₦airaland Forum

amebo no1.:
i can see you r d one falling for sweett dis one wey be say na u dey carry the matter for head, abeg take style look d pics,before u go masturbate urself into coma

No be me devote all night for am. I was watching you and him go at it i just observed the truth. And he be like say the Bobo is controlling ya mind.

amebo no1.:
hahahhahahaha rebellious u r not serious hahahahaaa at the woman staring

, ok ive never laffed dis hard for a long time


hahaahha if u find sweett cute then im so sure if u get married"dats if you are not married" then im sure ur huuby or wife wont be any better than OBasanJo

the guy no even dey respond to you and you still dey talk about am. ol boy don take over ya head.

You can always know when a woman likes a guy especially Naija women. Starstruck leave sweet t alone. I think your feelings dey show oo.

Amebo = starstruck.

And cutting employees salary by 30% ?? so much for the awards. yeah i have more awards for IBPLC


Best bank in Okitipupa - USA today

Most patronized bank iyun Ekiti - Forbes magazine

Tallest Building in Ijebu Igbo - New York Times

Most spacious banking hall in Abule egba. - Guinness book of world records.


Bunch of liars, yeye people.

anitas:
I'm in a fix now. Pls advice me:

I read engineering but work in springbank as marketer for 128k as monthly salary.

Now I got another offer in an indigeneous oil services for 100k monthly.

Pls advice your guy what you think is best.

Is it marketing in the bank or an engineer in an indigenous (one man biz) oil services?

In as much as i don't believe this story i'll only tell you this. You must be crazy if you choose the bank offer. There is no job security at the banks, especially spring bank. most banks are in financial mess but they won't reveal the truth. a word is enough for the wise, go for the oil company and broaden your horizon.

Dis Guy:
the thing i dont understand with this 'demarketing' is that why is intercontinental the only bank being targeted and by who?

those naija banks and their funny way of doing business, how exactly is it possible for 80% of staff to be on the street chasing deposits?
how come other countries dont send their staffs on the street looking for deposits?

Intercontinental bank is being targeted the most 'cause it's the only bank that internationalized itself more than any other bank in Nigeria. They kept receiving loans and credit facility from foreign banks at high interest rates. If you check my post from mid last year i was warning investors about the way IB is conducting business. I was voicing concerns shortly after they received a loan from one of the banks and shortly before the loan they posted huge profits in their book. No doubt this global crisis has and will hit IB more than most banks in Nigeria. These are the signs of a bank in trouble from jacked up deposit minimum to staff paycut, next it will be layoffs. A word is enough for the wise. NOBODY IS DE-MARKETING INTERCONTINENTAL BANK, THE BANK HAS BEATEN MORE THAN HE CAN CHEW. Did anybody believe the bank can survive at the rate they were going- unsustainable staff salaries, unreasonable share declaration, ill-advise operation tactics e.t.c.

Just in case you are in doubt of what i just posted, here is an article from Businnes day Friday edition. read and decide for yourself.





