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Tag: FBN Holdings

  • FBN Holdings renames subsidiaries

    FBN Holdings Plc has renamed all entities under its Merchant Banking and Asset Management group.

    They are now known as FBNQuest Merchant Bank, FBNQuest Asset Management, FBNQuest Securities; FBNQuest Capital, FBNQuest Trustees and FBNQuest Funds.

    The merchant banking and asset management group is set to close the year on a positive note, having successfully delivered several landmark transactions in the course of the year.

    FBNQuest Merchant Bank was appointed co-Financial Adviser to the Debt Management Office (DMO) on the inaugural FGN N100 billion Sukuk offer. It has also acted as a Joint Issuing House/Book Runner for the Dufil Bond programme.

    Despite the tight monetary conditions, the Bond Series was successfully distributed to a diversified mix of investors which included Pension Fund Administrators, Insurance Companies, Asset Managers, Deposit Money Banks and a frontier-market fund managers.

    FBNQuest Merchant Bank also acted as Joint Financial Advisers to the Asset Management Company of Nigeria (AMCON), advising on the divestment of its 100 per cent  stake in Keystone Bank; as Joint Issuing House/Arranger on the Municipality Waste Management Contractors Limited 18 per cent Series 1 Fixed Rate Medium Term Notes Programme, advising on structuring the Notes and documentation to establish the programme.

    It was also a Joint Local Book Runner on Nigeria’s first ever SEC-registered debt instrument, first ever diaspora bond offering, and first Saharan African offering in SEC Registered format for the Federal Republic of Nigeria – the $300 million 5.625 per cent Inaugural US SEC-Registered Diaspora Bond due in 2022.

     

     

     

    FBNQuest Asset Management won the ‘Best Asset Manager in Nigeria’ award in the 2017 Euromoney Private Banking and Wealth Management Survey and the EMEAFinance African Banking Awards, and also topped the chart in the BusinessDay Research and Intelligence Unit (BRIU) transparency index by scoring 73 points out of a possible 100 points.

    The BRIU report entitled the ‘Nigerian Mutual Fund Managers Transparency Report’ evaluated and ranked fund managers registered with the SEC. FBNQuest Asset Management currently manages the FBN Nigeria Smart Beta Equity Fund which has achieved a return of 45.2 per cent from inception to the end of November 2017, outperforming the NSE ASI’s (Nigerian Stock Exchange All Share Index) return of 41.2 in the same period. The other Funds managed by the company have continued to deliver competitive returns to investors.

     

  • FBN Holdings, WIMBIZ partner

    FBN Holdings, WIMBIZ partner

    First Bank of Nigeria Limited and FBNQuest Merchant Bank Limited, both subsidiaries of FBN Holdings Plc have  partnered Women in Management, Business and Public Service (WIMBIZ) in its 2017 annual conference.

    The conference comes with theme: “The Next Frontier: Women, You’re your Place”. The event is scheduled to hold on November 13 to 14, in Lagos.

    The Annual WIMBIZ Conference now in its 16th edition, continues to inspire and empower women through the delivery of insightful and empowering lectures/sessions charged to take women to the next level in their careers, professions and businesses.

    The conference is focused on increasing and supporting the success rate of female entrepreneurs and the proportion of women in senior positions in corporate organisations and public service. This year’s conference will attract over 1,500 Nigerian and International delegates.

    FirstBank and FBNQuest Merchant Bank have  supported the WIMBIZ conference over several years to entrench the support for women economic empowerment, consistent with the United Nations Global Compact and the Nigerian Sustainable Banking Principle where FBN Holdings is well represented by FirstBank.

  • FBN Holdings appoints company secretary

    FBN Holdings Plc has announced the appointment of Oluseye Kosoko as Company Secretary subject to regulatory approval.

    However, the outgoing Secretary, Tijani Borodo, will still be around for the next few months to navigate a transition for the substantive secretary.

    Tijani will be retiring after three decades of meritorious services to both FirstBank of Nigeria Limited and subsequently FBN Holdings Plc, providing exceptional secretariat and legal support to the Group.

