Business
Bank Explains Improved Half Year Earnings
Wema Bank Plc has an
nounced that its gross earnings appreciated to N20.87 billion in its first half of 2015.
The bank in a statement issued in Lagos, on Tuesday said that the growth represented an increase of 2.4 per cent from N20.82 billion recorded in the same period of 2014.
Wema Bank’s net interest income in the period dropped to N9.06 billion, from N9.71billion in the first half of 2014.
The bank’s profit before tax also dipped to N1.17 billion from N1.70 billion recorded in the previous year.
It added that its other operating expenses fell to N4.98 billion compared to N5.04 billion achieved in 2014.
According to the bank, loans and advances dropped to N134.57 billion, from N149.29 billion as at December 2014 while deposits went down to N234.1billion, from N258.96 billion in 2014.
The Managing Director of the bank, Mr Segun Oloketuyi attributed the poor result to a tough operating environment occasioned by economic headwinds, regulatory restrictions and political uncertainty.
“The first quarter of the year was characterized by election-related activities and political maneuverings with limited emphasis on economic matters.
“While the second quarter was largely characterized by the continued pressure on the currency, the tight monetary policy conditions and the low level supply of petroleum products.
“All these issues affected consumer discretionary spending and indeed the growth in our retail volumes,” he said.
Oloketuyi said that lack of economic policy clarity so far in 2015, investment decisions had been tentative.
He added that the Cash Reserves Ratio (CRR) harmonisation by the Central Bank of Nigeria (CBN) had reduced liquidity with significant impact on margins from money market investments.
“We are confident that as the new administration settles into office; its policy thrust will become clearer.
“Hence, it will enable us to continue to make well informed lending decisions mitigate risk exposures and further expand our customer base,” he said.
Also speaking the bank’s Chief Finance Officer, Mr Tunde Mabawonku, said that the bank had continued to efficiently deploy its assets.
“Our loans to deposits ratio has moderated to 57.1 per cent compared to 57.6 per cent as at December 2014, through a cautious approach to our lending, pending policy clarity from the new administration.
Mabawonku said that the liquidity squeeze and tight monetary policy conditions affected the bank’s yields from money market investments.
He said, “Technically, banks can only lend 39 per cent of available resources, as CRR is 31per cent and liquidity remains 30 per cent.
“We therefore used the first few months of the financial year to streamline our mix of deposits and funding sources.
“This has resulted in slightly smaller deposit liabilities volumes but a better cost of funds.
“Our sustained net interest margin above 7.5 per cent was also an improvement and our NPL ratio also remained below the 3 per cent mark.”
Mabawonku said that the bank foresaw an improvement in economic activity and systemic liquidity once the “bail-out” talks were concluded and more clarity on the economic policy of the new administration.
He added, “Our expectation is that economic activities will pick up between August and September and the momentum will be sustained throughout the remaining months of the year.
“While general economic conditions and the regulatory environment remain tight, we believe that our lending strategies, embedded risk management culture and continuous cost savings will enable us stand firm throughout this period.”
MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.
Corlins Walter
In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.
In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.
Corlins Walter