HomeAnalysisNationalEntrepreneur TodayInvestorMoneyEconomic WatchMaritimeInsuranceTravelTechnologyEnergyNews
Home News Intercontinental saves N1bn monthly from 30% pay cut
Intercontinental saves N1bn monthly from 30% pay cut
Friday, 10 April 2009 00:04 Hope Moses-Ashike
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Intercontinental Bank plc is expected to rake in about N1 billion monthly from the 30 percent pay cut of its staff. The action is in response to challenges being faced by the bank in recent times, according to analysts from Renaissance Capital (RenCap), a renounced global investment group and financial analysts based in London.
With the recent uncertainties pervading the banking industry, the bank had to subject its books to external independent scrutiny, said RenCap which observed that the cost base of the bank has increased three folds in the last two years alone.
Specifically, the report noted that between 2006 and 2008, it has grown from N22 billion to N72 billion over this period.
Between February 2006 and February 2009, the report further estimated that the bank’s cost base increased at a Compound Annual Growth Rate (CAGR) of 65 percent yearly, making it to have a cost base of over NGN100 billion Erastus Akingbola, MD, Intercontinental Bank
this year.
The report from the investment analysts noted that historically, the growth in the bank’s cost base has not been a problem because its income growth has been stronger, up 69 percent yearly over the past three years (2006 - 2009).
They further noted, however, that in the bank’s financial year 2010, its challenge will be to deliver strong profit growth in an environment of high loan loss provisions, for instance 60 percent year-on-year (YoY) and strong cost growth (20 percent YoY). In this scenario, with all other things being held constant, the report said the bank has to deliver income growth of 18 percent YoY for its profit before tax (PBT) growth to be flat year on year.
The report commended the management of the bank for the appropriate response to these challenges through the salary cut, adding that it will fetch the bank about N1 billion monthly.
“We are very encouraged that ICB recognises the challenges that its cost base presents and has taken the following steps:
*introduced a performance pay structure. Staff costs have become the largest component of ICB’s cost base over the past three years and now represent 54 percent of total costs, up from 41 percent of total in 2006. To reduce these costs, management has introduced a performance-based pay structure that has reduced salaries by 30 percent on a monthly basis. The remaining 30 percent is being paid out to employees on a quarterly basis when all their objectives are being met. The monthly savings are in the region of N1 billion.
*reduced overhead costs. ICB has set-up a strategic sourcing unit with the purpose of reducing overheads by capitalising on economies of scale to obtain lower prices/costs for supplies to the bank
*maintained cost target. For the next fiscal year, management has said it wants to limit its cost base to 35 percent of this year’s gross income. Based on our 2009 estimate for gross income, ICB’s cost base in 2010 should be around N81 billion, 20 percent lower than our 2009 estimate of its cost base (N101 billion),” RenCap said.

Author of this article: Hope Moses-Ashike
Show Other Articles Of This Author
Individuals cut down on expenditure, savings in Q1 (06 April 2009)
How the coming of credit bureaux will enhance o, (30 March 2009)
How cost of funds affects interest rates in mic, (23 March 2009)
‘Only government’s intervention can save MFBs f, (09 March 2009)

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Chimdi:
It is true that Intercontinental has opened 40 branches. You guys just have to take my word for it. Trust me, my source is extremely reliable. For those badmouthing the bank, read the banks financial and global rating and you'd understand why the bank is still the strongest in Nigeria inspite of the demarketing. They will continue to recruit and we'll get there God willing.

This is what makes me sick about Nigerians, very unreliable set of liars. This guy is giving false hope to prospective job seekers when he actually knows that the bank is in financial mess. Several Nigerian daily newspaper just reported 2 days ago that Intercontinental bank is cutting their staff pay by 30% and they are reducing operational cost by as much as 25%. They have a NGN90Biliion bad loans to deal with, that is representing about 12% of the total bad loans by the entire Nigerian banking systems. PLEASE KNOW EXACTLY WHAT YOU ARE TALKING ABOUT B/4 POSTING. YOUR RELIABLE SOURCE IS FREAKING LIAR.

Ofcourse rencap is not tell Nigerians that intercontinental is broke. They use coded language like paycut, cut back in expenses, aggresive marketing e.t.c If Rencap just openly declare that IB is broke, do you think any other Nigerian bank will be doing business with them? Of course not. The fact still remains that IB is a ship steadily drowning.

If anyone is in doubt, read this article from business day newspaper.




