THE NATION THURSDAY, JANUARY 23, 2014
63
MONEYLINK
CRR hike depletes banks’ balance sheets by N750b
B
ANKS’ balance sheets will drop by N750 billion effective February. This followed Tuesday’s decision by the Monetary Policy Committee (MPC) to raise the Cash Reserve Ratio (CRR) on public sector deposits from 50 to 75 per cent, Managing Director, Financial Derivatives Company Limited, Bismarck Rewane has said. CRR is a portion of bank’s deposits kept with the Central Bank of Nigeria (CBN). The MPC left all other parameters, including the Monetary Policy Rate un-changed at 12 per cent, with an asymmetrical corridor of plus or minus 200 basis points. The CRR on pri-
F
• Policy takes effect Feb. 4
Stories by Collins Nweze
vate sector deposit was retained at 12 per cent and the liquidity ratio was unchanged at 30 per cent. Rewane said the global economic recovery and likely impact of tapering in the United States on investment flows, shows some limited amount of vulnerability on the external sector of the economy. He said impact of this decision on money markets would be a shock effect in the short run and a re-turn to equilibrium rates within six weeks. “The first time the MPC increased the
Power sector needs $6b, says Stanbic CEO
IXING the power sector will cost investors $6 billion, about N957 billion, Managing Director, Stanbic IBTC Bank, Yinka Sanni has said. Speaking yesterday at a briefing ahead of the 2014 Standard Bank West Africa Investors’ Conference holding in Lagos from February 3 to 6, he said there are lots of opportunities in the power sector that investors will be discussing with distribution and generation companies during the conference. He said: “We expect both the distribution and generation companies to rob minds on what next for the power sector.” According to the bank chief, the understanding of the economy is very important for investors, adding that the 2015 election fears will not deter investors from coming to Nigeria. Group Chief Executive Officer, Stanbic IBTC Bank Holdings, Mrs. Sola David-Borha, said the conference,
which is the fifth, has become flagship investors’conference in Africa. She said the theme of this year’s conference is: ‘Nigeria, time to deliver’, adding it will focus mainly on the power sector. She said the sector reforms have reached critical milestone and key stakeholders need to support the reform process. David-Borha said: “The power sector is capital intensive. Our effort at Standard Bank Group will facilitate investment in the sector. We believe the conference will be attended by between 150 and 200 participants.” According to her, the bank does things that are enabling and creates right economic environment for investment to thrive. She said the conference will be attended by Central Bank of Nigeria Governor, Sanusi Lamido Sanusi; Minister of Trade and Investment, Olusegun Aganga; and Lagos State Governor, Babatunde Fashola, among others.
this decision remains the protection of the value of the naira in the foreign exchange markets. “The CBN Governor expressed some concerns about the declining trend in foreign portfolio flows. This in addition to the leakages and falling fiscal buffers made the CBN take a more aggressive position to defend the naira,” he said. According to Rewane, the divergence between the official and parallel markets had widened to N20 or 12 per cent of the official exchange rate, adding that the economy is more exchange rate than interest rate sensitive. This, he said, means that a depreciating currency will have a direct impact on inflation and could be counterproductive. Razia Khan, said in view of increased market liquidity following the Asset Management Corporation of Nigeria (AMCON) bond maturity
CRR on public sector deposits in August, last year, an estimate of N1 trillion or 6.84 per cent of money supply was debited. At that time, the impact was a spike in interbank rates of approximately 800bps to an average of 21 per cent. Also, it coincided with the failure of two discount houses which exacerbated the situation,” he added. He said about N750 billion that would be debited on February 4 is equivalent to 5.09 per cent of money supply. “Therefore, we expect an initial spike of approximately 400bps before settling to a 1.5 per cent increase in the effective cost of funds for the banking system. Banking net interest margins and profitability will be affected whilst their liquidity will remain unimpaired,” he said. He said the key variable that drove
Sterling Bank boosts CSR
S
are passionate about supporting genuine charitable causes, are provided the necessary platform and channels to contribute with the sole objective of putting smiles on the faces of millions of children through different charities across Nigeria,” he said. Responding on behalf of the benefiting charity homes, Mrs. Sola Fatola, the Chief Executive of 234 Give Limited, commended the bank for coming-up with the initiative that will bring smiles on the faces of less privileged children in the society. She further stated that ‘with this gesture, Sterling Bank has revalidated its position as a responsible corporate citizen of the country with a heart of gold to enrich the lives of these children who live with one challenge or the other.
