₦airaland Forum

Good for democracy

Naija an indivisible entity.

Caveat Emptor!

Find the anti dote nah.

"May be it's better to work in Okija shrine with job security than to work in Nigerian banks" Anonymous

Before you date her. Pls check her sent messages in her phone. You will be shocked and devastated. Thank me later.

The difficult regulatory environment, which is due to take toll on the financial sector this year, has forced a number of banks to commence the process of cutting jobs and put on hold branch expansion plans.

While some of the banks laid off some workers late last year, it was learnt that most of the lenders were planning to cut their employees’ numbers this month and in February.

Our correspondent gathered that some of the financial institutions were already outsourcing a number of job functions, a development that has seen some of them transfer a significant number of their employees to third-party companies.

Just last week, Skye Bank Plc announced that it had transferred its tellers, drivers, security personnel and other support staff members to three outsourcing firms.

Hundreds of the bank’s workers are said to have been affected by the development.

The decision, which came less than one week into the New Year, led to the disengagement of the affected employees from the bank and their subsequent transfer to third-party firms.

Skye Bank, however, said in a statement on Sunday that the move was part of the initiatives to strengthen all cadres of its workforce.

According to the statement, the outsourcing companies appointed to take over the employees are Optimum Continental Services, Strategic Outsourcing Limited and Integrated Corporate Services Limited.

The bank gave the assurance that the outsourcing firms would engage the affected employees under the same terms and conditions as they were employed by the financial institution.

Investigation by our correspondent showed that the decision of the banks to reduce their workforce and branches was meant to assist them to cut costs in the face of a looming decline in their profitability this year.

A top official of one of the major lenders, who prefer to speak under condition of anonymity, said, “Some banks have laid off a few workers; others are planning to do so. Some will engage more contract staff. All the measures are aimed at cutting costs because the banking business environment is increasingly becoming challenging.”

He added that Nigerian banks had the tradition of sacking some workers at the end of each year.

Unity Bank Plc had in July last year announced the disengagement of 170 of its workers as part of efforts aimed at repositioning it for effective service delivery.

The bank also stated that it had recruited over 300 new members of staff, mostly at the entry level.

Zenith Bank Plc, Union Bank of Nigeria Plc, Diamond Bank Plc, Enterprise Bank Limited and Keystone Bank Limited had in the last two years sacked hundreds of their workers.

Findings revealed that the latest threat of disengagement had to do with the need to realign for their operations for tougher 2015, especially as the monetary policy environment continues to get tighter.

Some of the regulatory measures introduced by the Central Bank of Nigeria aimed at protecting the economy, according to findings, have started affecting the banks’ profitability, with major impact to be felt this year

It was learnt that apart from job cuts, the banks were also planning to reduce the number of new branches to be opened this year.

Other major projects and sponsorship programmes for third-party companies, which may not readily add to the bottom line, are also due to be axed by bank executives.

Global rating agency, Fitch Ratings, and other international and local research firms had late last year predicted that Nigerian banks would witness a fall in profitability this year.

On November 25, 2014, the CBN’s Monetary Policy Committee devalued the naira by eight per cent; raised Monetary Policy Rate from 12 to 13 per cent; and also increased the private sector Cash Reserve Requirement from 15 to 20 per cent.

The development, which led to the immediate withdrawal of about N500bn from the banking system, was said to have affected the banks adversely.

Also, in a bid to halt the sliding naira, the CBN had in December stopped the banks from keeping any of their funds in foreign currencies. It also said dollars bought from it must be utilised within 48 hours, adding that the actions were aimed at stopping the banks from speculating on the exchange rate.

Experts said the recent regulatory measures would have major negative effects on the banks this year, adding that they were already feeling the effects of previous actions by the CBN, especially the increase in public sector CRR, the Asset Management Corporation of Nigeria’s levy increase, and the gradual removal of certain bank charges.

The Managing Director, HighCap Investment and Securities, Mr. David Adonri, said although banks had been affected by previous regulatory measures, the recent actions of the CBN would further affect their operations beginning from the first quarter of this year.

“A number of banks will declare good year-end results for the last financial year. But starting from the first quarter of this year, their profits may begin to decline owing to some of these regulatory headwinds,” Adonri said.

Fitch, in a report released on October 8, 2014, said actions aimed at protecting the economy and the banking system by the CBN would make the profits of the Deposit Money Banks for this year to drop.

While recalling that some of the previous regulatory headwinds had led to weaker profitability and “stemmed credit growth” in the first half of 2014, the rating agency said Nigerian banks’ assets growth and earnings would experience further fall over the next 18 months.

Fitch, however, observed that the nation’s banks were performing well despite the twin hurdles of tight monetary policy actions and new rules.

The CBN had in July 2013 increased the CRR on public sector deposits to 75 per cent from 12 per cent in order to curb inflation.

It also reduced how much the banks could charge accountholders whenever they withdrew money as part of its plans to phase out the Commission on Turnover charges.

AMCON had similarly raised its annual levy on the banks to 0.5 per cent from 0.3 per cent of their assets.

According to Fitch, the AMCON levy and network expansion strategies have made the banks to experience earnings pressure and high operating costs.

The Fitch report added that “the banks are now seeing some asset quality deterioration with rising absolute non-performing loans, reflecting fast loan growth since 2011.