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HomeAnalysisNationalEntrepreneur TodayInvestorMoneyEconomic WatchMaritimeInsuranceTravelTechnologyEnergyNews
Home  News  Intercontinental saves N1bn monthly from 30% pay cut
Intercontinental saves N1bn monthly from 30% pay cut
Friday, 10 April 2009 00:04 Hope Moses-Ashike   
User Rating: / 0
PoorBest
Intercontinental Bank plc is expected to rake in about N1 billion monthly from the 30 percent pay cut of its staff. The action is in response to challenges being faced by the bank in recent times, according to analysts from Renaissance Capital (RenCap), a renounced global investment group and financial analysts based in London.
With the recent uncertainties pervading the banking industry, the bank had to subject its books to external independent scrutiny, said RenCap which observed that the cost base of the bank has increased three folds in the last two years alone.
Specifically, the report noted that between 2006 and 2008, it has grown from N22 billion to N72 billion over this period.
Between February 2006 and February 2009, the report further estimated that the bank’s cost base increased at a Compound Annual Growth Rate (CAGR) of 65 percent yearly, making it to have a cost base of over NGN100 billion Erastus Akingbola, MD, Intercontinental Bank
this year.
The report from the investment analysts noted that historically, the growth in the bank’s cost base has not been a problem because its income growth has been stronger, up 69 percent yearly over the past three years (2006 - 2009).
They further noted, however, that in the bank’s financial year 2010, its challenge will be to deliver strong profit growth in an environment of high loan loss provisions, for instance 60 percent year-on-year (YoY) and strong cost growth (20 percent YoY). In this scenario, with all other things being held constant, the report said the bank has to deliver income growth of 18 percent YoY for its profit before tax (PBT) growth to be flat year on year.
The report commended the management of the bank for the appropriate response to these challenges through the salary cut, adding that it will fetch the bank about N1 billion monthly.
“We are very encouraged that ICB recognises the challenges that its cost base presents and has taken the following steps:
*introduced a performance pay structure. Staff costs have become the largest component of ICB’s cost base over the past three years and now represent 54 percent of total costs, up from 41 percent of total in 2006. To reduce these costs, management has introduced a performance-based pay structure that has reduced salaries by 30 percent on a monthly basis. The remaining 30 percent is being paid out to employees on a quarterly basis when all their objectives are being met. The monthly savings are in the region of N1 billion.
*reduced overhead costs. ICB has set-up a strategic sourcing unit with the purpose of reducing overheads by capitalising on economies of scale to obtain lower prices/costs for supplies to the bank
*maintained cost target. For the next fiscal year, management has said it wants to limit its cost base to 35 percent of this year’s gross income. Based on our 2009 estimate for gross income, ICB’s cost base in 2010 should be around N81 billion, 20 percent lower than our 2009 estimate of its cost base (N101 billion),” RenCap said.
 
Author of this article: Hope Moses-Ashike
Show Other Articles Of This Author
Individuals cut down on expenditure, savings in Q1 (06 April 2009)
How the coming of credit bureaux will enhance o,  (30 March 2009)
How cost of funds affects interest rates in mic,  (23 March 2009)
‘Only government’s intervention can save MFBs f,  (09 March 2009)

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It is good to see some pro-intercontinental posts here eventhough they all sound like they come from the same person. But can these guys explain the meaning of the increase in opening balance?? we even heard the bank reduced it's staff salary and use the reduction to buy their worthless stocks for the staff. is that true??

davidylan:
what did you do wrong?

That's not the question. this is what nigerian banks are doing lately. Rainy days has come and their cosmetics is wearing off.

JJYOU:
which of the ailment do you prefer oga? what you dont know is along with these banks going down is your country economy too. be very careful what you wish for. go to the banking threads you will see i am not their best fan. i have written something agaist their foreign currency account last year. however, i know we need to be careful so you dont cause undue distress because nigeria has much to loose than you know if they go down.

What economy?? Nigeria's economy has been in comatose since the 1980s !!! The only remedy is for us to know what works and what doesn't! We need to know which bank is pretty and which ones are cosmetic. Same with the politicians. How can a country prosper when the major instutitions in that country are dripping with lies and deceits. The collapse of sick banks will only make the country better. Let the healthy banks take over the sick banks and do a proper re-cosolidation that is transparent and honest. QUIT FOOLING YOURSELF !!! and SOLUDO has to go. He's drinking in the barrels of lies that the banks are producing, he's so-called consolidation is plain fraud !!

JJYOU:
this is gross irresponsibility. do you know how many families depend on this bank for their livelihood? you are so unfair especially in this time of uncertainty any rumour like this will go places and make people react in fear.

People like this guy makes me sick. If the bank is not healthy, let them collapse instead of doing business on false pretense. Let us know the real strong bank in Nigeria!!! Intercontinental and Zenith is not one of the strong banks.

