Fitch Ratings has affirmed Sterling Bank’s Long-Term Issuer Default Rating (IDR) of ‘B-‘ and National Long-Term Rating of ‘BBB-(nga)’ with a stable outlook due the lender’s coherent strategy and ability to attract more stable deposits in challenging operating conditions.
Cutting through the industry’s jaded product offerings through innovation, the leading Tier Two lender’s IDRs are driven by its standalone creditworthiness, coherent strategy, business transformation initiatives, and strong management team, in an updated rating released yesterday by the global credit rating agency.
According to Fitch, Sterling Bank’s Non-Performing Loan (NPL) ratio, based on prudential requirements, was 6.1 per cent at end of nine months in 2017, while impaired loans ratio and NPL ratio are below sector averages. Remarkably, Fitch noted that the lender has successfully attracted more stable retail deposits.
“Positively, we also noted that the bank has successfully attracted more stable retail deposits, including strong growth in ‘non-interest bearing’ deposits (albeit from a low base)”. It added that Sterling Bank’s capital adequacy ratio based on Basel II of 11.4 per cent at end of nine months in 2017 was above the regulatory minimum of 10%. “In addition to higher retained earnings and by repositioning its balance sheet, the bank is expected to raise subordinated debt in the domestic market (which counts towards Tier 2 regulatory capital) to improve capital buffers,” the experts stated. “In the medium term, we expect Sterling’s prospects to improve as the franchise strengthens with the expansion of its retail/SME and ‘non-interest-bearing’ lines and business reorganisation.”
Commenting on the rating, Suleiman Abubakar, Executive Director, Finance & Strategy, Sterling Bank, said: “The rating affirms the potency of our growth strategy and transformation into one of the most respected financial services franchises in Nigeria offering world-class retail and non-interest banking solutions alongside the traditional corporate, commercial and institutional banking products and service. “As we continue to reposition Sterling Bank towards achieving its long-term objectives amid economic uncertainties and disruptive technological changes, agility, flexibility and speed to market have become our driving force. We are poised for sustainable growth and remarkable longterm profitability.”
Dangote: Businesses, residents lose N86bn daily to Apapa gridlock
Businesses and residents are losing N86 billion to Apapa-Wharf road gridlock daily, Africa’s richest man and President/CEO, Dangote Group, Alhaji Aliko Dangote, has said.
He stated this in Lagos while condemning the challenges posed by traffic jam and heavy presence of different types of taskforce, including the Customs, on the major route leading to the nation’s largest port.
Dangote, who was on an inspection tour of the on-going reconstruction of N4.3 billion Apapa-Wharf road by AG Dangote recently, stated that businesses and residents are losing 20 times the project’s cost daily.
By calculation, N86 billion is being lost by business owners and residents on daily basis.
He said: “People don’t really understand how much money businesses are losing because of the gridlock here; if you quantify it in billions, it is 20 times the cost of this project every single day.”
Consequently, he urged the Federal Government to move the taskforce, including Customs, away from the route to ease traffic.
The reconstruction of the road that leads to Apapa and Tin Can Island Ports is being undertaken by Dangote Group, Nigerian Flour Mill Limited and the Nigeria Port Authority (NPA), which are together committing N4.34 billion to the project.
Justifying the involvement of his company in sponsoring the project, Managing Director, Flour Mills Limited, Paul Gbadedo, lamented that it has been difficult for businesses and residents of Apapa.
Noting that the economy of Apapa is very huge, he said that businesses cannot see the traffic and road deteriorating without doing something.
He stated that 75 to 80 per cent of imports passed through the Apapa ports, noting that the road is strategic.
Dangote stressed that it did not make any commercial sense for Customs to mount check points outside the wharf after they might have checked and certified goods at the ports.
“If there should be any more checkpoints, they should be at the toll gates, not here where they are obstructing traffic flow,” he said.
Africa’s richest man said he was impressed with the progress and quality of work being done by AG Dangote, the contractor handling the reconstruction of the road.
He also lauded the palliative work going on on Apapa Oshodi Expressway and the Trailer Park being constructed by government off the expressway, pointing out that these were efforts being made to ensure that the access roads to the ports are decongested.
