STANBIC IBTC HOLDINGS PLC

STANBIC commenced merchant banking in 1989 as Investment Banking and Trust Company Limited and became a universal bank in 2002.  It was converted to a public company in 2005 and its shares were listed on the Nigerian Stock Exchange (NSE) in the same year. Thereafter, IBTC Chartered Bank Plc emerged from the amalgamation of Investment Banking and Trust Company Limited, Chartered Bank Plc and Regent Bank Plc.Its merger with Stanbic Bank Nigeria Limited gave rise to Stanbic IBTC Bank Plc.

STANBIC is a full-fledged financial services group that provides services such as banking, pension management, asset management, stockbroking, insurance brokerage, and trusteeship. The business is divided into three segments which are personal and business banking, corporate and investment banking and wealth.Foreign shareholding in the company is 54.5%.Standard Bank Group through Stanbic Africa Holdings Limited holds 53.2% of its shareholding while First Century International Limited controls 7.5% equity stake of the company.

Stanbic IBTC Bank Plc and Stanbic IBTC Pension Managers Limited are the main drivers of the group. The management's effort to aggressively penetrate the retail end of the market through its personal and business segment is laudable. This segment serves individuals and SMEs and is a lucrative part of the market; it is responsible for a sizable portion of net interest income. It produces, on the average, half of the net interest income, which is the bank's core income.  However, penetrating this segment of the market has been at a high cost. In other words, STANBIC has been finding it difficult to make profit in this part of the market. In addition, it has led to the creation of more risk assets and reduced quality of the company's loan portfolio.

Loan portfolio has been grown cautiously. This may not be unconnected with the sluggish economy. Though deposit expansion has not been rapid, STANBIC has been attracting cheaper deposits. Customer deposits have been improving by 10.5% in the past three years. This means that for STANBIC to take advantage of the opportunities in the market it may have to borrow and the debt obligations, coupled with untoward exchange rate movement, would weaken its net earnings.

The group benefits from the goodwill of its non-banking subsidiaries such as Stanbic IBTC Pension Managers Limited to propel its profits. Profit After Tax (PAT) has grown by 19.6% in the past seven years. A share of STANBIC is expected to produce a return of  13.2%   in three year's time.

STANBIC is not illiquid and its long-term solvency is not questionable.

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THE WORST AND THE BEST ADVICE

Written by the authors of the best seller Rich Dad Poor Dad, Rich Dad’s Cashflow Quadrant remains captivating because its precepts are a radical departure from the conventional methods of teaching money and investing. The book maintains that the educational system is fraught with a lot of flaws that make it incapacitated to prepare young people for the future.  

People are categorised into four groups (quadrants) depending on their sources of income. Each quadrant requires different mindset, attitude and skills. According to the author, the left side harps on security which in actuality is risky and may lead to financial insecurity in the future. On the contrary, the right side is for people who understand the game of money and want to be on the fast track to financial freedom.

Anyone who wants to be successful needs to absorb the following vital lessons:

The Worst and the Best Advice

“Go to school, get good grades, and get a good safe job” is the worst advice in the world. The statement has lost its flavour in this information age because times are changing. “To break even”, you have to work harder, assume more responsibility and spend less time with your family. Ironically, this makes you go deeper in debt, pay more taxes and reluctant to quit. Obviously, this is the path to financial ruin.

“Go to school, get good grades and start your own company” is the bedrock of financial intelligence which is not judged by how much money one makes but how much is kept, how hard it works and for how many generations it is kept. This advice leads to the right side where knowledge is a key success factor.

Building a Business System   

Building a lasting business system is a herculean task that may not be fruitful until several attempts. It requires sheer determination to nurture an idea to fruition. Do not quit because “failing is part of the process of success”. Being a successful business owner requires leadership qualities and understanding of the mechanics of a system.

Ways of becoming a business owner include:

• Developing your own system;
• Buying an existing system (franchise);
• Buying into and becoming part of an existing system (network marketing).

