The Nation Newspaper

Tag: FCMB

  • ‘Ijebu people must unite’

    ‘Ijebu people must unite’

    The Asiwaju Onigbagbo of Ijebu Christians and Olori Omoba of Ijebu land, Otunba Subomi Balogun, has reiterated his commitment to bringing together Ijebu indigenes regardless of their religions and family backgrounds.

    The First Monument Bank (FCMB) president said such move is vital for actualisation of dreams, agitation and ambition of Ijebu people.

    He said he had built a monument of unity among the Ijebu people as reflected in the way the indigenes usually support his projects.

    The octogenarian, who spoke yesterday in his Ijebu-Ode country home during an annual thanksgiving service, said he was committed to leaving a landmark legacy for unborn generations.

    He noted that his commitment to the cultural development in Ijebu land made him to embark on the construction of a monumental edifice called ‘Oba Adesumbo Tunwase Museum and Hall’ in Ijebu-Ode.

    He said the centre would be an archive for Ijebu tradition and also as events’ place, students’ meeting point and cultural centre.

    He maintained that the unity being enjoyed by the people is among the achievements of the paramount ruler of Ijebu land, Oba Sikiru Adetona.

     

    adding: “This annual thanksgiving service is to thank God for keeping Nigeria, Ogun State, and Ijebu region together till date. We started it 30 years ago and we still continue today. Oba Sikiru Adetona has suggested that the commissioning of the historic centre should be part of my 80-year birthday celebration and we have accepted it.”

  • Subomi Balogun stages high-octane Xmas carol

    Subomi Balogun stages high-octane Xmas carol

    For those who know Otunba Subomi, Christmas season is one period he reaches out to those he had not been able to interact with as a result of his busy schedules from January to December. Every year, he organises a Christmas carol at his Ijebu country home where people gather to savour the spirit of the season. When the banking guru and chairman of FCMB Group staged this year’s carol, it was a high octane in every sense of it.

    The Asiwaju Omoba and Asiwaju Onigbagbo of Ijebu Ode, Ogun State was in a joyous mood throughout the event. He personally went round stretching out a hand of love to everyone present. He laughed heartily and exchanged banters with family members, friends, business associates and community leaders who were there to rejoice with him.

    The traditional institution was well represented as many high chiefs were in attendance. So also was the corporate community.

  • Subomi Balogun opensFCMB ‘s multi-million naira headquarters

    Subomi Balogun opensFCMB ‘s multi-million naira headquarters

    Otunba Subomi Balogun, the Chairman of First City Monument Bank (FCMB), is not resting on his oars as far as making FCMB an enduring legacy is concerned. That much he demonstrated when he opened the bank’s new office on Kakawa Street, Lagos, last week.

    Declaring the architectural masterpiece open, the Ijebu high chief reminded guests that the edifice should not be seen as the handiwork of a man consumed with passion but a faithful fulfillment of God’s promises to him and his life.

    As it has become the practice with the master of modern banking in Nigeria, he ascribed his achievements in banking to God’s doing, describing FCMB as “a financial monument built by God.”

    The latest addition to FCMB’s assets was one of the events aimed at marking FCMB’s 30 years of banking within the shores of Nigeria and beyond.

  • Needless guarantee

    Needless guarantee

    •N50bn public funds to the GENCOs won’t let them put in their best

    The Federal Government, through the Bureau of Public Enterprises (BPE) and the Nigerian Bulk Electricity Trading Company (NBET) Plc signed a N50billion needless escrow guarantee account agreement on power with three Nigerian banks. The banks: United Bank for Africa (UBA), First Bank Plc and First City Monument Bank (FCMB) Plc are to act as custodians of the funds and to ensure adherence to due process in the bid to access it by owners of the electricity Generation Companies (GENCOs). The generating companies are successor companies of the Power Holding Company of Nigeria (PHCN).

    The money, to be administered by NBET was part of proceeds from the privatisation of the defunct PHCN and is expected to insure the generating companies against revenue loss in their effort to boost electricity generation. According to Benjamin Dikki, Director-General, BPE, the Partial Risk Guarantee (PRG) expected from the World Bank could not be secured in the prevailing circumstance.

    Obviously, the Federal Government has shown understandable anxiety over the need to improve electricity generation in the country. This is because of the importance of stable power if the economy must truly develop. However, the way to go should have been for it to use whatever money at its disposal to develop infrastructure in the sector rather than acting as insurer to the GENCOs. The N50billion Naira would go a long way in helping to boost desired infrastructure in the power sector.