Can you imagine that?? When other banks are begging for more customers and opening accounts at a very low amount this useless bank is increasing their their opening deposit. I have predicted this last year about this intercontinental bank. Thay are not as strong as they claim. Most of their assets are owned by foreign banks in terms of loan and credits. They have bit more than they can chew. I warned every investors that i knew not to buy intercontinental stock and see what happened. Intercontinental is among the few Nigerian banks that run to the western banks for loans at every opportunity they get, so now that these western banks are having problems what do you think will happen to intercontinental?? Intercontinental bank just drastically reduce their staff salary and use the cut to help their employee buy the bank's worthless shares. Can you believe that? i warned people to stick to our traditional banks like First bank, union bank e.t.c Most of these bank's ceos like Akingbola,Ovia e.t.c will end up in jail for deceiving Nigerians.

Can you imagine that?? When other banks are begging for more customers and opening accounts at a very low amount this useless bank is increasing their their opening deposit. I have predicted this last year about this intercontinental bank. Thay are not as strong as they claim. Most of their assets are owned by foreign banks in terms of loan and credits. They have bit more than they can chew. I warned every investors that i knew not to buy intercontinental stock and see what happened. Intercontinental is among the few Nigerian banks that run to the western banks for loans at every opportunity they get, so now that these western banks are having problems what do you think will happen to intercontinental?? Intercontinental bank just drastically reduce their staff salary and use the cut to help their employee buy the bank's worthless shares. Can you believe that? i warned people to stick to our traditional banks like First bank, union bank e.t.c Most of these bank's ceos like Akingbola,Ovia e.t.c will end up in jail for deceiving Nigerians.

@tkb417

How old are you?? Have you ever had any job before in your life. Pls. answer these question before i can talk to you.


@tubby

Congratulations, you are a wise man. You have foresights. Not just PHB but almost all the banks in Nigeria are sitting on a keg of gun powder. They have fraudulently and carelessly destroy banking in Nigeria. Since there are no more big oil money deposit, banks dey catch cold. My brother enjoy your time at KPMG. they are a reputable company.

See as all these bank workers dey foam for mouth. You are complaining about the poster exposing PHB, you guys are funny. very soon, all the banks will be exposed. Most banks are looking for ways to drastically reduce their staff salary. I even heard some will go as low as the civil service pay structure. In another month of two, most of the bank workers go foam for mouth some more.

Emperoh:
You are about the only personw who's said something that made sense to me
When some of us keep feeling hunky and macho. . . .you never can tell whats behind all those mask
We all suffer for our inexperience or ignorance on way or the other. . . .the greatest thing is to learn from them and move on with life

Above all never let the next person suffer for another's mistake. . . more like transfered aggression.

Please don't listen to people like this one. He's probably still in High school. Knows nothing about love. Poster, be patient. True love will find you because you seem to know how to give love.

Look here Bro'. it's alright to be hurt for love and it also right to fall in love but it's even more right to man-up and let it be. This kinda situation has happened to the best of us, don't betray your manhood. Better days are ahead. It will even hurt you more if you let your ex see you down, send her congratulatory message, wish her well and show that you are bigger man. You obviously love this girl for you to come home because of her. When your time comes, i can bet you that she will remember all the love that you gave her and she will probably hurt more than you are right now. Take it easy, focus on the most important things in your life. Our people say " If you let one woman bring you down, so many more will piss on your grave ". A woman that left you becasue of money shows what she is made of (a gold digger). A woman like that ends up regretting their lifestyle, please believe me. ENJOY LIFE BROTHER.

Jon-oh-jon:
@Finecat, Dis guy

I think it will be very childish and uncivilised of me to use the kind of word (idiot) that you (finecat) has used on this forum, well I guess thats just a pointer of how civil and intelligent you are.

Developed world, hmmmmm!!!! have u been there? and if yes have you worked there?. With all sense of humility I would love to inform you that I spent the last 3 years of my professional working career working for a foremost Investment firm in U.K. Anyhow all i can say right now is if Tubbytubby has a case against his employers as a professional he should inform the right authority about it and mind you this can be done annonymously. The last time i checked Nairaland is not the banks'regulatory body.

Well that apart i also sensed in you (Finecat) a man that has so much time on his hands, and has so much animosity against the Nigerian bank, why? I do not know. Now let me help, you out if you've been wrongly(?) dismissed by any and you feel done by I can understand. If you are interested let me give you my no. and addy and for you to forward ur C.V and if by Mid May or so you are not gainfully employed then you are free to come back here and call me names.