Financial Literacy

Investing without the requisite financial education is absolute folly. Good secular education does not tantamount to financial literacy. So, spending quality time to read financial magazines, financial statements, and attend seminars is a sine qua non to successful investing. You must learn to take control of your financial future because your financial advisers will only advise you based on level of financial understanding. Consequently, low financial education will mar financial future through loss of valuable opportunities.

Market upswing and downswing create abundant wealth for the erudite investor,

Call for Attitudinal/ Mental Change

Do not be ruined by “fear of losing money” for it makes you lose money most times. If you must be rich, you have to do things not as others do. Refrain from being overwhelmed by emotions.

However, a wise investor is not a dogmatic follower who does not know when to quit.

Take Baby Steps

It is not enough to write down your plans; you have to take a “bold step of faith”. No matter how grave your financial problems are, avoid “taking a great leap forward” for it may touch off financial calamity. Taking a baby step helps you learn from your mistakes.

Fast Track to Financial Prosperity  

• Mind your own business and devise a long-term goal, broken into short-term goals;
• Take control of your cashflow by reducing your debts and building your assets;
• Know the difference between risk and risky ( investing is not risky; lack of financial training is);
• Decide on what kind of investor you want to be ( whether you take advice from professionals or try to solve financial problems);
• Seek mentors – those who have experienced similar things not mere advisers;
• Make disappointment your strength;
• Believe you can succeed.

Staying Rich  

The ways to make money that can be bequeathed to many generations are:

• Maintaining long-term vision and plan;
• Delaying gratification;
• Using the power of compounding to your advantage.

In conclusion, anyone who imbibes the instructions contained in this book will be placed on the path of quick financial transformation.

CREATIVITY FOR LEADERS

The modern business environment is highly competitive, challenging and dynamic; hence many businesses have been forced to look for ways of enhancing their workers’ efficiency as a panacea for bankruptcy. It is, however, frustrating to observe that most of the conventional measures gleaned from expensive training and development programmes (locally and abroad) have failed to yield the desired results. A careful thought would reveal that the solution lies inside of us- in our minds.

Managers, in the corporate interest, must exercise discretion in making decisions and solving critical problems. It is sad that many workers are not innovative, despite being highly motivated. The creative thinker is much more successful, with less effort and stress. But many still frown on the thinking process because of inconsequential excuses. According to Bertrand Russell, “Some people would rather die than think, and some do.”

Dr. Fellers in his book, Creativity for Leaders, exposes the readers to the creative concepts that yield breakthroughs in all facets of life. The book helps to unleash your latent potential by showing you how to overcome the destroyers of creativity and innovations in the workplace, in business, and at home.

The vital lessons are encapsulated below.

Be Positive

“Believe you can become more creative, and you will.” Having a positive disposition is the first step to being a creative thinker. Negative thoughts or perceptions deaden your creative might and reduce your chances of making life-transforming decisions and choices. If you want to make a remarkable progress in life, eschew all forms of pessimism.

The Mind

The human mind comprises two parts: the subconscious mind and the conscious mind. The subconscious mind, which is the source of most creativity, organises all that have been heard, seen, thought, tasted and touched into creative ideas. The susceptible subconscious can easily be tricked by unwholesome suggestions and is often reflected in our bodily functions. If you believe you are sick, you eventually become sick.

The analytical, conscious mind rarely sees associations of seemingly unrelated concepts and can deal with fewer data than the subconscious.

Scientists refer to the creative part of the psyche as the “right brain” and the analytical, judgmental portion as “left brain.”

The subconscious mind generates a lot of alternatives while the conscious mind is used to select the best option.

Enriching the subconscious

Boredom, stress, anxiety, anger and conflict dampen the enigmatic subconscious. But maintaining a calm mind or present-mindedness- a mind free of guilt from the past and anxiety for the future- ignites and rejuvenates your creative mind.

However, you must fill the knowledge gaps to improve your subconscious because throwing your net into an empty pond yields nothing. You can enhance your subconscious by:

1. Reading Widely

Varied experiences enrich the subconscious, but none of us can live long enough to personally experience all he wants or needs to know. Therefore, reading different types of books enables you to learn from the experiences of other people. Suffice it to say that your best creativity usually comes in your own area of expertise. So, routinely read material technical trade journals and note ideas as they flow.

