IBTC profit was N19.150 billion.
UBA achieved a net profit of N41.496 billion as against N38.155 billion in 2021; ETI reported total profit of N38.324 billion as against N30.494 billion in 202; while Fidelity Bank net profit stood at N9.515 billion, lower than N9.590 billion recorded in Q1, 2021.
Meanwhile, Union Bank, Sterling Bank, Wema Bank, Jaiz Bank and Unity Bank posted profit after tax of N5.551 billion, N3.543 billion, N2.856 billion, N1.040 billion and N869.264 million respectively, as against N6.207 billion, N2.395 billion, N1.305 billion, N832.297 million and N721.537 million, respectively in Q1, 2021.
Speaking on the Bank’s performance, Mr Kennedy Uzoka, group managing director/chief executive officer, UBA, explained that, despite the myriad of economic challenges on the global front which shaped the first three months of the year, the bank’s business model continued to show resilience.
These challenges among others, he noted, include the ongoing crisis between Russia and Ukraine that has resulted in a huge supply shock, pushing up commodity prices; and the hike in the interest rates in most advanced countries aimed at tackling spiraling inflation, sparking capital flow reversal from emerging and frontier markets.
Moreover, Mr. Segun Agbaje, CEO of GTCO, said: “our first quarter results show a decent improvement across key revenue lines as well as other financial metrics, which demonstrates our ability to effectively navigate the evolving business landscape anchored on our strong business fundamentals.
“With this performance, we are optimistic about the rest of 2022 as we rapidly consolidate the gains of our new holding company structure to deliver superior stakeholder value.”
Ade Ayeyemi, chief executive officer, Ecobank Group, stated that the performance was achieved in a difficult operating environment characterised by the strengthening of the US dollar against local operating currencies, high inflation, high interest rates and tight labour markets across Africa as the Russia-Ukraine conflict continued to take its toll.
“Despite these challenges, we continued to support our customers effectively, which paid off as our businesses grew their revenues and profits. These were driven by trade, cash management, FICC and payments, while we also achieved modest loan growth with support from higher interest rates,” he said.
Assessing the performance, Mr. Rotimi Olubi, managing director, ARM Securities Limited, said:, “Interest income has been a major driver of earnings across all banks. We have seen a significant increase in banks interest income due to rise in loans from customers and institutions.”
He noted that there was increase in banks gross earnings across all banks as a result of recovery from the COVID-19 pandemic.
Mr. Ambrose Omordion, chief operating officer, InvestData Limited, said the Q1 2022 is a reflection of economic recovery in Nigeria post COVID-19.
According to him, the performance showed the local economy is not doing bad in the Q1, 2022 as projected by the world bank. Banks been the cash flow of the economy have performed beyond expectations.
Speaking from a shareholder’s perspective, Boniface Okezie, chairman of the Progressive Shareholders Association of Nigeria, noted that, Nigerian banks have proven to be resilient in growing profits and savings from customers despite domestic and global challenges.
“It is a good thing that Nigerian banks are still resilient and are doing very well despite economy challenges. The resilient is what investors are seeing in our banks and are taking position. The Q1, 2022 performance is encouraging and with the growth, shareholders are expecting higher dividend in 2022 full year,” he pointed out
PalmPay, a leading digital banking platform in Africa has announced the launch of strategic partnerships with top-tier insurance providers to offer accessible, affordable and simplified insurance products directly within the PalmPay app.
This initiative reflects the brand’s continued commitment to deepening financial inclusion and underscores its mission to improve the wellbeing of everyday Nigerians.
With only about 8.9% of Nigerians currently covered by any form of health insurance, the country remains one of the least insured populations in Africa. Barriers such as low awareness, affordability challenges, and trust issues continue to hinder broader adoption of insurance products.
PalmPay’s new insurance offering directly addresses these challenges by simplifying the purchase and management of insurance policies within the app. The PalmPay insurance feature is designed to make essential coverage, from health to device, and life insurance easily accessible at affordable prices, eliminating the traditional complexities often associated with insurance.
“Insurance is often perceived as complex or inaccessible, especially among underserved communities.” said Habib Kowontan, Head of Wealth Product at PalmPay. “Through these partnerships, we aim to break down those barriers by offering simple, reliable and affordable insurance options that are easily accessible within the PalmPay app.”
With over 35 million users across Nigeria, PalmPay continues to evolve as a smart, consumer-first digital banking platform. The integration of insurance services complements its growing suite of offerings, which includes transfers, bill payments, high-interest savings, and debit card services, making PalmPay one of the most comprehensive digital banking platforms in the African market.
“Our goal at PalmPay is to remove barriers and make essential services easily accessible to everyone,” said Mr Chika Nwosu, Managing Director of PalmPay. “Through these strategic partnerships, we’re expanding our services to be more inclusive and empowering our users with products that will positively impact their lives and finances.”
This rollout marks a significant milestone in PalmPay’s broader strategy to empower users with tools that enhance their daily lives. Building not just a payments app, but a smart and trusted financial partner for millions of Nigerians.
In a timely gesture aimed at improving the plight of internally displaced persons (IDP) in Benue State, leading financial institution, Fidelity Bank Plc, has distributed mattresses and essential food items to over 2,000 victims of the Yelwata attacks currently taking refuge at the Ultra-Modern International Market IDP Camp in Makurdi.
