Key Finance Updates
Allianz: World’s pension faces demographic and financial headwinds
Anew and maiden report on pension systems around the world by Allianz identifies the need to avert major crisis with social security in retirement. According to Global Pension Report 2020, over the next decades, the number of people in retirement age will increase markedly and put social security systems under severe stress.
The report says only a handful of countries have already made their pension system demography-proof, with Sweden, Belgium and Denmark leading the pack. In most other countries, pension systems will struggle, beset with high public deficits and an uneven balance between sustainability and adequacy, says the report.
No African country ranks among the top-10 of the index, as pension systems in most of these countries are still in the build-up phase. Nigeria ranks 64th in the global rankings, which according to the statement by Allianz, reflects the need for further pension reforms in the country. However, the report identifies Nigeria as having by far the most comfortable starting position especially due to the fact that it has one of the youngest populations worldwide.
“Demographics and pensions have been eclipsed by other policies in recent years, first and foremost climate change and today the fight against Covid-19”, said Ludovic Subran, Chief Economist of Allianz. “But you ignore demographics at your own peril, demographic change will soon be back with a vengeance. Defusing the looming pension crisis and preserving generational justness and equality are key for building inclusive and resilient societies.”
Standard Chartered appoints new Head of Corporate Finance for Africa and the Middle East
Standard Chartered has announced the appointment of Abbas Husain as its new Regional Head of Corporate Finance, Africa and the Middle East (AME).
According to a statement by the bank, Husain brings to the position 24 years of banking experience, 17 years of which have been with Standard Chartered, leading one of the largest and most successful Project & Export Finance teams in the region, with a track record in structuring and executing project finance transactions in the power, water, oil and gas, metals and infrastructure sectors.
Along with his new responsibilities, Husain will also expand his role as Head of Project & Export Finance for Middle East, North Africa and Pakistan (MENAP) to cover Europe, Africa, Middle East and Pakistan. He will continue to be based in Dubai.
In his previous role, Abbas advised, structured and executed over 50 deals in MENAP, raising more than US$100 billion of debt, including advising/structuring more than 60 gigawatts of new power generation and water projects that produce over 1,700 million imperial gallons per day in the region across 11 countries. Abbas was awarded the Dealmaker of the Year by EMEA Finance for Europe, Middle East & Africa in 2017.
Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges as well as the Bombay and National Stock Exchanges in India.
Zenith Bank wins Best Bank in Nigeria award by Global Finance
Zenith Bank Plc, one of Nigeria’s largest banks, has been declared the Best Bank in Nigeria by Global Finance Magazine, a New York-headquartered finance publication. The award, which was published in the May 2020 edition of the magazine, is part of the Global
Finance’s 27th annual awards for the World’s Best Banks designed to honour top-performing financial institutions in more than 150 countries and seven global regions, as well as eight regions in the United States.
According to a statement by Zenith Bank, the awards are based on the performances of the banks in their respective regions and countries over the period from January 1 to December 31, 2019. Zenith Bank said the World’s Best Banks Awards are well-recognised among global banking and finance professionals, as well as corporate professionals. They are also much coveted in the banking industry.
Group Managing Director/Chief Executive of Zenith Bank, Ebenezer Onyeagwu, said, “this award is a clear demonstration of the bank’s market leadership, occasioned by our superior product offerings, best-in-class service and top-of-the-range technology which create value for our teeming customers.”
In February, Zenith Bank Plc declared 8 per cent rise in profit after tax (PAT) from N193.4 billion in 2018 to N208.8 billion in 2019, becoming the first Nigerian bank to cross the N200 billion mark in profit after tax. The bank also increased its earnings by 5.1 per cent from N630.3 billion reported in 2018 to N662.3 billion in 2019. In the recently-released Q1 2020 unaudited financial results, the bank also recorded an improved result over the corresponding period in 2019, with gross earnings rising by 6 per cent to N166.8 billion and PAT growing by 3 per cent to N58.8 billion.
New UNCTAD study finds commodity exports to China could fall by $33.1bn
Anew study by the United Nations Conference on Trade and Development (UNCTAD) has shown that total commodity exports to China could fall dramatically by $15.5 billion to $33.1 billion in 2020, as a result of the coronavirus crisis.
China absorbs about one-fifth of the world’s commodity exports. For commodity-dependent developing countries, some of the most vulnerable on the planet, the drop is projected to be between $2.9 billion and $7.9 billion, which would constitute a 9 per cent loss in terms of annual growth rate.