Connect with us

News and Report

FirstBank: A triumphant Return to the Nigerian Banking Frontline

Published

on

The story of Corporate Nigeria in 2022, cannot be complete without a chapter on the incredible performance of First Bank of Nigeria Limited, which saw the hitherto encumbered bank now returning to the top of the ladder of the Nigerian banking industry, amid a harvest of international laurels, writes Festus Akanbi

By December this year, Nigerian quoted companies will begin to upload their full year 2022 results in compliance with the dictates of the principle of disclosures to regulators, investors and customers as enshrined in the act of Corporate Governance.

While the waiting game for the release of the more detailed full-year results continues, analysts said that bookmakers can only assess the current level of profitability, efficiency and recovery of these companies based on their half-year reports which began to hit the various media platforms from July this year.

For FirstBank, a subsidiary of the behemoth FBN Holdings Plc, the 2022 operation year has been characterised by a superlative performance which analysts believed signposts the confirmation of the bank’s return to the frontline of the Nigerian banking industry following its 2021 equally stellar performance.

From its half-year 2022 reports, which show a remarkable turnaround, and the ability of the management of the bank not only to resolve old corporate governance issues but to also return the bank to the path of profitability, it has been proven beyond any reasonable doubt that FirstBank has freed itself from old encumbrances and it is back to its old trajectory of breaking boundaries and being a pacesetter in the Nigerian banking industry.

For instance, analysts who believed that FirstBank’s current excellent performance is a reaffirmation of the new era of a return to greater and better times ahead are quick to point to the bank’s half-year 2022 results which proved the solidity of the financial institution and confirmed that it is back in form as a formidable industry leader.

Reinforcing Quantum Profitability Leap Agenda

For instance, in its half-year 2022 scorecard, FirstBank recorded a 22.6 per cent year-on-year growth in gross earnings to N338.5 billion while net interest income was up 49.3 per cent year-on-year to N152.9 billion respectively.”

The bank’s Managing Director/Chief Executive, Adesola Adeduntan who gave this figure disclosed that “Amidst a challenging operating and dynamic regulatory environment in the half year 2022, the commercial banking group remained focused on executing key initiatives to position the group for improved profitability in the full year 2022. Our half-year results further reinforced our drive towards our ‘Quantum Profitability Leap’ agenda.”

Adeduntan said, “On the back of the impressive growth recorded in our top line, our profit before tax recorded a strong growth of 40.0 per cent year on year to N60.0 billion, whilst profit after tax also grew by 42.3 per cent year on year to N53.3 billion as the bank continues to reap the dividends of the successful restructuring of our balance sheet and revamping of our risk management architecture.”

“We continue to record progress in driving down our non-performing loan ratio which now stands at 5.4 per cent at the end of H1 and we are on target to bring it within the regulatory limit of 5 percent by end of full-year 2022.”

Awards and Recognitions: FirstBank’s Leading the Pack

In terms of recognition, there is no doubt that the ongoing transformation in FirstBank is globally recognised when one considers the harvests of awards and recognitions that are already pouring in for the bank.

Analysts said the awards and recognitions, which include those from the Fitch Ratings and The Banker awards and Euromoney rankings are testimonials of FirstBank’s consistent performance.

Fitch Rerating

Analysts maintained that the current Fitch rerating of FirstBank aligns with ratings of other global agencies (such as S&P: B- with a stable outlook; Moodys: B2 with stable outlook) – a confirmation of what industry peers already acknowledge – back to leading the pack.

On September 16, 2022, Fitch Ratings announced the upgrade of FBN Holdings Plc’s (FBNH) and First Bank of Nigeria Ltd’s (FBN) Long-Term Issuer Default Ratings (IDRs) to ‘B’ from ‘B-‘, and according to the rating agency, the Outlooks are Stable. Fitch has also upgraded their Viability Ratings (VR) to ‘b’ from ‘b-‘.

It explained that the upgrade of the Long-Term IDRs follows that of the VRs, reflecting that corporate governance irregularities publicly raised by the Central Bank of Nigeria (CBN) in April 2021, including two longstanding related-party exposures, have largely been addressed and therefore risks to capitalisation have receded, helped by strong internal capital generation since the irregularities were raised.