2. Practising Intense Observation

Using all your senses at least for 5 minutes several times a day, observe the things around you (including yourself) without making analyses or judgments. This exercise helps you to regain your present- mindedness, increase your mental energy and creativity.

3. Avoiding Articulate Incompetents

Articulate incompetents are people who know all and do everything to please the boss by presenting a false image. These low-level minds sometimes have excellent verbal skills but lack intuitive or creative power. Regular negative suggestions by these people can trick your gullible subconscious and kill your creativity.

4. Doing different stuff

Novelty forces your subconscious to work to double time. It triggers the release of natural chemicals that cause creativity by rejuvenating the brain and leading to synergy (2+2=5). You can:

• dine with old friends in new places.
• experiment with new mode of travel- a bus or train to a routine place.
• walk a route you have driven for years. Note what you have been missing.
• take a brisk twenty-minute walk everyday to clear your mind. Do this within a half hour after dinner and burn twice the calories.
• take 8 to 10 five-minute brain-balancing breaks a day. Stand if you usually sit, enjoy colourful flowers if you study data summaries all day, move around.
• start a new hobby.
• meet new friends from different professions.

Incubation

Ideas develop from the subconsciousʹ ability to correlate, combine, associate, ignore and categorise phenomena. Sequel to the introduction of a problem to your subconscious, surrender and wait for the answers to come.

Or when stuck up in the process of finding a solution, abandon it for a later date and do something else. Ensure that you have long-term goals; your subconscious mind will surely guide you to relevant experiences to accomplish your calling.

Laughter

Laughter releases endorphins that reduce stress and energize the brain. Even when faced with unavoidable stress, learn to trick the brain’s biochemical processes with humour, rigorous exercise, singing, taking calcium and B-Complex.

UNITED BANK FOR AFRICA PLC

In 1949 the British and French Bank Limited, a subsidiary of Banque Nationale de Crédit (Paris), began operation in Nigeria. It was against the backdrop of Nigeria's independence from Britain that British and French Bank Limited metamorphosed into UBA in 1961. UBA became a company quoted on the Nigerian Stock Exchange in 1970. 

United Bank for Africa Plc merged with Standard Trust Bank Plc in the wake of the recapitalisation exercise in the banking sector in 2005.Thereafter,UBA acquired Continental Trust Bank Limited.

It has established its presence in 22 countries including 19 African countries. Technological improvement has resulted in streamlined and efficient operations.

UBA has a large distribution network in Nigeria from where it derives roughly 76% of its revenue and 78% of its Profit After Tax (PAT). Total deposits have grown at a 3-year compound annual rate of 5% compared to 15% of two years ago. However, loans are expanding faster than deposits which has pushed total debts to over NGN300 billion. A greater proportion of these debts are repayable in a year which is likely going to put downward pressure on net earnings. 

Though the retail end of the market is very lucrative, competitive pressure is eating deep into its profitability as banks contend for business in this segment.

Full Report

The Truth Shall Make You Rich

The author, Farrah Gray, refutes the fallacies that serve as the biggest obstacles to success or wealth. Contrary to popular opinion, money is not the only yardstick for measuring success. Money is subject to the Law of Diminishing Returns; it buys happiness only when it moves one out of poverty, but more money does not bring more happiness. According to him, a successful person has financial, emotional and spiritual security.

Farrah offers practicable recommendations on maximising one's potential. Being rich is being happy, knowing who you are and using your talents to the best of your abilities. Regrettably, we continue to hold on to false beliefs out of fears-fear of change, fear of taking risks and fear of failure. And all we do is fantasize about prosperity. Most of us live our fears not our possibilities-to put it succinctly. Developing our skills is an essential condition for success. Failure to make a distinction between skill and desire is a recipe for failure. Skill is what you are capable of doing while desire is a general interest or fascination.We are advised to get out of our comfort zone and show up for success.

In a world plagued by “get-rich-quickly” malady, this book is an indispensable guide for anyone who wishes to realise his dreams.



1.  The Born-Lucky Lie

Lie: I have to be born with connections or special talent to be rich.

