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  • FCMB gets U.S.’ $10m facility for health sector

    FCMB gets U.S.’ $10m facility for health sector

    The United States (U.S.) is partnering with First City Monument Bank (FCMB) in support of health care provision in Nigeria.

    The programme, packaged under the U.S. Agency for International Development (USAID), will strengthen Nigeria’s health sector, as well as private sector resilience, Mission Director, Melissa Jones, has said.

    Under the terms of the agreement, USAID and the United States International Development Finance Corporation (DFC) will collaborate with FCMB to facilitate $10 million in new loans.

    The new partnership will assist FCMB to expand access to finance for underserved borrowers, and SMEs in the health sector in Nigeria, the health sector, and small and medium-sized enterprises throughout Nigeria.

    The Managing Director, Mrs Yemisi Edun, said: “I commend the DFC for its commitment to improving local access to quality healthcare. This partnership will help close the gap in healthcare financing. This means more Nigerians will have access to better healthcare facilities.

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     “FCMB welcomes the opportunity to collaborate with healthcare providers and SMEs nationwide to build a healthier, more productive future for our nation.

    “As demonstrated by this partnership, the United States government is eager to continue collaborating with the financial sector to improve access to credit for underserved borrowers, including small and medium enterprises in the health sector, and thereby stimulate economic growth,” said Melissa Jones.

    “In addition to supporting FCMB’s increased lending in the health sector, we are committed to work with FCMB to disburse loans to the agriculture and renewable energy sectors through our existing partnerships.”

    This partnership is intended to boost the following key areas:

    Loans in the Healthcare Sector: Loans will be used to support businesses in the following areas: hospitals, health centres, clinics, diagnostic centres, pharmacies, maternal health facilities, procurement of medical equipment, construction and renovation of health facilities.

    The bank’s focus will include financial support for working capital, equipment procurement, construction, and restructuring of commercial properties for small and medium sized enterprises.

  • US, FCMB sign partnership to strengthen private health sector

    US, FCMB sign partnership to strengthen private health sector

    At a ceremony held at the First City Monument Bank (FCMB) Headquarters in Lagos, Nigeria, the U.S. Agency for International Development (USAID) Mission Director Melissa Jones affirmed the U.S. government’s commitment to strengthen Nigeria’s health sector and private sector resilience with a new partnership agreement.

    Under the terms of the agreement, USAID and the United States International Development Finance Corporation (DFC) will collaborate with FCMB to facilitate $10 million in new loans. The new partnership will assist FCMB to expand access to finance for underserved borrowers, underserved borrowers and MSMEs in the health sector in Nigeria, the health sector, and micro, small and medium-sized enterprises throughout Nigeria.

    “I commend the DFC for its commitment to improving local access to quality healthcare. This partnership will help close the gap in healthcare financing. This means more Nigerians will have access to better healthcare facilities. First City Monument Bank welcomes the opportunity to collaborate with healthcare providers and SMEs nationwide to build a healthier, more productive future for our nation,” said FCMB Managing Director, Mrs Yemisi Edun.

    “As demonstrated by this partnership, the United States government is eager to continue collaborating with the financial sector to improve access to credit for underserved borrowers, including micro and small and medium enterprises, in the health sector., and thereby stimulate economic growth,” said Mission Director Melissa Jones. “In addition to supporting FCMB’s increased lending in the health sector, we are committed to work with FCMB to disburse loans to the agriculture and renewable energy sectors through our existing partnerships.”

    This partnership is intended to boost the following key areas:

    Loans in the Healthcare Sector: Loans will be used to support businesses in the following areas: hospitals, health centres, clinics, diagnostic centres, pharmacies, maternal health facilities, procurement of medical equipment, construction and renovation of health facilities.

    Loans to SMEs: The bank’s focus will include financial support for working capital, equipment procurement, construction, and restructuring of commercial properties for  small and medium sized enterprises.

  • Ex-FCMB manager jailed 121 years for fraud

    Ex-FCMB manager jailed 121 years for fraud

    An Onitsha High court, presided over by Justice S N Odili,  has sentenced a former Manager of First City Monument Bank (FCMB), in Onitsha branch, Nwachukwu Placidus, to 121 years in prison for fraud

    The cumulative sentence was  for diverting fixed deposit funds of a customer amounting to N112,100,000 for personal use.