“My impression of this road has changed because AG Dangote is doing a great and excellent work here. You can see the quality of work being done. This is quite impressive. Even in Germany, you cannot see this kind of quality of road. This road can last at least two generations in which case you will be talking about over 60 years. It is so solid that it can take any weight and any traffic,” Dangote said.
“I can assure you that we will double our efforts to complete the project on schedule, that is, latest by the end of June,” he said.
Chief Executive, AG Dangote, Ajif Juma, stated that the company is facing a lot of challenges, citing traffic and gas pipeline as major ones.
“But now we are working hard to ensure we finish on schedule with some of our workers on night shift,” he said.
CBN to banks: Settle customers’ complaints within 2 weeks
Deposit Money Banks ( DMBs) and other financial Institutions have been directed by the Central Bank of Nigeria (CBN) to settle customers’ complaints on issues of overcharge, unauthorised deductions and other matters within two weeks.
CBN Head of Complaints management Division, Mr Tajudeen Ahmed, conveyed the Apex Bank’s directive in Abuja. He said the regulator would ensure that bank customers receive redress on issues of excess charges or unauthorised withdrawal.
Ahmed reiterated the CBN’s commitment to eradicating the culture of excess and arbitrary charges. According to him, the CBN has since issued a circular,which could be found on the its website showing all legitimate bank charges. He explained that any charge outside what is contained in the circular was not allowed and should not be charged.
“The Consumer Protection Department issued guidelines to banks dated August 16, 2011, directing all banks and other financial institutions to resolve all customer complaints within two weeks of receipt of that complaint,” he said. “Before the expiration of that complaint, the financial institution is expected to be engaging the customer on a continuous basis to update him or her on the status of the complaint. “If it is not resolved within the deadline given, then such a person is encouraged to draw the attention of Central Bank of Nigeria to find solution to that complaint.”
Ahmed enjoined customers with unresolved complaints to contact the CBN by writing to the Director Consumer Protection Department. He also advised disgruntled bank customers to visit any branch of the CBN closest to them to lay their complaints.
“The CBN continually engages the banks to find out if their conducts and practices are fair to their customers in order to stimulate people’s confidence in the banking system. “Non-adherence to that normally results to regulatory sanctions as the case may be,” he said.
Ahmed faulted banks for setting a limit on ATM withdrawals to get customers to make several withdrawals to cash large sums. “I have also observed and noted this. Don’t forget that at the beginning, it wasn’t like this. Over time, we started having this problem.
“One of the reasons is that the quantum of N500 denomination is much more than that of N1,000 denomination,” he said. “When we approached the banks about these problems, they said that the machines become easily faulty when it is set to dispense up to N30, 000 to N40, 000 units.
“However, CBN has directed that the machines that allow payment of up to N30,000 to N50,000 should be installed. “This is still ongoing. The Banking and Payment Department of the CBN is championing it.” In her remarks, Head, Consumer Protection Department, Mrs Hadija Kasim, admonished bank customers to imbibe cashless policy.
“Let’s not forget that ATM cards can also be used on Point of Sale (POS) terminals. We are encouraging people that unless it is absolutely necessary, they should reduce the carriage of cash. Cashless transactions are more convenient, safer and you will avoid the problem of overcharges,” she said. She advised bank consumers to use bank transfer channels for transactions in cases where sellers do not have POS.
DAAR Communications commends retired workers
The Management of DAAR Communications Plc has announced the retirement of some members of staff of the organization with effect from Feb 2018.
A statement made available to New Telegraph said those affected had served the organisation between 20 and 25 years.
According to the statement, the Chairman and the Board of the media outfit commended and appreciated the retirees’ pioneering efforts, the outstanding, remarkable contributions and all the personal efforts to the organisation right from inception in 1993/1996.
“They made their respective indelible marks in their respective departments, which cumulatively made the broadcast stations of the organisation not only household names but also a reference point in broadcasting in the Federal Republic of Nigeria and indeed the continent of Africa.
“As they gracefully move into another stage in their respective lives, we wish them the very best and a most successful future endeavor,” the statement added.
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