2015 Annual Report Citibank Nigeria Limited
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2015 Annual Report Citibank Nigeria Limited 1 Citi’s Value Proposition: A Mission of Enabling Growth and Progress What You Can Expect from Us and What We Expect from Ourselves Citi’s mission is to serve as a trusted partner to its clients by responsibly providing financial services that enable growth and economic progress. Our core activities are safeguarding assets, lending money, making payments and accessing the capital markets on behalf of our clients. We have 200 years of experience in helping our clients meet the world’s toughest challenges and embrace its greatest opportunities. We are Citi, the global bank — an institution connecting millions of people across hundreds of countries and cities. We protect people’s savings and help them make the purchases — from everyday transactions to buying a home — that improve the quality of their lives. We advise people on how to invest for future needs, such as their children’s education and their own retirement, and help them buy securities, such as stocks and bonds. We work with companies to optimise their daily operations, whether they need working capital to make payroll or export their goods overseas. By lending to companies large and small, we help them grow, creating jobs and real economic value at home and in communities around the world. We provide financing and support to governments at all levels so they can build sustainable infrastructure, such as housing, transportation, schools and other vital public works. These capabilities create an obligation to act responsibly, do everything possible to create the best outcomes and prudently manage risk. If we fall short, we will take decisive action and learn from our experience. We strive to earn and maintain the public’s trust by constantly adhering to the highest ethical standards. We ask our colleagues to ensure that their decisions pass three tests: they are in our clients’ interests, create economic value and are always systemically responsible. When we do these things well, we make a positive financial and social impact in the communities we serve and show what a global bank can do. CEO Remarks The year 2015 was a challenging year for Nigeria in terms of the economic environment. This was particularly true for the banking sector. Despite this, Citi Nigeria continued to play its critical role as an enabler of our clients’ commercial and developmental aspirations. The bank was only able to achieve this through the strength of its market-leading expertise and diverse product suite, both key strategic differentiators for the bank. Looking forward, Citi Nigeria expects the macroeconomic environment to remain challenging in the short to medium term as the Government of Nigeria continues to adjust to recent shifts in the country’s economic realities. The goal for us is to remain a source of support for our clients by drawing on the power of our many resources to find innovative solutions to our clients’ most difficult challenges. Akinsowon Dawodu Chief Executive Officer, Citi Nigeria 1 Table of Contents Board of Directors 3 Management Committee 4 Annual General Meeting Notice 5 Chairman’s Statement 6 Sustainability Report 2015 10 Treasury and Trade Solutions 12 Corporate and Investment Banking 14 Global Subsidiaries Group 16 Markets 18 Securities Services 20 Operations and Technology 22 Independent Risk Management 24 Human Resources 26 Employee of the Year 28 Citibank Nigeria Limited Consolidated Financial Statements 30 2 Board of Directors Mr. Olayemi Cardoso Mr. Akin Dawodu Chief Arthur Mbanefo Mr Michael Murray-Bruce Chairman Dr Hilary Onyiuke Mrs Ireti Samuel-Ogbu Mr. Philip Cullingworth Mrs. Funmi Ogunlesi Mr. Fatai Karim Mrs. Nneka Enwereji Mr. Chinedu Ikwudinma Mrs Olusola Fagbure Company Secretary and Legal Adviser 3 Management Committee Mr. Akin Dawodu Mrs. Funmi Ogunlesi Mr. Fatai Karim Mrs. Nneka Enwereji Managing Director and Executive Director and Executive Director and Executive Director CEO Head of Treasury and Head of Treasury and and Head of Global Trade Solutions Public Trade Solutions Client Subsidiaries Group Sector, Africa Operations SSA Mr. Chinedu Ikwudinma Mr. Segun Adaramola Mr. Bayo Adeyemo Mr. Mudassir Amray Executive Director and Head of Treasury and Country Treasurer and Head of Corporate and Country Risk Manager Trade Solutions Head of Markets Investment Bank Mrs. Kemi Adewole Mrs. Ngozi Omoke-Enyi Mrs. Sola Fagbure Ms. Shola Phillips Head of Securities Head of Operations and Country Counsel and Country Compliace Services Technology Company Secretary Officer Mr. Gboyega Oloyede Mr. Sharaf Muhammed Mrs. Lola Oyeka Mr Olukayode Bababunmi Country Human Country Head of Strategy Country Public Affairs Ag. Chief Finance Officer Resources Officer and Sustainability Officer Nigeria and Ghana 4 Annual General Meeting Notice NOTICE IS HEREBY GIVEN THAT THE THIRTY-SECOND ANNUAL GENERAL MEETING OF THE MEMBERS OF CITIBANK NIGERIA LIMITED WILL BE HELD AT CHARLES S. SANKEY HOUSE, 27, KOFO ABAYOMI STREET, VICTORIA ISLAND, LAGOS, ON FRIDAY 15 APRIL 2016 AT 1.00 P.M. FOR THE TRANSACTION OF THE FOLLOWING BUSINESS: ORDINARY BUSINESS: 1. To receive the Report of the Directors, the Balance Sheet as at 31st December 2015, together with the Profit and Loss Account for the year ended on that date and the Report of the Auditors thereon. 