    Justice Odili handed the judgment to the former Manager on Friday following his arraignment on Tuesday, March 27, 2018, by the Enugu Zonal Command of the Economic and Financial Crimes Commission (EFCC).

    According to the EFCC Spokesperson, Dele Oyewale,  in a statement on Saturday, he explained that the convict faced 16-count charges, including forgery, stealing, obtaining by false pretense, and uttering.

    The statement read, “One of the counts reads: ‘Nwachukwu Placidus between February 2009 and November 2014 in Onitsha, Anambra State within the jurisdiction of the Anambra State High Court of Nigeria with intent to defraud obtained N112,100,000, from Idemili Microfinance Bank under the false pretence that you have placed the said money in a fixed deposit account with First City Monument Bank PLC for it, which pretence you knew to be false and you thereby committed an offence.

    “He pleaded not guilty to the charges when they were read to him, thus setting the stage for his trial.

    “In the course of trial, the EFCC, through its counsel, Mainforce Adaka Ekwu, presented four witnesses and tendered several relevant documents which were admitted in evidence.

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    “In his judgment, Justice Odili held: “The prosecution proved its case beyond reasonable doubt” and sentenced the convict to nine years imprisonment on count 3, 4 years on count 4 and 9 years on counts 5 to 16 respectively. He was discharged on counts 1 and 2. The sentences shall run concurrently.

    “The court further ordered the convict to restitute the said sum to his victim, Idemili Microfinance Bank.

    “Placidus’journey to the Correctional Centre began when a petitioner, Idemili Microfinance Bank Limited, alleged that N112, 100, 000 was handed over to him as the branch manager of FCMB in Onitsha, for fixed deposit.

    “However, when the petitioner approached the bank to terminate and withdraw the deposit, the bank denied receiving the said funds.

    “Upon receipt of the petition, the EFCC swung into action and investigations revealed that the convict diverted the money for his use and issued a fake fixed Deposit Certificate to the petitioner.” EFCC said.

  • FCMB group sustains growth momentum, profit rises to 193.6% in Q1 2024

    FCMB group sustains growth momentum, profit rises to 193.6% in Q1 2024

    FCMB Group Plc announced impressive first-quarter 2024 financial results with profit before tax rising 192.6% Year-on-Year to N31.3 billion compared to N10.7 billion in the same period in 2023. All of the Group’s business segments demonstrated significant growth, with Investment Banking leading at 228.1%, Consumer Finance at 165.4%, Banking Group at 157.2%, and Investment Management at 74.3%.

    This impressive performance across all business segments directly results from FCMB Group’s strategic initiatives, which align perfectly with its purpose of fostering inclusive and sustainable growth in the communities it serves.

    FCMB Group recorded a substantial 104.8% growth in gross revenue during the three months (January to March 2024), rising to N179.1 billion from N87.4 billion for the same period the prior year. This growth was driven by an 89.9% growth in interest income and a 150.9% growth in non-interest income. Additionally, customer confidence remained strong, with deposits rising by 63.2% year-over-year, from N2.0 trillion to N3.3 trillion at the end of March 2024.

    The Group Chief Executive of FCMB Group Plc, Ladi Balogun, expressed confidence that the growth trend will be sustained. He said:

    “We continue to leverage our unique group structure to build a technology-driven ecosystem that fosters inclusive and sustainable growth in the communities we serve. This strategy is enabling us to deliver robust performance in spite of the challenging domestic and global environment. Barring unforeseen circumstances, we believe our growth trend will be sustained and accompanied by improving efficiencies arising from greater scale and ongoing digitisation”.

    Despite the challenging business environment, the Group increased its contribution to economic growth by extending loans and advances to N2.2 trillion, an 85.4% increase, Year-on-Year, from N1.2 trillion in the corresponding period of 2023.

    Read Also: FCMB group sustains growth momentum, profit rises to 193.6% in Q1 2024

    Net interest income increased by 74.5%, from N31.7 billion in the first quarter of 2023 to N55.4 billion in the first quarter of 2024. Total assets increased by 68.5%, from N3.1 trillion to N5.2 trillion.