TERLING Bank Plc has presented cheques to beneficiaries from the bank’s ‘Raise a Child’ initiative. Speaking at the presentation of the cheques to the beneficiaries, the bank’s Executive Director, Mr Lanre Adesanya said the lender came up with the initiative to put smiles on the faces of the Nigerian child and give him or her hope for a better tomorrow as a responsible corporate citizen. “Specifically, the project was designed to support the society, particularly the children; especially the less privileged children in the society in continuation of the Bank’s Corporate Social Responsibility (CSR) philosophy. It is a fundraising drive structured in a way that the bank, the staff and members of the general public, who
Amount N
Rate %
M/Date
3-Year 5-Year 5-Year
35m 35m 35m
11.039 12.23 13.19
19-05-2014 18-05-2016 19-05-2016
NIDF NESF
OBB Rate Call Rate
Amount Amount Offered ($) Demanded ($) 350m 150m 350m 138m 350m 113m
Price Loss 2754.67 447.80
PRIMARY MARKET AUCTION (T-BILLS) Tenor 91-Day 182-Day 1-Year
Amount 30m 46.7m 50m
Rate % 10.96 9.62 12.34
Date 28-04-2012 “ 14-04-2012
GAINERS AS AT 22-1-14
SYMBOL IHS COSTAIN TRANSEXPR FO COURTVILLE JBERGER REDSTAREX CILEASING PRESCO BETAGLAS
O/PRICE 3.30 1.26 1.47 82.43 0.75 65.10 4.65 0.55 41.06 16.83
C/PRICE 3.63 1.38 1.61 90.24 0.81 70.00 5.00 0.59 43.11 17.67
EXHANGE RATE 6-03-12 Currency
INTERBANK RATES 7.9-10% 10-11%
CHANGE 0.33 0.12 0.14 7.81 0.06 4.90 0.35 0.04 2.05 0.84
NGN USD NGN GBP NGN EUR NIGERIA INTER BANK (S/N) (S/N) Bureau de Change (S/N) Parallel Market
Year Start Offer
Current Before
C u r r e n t CUV Start After %
147.6000 239.4810 212.4997
149.7100 244.0123 207.9023
150.7100 245.6422 209.2910
-2.11 -2.57 -1.51
149.7450
154.0000
154.3000
-3.04
152.0000
153.0000
155.5000
-2.30
153.0000
154.0000
156.0000
-1.96
DISCOUNT WINDOWx Feb. ’11
July ’11
July ’12
MPR
6.50%
6.50%
12%
Standing Lending Rate ,, Deposit Rate ,, Liquidity Ratio Cash Return Rate Inflation Rate
8.50% 4.50% 25.00% 1.00% 12.10%
8.50% 4.50% 25.00% 2.00% 12.10%
9.50% 5.50% 30.00% 2.00% 11.8%
O/PRICE 9.90 2.48 25.11 12.11 17.36 2.44 2.58 4.10 4.11 9.75
C/PRICE 9.50 2.40 24.35 11.90 16.84 2.37 2.51 3.99 4.00 9.50
CHANGE -0.40 -0.08 -0.76 -0.37 -0.52 -0.07 -0.07 -0.11 -0.11 -0.25
NIBOR Tenor 7 Days 30 Days 60 Days 150 Days
Rate (Previous) 4 Mar, 2012 9.0417 9.6667 11.2917 12.1250
Rate (Currency) 6, Mar, 2012 10.17% 11.46% 11.96% 12.54%
Movement
Amount Sold ($) 150m 138m 113m
Exchange Rate (N) 155.2 155.8 155.7
Date 2-7-12 27-6-12 22-6-12
CAPITAL MARKET INDEX
NSE CAP Index
27-10-11 N6.5236tr 20,607.37
28-10-11 N6.617tr 20,903.16
% Change -1.44% -1.44%
MEMORANDUM QUOTATIONS Name
LOSERS AS AT 22-1-14
SYMBOL ACCESS MANSARD ZENITHBANK DANGSUGAR ETI STERLNBANK FIDELITYBK TRANSCORP FCMB DANGFLOUR
THE Minister for Trade and Investment, Olusegun Aganga, has called for new strategies to support the Small and Medium Enterprises (SME) sector as the government looks to positively impact the economic value chain. According to a statement from the bank, the minister spoke while receiving top executives of Diamond Bank Plc. The bank’s Group Managing Director/Chief Executive Officer, Dr. Alex Otti while presenting the bank’s blueprint on Improving Access to Finance to Micro, Small and Medium Enterprises (MSME), recommended that a fund should be set up to take care of identified equity finance gaps. He called for a risk-sharing guarantee to support the unsecured lending portfolio of banks that have established methodologies for assessing, disbursing, monitoring and collecting such loans.
WHOLESALE DUTCH AUCTION SYSTEM
MANAGED FUNDS Initial Current Quotation Price Market N8250.00 5495.33 N1000.00 N552.20
Aganga praises Diamond Bank
DATA BANK
FGN BONDS Tenor
•CBN Governor Sanusi Lamido
in December, as well as an increased spread between the interbank foreign exchange rate and bureau de change rates, the move is not surprising.
Offer Price
Bid Price
AFRINVEST W.A. EQUITY FUND 167.44 ARM AGGRESSIVE GROWTH 9.17 BGL NUBIAN FUND 1.09 BGL SAPPHIRE FUND 1.17 CANARY GROWTH FUND 0.71 CONTINENTAL UNIT TRUST 1.39 CORAL INCOME FUND 1,611.15 FBN FIXED INCOME FUND 1,000.00 FBN HERITAGE FUND 115.83 FBN MONEY MARKET FUND 100.00 FIDELITY NIGFUND 1.67 INTERCONTINENTAL INTEGRITY FUND 1.05 KAKAWA GUARANTEED INCOME FUND 143.11 LEGACY FUND 0.78 NIGERIA INTER DEBIT FUND 1,892.63
165.99 9.08 1.07 1.16 0.72 1.33 1,607.37 1,000.00 115.13 100.00 1.62 1.03 142.62 0.76 1,894.44
• ARM AGGRESSIVE • KAKAWA GUARANTEED • STANBIC IBTC GUARANTE • AFRINVEST W.A. EQUITY FUNDARM AGGRESSIVE • OPEN BUY BACK
Bank P/Court
Previous 04 July, 2012
Current 07, Aug, 2012
8.5000 8.0833
8.5000 8.0833
Movement