Governance Issues Laid to Rest

Following its monitoring of the Bank’s corporate Banking endeavours within the last year, the rating agency gave FirstBank a clean bill of health saying the bank’s governance irregularities have been addressed and according to the management of the bank, “the two related-party exposures highlighted by the CBN, which included equity and credit exposures to two companies of whom FBNH’s previous chairman was also chairman, have largely been disposed of and repaid. Fitch understands from management that FBNH and FBN have not been subject to penalties about irregularities raised by the CBN in April 2021 and no further irregularities have been raised.”

It also attests to the solidity of the bank, affirming that FBN is the third-largest bank in Nigeria, representing 11% of domestic banking-system assets at the end of 2021.

Another reason for the high rating is the fact that the bank’s improved asset quality since FirstBank’s impaired loans (Stage 3 loans under IFRS 9) ratio has declined significantly.

FirstBank also boasts of a Stable Funding Profile. For instance, FBN’s customer deposit base (76% of total funding at end-1H22) comprises a high share of retail deposits (64% at end-2021) and current and savings accounts (81% at end-1H22), supporting funding stability and a low-cost of funding. Depositor concentration is fairly low. Liquidity coverage is comfortable in local and foreign currencies.

Bankers Magazine: FirstBank Best Performing in Nigeria

It is also not a coincidence that FirstBank was rated first among its peers in Nigeria by Bankers Magazine, a publication of the Financial Times.

The Top 100 African Bank Rankings 2022 recently released by The Banker shows FirstBank leading the Nigerian table in four areas, the highest achieved by any Nigerian bank; only FirstBank leads in four areas. The rankings, based on the end of year 31 December 2021 audited financials of all banks in the Top 100, reveal FirstBank’s ranking as number one in Nigeria in terms of Overall Performance, Profitability, Efficiency and Return on Risk.

The magazine, which explained that its Top 100 African Banks ranking for 2022 demonstrates a broad return to stability by African banks after a torrid year for the continent’s largest lenders placed FirstBank among other banks in Nigeria because it happened to be the only bank that led in four areas.

First Bank of Nigeria Limited leads its peers in fifth place overall, displacing Guaranty Trust Bank, now in seventh place. Access Bank ranks in the eighth position, with Zenith Bank in 10th place.

Euromoney Rankings: FirstBank, Market Leader

In addition, in 2022, Euromoney Market Leaders, an independent global assessment of the leading financial service providers conducted by Euromoney Institutional Investor Plc crowned FirstBank as a market leader. The bank was rated as a tier one bank in the areas of corporate and social responsibility (CSR).

Not only that, but FirstBank also emerged as a market leader among the tier-one banks in the area of Environmental, Social and Governance (ESG).

In the area of corporate banking and digital solution, FirstBank was highly regarded while it was crowned as a notable player in SME Banking for the period under review.

FirstBank was named “Best Bank Brand in Nigeria” for six years in a row – 2011 to 2016 – by The Banker magazine of the Financial Times Group; it was awarded “Most Innovative Bank in Africa” in the EMEA Finance African Banking Awards 2014; it has clinched the “Best Bank in Nigeria” award by Global Finance Magazine 15 times and the “Best Private Bank in Nigeria” by World Finance Magazine seven times. Some other recent awards received by the Bank are “Best Banking Brand Nigeria, 2019” by Global Brands Magazine; “Best Mobile Banking App – Nigeria, 2019” by Global Business Outlook and “Best Financial Inclusion Program – Nigeria, 2019 by International Investor.

In the words of FirstBank’s CEO, Dr Adesola Adeduntan, ‘what all these current ratings and recognitions demonstrate is that FirstBank is strongly back on course!  Knowing this is only the beginning of a new era of return to the trailblazing position and that better times lie ahead we encourage our customers and other stakeholders to keep believing and keep standing by us.’

Banking on Robust Customer Service Network

Through the last 128 years of its operations, FirstBank has played a leading role in utilising its robust customer service network and digital banking architecture to support its customers – cutting across diverse cultures, tribes and races beyond the shores of Nigeria – in meeting their individual and business needs.

First Bank of Nigeria Limited operates as a parent company, with the subsidiaries FBNBank in the Democratic Republic of Congo, Ghana, The Gambia, Guinea, Sierra Leone and Senegal; FBN Bank UK Limited in the United Kingdom with a branch in Paris; First Bank Representative Office in Beijing to capture trade-related business between geographies. FirstBank also operates First Pension Custodian Nigeria Limited, Nigeria’s foremost pension custodian. The teeming customers of the First Bank Group are serviced from a network of over 700 business locations across Africa.