Thank u

Hope you have a degree at least

This guy is a clown. I am in Boston,MA right now. Just came back from Nigeria 2 weeks ago and will be going to Nigeria again by march/April. I do not need to tell you what i do for a living but i can gladly tell you that no Nigerian bank can afford me even when their stocks were good not to talk of now. It seems to me like you are short sighted, therefore i refuse to argue with you. But i must say that, What organization or system will tubbytub complain to?? Even if he did file a grievance, what would come out of it?? The only correctional method Nigeria companies understand is airing their dirty laundry in public. Tell me what is wrong in Tubby complain on nairaland about PHB?? You bank workers are funny, you call that disloyalty? The ultimate loyalty you owe to your employers is productivity, once your performance matches the pay then you are a loyal employee. Tell me a Nigerian bank that is loyal to their employees?? Atleast i have people that work at LNG and they get a far better deal than the banks. Banks have turned young promising women to prostitutes all in the name of targets, they work married men and women; fathers and mothers from sunshine to the moonlight. is that your definition of being loyal?? Tell me something, compare your working experience with the UK investment company to your experience as a Nigerian bank worker. Who is more loyal to their employees??

Jon-oh-jon:
As for tubbytubby I really don't know what your mission is , but I do know for certain that the likes of you don't deserve to be employed by anyone let alone an organisation. If at all anything you said is considered true , then you dont have the moral right to spill that out on a public forum afterall part of your employment condition(s) forbade you from disclosing any information you had priviledged access to to anyone or body. Tubbytubby you are an epitome of the average Nigerian graduate , unprofessional and morally bankrupt the your likes are the ones messing up the banking industry.

This is what is wrong with Nigeria. Nigerians don't like other people to air their own views because of the benefit they get from that bad organization. Employers in the developed world encourage their employees to speak up whenever they feel like something is wrong with their company, because this is the only way the company can investigate the allegation and improve their services to the customers and the employees. Nigerian bankers don't like to expose their employers' wrong doing because they want to give people the impression that they are "on top of the world". This guy is jumping all over tubbytubby because he is airing his views about what he consider wrong with his employer and some idiots are trying to shut him up. How can Nigeria get better when all you get is lies lies and cover-ups. Some of these bankers are so shallow and short sighted in their views. No wonder their top officials treat them like slaves.

How many of you really thought that Nigerian banks can sustain the level at which they are going ?? These banks pay semi-illiterates millions of Naira as salary and those bank workers turn around and treat customers like they are doing the customer a favor for banking with them. Imagine that, even the companies that treat customers well are struggling to make it not to talk of some overpaid illiterate in suits. You work into a Nigerian banking center and they treat you like you have come to disturb them. That intercontinental bank still owes me about 2M and as soon as i get to Nigeria, i'm filling a lawsuit.

kazeem4t:
Hii
Please I am not really clear with this.
As in U will be absorbed my the Bank?
Then U will pay for your own training to work for them?
Then what happens next

Can't you see say this one na Ole, thief.

GoldCircle:
Fine cat! fine cat!! fine cat!!!You again

I reserve my comment sha. . .till then! Make we dey watch!

You can reserve your comment all u want, better yet you can shut the heck up. I feel sorry for you yeye bank workers, you go soon turn to agberos at the car park. Atleast the rude and lazy ones amongst you. You better start saving for the raining days. Write this down and remember i told you this. The bank workers that does not lose his job will be working at a severely cut salary. I see you guys going back to the civil service pay scale or a little better than civil service. Let's see how much noise you will make then. I told you this last year and it's coming to fruition now. Which one of the banks do you work for self?? I will tell you the truth your top official refuse to tell. A word is enough for the wise.

Nigeria: Global Recession - Banks Move to Stave Off Murky Waters
Kingsley Ighomwenghian
27 January 2009

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Afribank Nigeria last week came close to announcing job cuts as part of plans for a wholesale transformation programme 'meant to enable the bank retake her pride of place in the financial services industry, grow holistically and to offer superior returns to investors'.