Team Lead, CSR, Fidelity Bank Plc, Victoria Abuka (Left); CEO, The Abbasid Charity Foundation, Hauwa Abbas (Centre); and Branch Leader, Fidelity Bank Plc, Makurdi, Terwase (Right), representing the Regional Bank Head, North Central, Sadi Zawiya, with some beneficiaries during the Fidelity Food Bank distribution event in Makurdi, Benue State recently.
The donation, which was carried out in collaboration with the Abbasid Charity Foundation, is part of Fidelity Bank’s ongoing commitment to supporting vulnerable communities through its flagship Fidelity Food Bank program. Since its launch in April 2023, the Food Bank has distributed over 200,000 food packs to beneficiaries across Nigeria’s six geo-political zones.
Speaking about the donation event, the bank’s Divisional Head, Brand and Communications, Dr. Meksley Nwagboh reaffirmed Fidelity Bank’s dedication to Corporate Social Responsibility (CSR) and its mission to uplift communities.
His words, “Since its launch, the Fidelity Food Bank initiative has helped to alleviate the effect of poverty and malnutrition across the country. We are honored to be back in Benue State to continue this impactful initiative, and we hope that today’s donation brings much-needed relief and comfort to the beneficiaries during this difficult time”.
In her remarks, the Executive Officer, the Abbasid Charity Foundation, Mrs. Hawa Abbas, emphasized the importance of restoring dignity to the displaced, stating that the donation of mattresses was to ensure the IDPs no longer sleep on bare floors.
“This gesture is our way of letting the displaced persons know that they are not forgotten. We care deeply for them, and we hope this donation offers some comfort and hope, even in these difficult circumstances,” Abbas noted.
The Executive Secretary of the Benue State Emergency Management Agency (SEMA), Dr. James Iorpuu, who was represented by Camp Manager, Mr. Robert Nyom, expressed deep appreciation to Fidelity Bank and the Abbasid Charity Foundation for their timely support.
“Your intervention has brought much-needed relief to the camp and we thank you for your compassion and generosity towards improving the welfare of the displaced persons,” he said.
The bank’s outreach to the International Market IDP Camp in Makurdi represents the most recent of its ongoing critical and timely interventions. Previously, through its Food Bank Initiative, the bank provided essential food items to more than 1,500 residents impacted by the recent flood disaster in Mokwa, Niger State.
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is the recipient of multiple local and international Awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook, and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine. Additionally, the Bank was recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.
US Secret Service has quietly seized nearly $400 million in digital assets over the past decade, amassing one of the world’s largest crypto cold wallets, Bloomberg reported at the weekend, citing people familiar with the matter.
The agency’s Global Investigative Operations Center (GIOC) has tracked funds through open-source tools, blockchain analysis, and patience, Jamie Lam, an investigative analyst with the US Secret Service, reportedly told law enforcement officials in Bermuda last month.
The agency’s crypto trove, much of which sits in a single cold-storage wallet, results from a string of investigations into scams. Scammers lure targets into seemingly legitimate crypto investment platforms in one typical scheme.
Victims often see initial profits before the sites vanish with their deposits.
“That’s how they do it,” Lam said. “They’ll send you a photo of a really good-looking guy or girl. But it’s probably some old guy in Russia.”
Lam’s team uses domain records, blockchain transactions, and VPN slip-ups to identify fraudsters. In one case, a cryptocurrency payment led investigators to another wallet. In another one, a brief VPN failure exposed an IP address, helping agents piece together the scam’s digital trail.
At the helm of the Secret Service’s crypto strategy is Kali Smith, who directs a team that has trained officials in over 60 countries to unmask online financial crimes.
The agency has focused on jurisdictions with weak oversight or programs selling residency to foreign nationals. “Sometimes after just a week-long training, they can be like, ‘Wow, we didn’t even realize that this is occurring in our country,’” Smith said.
The Secret Service’s work has uncovered scams ranging from romance-investment schemes to sextortion cases. One investigation involved an Idaho teenager who sent a nude photo to an online stranger. The scammer extorted $300 twice before the teen went to the police.
Analysts traced the payments through another coerced teenager acting as a money mule, leading to an account tied to nearly $4.1 million in transactions under a Nigerian passport.
British police arrested the suspected extortionist when he arrived in Guildford, England, where he remains in custody pending extradition.
4 Dead, 20 Others Injured as Fire Engulfs Cairo Data Centre
EFCC Re-Arraigns Echefu, TStv CEO for Allegedly Defrauding Ex-Minister of N1Bn, $1.3m
FG Declares Admissions outside CAPS Illegal
Nigeria Loses over N200Bn from SSB Tax Annually – CAPPA
Jumia Replatforms its Retail Media Program to Mirakl Ads to Enhance Marketplace Advertising
Telecom3 days agoY’ello Care’s 21-Day Campaign Bridges Digital Divide for Thousands Nationwide
General News3 days agoEnugu Air Commences Operations Today
E-Business3 days agoGalaxy Backbone, Rural Electrification Agency Commit to Deepening Digital and Energy Access Across Nigeria
Broadcasting3 days agoNDPC Slaps Multichoice with ₦766M Fine for Data Privacy Violations
News3 days agoLagos-Calabar Highway Gets $100M Push from ECOWAS to Drive Regional Growth
Telecom3 days ago20 Years of Digital Leadership: Layer3’s Legacy and the Road Ahead
News3 days agoNBS May Release Rebased Figures for Nigerian Economy July 11
Telecom2 days agoNCC Wins Global ICT Award for Digital Awareness in Schools