Culled from ThisDay Newaspaper

Continue Reading
Advertisement

News and Report

Illegal buildings: Lagos is victim of its own development – Tokunbo Wahab

Published

on

By

The Lagos State Commissioner for Environment and Water Resources, Tokunbo Wahab said the recent crackdown and demolition of illegal structures across Lagos State was an indication that the state is a victim of its own development.

Wahab stated this in an interview with Arise Television on Sunday.

He said the government of Lagos State is not battering its citizens but is rather just a victim of its own development, and as such, everybody coming into the state has got to come in and be responsible and be able to be accounted for.

“The truth is that no matter what the government does, there is a state of mistrust between them and the citizens globally. It is a global thing. My response to this is we are not battering them. You can’t say you are under the bridge and you want us to account for you. It is not habitable at all. It is not about battering people that are under privileged, we can’t do that. But it is about taking ownership. Lagos is just a victim of its own development.”

Speaking on the incident that led to the recent demolition of the illegal under bridge structure at Dolphin Estate Ikoyi, the commissioner said a whistleblower alerted authorities about suspicious activities under the bridge and following the tip-off, investigations uncovered a network facilitating illegal tenancy arrangements, with individuals, including women and young people, being exploited.

“The past few weeks and months, the state made a policy that we shall reclaim all our ungoverned spaces and we started out with Ijora under bridge, under national theatre, from there we went to Apongbon, Obalende, then a whistleblower called our attention last week Wednesday, he said he was jogging and heard voices under the bridge. He didn’t even stop, he slowed down and peeped in, took a video and sent it to my social media handle.

“Right there and then, I had to inform the governor that something was happening there and that we had to go, and he approved and the rest they say is history. What is not history is the fact that we have declared the ringleader wanted because somebody somewhere has been collecting rent and giving out spaces to individuals, women, young people and we have said to him that the long hand of the law shall surely catch up with him, no matter how long it takes us.”

He said efforts are underway to repurpose these spaces for beneficial use.

“We are also trying to put these spaces to functional usage. We have an agency called Glass pack. The role of that agency is to put these ungoverned spaces to proper usage to citizens.

“The one at Ijora, a design has been approved and it’s a CSR by a Lagosian who believes we can turn it to a football pitch and have some other games in there. Obalende has been taken up by one of the biggest telecoms companies in the country, MTN and the design is already in the works. Same thing we are going to do for Apongbon and the Dolphin area.

“So, what we are saying to the citizens is, don’t be vulnerable, no matter how desperate you are. If you have the means to pay two hundred and fifty thousand naira for a small space under the bridge, you don’t have to be in Ikoyi, you can go and live outside the Island or where you can pay for rent for a decent accommodation.

“We were even there yesterday and it was very emotional. We saw three young kids and I spoke to my colleague in the ministry of youth and social development and I said to him to take them to our homes and I will be personally responsible for them from now till they are able to go to the University and graduate and that for me is the path and way to go as a State.

“We are profiling each one of the tenants. I am not the one that will perform that duty. The agency under which they were arrested is profiling them. With the profiling they are going to remove those that were just there and then take the criminal elements or suspects to court on Monday.”

Wahab said several notices were served prior to the demolition as well as engagements with major stakeholders.

“I don’t demolish properties; I remove contraventions on the right of way of the drainage system or the canal and with respect to Mende…in 2021, my predecessor in office served them a notice and they had engagements that ran into months and years.

“In November 2023, we called a stakeholders meeting, we served notices before then and even marked buildings on the right of way and they came to my office and we had a meeting, played the video and they did admit that they were on the right of way but however pleaded that we reduce the right of way.

“On the issue of notices, they have been served enough notices. We served in 2021, renewed again in 2023, that is about six months ago. In my first life, I was a lawyer and notices are the first of every activity and we have served them and I am sure of that.

“If they have a genuine claim, they have a means to ventilate that claim and that is the court of law. The executives have done what they believe is overriding public interest.”

On government plans to curb reemergence of illegal structures in the future, he called on citizens to collaborate by reporting illegal activities, emphasising that the collaboration will aid the government in being accountable for the people.