    Prior to his new appointment, Kosoko had served as Head, Legal and Company Secretary for Standard Chartered Bank Nigeria Ltd; Managing Solicitor, Henley, Crankshaw Solicitors; Chief Legal Officer/Company Secretary, Econet Wireless Nigeria Limited (Now Airtel Networks); Citibank Nigeria, where he rose to the position of General Counsel/Company Secretary/ and pioneer Country Compliance Head, with oversight for Corporate Affairs. He worked as Tax Consultant at Price Waterhouse and was one of the pioneer lecturers at the Faculty of Law, Lagos State University.

  • Deals on Nigerian Stock Exchange hit N97.08 billion in July

    Deals on Nigerian Stock Exchange hit N97.08 billion in July

    Investors on the Nigerian Stock Exchange (NSE) exchanged 8.66 billion shares valued at N97. 08 billion transacted in 89,911 in July, the News Agency of Nigeria (NAN) reports.

    A monthly data obtained by NAN from the NSE showed that the turnover increased by 12.32 per cent when compared with 7.71 billion shares worth N77. 92 billion traded in 100,895 in June.

    The Financial Services sector was the toast of investors with 7.45 billion shares valued at N68. 24 billion transacted in 51,991 deals.

    United Bank for Africa (UBA) was the most active in the sector having accounted for 2.96 billion shares worth N28 billion in 5,814 deals.

    It was trailed by FBN Holdings with 597.61 million shares valued at N3.57 billion transacted in 7,816 deals.

    A further breakdown of the month’s activity chart indicated that conglomerates industry came third with a turnover of 432.97 million shares worth N895.02 million in 4,249 deals.

    Transcorp was the toast of investors in the sector, accounting for 412.99 million shares valued at N601.78 million achieved in 3,276 deals, while UACN sold 17.11 million shares worth  N290.42 million in 833 deals.

    Consumer Goods sector traded 346.18 million shares worth N15.02 million in 14,083 deals.

    Transactions on NSE in July 2017

    Dangote Sugar Refinery was the toast of investors in the sector with 64.94 million shares valued at N606.24 in 1,156 deals and Dangote Flour Mills transacted 56.08 million shares worth N291.27 million in 1,944 deals.

    Oil and Gas sector trailed with 124.08 million shares worth N3.56 billion exchanged in 8,407 deals.

    Oando dominated activities in the sector with a turnover of 87.56 million shares valued at N659.72 million in 2,886 deals, while Eterna sold 13.12 million shares worth N49.49 million in 599 deals.

    NSE in July 2

    Also, the All-Share Index during the period inched 2,730.27 points or 8.24 per cent to close at 35,847.75 against 33,117.48 achieved in June.

    NSE in July 3

    In the same vein, the market capitalisation which opened at N11.452 trillion rose by N901 billion or 7.87 per cent to close at N12.353 trillion.

    NSE in July 4

    Commenting on the market performance, Mr Ambrose Omordion, the Chief Operating Officer,  InvestData Ltd., attributed the growth to increased confidence of foreign and domestic investors on the strength of improving economic and market fundamentals.

    Omordion said that the fundamentals were driven by the sustained intervention of the Central Bank of Nigeria (CBN) in the nation’s foreign exchange market.

    He said that the creation of foreign exchange products, the import and export, small and medium-scale enterprises windows among others helped to support the continued appreciation of the Naira, thereby ensuring stable exchange rate.

    Omordion, however, called for urgent implementation of the Economic Recovery and Growth Plan (ERGP) to complement CBN’s effort at boosting productivity to create employment and sustain the ongoing recovery.

    Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said that the seeming positive data that supported the recovery move in the system for the past five months would likely continue with sustained foreign exchange intervention.

    Kurfi said that the apex bank sustained intervention in foreign exchange had boosted liquidity and confidence in the economy.

    Kurfi said that the market outlook for the new month remained mixed as less quarterly and full year were expected.

    He said that the economic recovery needed to be strengthened with the implementation of 2017 budget.

  • FBN Holdings eyes better returns with less risks

    FBN Holdings Plc, the holding company for First Bank of Nigeria and its former subsidiaries, has started implementation of key growth strategies that are expected to significantly reduce non-performing loans to single digit and simultaneously grow returns to shareholders considerably in the years ahead.

    The management of FBN Holdings yesterday presented the underlying facts of the group’s operations to the investing public at the Nigerian Stock Exchange (NSE). The financial services holding group said the ongoing growth strategies will boost its revenue and shareholders’ value, starting from the current business year.

