Banking Sector |

RBS Makes Special Investor Payout as Brexit Starts to Bite

LAGOS (Capital Markets in Africa) – Royal Bank of Scotland Group Plc plans to award shareholders a special dividend as the British lender seeks to assuage concerns with the U.K.’s departure from the European Union looming. The bank, which required one of the costliest bailouts in financial history, swung to a better-than-expected profit before tax of 572 million pounds ($733 million) in the fourth quarter. Despite the planned payout, RBS remains one of the strongest capitalized…

Uganda Central Bank Says Lenders’ Asset Quality Still a Concern

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KAMPALA (Capital Markets in Africa) – The asset quality of Uganda’s banking sector “remains a concern,” even as the country’s 24 commercial lenders reduced the amount of non-performing loans in the past fiscal year and were able to record higher profits, the Bank of Uganda said. The ratio of non-performing loans to total loans declined to 4.4 percent in the 12 months through June from 6.2 percent a year earlier, but “credit quality could be…

Carlyle-Backed Diamond Gets Cash Offer From Unnamed Investor

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LAGOS (Capital Markets in Africa) – Diamond Bank Plc has received an offer from a major investor to inject cash by increasing its stake, a move that would help the Nigerian lender keep its capital adequacy ratio above the required threshold, according to the outgoing chairman. The proposal was on condition that Chief Executive Officer Uzoma Dozieresigns, Seyi Bickersteth said in an interview in Lagos, the commercial capital, without naming the shareholder. Diamond’s biggest investor is U.S. private equity…

INTO AFRICA August 2018 Edition – Driving Africa Opportunities

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LAGOS (Capital Markets in Africa) – Welcome to the August 2018 edition of INTO AFRICA, a publication with fresh insight into Africa’s emerging capital markets. This month’s edition, titled: Driving Africa Opportunities and explores investment opportunities as well as banking and insurance sectors in Africa. Many investors are familiar with the African growth story. The young demographic, growing middle class and attractive GDP growth prospects have been recited before and I am sure we can agree that the…

Nigerian Banking Sector: Emerged Stronger Post-Crisis

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LAGOS (Capital Markets in Africa) – Nigerian banking regulators, like most of their global counterparts, took away three key lessons from the 2008 global financial crisis: 1) big banks can and do fail, 2) markets are not always efficient and, 3) risk management and corporate governance structures of banks are as important to financial system stability as balance sheet size. The global crisis uncovered the weakness of Nigeria’s hitherto prevalent universal banking model which permitted…

The Kenya Banking Sector: Current Tends and Prospects

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LAGOS (Capital Markets in Africa) – Kenya’s banking sector has proven resilient over the last few years, continuing to deliver growth despite the tougher operating environment. The country has a total of 42 commercial banks, of which 11 are listed on the Nairobi Securities Exchange; with 1 mortgage finance company, 13 microfinance banks and 3 credit reference bureaus, all regulated by the Central Bank of Kenya. Financial inclusion continues to rise, reaching 75.3% in 2016…

Nigerians Bury Cash in Backyards as Mobile Money Stumbles

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LAGOS (Capital Markets in Africa) – Every few days, Tasiu Abdurrahman takes the money he makes from selling spices in Nigeria’s biggest northern city and buries it in his yard. The 55-year-old closed his bank account eight years ago after growing disillusioned with standing in long lines for hours to deposit or withdraw cash. Abdurrahman is one of about 50 million of the unbanked in Nigeria, which despite having Africa’s largest mobile-phone market, is only just opening…

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