“Most banks’ NPL ratios remain below the five per cent prescribed by the CBN, but Fitch views this as unsustainable in the long-run. Very high loan concentrations by borrowers and sectors expose banks, particularly the smaller banks, to significant event risk. http://www.punchng.com/business/money/banks-plan-massive-job-cuts-slow-branch-expansion/

Heard that amnesty program will end soon. Just thinking...

It's well

achemedez:
A

A is for Apple

Make sense at least no hold up or police checking point

Collynzo9:
3 hours from PH to Enugu for just N650

I will comment after Chelsea match. Nevertheless wishing u all a glorious new yr.

It's well.

Before d war tenant. Old SOIDIER

My people be very careful these days...this happened to me yesterday night when i returned home....my face oooooooo i can't believe what just happened to me, Wonders shall never end. I was standing in front of the entrance of my house to open d Door so I can go in. Then one woman came and told me that she knows me, that she has met me before. So I was like I can't really recall where and when I met you, anyway, pls remind me. Then the woman said that she had met me in a conference in Kwara State, in February to be precise. Oops! Madam, I have never been to Kwara State...dat was my reply. Before I could complete the statement, I heard "TAWAI -TAWAI", A very hot slap on my face, if the temperature of that slap was to be measured, it will be around 200¤c. I felt so confused, at first I thought the slap was from a man, I looked behind her to see if there was another person behind her, but there was none. I tried to ask her what I have done, I was trying to apologize, sorry Ma for not recalling your name. 'Tawaii!' the hot slap came the second time ! I couldn't bear it any longer. I regretted not releasing my dogs in the morning. I held the woman's hair and started pulling her as am pulling your legs now. Chaiiiii! U too like gist oooooooo. See as u dey serious dey read am! I just wanted to give a very big shout out to my friends...Merry Christmas in advance and I pray We all will see 2015

Noted. I will inform my tenants when they come back from work. We will get there!

Dis is 2 formally announce 2 all my luvly friends, fans, and family dat I av started accepting chrismas gift, it can be in cash, cheques, chickens, goats, cows, rams, foodstuff, and beverages den vouchers card,laptops, tablets, iphones, andriod phones,blackberry phones,etc, pls send urs early to avoid the rush hour, last minute gift wil not be accepted thanks

Dis is 2 formally announce 2 all my luvly friends, fans, and family dat I av started accepting chrismas gift, it can be in cash, cheques, chickens, goats, cows, rams, foodstuff, and beverages den vouchers card,laptops, tablets, iphones, andriod phones,blackberry phones,etc, pls send urs early to avoid the rush hour, last minute gift wil not be accepted thanks

Cybermugu1:
Happy sunday Nairalanders…

Dial *559*10# to check ur MTN 6k bonus.

How am i going to use it.

#Bringbackourboisteroushug

Picture of Gej holding your nomination form or idonbilivit

Wonderful Xmas gift.

Best quote of the year.

Victory for democracy.

Quite unfortunate.

Watching.....

Dr. Okezie Ikpeazu has won the ruling Peoples Democratic Party governorship primaries in Abia State.

He polled 487 votes to clinch the PDP ticket while his closest rival, Dr. Uche Ogah came second with 103 votes ahead of the immediate past Minister for Labour and Productivity, Chief Emeka Wogu who came third with 33 votes.

Two time Deputy Governor Acho Nwakanma, and Friday Nwosu both secured 5 votes each, while Marc Wabara, and Okey Emuchay got three votes respectively.

Former Commissioner for Housing, Iheanacho Okezie – Orji came last with a single vote, while nine of the total vote cast were voided.

Declaring Ikpeazu winner of the primaries, the Returning Officer and Chairman of the electoral panel, Dr. Mrs. Angela Mba, said the exercise was the most peaceful she had ever seen in recent times.

She commended the delegates as well as the aspirants for their peaceful conduct during the exercise which ended by 5:30 pm.

Our Correspondent observed that some of the unsuccessful aspirants shook hands with the winner of the context immediately after the result was announced before leaving the venue.

Efforts by journalists to get their reactions were however unsuccessful as they hurriedly left the venue, but Ikpeazu in his speech thanked the delegates for considering him fit to fly the PDP ticket .

He promised not to betray the confidence reposed in him and to carry everyone on board, while soliciting the support of all. http://www.punchng.com/news/ikpeazu-wins-abia-pdp-gov-primaries/

Nice move.

Typeless ...:..

Russian a trusted ally.

Ok. Nairaland - Occupy till I come.

Superstar007:
OMG

Still on this club matter
Mehn Yesterday was Maadddddd!!! I had only N3,000
Naira in my pocket and I was very hungry. But I
wanted to eat good food, so I went to one High
Class Hotel at Ogba and made an order of the
most expensive meal and wine they had available.
After the meals, the drinks and champagne, my
bill was N57,500 but I told the waiter that I had
only 3k and she called the manager.Anyway to
cut the long story short, after being angry and
disappointed in me, the manager handed me over
to the Nigerian Police. On my way to the station, I
gave the Police officers N2000 and I was set
free.Loool, this is what I call "Financial
Management" and I will do this sh*t again
tommorrow, I'm going to Eko Hotels today
evening. So who wants to join me for dinner

Good luck.