    Assets Under Management (AUM) grew 35.0% Year-on-Year, from N830 billion to N1.02 trillion at the end of March 2024. This highlights the Group’s investment management expertise and ability to create value for its clientele.

    The agency banking business extended its network to over 165,000 agents, acquiring over 300,000 customers between January and March 2024. FCMB expanded its customer base to 12.8 million within the quarter. 

  • Recapitalisation: FCMB Group plans N150b capital raising

    Recapitalisation: FCMB Group plans N150b capital raising

    Shareholders of FCMB Group Plc are scheduled to meet later this month to consider a N150 billion capital raising programme aimed at fostering the recapitalisation of the group’s commercial banking subsidiary, FCMB Limited.

    At the annual general meeting, the board of directors of FCMB Group is seeking shareholders’ approval to create additional shares and also raise up to N150 billion in new capital.

    FCMB Limited has share capital and share premium of N125.293 billion, about N375 billion below the N500 billion new minimum capital base for its international commercial banking licence category.

    In a regulatory filing, Company Secretary, FCMB Group Plc, Mrs Olufunmilayo Adedibu, stated that the board will be requesting shareholders’ approval to increase the company’s issued share capital from N9.90 billion of 19.80 billion ordinary shares of 50 kobo each to N19.80 billion of 39.61 billion ordinary shares of 50 kobo each by the creation and addition of 19.80 billion ordinary shares of 50 kobo each.

    Shareholders are also expected to mandate the company “to raise additional capital of up to N150 billion or its equivalent in such other currency as the directors may decide, through the issuance of securities comprising ordinary shares, preference shares, convertible or non-convertible notes, bonds or any other instruments”.

    The broad mandate will allow the company to raise funds in the Nigerian or international capital markets, either as a standalone issue or by the establishment of capital raising programme, whether by way of public offerings, private placements, rights issues and such other transaction modes and methods.

    In an open-ended mandate that allows the board to increase offer size, shareholders are expected to authorize the board “to take the necessary steps to cancel any unallotted shares of the company and to further increase the share capital of the cmpany to an amount sufficient to enable it meet the statutory minimum capital requirement as may be necessary”.

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    The meeting will also authorize the board to seek the listing and admission to trading of securities issued under the N150 billion capital raising programme on the Nigerian Exchange (NGX) or on such other stock exchanges and securities markets as the need may arise.

    The Nation had reported exclusively that the board of FCMB Group had approved a roadmap for the recapitalisation of the group’s commercial banking subsidiary-FCMB Limited.

    Under the new recapitalisation framework, banks have three broad options of injection of new equity capital, mergers and acquisitions and upgrade or downgrade of licence authorisation.

  • FCMB Group records 186% profit growth, proposes 50 kobo dividend

    FCMB Group records 186% profit growth, proposes 50 kobo dividend

    For the year ended December 31, 2023, FCMB Group Plc grew deposits, loans, assets under management, revenue and earnings and improved its environmental, social, and corporate governance scorecard. The Group recorded a profit before tax of ₦104.4 billion, a 186% year-on-year (YoY) increase compared to ₦36.6 billion in 2022 and earnings growth across its business segments: Banking Group 212.6%, Consumer Finance 67.3%, Investment Management 40%, and Investment Banking 89.7%.

    FCMB Group, which proposed a dividend of 50 kobo per share for its shareholders, contributed to food security and import substitution in Nigeria by increasing lending to the agricultural sector by 38.4% from N147.4 billion in 2022 to N204.3 billion in 2023. In addition, the Bank supported over 300,000 smallholder farmers, 56% of whom were women in agriculture, in rural communities to support the sector. Over $280 million of funding from DFI’s and donor agencies was raised during the year to support the attainment of sustainable development goals in critical sectors of the economy.

    Leveraging its core banking business, the Group facilitated over $700 million and $100 million in export and remittance flows into Nigeria, respectively, as at December 2023.

    Read Also: FCMB board okays bank’s recapitalisation plan

    In safeguarding the environment, it switched six additional branches of its retail and commercial banking subsidiary (First City Monument Bank Limited) from grid/diesel generators to solar power last year, taking the number of branches running on renewable energy to 160, which represents 78% of total branches. In addition, the Bank secured funding of up to N13 billion from local development finance institutions for on-lending to customers requiring solar energy solutions to further support its commitment to driving renewable energy.