“We have ramped up the capacities of our enforcement units, so they have to start pinning down officers in every area where we have ungoverned spaces and then we are relying on the citizens to take ownership and trust the government to do the right thing in the sense that when you whistle blow, the government will take steps of actions.

“With respect to those people who have no business to be where they are staying, what we are trying to push back in Lagos here is for us to be able to account for everyone that is in this space. For the sake of the generality of our citizens, if you come in and you are staying under the bridge, how do we plan for your education, for your health and for our own infrastructure to take care of you. If you are under the bridge, nobody can make plans for you.”

 

Continue Reading

News and Report

Illegal buildings: Lagos is victim of its own development – Tokunbo Wahab

Published

on

By

The Lagos State Commissioner for Environment and Water Resources, Tokunbo Wahab said the recent crackdown and demolition of illegal structures across Lagos State was an indication that the state is a victim of its own development.

Wahab stated this in an interview with Arise Television on Sunday.

He said the government of Lagos State is not battering its citizens but is rather just a victim of its own development, and as such, everybody coming into the state has got to come in and be responsible and be able to be accounted for.

“The truth is that no matter what the government does, there is a state of mistrust between them and the citizens globally. It is a global thing. My response to this is we are not battering them. You can’t say you are under the bridge and you want us to account for you. It is not habitable at all. It is not about battering people that are under privileged, we can’t do that. But it is about taking ownership. Lagos is just a victim of its own development.”

Speaking on the incident that led to the recent demolition of the illegal under bridge structure at Dolphin Estate Ikoyi, the commissioner said a whistleblower alerted authorities about suspicious activities under the bridge and following the tip-off, investigations uncovered a network facilitating illegal tenancy arrangements, with individuals, including women and young people, being exploited.

“The past few weeks and months, the state made a policy that we shall reclaim all our ungoverned spaces and we started out with Ijora under bridge, under national theatre, from there we went to Apongbon, Obalende, then a whistleblower called our attention last week Wednesday, he said he was jogging and heard voices under the bridge. He didn’t even stop, he slowed down and peeped in, took a video and sent it to my social media handle.

“Right there and then, I had to inform the governor that something was happening there and that we had to go, and he approved and the rest they say is history. What is not history is the fact that we have declared the ringleader wanted because somebody somewhere has been collecting rent and giving out spaces to individuals, women, young people and we have said to him that the long hand of the law shall surely catch up with him, no matter how long it takes us.”

He said efforts are underway to repurpose these spaces for beneficial use.

“We are also trying to put these spaces to functional usage. We have an agency called Glass pack. The role of that agency is to put these ungoverned spaces to proper usage to citizens.

“The one at Ijora, a design has been approved and it’s a CSR by a Lagosian who believes we can turn it to a football pitch and have some other games in there. Obalende has been taken up by one of the biggest telecoms companies in the country, MTN and the design is already in the works. Same thing we are going to do for Apongbon and the Dolphin area.

“So, what we are saying to the citizens is, don’t be vulnerable, no matter how desperate you are. If you have the means to pay two hundred and fifty thousand naira for a small space under the bridge, you don’t have to be in Ikoyi, you can go and live outside the Island or where you can pay for rent for a decent accommodation.

“We were even there yesterday and it was very emotional. We saw three young kids and I spoke to my colleague in the ministry of youth and social development and I said to him to take them to our homes and I will be personally responsible for them from now till they are able to go to the University and graduate and that for me is the path and way to go as a State.

“We are profiling each one of the tenants. I am not the one that will perform that duty. The agency under which they were arrested is profiling them. With the profiling they are going to remove those that were just there and then take the criminal elements or suspects to court on Monday.”

Wahab said several notices were served prior to the demolition as well as engagements with major stakeholders.

“I don’t demolish properties; I remove contraventions on the right of way of the drainage system or the canal and with respect to Mende…in 2021, my predecessor in office served them a notice and they had engagements that ran into months and years.

“In November 2023, we called a stakeholders meeting, we served notices before then and even marked buildings on the right of way and they came to my office and we had a meeting, played the video and they did admit that they were on the right of way but however pleaded that we reduce the right of way.