Truth: Luck is showing up. You can't win if you don't play.

The born-lucky lie is one of the myths that permeate the society and impede the realisation of people's potentialities. We often attribute success to luck which, in our opinion, is getting something for nothing. But successful people are developed-not born.  These are people who continually learn and acquire skills in readiness for success. Farrah posited that luck is, actually, doing something. You are lucky when you build a fortune from inner integrity and fervent work. You cannot afford to leave your destiny to luck. If you choose to use your talent, you can do great things regardless of where or under what circumstances you were born.

The only road to success is working on enhancing your self-esteem.This helps you discover your real purpose in life. Money and material goods only mask your low-esteem. The solid foundation to prosperity is from the inside-out.

2.  The Work-Hard Lie

Lie: I have to work hard and be willing to make sacrifices to be rich.

Truth: Work less, make more. Find your area of excellence.

Work alone is not, necessarily, a guarantee of success, but a combination of skills, passion, drive and ambition does make a valuable guarantee.  According to the author, “If you are not working in your area of excellence, then you are working aimlessly”. You can only get to your real destination by working to make your talent flourish.You have to make an endeavour to do what comes natural to you and get the training for it.

Age is not a barrier to living your dream; you are advised to reinvent yourself in order to give people who spread the age lie an endless run for their money.

3.  The Celebrity Lie

Lie: I have to hit it big in the entertainment or sports world to be rich.

Truth: A celebrity is someone who is celebrated- someone who shows up to do something well.

Farrah maintained that celebrities are ordinary people who become extraordinary by virtue of their willingness to pursue their talents and show up. You will be noticed if you  devote  time and effort to what you are supposed to be doing.So concentrate on your own talents rather than getting  caught up in wanting to be a celebrity.

4.  The Money Lie

Lie: I have to have money to make money and be rich.

Truth: The path to millions starts with one dollar.

Many people, erroneously, believe that it takes a huge amount of money to succeed. But smart people know that the best things in life are free-requiring nothing more than investment of time and love. People will pay for your talents.

Successful people have some traits and habits that are worth emulating. You should live below your means and save about 10% to 15% of your salary.  Do not accumulate debt to support your lifestyle but to build assets.

5.   The Debt Lie

Lie: I have to have zero debt to be rich.

Truth: You must have debt to get rich. You must use debt to get rich.

Debt is a necessary step toward fortune. You can get on your way to wealth if used wisely. Debts that are largely spent have little to no value and cannot be used to invest in the future; Farrah calls them  “lie-abilities.”

Besides, your financial obligation should not deter you from going for what you are passionate about. Great businesses are not built on cash but on credit. You can turn your crafts into a corporation without reinventing the wheel. Investing in a chance requires great daring; playing it safe always will not provide safety in the long run. Conquer your fears- fear of failure, fear of making mistakes, fear of rejection and fear of debts. They do not exist; they are lies created by the society.

6.  The Google and Gates Lie

Lie: I have to be super-smart and invent something the world relies on to be rich.

Truth: Intelligence, wit, and inventiveness will only get you so far. Big things are born from satisfying small niches.

Success is no longer measured by being #1 or #2 in a field-it's finding a niche and creating something new or improving an existing product or service. Degrees alone do not make the money- you make the money based on your brilliant ideas and how well you can execute them. Dreams alone do not make the money; but the execution of dreams is a prerequisite for wealth. Surely, we all have the potential to be entrepreneurs; it is encoded in our cells as humans struggling to survive on earth.

7.   The Wall Street Lie

Lie: I have to know a lot about the stock market or work on the Street to be rich.

Truth: Returns on investments don’t come directly from Wall Street. They arise from within you based on what you know and love.

Indeed, most of the financial world revolves around Wall Street and the transactions that take place on the exchanges. Apart from stocks and real estate, you can make money collecting vintage like bottles, buying toys and dolls, or buying stock of a company that sells these products. Alternatively, you can set up your own company.

However, you can benefit from the same logic that a Wall Street investor would apply to buying stocks: doing research first.When you invest in what you are familiar with, you stand to gain a healthy return over time as your investment grows in value.