    FCMB’s customer base grew by 15.6% YoY from 10.9 million to 12.5 million for the period ended December 2023, whilst users of its mobile app that offers lending, wealth and payment solutions grew by 31% YoY to 3.4 million. Similarly, the Bank’s agency banking network grew to over 164,000 agents. With an enlarged customer base, an expanded distribution platform, and the use of artificial intelligence to automate and optimise loan underwriting processes, the Group successfully disbursed over 1.5 million loans worth N100.8 billion to individuals, N14.4 billion to micro-enterprises and N177.9 billion to SMEs during the period.

    Commenting on the results, the Group Chief Executive of FCMB Group Plc, Mr Ladi Balogun, said:

    “We continue to leverage our unique Group structure to build a technology-driven ecosystem that is fostering inclusive and sustainable growth in the communities we serve. This strategy is enabling us to deliver robust performance in spite of the challenging domestic and global environment. Barring unforeseen circumstances, we believe this trend will be sustained and accompanied by improving efficiencies arising from greater scale and ongoing digitisation”.

    The results across market fundamentals also showed gross revenue of N516.4 billion for the period ended December 2023, an 82.5% growth from N283 billion for the same period the prior year.  Net interest income grew by 44.8% from N122 billion in 2022 to N176.6 billion in 2023. Customer confidence in FCMB remained strong, as deposits rose by 58.5% YoY from N1.94 trillion to N3.08 trillion, just as loans and advances grew by 54% from N1.20 trillion to N1.84 trillion. The Group’s total assets increased by 48.3% from N2.98 trillion to N4.42 trillion at the end of December 2023.

    FCMB Group’s Assets Under Management increased by 29.6% last year from N783.7 billion to N1.02 trillion. The value of investment banking transactions consummated by the Group rose to N945.3 billion for the period ended December 2023, compared to N857.1 billion in the same period the prior year. 

  • FCMB board okays bank’s recapitalisation plan

    FCMB board okays bank’s recapitalisation plan

    The board of FCMB Group Plc yesterday approved a roadmap for the recapitalisation of the group’s commercial banking subsidiary-FCMB Limited.

    Directors of FCMB at their meeting yesterday reviewed the plans to raise additional equity capital to ensure FCMB Limited meets the new minimum capital base of N200 billion for its national commercial banking licence category.

    At the end of the meeting, the board approved the bank’s plan, which is expected to be submitted to the Central Bank of Nigeria (CBN). Also, the board approved the first quarter results of the group, which is expected to be released alongside the delayed audited results for 2023.

    Company Secretary, FCMB Group Plc, Mrs Olufunmilayo Adedibu confirmed the approval of the recapitalisation roadmap and the first quarter results in a regulatory filing after the meeting.

    The Nation had on Monday exclusively reported that banks were finalising their recapitalisation plans ahead of the deadline for the submission of the strategic work plans that will serve as supervisory guides for the CBN.

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    Under the recapitalisation plan, banks are required to submit step-by-step activities, transactional details, instruments and other options for their recapitalisation not later than April 30, 2024. The plans will cover the two-year compliance period ending March 31, 2026.

    Banks’ insiders and professional parties in the know of the ongoing recapitalisation decisions had told The Nation that the recapitalisation plans by most banks had been concluded, with directors and professional parties making final adjustments of market-based values and timelines.

    The sources, who preferred anonymity because of their roles, said about one-third of banks plan to increase their capital base mainly through capital raising, while other banks outline prospects for combination of capital raising and mergers and acquisitions. Some two banks were said to be considering downgrade of their licences as final options in addition to prospects of mergers and acquisitions.

    While all the tier 1 banks appeared confident of raising the required funds on a standalone basis, they also indicated their preparedness to explore acquisition of other banks.

    According to timelines of activities, not less than seven banks are expected to float their share offerings in the second half of this year. The capital market is expected to be busier in 2025.

    An investment banking advisor said many big banks were seeking to raise more-than-needed funds in order to be in a position to cherry-pick when the recapitalisation fever pitches in mid-2025.