The main thrust of the growth plan is to make the bank run at a high level of efficiency and best practices.

The bank announced the voluntary retirement of 10 management staff, without offering further details in what is seen as a purge that would trim its workforce by about 700.

This, according to a source close to the group, has resulted to tension across the various cadres of staff. The source told Daily Independent at the weekend that about 27 management staff were actually retired 'voluntarily', most of whom were heads of department in the first phase, which involved officials from the rank of senior principal manager to general managers.

Officials of the bank however insisted on Monday evening that the 10 management staff were affected, wondering the source of the contrary information.

The second phase is expected to affect those from the rank of senior manager and below.

The right sizing is said to be based on the outcome of an exercise on the staff conducted last April by the consulting firm of KPMG.

The commencement of the implementation by management is said to be causing tension across the bank's offices nationwide, despite the promise that human face would be given to the exercise. The uncertainty is even worsened by the lack of information on the criteria employed for the job cut, but the source believes that age, academic qualification, number of years of service, position currently held and length of years on current grade are possible criteria that would be used.

According to a statement by LanreAlabi, a Principal Manager and Head, Corporate Affairs of the bank, the ongoing plan 'covers human capacity development, overhauling of IT platform, capital raising, market refocusing and development'. The bank has in the last one year engaged in massive training and rejuvenation of its workforce and operational processes and expanded its market facing units. It is also implementing Enterprise Wide Risk Management. This is designed to enable it manage operational risks that may arise from local and international markets.

"The bank believes that the plan will enable it achieve faster growth rate, maximise opportunities and face global competition with superior strengths."

The action by Afribank Nigeria is so far the boldest hint of the grim realities of the country's share of the ongoing global economic recession currently sweeping across Europe, America and Asia like hurricane. Some others are expected to announce similar right sizing and voluntary retirements soon as they grapple with the grim realities of the global crisis. Before now, some have wondered: "When will Nigerian banks start downsizing or they are all perfectly immune from the world financial crisis," as Prof. Chukwuma Soludo, Governor, Central Bank of Nigeria (CBN) continues to assure the country since the past weeks. CBN declared that Nigerian banks can withstand any shock from the global crisis, owing to their huge capital base of about N2.7 trillion at the end of last September, adding that this is one of the two shock absorbers that the country can fall back on to stave off recession even while U.S. announced that it slipped into a recession around December 2007 following the sub-prime mortgage crisis.

Nigerian banks have until now behaved as if they are cocooned from the crisis in the outside world, even as they deny unsuccessfully that their foreign correspondent banks withdrew their credit lines in the wake of the global crisis.

According to Chief Executive Officer of the Intercontinental Bank, Erastus Akingbola, the global financial crisis can indeed affect Nigerian banks, because 'all these banks abroad have relationships with us. This is because some of these foreign banks have confirming lines with us, some even place dollars with some Nigerian banks'.

Akingbola, who is also the President/Chairman, Council of the Chartered Institute of Bankers of Nigeria (CIBN), explained that owing to the problems the foreign banks are having, "it is only natural that they will come for their money (after all), you can't have your own money and be suffering."

Job Cuts By Banks Abroad

Unlike the situation among the country's banking groups, financial institutions abroad are more forthcoming with necessary information on plans to reduce their workforce in reaction to current realities. For instance, Bank of America said it plans to cut between 30,000 and 35,000 jobs over three years following the completion of its takeover of Merrill Lynch. Credit Suisse has announced more than 7,000 job cuts globally while Britain's Barclays Bank says it is planning to lay off 2,100 workers globally across its investment banking and wealth management businesses to match the 'current market conditions', according to the British Broadcasting Corporation (BBC).

A breakdown of the figure shows that 1,300 jobs will go at investment arm of Barclays Capital, 500 axed at Barclays Wealth and 370 trimmed at Barclays Global Investors. About 500 of the total jobs lost would be in UK, even as the bank in few weeks ago announced that about 400 other jobs would go - mainly in its IT departments in Cheshire and London.