    Group Managing Director, FBN Holdings Plc, Mr. UK Eke, said non-performing loans (NPL) would reduce to single digit within the next 24 months on the back of active remediation of top exposures. Already, about five per cent of the loan book has been restructured with oil and gas loans constituting 70 per cent of the restructured portfolio in 2016.

    He outlined that the group has set out six key targets that will reinforce the group’s overall performance in the years ahead including a single digit NPL, cost of risk less than two per cent, cost to income to be less than 50 per cent, enhanced revenue, return on equity to be greater than 20 per cent and improved dividend distribution.

    He added that the company is addressing the needs of its customers and stakeholder in delivering structural changes in risk-taking culture, processes and oversight; maintain sustained improvement of cost and capital efficiency; enhanced revenue growth across the group and create digital competency to enhance revenue and service delivery.

    Eke added that the subsidiaries under the Holdings company will execute innovation project to identify new revenue streams, saying there is a plan across the group to grow  20 to 25 million customer accounts within the current strategic cycle.

    He said that the company will focus on improving revenue generation across the group noting that the group’s investment banking and insurance businesses have been showing improved performance with 11.5 per cent and 18.7 per cent growth in revenue.

    He said that the group will draw on its extensive commercial banking retail network to deepen market penetration across the group pointing out that the group has started to reap benefit of its digital banking strategy with increased contribution from e-banking solution.

    The group’s firstmobile/online platform has seen some 900,000 users enrolled since inception in September 2015. With one million digital customers, there were 19.7 million transactions in 2016.

    Eke said one of the group’s priorities is to attract 25 per cent of the bank’s active customer base to digital channels by 2019 and to reach the unbanked and under-banked through agent banking.

  • FBN Holdings launches new three-year plan to drive growth

    FBN Holdings Plc, the holding company for First Bank of Nigeria (FBN) and its former subsidiaries, at the weekend unfolded a three-year medium-term strategic plan aimed at extracting significant synergies from the group with a view to enhancing returns to shareholders.

    The three-year 2017-2019 Strategic Plan with the theme: Rebuilding the Group for Enhanced Shareholder Value, aims at increasing efficiency and consolidating the growth momentum of the FBN Holdings in line with its vision of being a leading Middle Africa financial service group.

    Chairman, FBN Holdings Plc, Dr. Oba Otudeko, who unveiled the three-year plan at the annual general meeting in Lagos at the weekend, said the medium-term plan has provided the group with the an opportunity to redefine its strategic intent, identify pressure points and challenges in the light of emerging macroeconomic environment and to plan effectively for the future.

    According to him, the new strategic plan will enable the company to weather current market conditions and position itself for improved and sustainable performance.

    “The responsibility of rebuilding shareholder value is a journey, and as such, we will be consolidating the building blocks emplaced from the last cycle in the 2017-2019 strategy cycle. We aim to achieve our goals within an acceptable risk level and through an efficient organisation,” Otudeko said.

    He added that the apex management organ of the group has been tasked with the overall responsibility of ensuring alignment of all strategic business units with the overall group strategy and realization of the group’s synergy initiatives.

    He said the group remained committed to its two-pronged approach of extracting significant synergies, both in cost and revenue within the business units in each operating company and across the entire group.

    “We are forging ahead with greater optimism and determination, knowing that we are well positioned to meet the aspirations of our stakeholders,” Otudeko said.

    He assured shareholders that FBN Holdings is actively preparing for the future and the challenges ahead with the advancement of the group’s innovative projects and continuous extraction of the opportunities that abound in its holding structure.

  • FBN Holdings engages youths during World Savings Day

    FBN Holdings engages youths during World Savings Day

    FBN Holdings PLC and FBN Merchant Bank joined the rest of the world in celebrating the  World Savings Day by engaging children and youths on the rudiments of savings in line with the Central Bank of Nigeria (CBN) financial literacy initiative.

    The WSD is a yearly event aimed at  increasing the levels of financial literacy while boosting the financial inclusion drive  of the CBN in terms of number of people that have banking relationship with financial institutions.

    The topic for this year’s discourse was “The importance of savings in the global economy and how every depositor contributes to its development”.

    According to FBN Holdings Global Head, Marketing and Corporate Communications, Mrs. Folake Ani-Mumuney, FBN Holdings is firmly committed to the advancement of financial inclusion in Nigeria and would continue to work towards this aspiration by extending banking services to the under-banked, the un-banked,  businesses, communities and individuals across the country with our extensive network of branches and alternative service channels.