    Under the new recapitalisation framework, banks have three broad options of injection of new equity capital, mergers and acquisitions and upgrade or downgrade of licence authorisation.

    The CBN had last month released its circular on review of minimum capital requirement for commercial, merchant and non-interest banks. The apex bank increased the new minimum capital for commercial banks with international affiliations, otherwise known as mega banks, to N500 billion; commercial banks with national authorisation, N200 billion and commercial banks with regional license, N50 billion.

    Others included merchant banks, N50 billion; non-interest banks with national license, N20 billion and non-interest banks with regional license will now have N10 billion minimum capital. The 24-month timeline for compliance started yesterday and ends on March 31, 2026.  

  • Trusteeship is for everyone, including you

    Trusteeship is for everyone, including you

    You work hard for your cash, big pile or small. Naturally, you want it protected and passed to relevant parties after you are gone. That is where trustees come in, and they are not just for folks with private jets and islands. It is not about how much you have but about making it work. 

    Like a tax consultant saves you from tax headaches, a Trustee plans your estate. Think of a trustee as your financial best friend forever, one who organizes your assets and, most importantly, gives you the peace of mind that your financial future is secure, even when life gets unpredictable. 

    Here is why you might consider trusteeship services:

    • Caring for loved ones with special needs: Those with disabilities often need lifelong financial support. A trustee safeguards their assets and manages their income responsibly, ensuring their financial security and protecting them from potential exploitation.
    • Ageing without losing control: Let’s face it- we will all get old. But that does not mean losing control of your finances. A trustee can manage the day-to-day affairs while you still make the big decisions. Think of it as a backup for your brain, so your money keeps working for you even if your energy for spreadsheets fades.
    • Avoiding family feuds: Sometimes, hard-earned money can turn loved ones against each other. A trustee takes the emotion out of it. They follow the plan you set, ensuring your wishes are respected and minimizing any potential for messy family drama down the line. With a trustee, you can ensure that your wealth doesn’t become a source of contention among your loved ones.
    • Protecting your children: We love them, but handing a teenager their inheritance is a recipe for bad decisions. A trustee acts based on the Trust Deed and your instructions and ensures your children have a safety net, preventing impulsive purchases and bad financial decisions.
    • Making your passion last: Are you passionate about a cause? A trustee can manage funds to ensure your favourite charity receives support even after you’re gone. This turns your generosity into a lasting legacy, inspiring others to continue your philanthropic efforts.
    • Corporate trust services: Most businesses take loans to stay afloat. A trustee advises how best to use your collateral to get the best loans to sustain your business.

    Are you curious? FCMB Trustees is your go-to trusteeship service provider. They will customize a plan to keep your assets safe and ensure your legacy is just how you want it.

    Services provided by FCMB Trustees include:

    • Debenture/ Security Trust Services (Consortium/ Syndicated lending)
    • Bonds/ Debt Issuance Trust Services (Government & Corporate)
    • Mutual Funds/ Collective Investment Schemes Trust Services
    • Estate Planning – Wills and Living Trusts
    • Education Trusts
    • Endowment Fund/ Foundation Management
    • Codicils.

    Ready to take the first step? Log on to www.fcmbtrustees.com or send an email to fcmbtrustees@fcmb.com to begin your journey towards securing your financial future and protecting your legacy with FCMB Trustees.

  • ReelFruit champions sustainable manufacturing with support from FCMB

    ReelFruit champions sustainable manufacturing with support from FCMB

    First City Monument Bank (FCMB) has reaffirmed commitment to sustainable manufacturing that minimises negative environmental impact while conserving energy and natural resources.

    This was demonstrated by the newly inaugurated dried fruit manufacturing plant of Nature’s Bounty Health Products Limited in Abeokuta, Ogun State.

    Financed by FCMB, the 800-metric-ton manufacturing plant affirms Nature’s Bounty’s commitment to large-scale production and environmental responsibility.

    Nature’s Bounty Health Products Limited, trading as ReelFruit, is a purpose-driven Nigerian food technology startup that transforms abundant local fruits like mangoes, coconuts, and cashews into healthy snacks.

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    This prevents post-harvest wastage and protects farmers from revenue loss. The company’s focus on social impact, supporting underserved communities, and promoting Nigerian products globally necessitated its expanded capacity.