    This should not mean a denial of the fact that power generation requires a lot of financial investment. Dikki’s costing puts the average cost of installing a megawatt at about $1.3 million which we consider to be quite huge. But didn’t the GENCOs conduct due diligence before purchasing that part of PHCN? If they did, then the duty of providing guarantee should not be that of the selling government.

    And if they did not, the GENCOs are presumed to have voluntarily taken over the risks under the legal principle of volunti non fit injuria (voluntary assumption of risk) which should not be the fault of the government. It is this fear of loss that would make them put in their best to ensure the success of their business ventures in the power sector. The best the government ought to do is to provide the enabling environment through tax incentives and duty waivers on necessary machineries, among others, that could boost the generating capacities of the GENCOs, over a specific period of time. This policy negates the best tradition and spirit of free enterprise, and such guarantee will not instill discipline in the GENCO ranks.

    Going by the country’s awry antecedents in the handling/management of such funds, the sad result of this huge fund can easily be predicted. Despite government’s assurances that the money is not a gift, we have little or no confidence in a policy initiative whereby the government stands as surety for the GENCOs. The official fears that whatever is generated might not be bought by the public is unfounded as there is already in existence a huge market for whatever power may be generated by the GENCOs.

    This booty comes across as another ill-conceived policy grandstanding and misplaced priority by the government. Again, on this issue of power, the government should not be seen to be approbating and reprobating at the same time if truly it understands the whole essence of privatisation. We ask: What is the purpose of transiting the power sector from public to private enterprise when the government knows that our money would still be deployed to guarantee these investors?

  • FCMB’s anniversary promo draws in December

    FCMB’s anniversary promo draws in December

    The first draw marking First City Monument Bank’s (FCMB) 30th anniversary promo would take place in December, the bank has said.

    In a statement at the weekend, the Senior Vice President/Divisional Head of Retail, FCMB Limited, Olu Akanmu, said eligibility to participate in the monthly regional and zonal draws is based on incremental balance, where customers are expected to save more than they withdraw from their accounts in the bank.

    He said those who emerge winners in the savings promo, stand a chance to take away Hyundai SUVs, refrigerators, freezers, generators, LCD televisions, DVD Players, N1million cash prizes and several consolation prizes, adding that the promo is open to current FCMB account holders, as well as new customers.

    He said the promo which has attracted thousands of new customers to FCMB, has brought about increased customer engagement activities, in all regions of the Federation. He said customer fora have also been organised where the general public has been educated on the ease of account opening at FCMB and the series of the Central Bank of Nigeria (CBN) new policies, including the Cash-less programmes and reduced KYC (know your customer) documentation requirements for small savers.

    New customers have been seen besieging various branches of FCMB, making enquiries about the anniversary promo, opening new accounts, while the existing customers have responded positively in growing their savings and activities with the bank.

  • FCMB promotes sports, tourism through beach soccer tournament

    FCMB promotes sports, tourism through beach soccer tournament

    The sporting and tourism sectors in the country is set to receive a boost as one of Nigeria’s reputable financial institutions, FCMB, has once again established itself as a leading backer of beach soccer tournaments on the African continent.The event scheduled for December 13th-15th 2013 is also supported by Eko Atlantic and represents the third edition of this thrilling international beach soccer tournament primarily sponsored by the bank. Tagged ‘Africa’s biggest beach soccer event’, the COPA Lagos Beach Soccer Tournament –is an exhilarating presentation of the world’s favorite game and forms part of an exciting weekend of non-stop action that caters to both sports enthusiast and fun seekers. Players from Germany, Senegal, Nigeria and Lebanon, will meet on the beautiful beaches of Eko Atlantic to compete for the championship title.

    “COPA Lagos Beach Soccer Tournament features more than just the thrill of watching a beach soccer competition,” says the organizers’ Project Manager, Michael Smith. “We are fortunate in Lagos to be surrounded by a beautiful coastline and this is a unique opportunity to build an electrifying beach culture through sports and tourism.”

    It is expected that almost 10,000 spectators within and outside the country will attend the three day event to watch the defending champions, Nigeria, take on Germany, Senegal and Lebanonin a keenly contested battle for the coveted International Beach Soccer title. “We are always excited to see the large turnout from communities of the participating countries that come and support their respective teams,” says Smith.

    The event which is organised by Kinetic Sports already enjoys the support of Beach Soccer worldwide and having strong brands like FCMB and Eko Atlantic will strengthen the perception of the local economy and provide visible exposure to a global market.

    In addition to world class beach soccer matches; those attending will enjoy local food, a fashion show, cheerleaders, and an after party with live DJ and concerts compliments of the tournaments sponsors.

    “It is great soccer, it is great fun and FCMB and other sponsors are presenting a great opportunity for avid sports enthusiasts, visitors and fun-seeking local and international tourists to join in,” says Smith.