  • FBN Holdings rallies as total asset hits N4.8tr

    FBN Holdings Plc, the holding company for First Bank of Nigeria (FBN) and its former subsidiaries, rallied above average gain at the stock market yesterday as the group reported that total assets had risen to N4.80 trillion by the end of June 2016.

    FBN Holdings’ share price rose by 3.48 per cent to close at N3.57 per share, more than threefold of the average price gain of 1.14 per cent recorded by the benchmark index at the Nigerian stock market.

    At N4.80 trillion, FBN Holdings’ total assets amounted to 50 per cent of the total market capitalisation of all the quoted companies on the Nigerian Stock Exchange (NSE). Aggregate market value of all quoted companies on the NSE rose from N9.489 trillion to close at N9.598 trillion. The All Share Index (ASI), the benchmark index for the stock market, rallied by 1.14 per cent to close at 27,945.02 points as against its opening index of 27,629.90 points.

    Key extracts of the six-month report for the period ended June 30, 2016 showed that total assets rose to N4.80 trillion by June 2016 as against N4.42 trillion recorded in the comparable period of 2015, representing an increase of 9.0 per cent. A sluggish top-line and impairment charges however constrained the bottom-line. Gross earnings declined marginally to N267.9 billion by June 2016 as against N271.3 billion in comparable period of 2015. While interest income had declined by 18 per cent from N205.8 billion to N169.2 billion, non-interest income had jumped by 52 per cent from N61.9 billion to N94.1 billion. Profit before tax meanwhile dropped by 12 per cent from N52.1 billion to N45.9 billion while profit after tax dropped by 11 per cent from N40.1 billion to N35.9 billion.

    Group managing director, FBN Holdings Plc, Mr. UK Eke, said the first half performance demonstrated the resilience of the group when considered against the challenging macroeconomic and business environment.

    According to him, with the tough operating environment further exacerbated by the devaluation of the Naira and the persistent rise in inflation, the gross earnings of N267.9 billion and profit before tax of N45.9 billion were reflection of the strength of the groups’ underlying business as well as improvement in cost control.

    He added that the focus of the group remains on organic earnings generation, divestment of non-core assets and balance sheet efficiency to further enhance capital.

    “We remain focused on leveraging the strength of our diversified business model by exploiting synergy opportunities and cross-selling across our commercial banking, merchant banking and asset management as well as our insurance businesses towards creating sustainable value for our stakeholders,” Eke said.

  • FBN Holdings optimistic of improved performance

    FBN Holdings optimistic of improved performance

    FBN Holdings Plc will drive down cost, improve operating effi-ciency and focus on disciplined growth that ensures improved returns to shareholders as the financial services group moves to harness synergies from its businesses and enhance its long-term prospects.

    Directors of FBN Holdings gave this assurance yesterday at the annual general meeting of the group held at Eko Hotel & Suites, Victoria Island, Lagos.

    Group chairman, FBN Holdings Plc, Dr. Oba Otudeko, said notwithstanding the expected near-term outlook of moderated demand and stiffer, more intense competition in the financial services sector, FBN Holdings would ride on the back of its sound corporate governance structures, resilient business model and continued growth momentum in its strategic businesses to continue to guarantee growth in 2016 and beyond.

    He outlined that as the group move to its next phase of its efficient growth, the board is positive that the group will achieve its growth aspirations by a sustained, sharp focus on its strategic priorities.

    “Operating efficiency will remain at the heart of our decisions, to ensure that our disciplined growth meets the strictest hurdles of shareholder returns. In 2016, we will not lose sight of our priority to be a strong and financially stable group that offers a one-stop financial supermarket and puts customer at the heart of everything we do,” Otudeko said.

    According to him, the group’s integrated approach of providing diverse financial services-commercial banking, insurance, merchant banking and asset management, within one group, differentiates it from the competition.

    “Notwithstanding the current economic climate, the board remains extremely confident that the strong fundamentals of our organisation are more than adequate to ride us through the current market challenges. We will continue to focus on effective execution of our strategy and on delivering value to shareholders,” Otudeko said.