“On the issue of notices, they have been served enough notices. We served in 2021, renewed again in 2023, that is about six months ago. In my first life, I was a lawyer and notices are the first of every activity and we have served them and I am sure of that.

“If they have a genuine claim, they have a means to ventilate that claim and that is the court of law. The executives have done what they believe is overriding public interest.”

On government plans to curb reemergence of illegal structures in the future, he called on citizens to collaborate by reporting illegal activities, emphasising that the collaboration will aid the government in being accountable for the people.

“We have ramped up the capacities of our enforcement units, so they have to start pinning down officers in every area where we have ungoverned spaces and then we are relying on the citizens to take ownership and trust the government to do the right thing in the sense that when you whistle blow, the government will take steps of actions.

“With respect to those people who have no business to be where they are staying, what we are trying to push back in Lagos here is for us to be able to account for everyone that is in this space. For the sake of the generality of our citizens, if you come in and you are staying under the bridge, how do we plan for your education, for your health and for our own infrastructure to take care of you. If you are under the bridge, nobody can make plans for you.”

 

Continue Reading

News and Report

80% of Lekki buildings have no approval, says LASG….

Published

on

By

Lagos State Commissioner for Physical Planning and Urban Development, Dr Oluyinka Olumide, stated that 80 per cent of buildings in Ibeju Lekki have no approval.

He disclosed this in a recent interview with newsmen.

He said, “Just last week Thursday and Friday, myself and the team were in the Ibeju Lekki and Epe axis and you would agree with me that anybody passing through that corridor would see a lot of estates marked. We went there, and I can tell you that from what we saw, over 80 per cent of them do not have approval.

“The procedure to get approval is first to get the planning information, as to what those areas have been zoned for. In this case, what we have is agricultural land, and people now go to their families to buy agricultural land. Of course, those lands would be sold because those families do not know the use such land would be put to.

“The next thing to do is the fence permit. If you missed the earlier information on not knowing the area zoning, at the point of getting the fence permit, you would be able to detect what the area is zoned for. After that, the layout permits a large expense of land follows.”

Olumide noted that a layout permit cannot be obtained if it is not zoned for the purpose it was designed for or for the purpose it was being requested.

“So, you can see all these layers, but people still go ahead to start advertising. Some have even gone to the extent of displaying the sizes they want to sell. Imagine someone in the diaspora who wants to send money without any knowledge. Then, no approval is eventually gotten. Even if they pass the assignment and the survey to them, we would not grant the individual permit, because that area is not zoned for that purpose,” the commissioner explained.

In the same vein, the Chief Executive Officer of Octo5 Holdings, Jide Odusolu, said Lekki Peninsula’s masterplan got distorted post-2010 due to rapid development, with newer estates sidestepping old regulations.

He said, “The Lekki peninsula had a master plan which was originally launched when Bola Tinubu was the governor and updated under Babatunde Fashola. Almost all large estates along the Lekki corridor, especially those developed between 2000-2008, have approved layout plans. It was obligatory and rigidly enforced by the state government.

“However, starting in 2010, the plans became distorted with accelerated development, and many of the smaller schemes that sprung up deliberately sought to avoid the large infrastructure burdens carried by the legacy era developments.

“I am sure investigations with developers such as UPDC (Pinnock Beach), Trojan Estate, Aircom (Northern Foreshore), Cityscape (Buenavista), Howard Roarks (Lake View) and Octo5 (Ocean Bay) will reveal how they all spent huge sums providing infrastructure with zero support from the government while still paying punitive taxes.”

According to Odusolu, the government weaponised planning and titling for internally generated revenue, and that disincentivises compliance, leading to chaotic development.

Meanwhile, the Managing Director of Fame at Oyster & Co. Nigeria, Femi Oyedele, said most of the estates had layout plans that were not coordinated to form a planned city.

He noted that the communities that were not planned were the historic settlements that the government excised in the scheme.

“To do Lekki better, those estates which have been approved on the west and east arterial roads, which go down to Awoyaya on the east side and to Akodo on the west side of Lekki-Epe Expressway, must be demolished to make way for the planned roads.

“The kind of restoration done to Abuja by Nasir El’Rufai must be done in Lekki. Lekki Peninsular and Victoria Island have a population of over 3 million people. Glasgow has a population of less than 2 million people with twice the roads of Lekki Peninsula,” he enunciated.

Continue Reading

Trending