  • ‘FCMB HoldCo’ll unlock shareholders’ value’

    ‘FCMB HoldCo’ll unlock shareholders’ value’

    First City Merchant Bank(FCMB) Plc has taken a bold step to unlock shareholders’ value by transforming into a holding company.

    Known as FCMB Group, the company will be managing the affairs of First City Monument Bank Plc and its subsidiaries to increase profitability and further enhance shareholders’ value.

    To achieve growth, the company has listed and transferred 19,041,068,033 ordinary shares held by its 529,632 shareholders at the Nigerian Stock Exchange. In the same vein, it has listed the ticker symbol FCMB at the exchange in line with the regulatory process.

    Already, the FCMB has achieved impressive financial results for the year ended December 31, 2012 and the first quarter of March 31, 2013. The bank recorded a profit after tax of N15.3billion in 2012, an increase by 256 per cent over the loss of about N9.24billion in 2011. The bank recorded a profit after tax of N4.2billion in the first quarter ended March 31, 2013, representing an increase of three per cent over the N4.10billion recorded in the corresponding period of 2012. Gross earnings within the three months period also witnessed a leap from N26.12billion as at March 31, 2012 to N31.41billion as at March 31 last year.

    Total deposits rose from N411billion in 2011 to N646billion in 2012, an increase by 57 per cent. Also, the bank’s loans and advances grew by 11 per cent to N357billion in 2012, compared to N323billion in 2011. The performance recorded was driven by strong growth in interest income and non-interest income of 39 per cent and 138 per cent, respectively.

    This was aided by last year’s acquisition and merger with FinBank. Based on this, the bank is expected to improve on its performance and further provide impressive returns for stakeholders in the future.

    Speaking at the Facts behind the Listing ceremony recently, in Lagos, the Group Managing Director/Chief Executive of FCMB Plc, Mr Ladi Balogun, said the development would help in enhancing shareholders/ customer’s value, improved the quality of operations and governance. Balogun said the new structure would help in ring-fencing depositors’ funds from investment banking activities, and further contribute to economic growth. He said the idea will create additional values for shareholders, as well as providing additional layer of non-operational governance across the bank and the companies under the group.

    He said: “The structure will create a more diversified revenue base, pave way for management of distinct businesses, and enhance shareholders and customers’ value. Today, we are the leading retail lenders in terms of loans granted on monthly basis. The distribution network has helped the ability to gather deposit”.

    Under the Holding Company structure, shareholding in First City Monument Bank (FCMB) Plc has been exchanged one-for-one for FCMB Group Plc shares, effectively making them owners of FCMB Group Plc, in the same ratio as previous holding in the bank. Through ownership of FCMB Group Plc, shareholders will continue to own all the subsidiaries 100 per cent, including First City Monument Bank Plc and its subsidiaries (FCMB Capital Markets Limited, CSL Stockbrokers Limited, Credit Direct Limited, FCMB (UK) Limited, Arab Gambian Islamic Bank Limited, First City Asset Management Limited and CSL Trustees Limited.

    He said the group will have three wholly-owned direct subsidiaries – First City Monument Bank Plc, FCMB Capital Markets Limited and CSL Stockbrokers Limited, while the other entities in the Holding Company will report into the three direct subsidiaries.

    He said four of the non-permissible/non-strategic subsidiaries ,namely City Securities (Registrars) Limited, FinBank Capital Limited, FinBank Homes Limited and FinBank Securities & Asset Management Limited, have been sold, subject to regulatory approval.

    He added that the sale of FinBank Insurance Brokers Limited, FinBank Insurance Company Limited and Arab Gambian Islamic Bank Limited is on-going, while Fin Registrars Limited has been liquidated.

    On Board, Mr Ladi Balogun has been appointed as the Group Managing Director/ Chief Executive officer, while Mr. Peter Obaseki is the Managing Director of FCMB Group Plc.

    Analysts said the emergence of FCMB as a Holding Company represents another major milestone in the history of the financial institution. They observed that the continuous re-strategisation and renewal of the financial institution (right from its early origin in investment banking as City Securities Limited in 1977 to its present status) is a demonstration of a commitment to be among the top five banks in the country. They said HoldCo will make the bank become more competitive in the industry and enhance its profitability.

    Commenting on the sterling results recorded by the Bank in the 2012 financial year and the first quarter of 2013, the GMD/CEO of FCMB Plc, Mr. Ladi Balogun, explained that the bank’s major priorities in next three years, include the acceleration of growth in demand deposit and savings account balances, as well as reduction of cost of risk to enable it operate the most valuable retail franchise in the country.