    Group managing director, FBN Holdings Plc, Mr Uk Eke, acknowledged what he described as market skepticism on the ability of the group to confront the challenges confronting it but assured that the group has started taken bold moves to address the challenges and the impact will soon be visible within the next six to 12 months.

  • FBN Holdings, UBA, Flour Mills are the best stocks to buy, say analysts

    FBN Holdings, UBA, Flour Mills are the best stocks to buy, say analysts

    Investors seeking to more than double their money within the next 12 months should consider stakes in FBN Holdings Plc, United Bank for Africa (UBA) Plc and Flour Mills of Nigeria Plc, according to analysts at Afrinvest Securities.

    In the latest review of the Nigerian stock market, analysts at Afrinvest Securities indicated that while the equities market had started on a tumultuous note, there are significant buy opportunities in the stock market as several stocks have potential to make between double and three-digit percentage returns over the next 12 months.

    Analysts said FBN Holdings, UBA and Flour Mills have the greatest potential in terms of capital appreciation. FBN Holdings was estimated to have the possibility of appreciating by 177.5 per cent during the period. UBA also has potential upside value of 174.7 per cent while Flour Mills was expected to grow by as much as 171.9 per cent.

    According to analysts, FBN Holdings’ share price could rise to N22.17 over the next 12 months while UBA and Flour Mills could be trading at N10.41 and N96.20 respectively.

    FBN Holdings opened this week at N7.99 while UBA and Flour Mills started trading at N3.79 and N35.38 respectively.

    Other stocks with potential for three-digit growth included FCMB Group Plc, with possible appreciation of 162.6 per cent, Diamond Bank, 133.1 per cent; Access Bank, 124.8 per cent; Skye Bank, 120.8 per cent; Aiico Insurance, 117.9 per cent and Dangote Sugar Refinery, which has upside potential of 109.6 per cent.

    Investors in Nigerian equities started this year with the unnerving hangover of the previous year as quoted equities lost about N1.5 trillion in the first week of the New Year. With consecutive decline all through the five trading sessions, last week saw most equities dropping to their lowest levels.

    Aggregate market value of all quoted companies on the Nigerian Stock Exchange (NSE) closed last week at a low of N9.980 trillion as against its opening value of N11.478 trillion, representing a loss of N1.498 trillion. The benchmark index at the NSE, the All Share Index (ASI)- a value-based index that tracks prices of all quoted equities and also doubles as country index for Nigeria, indicated a week-on-week average decline of 13.05 per cent. The ASI dropped from its opening index of 34,657.15 points to close at 30,143.02 points.

    The performance of quoted equities last week raised the spectre of the previous year. Nigerian equities ranked among the worst-performing stocks globally in 2014 with average full-year decline of 16.14 per cent. Aggregate market value of all quoted equities closed 2014 at N13.226 trillion as against its opening value of N11.477 trillion for the year, indicating a loss of N1.75 trillion during the year.

    Analysts at Afrinvest attributed the bearish market situation to weak macroeconomic fundamentals pointing out that the steep decline in crude oil price and increasing Nigeria’s vulnerability were making investors to be anxious.

    Afrinvest’s stock recommendation may further encourage investors’ participation in the ongoing supplementary issue by UBA. UBA is raising funds from existing shareholders through a rights issue of one for 10 ordinary shares held as at October 15, 2014. The offer price is N4. Application for the rights issue, which opened on December 29, 2014, will close on February 5, 2015.

    UBA plans to use the net proceeds of the N13b rights issue to strengthen its business units across Africa.

    UBA had in 2013 launched a new business development plan aimed at consolidating the bank’s position as a leading pan-African global financial services group. The three-year business development plan codenamed Project Alpha was designed as the group’s next focus of strategic transformation and it contained key transformation initiatives.

    Group managing director, United Bank for Africa (UBA), Mr. Phillips Oduoza, said the new business plan was designed to consolidate the group’s strategic positioning and fully capture the opportunities from Africa’s economic renaissance.

    According to him, Project Alpha is focused on leveraging all aspects of the group’s footprint, product offerings and operational capability, allowing a commitment to customer service transformation, market share growth, the implementation of key e-banking initiatives across all segments, the growth of corporate and trade finance capabilities.

    He outlined that a critical aspect of the Project Alpha initiative is the focus on UBA Africa, which is projected to contribute about 50 per cent to the group by 2016.