By Alex C
First Bank of Nigeria (FBN) Holdings is set to acquire a merchant banking license through their Investment Banking and Management subsidiary.
Making this known in Lagos at the company’s ‘Facts Behind the Figures’ held at Nigerian Stock Exchange (NSE), Bello Maccido, Group Chief Executive Officer of FBN Holdings Plc, said that the anticipated banking diversification would enable the company enhance its project finance potential.
Maccido noted that the initiative will strengthen the company’s funding base and boost the dividend accruable to the shareholders.
On FBN Holdings 2014 to 2016 strategic plans, Maccido disclosed that it would invest in its subsidiaries to drive growth and leverage contributions from the non-banking subsidiaries. According to Maccido, the company would ensure synergies and improved customer services within the group and increase cross-sales across the subsidiary companies.
Maccido pointed out that the company would commence general insurance business with the acquisition of Oasis Insurance Plc. He revealed that FBN Holdings suffered an estimated revenue loss of N32.5 billion in 2013 due to regulatory policies.
Maccido identified regulatory policies to include increase in Cash Reserve Ratio for public sector funds, revised banking charges, removal of charges on Automated Teller Machines (ATM) transactions.
The Chief Executive Officer stated that increase in the Asset Management Company of Nigeria (AMCON) levy from 0.3 percent to 0.5 percent of total assets affected the company’s revenue.
It is noteworthy to state that FBN Holdings paid N13.6 billion as AMCON levy in 2013 against N7.4 billion in 2012. The company’s net interest income grew by 1.5 percent to N230.12 billion against N226.61 billion achieved in 2012.
The growth of the group’s net income was due to improved performance of its non-banking subsidiaries. Its Profit Before Tax (PBT) declined by 2.8 percent to N91.34 billion compared with N93.9 billion posted in 2012. It’s Profit After Tax (PAT) stood at N70.63 billion in 2013 against the N76.80 billion posted in 2012.
The commercial banking group posted a PBT of N87.46 billion, compared with N87.14 billion achieved in the preceding year. The banking group witnessed 8.9 percent growth in gross earnings from N341.96 billion in 2012 to N372.56 billion within the period under review.
Image Source: https://www.fbnholdings.com