    He noted that this will make the bank become more competitive in the industry and enhance its profitability, which would ultimately add value to shareholders. He pointed out that the improved performance recorded during the year under review has shown that the bank has recovered strongly, adding that the board is committed to ensuring that the performance improves further in 2013.

    “We are on course for the attainment of a 75 per cent low cost deposit mix by 2015, and with the growth in retail loans, we foresee our net interest margins remaining consistently above eight per cent over the next two years. We look ahead to 2013 with great optimism and resolve that our performance can only get better and we will move from strength to strength,” he assured.

  • RenCap lowers Diamond’s, FCMB’s 2013 profit forecast

    The 2013 earnings forecast of Diamond Bank Plc and First City Monument Bank (FCMB) Plc have been lowered by Renaissance Capital (RenCap) -an investment and research firm.

    In an emailed report obtained by The Nation, RenCap dropped Diamond Bank’s Profit Before Tax and Profit After Tax forecast to N33.2 billion and N23.3 billion, respectively over higher operating costs and tax rates.

    It said growth, capital and impairment charges were the overriding themes in Diamond Bank’s 2012 performance. Overall, PBT of N28 billion came in five per cent lower than its forecast but PAT of N22 billion was two per cent ahead of its forecast.

    However, it said Diamond Bank was the fastest growing bank in its Nigerian banks universe over 2012, with loan growth of 51 per cent year on year and asset growth of 48 per cent year on year to N1.2 trillion. Ranked by total assets, the lender, it said, is the largest tier-2 bank in the country.

    “This rapid growth stressed its capital adequacy ratio (CAR), but the bank received some relief following the $170 to 200 million of tier 2 capital raised in 2012 and the retention of all its 2012 earnings,” it said.

    However, Return on Equity dropped to 22.8 per cent in FY12 from 25.2 per cent in September, on the back of a lower fourth quarter Net Interest Margin (NIM), derivative losses and strong cost growth in fourth quarter.

    “We regard Diamond’s first quarter 2013 numbers as lackluster as it was all about a falling NIM and rising costs. The NIM collapsed to 9.7 per cent in first quarter 2013 from 10.9 per cent in year ended December 2012, largely on the back of a rising cost of funds,” it said.

    RenCap said the lender’s costs were disappointing as it went up 38 per cent year on year, driven by branch and IT investments, and the Asset Management Corporation of Nigeria (AMCON) levy. The cost/income ratio (CIR) deteriorated to 61 per cent from 52 per cent in first quarter 2012, not an encouraging trend.

    “An impairment charge of N3.3 billion trailed management’s N20 billion guidance for the year and implying a cost of risk of 2.1 per cent. It lowered the bank’s 2013 PBT and PAT forecasts to N33.2 billion and N23.3 billion, respectively, on the back of a lower NIM, higher costs and a higher tax rate,” it said.

    “Operationally, we expect Diamond Bank’s 2013 performance to depend largely on cost of risk and cost growth, as the bank’s earnings are highly geared to these two variables. Given management’s guidance of a shrinking NIM, low NIR growth and a 30 per cent tax rate, we think meaningful earnings growth (and indeed any earnings growth) will be a challenge for Diamond this year without a positive surprise on either the impairment or cost line,” it said.

    It also lowered FCMB’s 2013 PBT and PAT forecast to N20.9 billion and N18.5 billion, respectively, implying PBT and PAT growth of 30 per cent and 21 per cent respectively, year on year.

    It noted 2012 was the first year of the combined FCMB/Finbank entity, with regulatory approvals delaying the integration. Overall, RenCap said last year’s numbers were in line with its expectations, noting that NIM – similar to tier 2 peers, NIMs declined in 2012 on the back of rising cost of funds, falling to 6.7 per cent from 7.2 per cent last year.

    However, term deposits dropped in fourth quarter 2012 to 37 per cent of the deposit book, from 40 per cent in last September, which is expected to support lower cost of funds in 2013.

    Also, the release in September 2012 of Finbank-related cost provisions led to a 71 per cent drop in costs quarter on quarter, and an improvement in the Cost Income Ration to 60.3 per cent from 76 per cent. Impairment charges – the gains on the cost line were offset by a jump in impairment charges to N12.7 billion, from N704 million in September.

    “Management attributed this spike to provisions taken on a number of legacy loans that failed to perform on the restructured terms. We think the bank under-provided in prior quarters on the back of optimistic assumptions, as we do not think the challenges with these loans suddenly came to light in the fourth quarter,” it said.

