Nigeria: Intercontinental Bank Bags ‘Bank of the Year’ Award

Intercontinental Bank Plc was yesterday in London, named Bank of The Year in the 2008 edition of The Banker Awards. The most prestigious and credible industry award in the world is organized by The Banker Magazine, a publication of Financial Times of London, the world’s number one media conglomerate.

The Banker Magazine monitors the performance of key financial institutions across the world and articulates the profile of corporate actions for the purposes of rewarding best performers in their respective countries. Intercontinental Bank was adjudged best in Nigeria.

The bank’s ‘’strengthened brand, strategic and growing global presence, and a clear mission to boost stakeholders’ returns”, are among the reasons given by The Banker for choosing Intercontinental Bank as its Nigeria’s Bank of the Year 2008.

Fitch Ratings recently affirmed Intercontinental Bank’s National Long-term ratings at A+. This ranking indicates that the bank is a low risk financial institution. The agency also affirmed the bank’s international rating at B+, which is the highest for any Nigerian bank as at date by Fitch Ratings.

According to Fitch “the ratings reflect Intercontinental Bank’s developing domestic franchise, strong record of earnings growth and adequate capitalization”. Standards & Poor’s has also pronounced the bank’s international rating as BB-, which is the highest for any Nigerian bank just as Nigeria’s sovereign rating is also capped at BB-. Fitch and S & P are the two world’s leading rating agencies for both corporate and sovereign risks.

The coveted Banker/Financial Times award was coming barely a month after the bank was named “African Bank of The Year” and “Financial Brand of the Year” by two leading international media groups in two separate events at the just concluded World Bank/IMF meeting in Washington DC, USA. Industry observers believe that The Banker Magazine/Financial Times award shows consistency and confirmation of the judgment of all other awards the Bank won this year.

Other global financial institutions that won The Banker/ Financial Times bank of the year in their respective countries are BNP Paribas, France; Industrial and Commercial Bank, China; KPC Group, Belgium; Bradsco bank,Brazil; Commerce Bank of Germany; HSBC Hon-Kong; Sumitomo Muitsui Financial Group, Japan; Standard Bank Group, South Africa; Credit Suisse., Switzerland; and J P Morgan of USA among others.

Receiving the award in London yesterday, the Group Chief Executive of Intercontinental Bank Plc, Dr. Erastus Akingbola, expressed satisfaction with the recognition of the contributions and performance of the Bank and indeed African financial institutions by the world class media group. Akingbola who is also the President of Chartered Institute of Bankers of Nigeria (CIBN) stated that Intercontinental Bank is set to sustain the performance which has earned it these strings of rewarding recognitions amongst worlds financial industry players.

The first of the awards, ”African Bank of The Year” which is promoted by the London-based African Banker Magazine in partnership with the Corporate Council of Africa, was instituted last year to recognize the reforms, rapid modernization, consolidation, integration and expansion of the African banking industry.

Supported by African Development Bank, (ADB), the objective is to identify and reward the leading banks and businesses from Africa that are increasingly playing critical roles in the global banking system.

Chief economist of World Bank, Africa Region, Shantayanan Devarajan, stated that, “2008 African Banker Awards give Africans and its investment allies opportunity to acknowledge the contributions African Banks have made to African development over the years and to hopefully inspire even greater performance and investment in the years ahead”.

According to industry analysts The Banker/ Financial Times award is another endorsement of Intercontinental Bank’s financial strength and rising profile in the global financial market. It also positions the bank as the strong partner to do business with in Nigeria and Africa.

The Banker magazine have been providing coverage and analysis of banking and banks as an authoritative source of global financial intelligence since 1926.

In 2007 the magazine ranked Intercontinental Bank, fifth in Africa and 355 in the World’s Top 1000 Banks, making it not only the first Nigerian bank to be listed in the world’s 1000 top banks but also the second fastest growing bank in the world.

The bank has evolved into one of the largest and most diversified financial services institutions in Nigeria. It also has one of the largest branch network spread across the country, linked by cutting-edge IT infrastructure.

The Bank opened its first European subsidiary, Intercontinental Bank (UK) Plc in London this year. The opening marks the bank’s continued international expansion that began in 2006 with opening of Intercontinental Bank Ghana Limited and is set to include other strategic regions of the world.

Nigeria: Bank PHB Total Assets Surpasses the Trillion Naira Mark

Bank PHB has joined the exclusive list of Nigerian banks with total assets in excess of a trillion naira. In its financial results for the 12 month period ended June 30, 2008, Bank PHB announced total assets of N1.038 trillion, 172% higher than N382 billion in June 2007.

Bank PHB’s total assets plus contingents hit an all time high of N1.15 trillion, 140% more than N479 billion in June 2007.

“Our operations and asset size have expanded steeply, said Francis Atuche, MD/CEO Bank PHB. However, we have also been able to match it with the deployment of strong human capital, state of the art IT infrastructure and risk management systems to ensure we continue to deliver value to both our shareholders and customers”

The steep growth in the Bank PHB’s business assets is in line with its above industry growth rate sustained in the last three years since the consolidation in the Nigerian banking industry. Bank PHB is estimated to be growing at about 3 times above the average growth rate of the Nigerian banking industry.

Bank PHB’s high pace growth rate has been hinged by analysts on its operational efficiencies, resource optimization, and superior retail banking strategy which was recently hailed by Renaissance capital, a leading asset management firm in emerging markets, as one of the most well thought out in the Nigerian banking industry. With its array of innovative retail financial products, Bank PHB was named Nigeria’s most innovative bank in 2008.

“We have become the bank of choice for retail customers and on target as a leading retail bank” Said Francis Atuche. “Our asset diversification strategy has also been on track with a mix of low cost short and long term funds in our portfolio to ensure a sustained and stable incremental earnings stream.”

Even with the significant growth in Bank PHB’s asset base analysts are quick to point out that the bank improved its efficiency ratings. Return on assets have been stable a strong indication of the underlying efficiencies being sustained in the bank’s business despite its expanding business size.

In the year under review Bank PHB has also recorded a 6% drop in cost to income ratio to 46% while pre -tax profit margin has shot up significantly from 28% in June 2007 to 30% as at June 2008. Analysts say this means that Bank PHB’s average cost of making every N100 of income has dropped by an average of N6, improving its profits for N100 of income earned from N28 in June 2007 to N30 as the close of its financial year ended June 30, 2008.

The impact has been in the sharp growth in Bank PHB’s profitability as profit before tax shot up 153% to N26 billion in June 2008 from N10 billion in June 2007. This was on the back of a 141% growth rate recorded gross earnings to N87 billion from N36 billion within the same period.

Further analysis of the bank’s earnings shows that significant growth in earnings has been helped by strong growth in core interest income as well diversification of its sources of earnings.

Francis Atuche noted that Bank PHB is continually looking at improving its earnings structure in a bid to ensure a sustained and stable income base. “We continually aim to increase the proportion of transaction based income within our earnings mix”

Bank PHB is one of Nigeria’s biggest brands driven by strong balance sheet growth and excellent service delivery standards

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