2. To declare a dividend. 3. To re-elect Directors. 4. To authorise the Directors to fix the remuneration of the Auditors. SPECIAL BUSINESS: To receive the Report on the Board performance review conducted by DCSL Corporate Services Limited. BY ORDER OF THE BOARD OLUSOLA FAGBURE Company Secretary Dated this 16th day of March 2016 Charles S. Sankey House 27, Kofo Abayomi Street Victoria Island, Lagos. NOTE A member of the Company entitled to attend and vote at the above meeting is entitled to appoint a proxy to attend and vote instead of him and such proxy need not also be a member. A form of proxy is enclosed and if it is to be valid for the purposes of the meeting, it must be completed and deposited at the registered office of the Company not less than 48 hours before the time for holding the meeting. 5 Chairman’s Statement Macroeconomic Overview World Economy The global economy recorded a weak GDP growth of 2.4% in 2015 compared to 2.6% in 2014. This deterioration in economic performance was largely connected to a slowdown in emerging and developing countries amid weakening commodity prices, slowing global trade and reduced capital flows. In an increasingly interconnected world, the slower growth experienced by many frontier markets was driven by a simultaneous slowdown in most of the larger emerging economies. The Chinese economy, for instance, an engine of global growth in recent years, experienced a slowdown as the economy structurally adjusted. Meanwhile, growth rates in Brazil and Russia flattened due to external and domestic challenges. The US economy continued to show growth as it expanded Olayemi Cardoso by 2.5% in 2015, its highest growth rate since the global financial crisis of 2008. This consumption-led recovery, driven by solid labour market conditions, where the unemployment rate fell to 5% in the final quarter of 2015, Fellow shareholders, members of contributed immensely to outstanding growth. In the euro area, growth picked up in 2015, as domestic demand the board of directors, distinguished strengthened and exports accelerated, partly owing to the ladies and gentlemen . lagged effect of euro depreciation. For the year as a whole, euro area growth was 1.5%, with activity levels picking up in Spain, somewhat disappointing in Germany, and still lagging I am pleased to welcome you to the (albeit gradually recovering) in France and Italy. Low oil prices and favourable financing conditions supported consumer 32nd Annual General Meeting of your spending and investment in the region. bank, Citibank Nigeria Limited, and Sub-Saharan African Economy present to you its financial results Growth in the Sub-Saharan African economy slowed to 3.4% and key achievements during the in 2015 from 4.5% in 2014. This slowdown was associated with increasing fiscal vulnerabilities in a number of financial year-end 2015. Citi Nigeria countries. Fiscal deficits widened in oil-exporting countries continued to make great strides (Nigeria, Angola, Republic of Congo, Gabon) owing to falling prices. In other countries, widening deficits reflected despite the challenging global and increased government spending, including on arrears local operating environments. (Zambia), infrastructure projects (Kenya) and subsidies (Malawi). Some countries (Angola, Ghana) implemented reform measures — including removing fuel subsidies and freezing public sector hiring — that reduced deficits. Capital flows to the region also slowed in 2015. In recent years, several countries have tapped the international bond market, taking advantage of the global low-interest-rate environment and of investors’ search for yield. However, yields spiked in 2015 as sovereign spreads rose, reflecting a reassessment of risk by investors in anticipation of economic headwinds and interest-rate increases in the United States. The currencies of most countries in the region were under pressure and experienced sharp depreciations, owing to increased fiscal and current account deficits. 6 Nigerian Economy Other developments in 2015 included the implementation The Nigerian economy recorded a growth rate of 2.79% in of the Treasury Single Account, which required that all 2015 compared to 6.22% in 2014, representing the lowest deposits belonging to the FGN’s Ministries, Departments growth in annual GDP since 1999. This lower growth rate was and Agencies (MDAs) be moved from the Deposit Money largely driven by the sharp drop in oil prices, which exposed Banks (DMBs) to the CBN. The Bank Verification Number the country’s latent economic vulnerability. Although the (BVN) initiative was partially concluded in 2015, and this has contribution of oil to GDP has decreased from about 32% to strengthened the identity infrastructure, which can be used 14% over the past 25 years, the multiplier effects of the oil to curb the recurrence of fraud in the banking industry.