     

  • FCMB declares N116.83bn gross earnings in 2012

    FCMB declares N116.83bn gross earnings in 2012

    First City Monument bank (FCMB) has announced a growth of 54.3 per cent in gross earnings for the financial year ended Dec.31, 2012.

    The bank said in a press statement issued in Lagos on Monday that its gross earnings stood at N116.83 billion in 2012, compared to the N75.70 billion it posted in the corresponding period of 2011.

    The bank also declared a bonus of one additional share for every 25 shares held by its shareholders.

    “Profit after tax grew by 256 per cent to N15.12 billion in 2012 while profit before tax appreciated by 252.1 per cent during the review period to N16.23 billion.

    “Its loans and advances improved by 10.7 per cent to N357.79 billion against the N323.35billion declared in 2011.

    “The bank’s total assets appreciated to N909 billion in 2012, in contrast with N895 billion in the comparative period of 2011.

    “FCMB’s merger with the defunct FinBank also impacted positively on the performance of the bank as its operating income grew by 37 percent,” the statement added.

    Similarly, the bank’s first quarter result ended March 31, 2013 showed, a profit after tax of N4.2billion against the N4.1billion made in the corresponding period of 2012.

    Gross earnings increased to N31.41 billion within three months, compared to N26.12billion posted in the preceding year of 2012.

    The Group Managing Director/Chief Executive of FCMB, Mr Ladi Balogun, said that the bank was pleased to return to profitability after the challenges of 2011.

    Balogun attributed the growth to successful merger between the bank and the defunct FinBank.

    “The trend continued in the first quarter of 2013 and we expect our performance to gather momentum as we begin to improve productivity of the immense resources and capacity we have acquired”.

    Balogun said that the bank had set a target to be among the top five banks in the country by the year 2015. (

  • Bank, council partner on climate change

    • Inaugurate ‘committed to green’ programme

    Climate change is a global problem and we are glad that FCMB has offered a helping hand in our quest at ensuring a sustainable environment in Isolo. They are indeed, a responsible corporate citizen who really mean well for our people.

    These are some of the words of the Chairman of Isolo Local Council Development Area (LCDA), Shamsudeen Abiodun Olaleye, last week while acknowledging the support the First City Monument Bank (FCMB) has given the council in its pursuit of climate change initiative.

    This was at the inauguration of the Committed to Green programme of the bank, Green Brigade of the council and the inauration of the Climate Change Unit of the council. The bank and the council have entered into a two-year agreement to work together on climate change. The bank, according to the agreement, would foot the bill of the green brigade of the council and support the council’s initiative on climate change.

    “FCMB is thinking about greening the environment. They believe that our environment can be beautiful. They believe that our markets can be very beautiful. The bank has chosen markets in Isolo to bring about their campaign of greening the environment. This cannot be done alone, there must be people on the ground to ensure that the markets are clean and tidy,” Olaleye said.

    He said his council and the bank have started a 25-man new brigade called Committed to Green (C to G) to be remunerated by the bank for a period of two years. “Their salaries would be paid by the bank. This is another way of creating employment; taking people out of the circle of unemployment. All these people have been taken away from joblessness to employment. They are to ensure the cleanliness of the market. They are to ensure that all sanitation laws are enforced. The climate change unit would be under the office of the chairman,” he said.

    The bank’s Executive Director, Olufemi Bakre, said climate change, global warming and flooding have become major hazards to the well being of humanity and the world at large. “As we are aware climate change, global warming and other environment hazards have become major challenges to the well being of humanity and the world. The United Nations and other international bodies have forecast that Sub-Saharan Africa would be worst hit if nothing is done now. Already, we have begun to see the signals in various directions through desertification, pollution and flooding everywhere,” he said.

    Combating this issue, he said, requires concerted efforts by all. “It said that prevention is better than cure. It is on this basis that we are proud to partner with the LCDA to establish a unit of climate change in the council. We believe that this will go a long way to adequately enlighten the public on environmental issues.

    “As a demonstration of our commitment to this, our staff members would be at markets within the council area to pursue our committed to green programme, which since 2009, has been the way we have expressed our deep interest in environmental sustainability. We have a long history of human and community development, which we have implemented in different areas across the nation.

    “We strongly believe that in all communities that we operate should benefit from our presence. Our corporate social responsibility philosophy is centered on the long time relationship with our customers,” he said.

    He said the bank has over the years, lived its philosophy by implementing some initiatives with focus three areas of poverty alleviation, economic empowerment and environmental sustainability.

    “We will continue to do this in a way that is consistent with our value propositions, which are: we are simple, reliable and supportive. Your bank and I,” he said.

    The high point of the event was the inauguration of the Climate Change Unit of the council; a portable cabin in the premises of the council.