Financial institutions that have also announced job cuts include Spanish bank (Santander), which has said it will cut 1,900 jobs in its three UK businesses --- Abbey, Alliance & Leicester and Bradford & Bingley. UK firm (Cattles), which offers loans to risky borrowers, plans to cut 1,000 positions after its business was hit by the effects of the credit crunch. Nomura, a Japanese financial services group said in December that it would cut its staff in London by up to 1,000 after it bought parts of the failed U.S. bank (Lehman Brothers).

So far, it is not known how many jobs will be lost in Nigeria, even as hints suggest that many of them have already stopped or reduced the bogus salaries and upfront payment to their staff. There are cases of those who raised staff salaries only to rescind the decision weeks later, just as one bank is involved in non-payment of dividend declared to the chagrin of shareholders.

A newspaper also reported last week that banks may have started serious cost cutting, particularly the non-essential expenditures hitherto associated with their department and branch operations in such areas as travel and telecommunication, advertising budget, among others.

Rates Hike

The high operating cost, as banks power their branches and business units with plants, security and water, among others, have had serious implications on their capacity to facilitate credit and earn income. To shore up their earnings and make up for their shrinking businesses, increased level of loan defaults, falling value of naira against other major currencies, the banks have also increased interest charges for all categories of loans. While term deposit rate is now between 18 and 22 per cent, retail loans under 90-day window is now priced at 25 per cent, up by six basis points from 19 per cent, just as monthly repayment by debtors has also increased. Interest on manufacturers or commercial or retail borrowers have grown from 20 per cent to between 22 and 25 per cent depending on whether the customer is blue-chip or not. Term deposits have also risen from 12 to 18 per cent while savings rate is now 6.0 per cent.

As a result of the above, importers are expected to pay high premium on maturing letters of credit, following the drop in the value of naira at the foreign exchange. A source hinted that as a result of the confusion and looming doom, banks now withhold loan applications, after reviewing the interest rate on margin loans from 18 per cent to between 22 and 25 per cent in November, in a bid to meet up with the shortfall from the global meltdown.

Nigerian Stock Market Drops By N1.612tr

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There is no particular aspect of the economy that the effect of the global economic crisis has been felt in a pronounced manner than the Nigerian Stock Exchange (NSE). Between the end of 2008 and last weekend, for example, the value of equities listed on the NSE has nose-dived by over N1.612 trillion while the All-Share-Index caved in to a four-year low of 24,000.09 basis points, representing a decline of about 7,450.69 points or 23.69 per cent within the period under review. At the beginning of 2005, the NSE index hovers around 20,000 points in 2005, closing at 33,322.47 points while capitalisation closed at N4.244 trillion that year.

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This poster is very correct. I also know about this fact, but the only thing false about his story is that FA is behind all this. No he is not, it carry more weight than FA. BankPHB is among the banks that are in trouble financially, just last week Afribank was going to trim their workers by 700. They stopped it because of fear of what he might cause to the financial sector. They ended up forcing 27 senior staff to retire. Most of Nigerian banks are being run down and most of them are in serious trouble. I posted this last year and some people were calling me names, well here it comes. You better get the hell outta way. Did you guys hear what Erastus of Intercontinental bank said?? I feel sorry for bankers in this new year. The issues at bankPHB is more than one man doing it all. The entire Nigerian financial sectors is full of liars who will not tell the truth. Remember Soludo saying the global crisis will not affect Nigerian economy?? See what is happening now. These guys are born idiots.

nanaharry:
Hi,
You guys are doing a great work.I am a newly registered member of the house. I have been looking forward to forum like this were dis issue can be discuss and possible seek a good opinion and a way out.
The rate at which the banks are going into contract is getting alarming, 80% of the banks staff of most are on contract. can anthing be done to stop this? someone should help.

This guy is a joker. When these banks are about to start laying off their employees he's talking about contract workers. You will be lucky if you get a contract work in banks by may '09. Afribank almost started mass lay-off last week, only to stop for fear of panic and the negative ripple effect it will cause in the financial sector. And still, the forced 27 senior employees to retire. Watch out for serious salary reduction coming soon to the banks followed by some downsizing. I feel sorry for bankers, you will soon see some of them at car parks.

lovelynn:
i was invited by zenith, fidelity, unity and eco banks to serve with them. which one should i go for?

Na wa o. You must be one fine girl.