    The new plant allows Nature’s Bounty Health Products to increase the production of its variety of ReelFruit products from 6 to 30 metric tons monthly, creating over 200 jobs.

    Affiong Williams, Founder and CEO of Nature’s Bounty Health Products, highlighted the factory’s broader significance:

    “This facility is more than just bricks and mortar; it embodies my unwavering belief in Nigeria’s agricultural and manufacturing potential. With this factory, we are scaling our dried fruit production to serve customers nationwide, export ‘Made in Nigeria’ products globally, and transform agribusiness.

    “We are creating jobs, supporting farmers, and proving that large-scale impact is achievable. This facility is a positive symbol for Nigeria’s business landscape for generations to come.

    From left: Head, Agribusiness & Structured Trade Commodity Finance, First City Monument Bank (FCMB), Mr. Daniel Olorunsuyi; Divisional Head, Agribusiness and Non-Oil Exports of the Bank, Mr. Kudzai Gumunyu; Founder/Chief Executive Officer, Nature’s Bounty Health Products Limited, Affiong Williams; Regional Head, Lagos, FCMB, Mrs. Omowunmi Kalejaiye; Zonal Head, Lekki/Victoria Island, Mr. Kola Kareem and Manager, Adeola Odeku Branch of the Bank, Mr. David Ujah, during the commissioning ceremony of the ReelFruit factory of Nature’s Bounty Health Products Limited, held in Abeokuta, Ogun State recently. The construction of the factory was funded by FCMB.

    “FCMB consistently supports businesses that share our vision of a sustainable and inclusive Nigeria,” said Mrs. Yemisi Edun, Managing Director of First City Monument Bank. “Nature’s Bounty Health Products and its brand, ReelFruit, embodies this commitment, adding value to local produce while prioritising sustainable manufacturing practices and job creation. Their energy-efficient machinery and advanced effluent system has set a standard for the agribusiness sector.”

    Ogun Commissioner for Industry, Trade, and Investment Adebola Sofela called the new plant “a testimony to the can-do spirit of Nigerians.

    “We are excited to host this facility, which offers many benefits to our state and Nigeria. Our government is committed to fostering industrial development by creating an enabling environment for businesses to thrive,” he stated.

    The new factory has ten times the capacity of its predecessor, positioning the ReelFruit brands to reach domestic and international markets with its premium dried fruits. The company’s innovative approach successfully balances economic development and environmental protection.

  • FCMB MD urges accountants to drive sustainability

    FCMB MD urges accountants to drive sustainability

    Managing Director of First City Monument Bank (FCMB), Mrs. Yemisi Edun has urged accountants to make sustainability accounting a cornerstone of their practices.

    Delivering the keynote address at the Western Zone Conference of the Institute of Chartered Accountants of Nigeria (ICAN), Mrs. Edun stressed the need for sustainable practices to build trust, foster development, and drive positive environmental and social impact.

    “Consumers, investors, and regulators are demanding more from business,” Mrs. Edun said. “They want transparency, accountability, and a commitment to a sustainable future. Accounting principles provide the framework for achieving this balance, ensuring businesses thrive while considering the needs of future generations.”

    Mrs. Edun urged accountants to become sustainability champions, recommending lifelong learning and adopting technology for accurate measurement and reporting. She harped on promoting ethical practices to combat waste and corruption, leading with integrity and transparency and future-proofing skills by adapting to emerging trends.

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    According to Mrs. Edun, this is how accountants can equip them to stay relevant and drive positive environmental and social impact alongside financial success.

    Reflecting on the conference theme, “Economic Resilience: Navigating the Bottlenecks,” ICAN President Dr. Innocent Okwuosa reaffirmed the Institute’s commitment to supporting the government in finding solutions to Nigeria’s socio-economic challenges.

    The Western Zone Chairman of ICAN, Alhaji Lateef Awojobi, challenged accountants to upskill and enhance their competencies, reminding them of their responsibility to exhibit technical and professional competence as critical stakeholders in the business community.

    First City Monument Bank, a member of FCMB Group Plc, is committed to fostering inclusive and sustainable growth by building a supportive ecosystem that connects people, capital, and markets.