FCMB Targets Continued Growth In 2016 | Independent Newspapers Limited
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FCMB Targets Continued Growth In 2016

Posted: Jan 21, 2016 at 7:18 pm   /   by   /   comments (0)

FCMB Targets Continued Growth In 2016

By Bamidele Ogunwusi

FCMB Group Plc has stated that its subsidiaries, namely First City Monument Bank (FCMB) Limited, FCMB Capital Markets Limited and CSL Stockbrokers Limited, are well positioned to grow strongly this year.

The holding company added that the subsidiaries would also deepen the financial services support they provide to customers and the nation at large with their array of products and bespoke solutions to further enhance customer experience in their respective target markets.

In a statement, the Managing Director of FCMB Group Plc, Mr. Peter Obaseki, said, ‘’2016 will be characterised by continued growth in retail contribution, stabilisation of wholesale banking revenues and increased focus on cost efficiencies’’.

He added that the retail banking business of the Group, which is driven by First City Monument Bank (FCMB) Limited, has continued to, ‘’show greater resilience and earnings momentum over the years’’.

Obaseki disclosed that FCMB Group Plc would in the fourth week of January this year announce the completion of the banking subsidiary’s interim audit, which should pave way for the release of the 3Q15 earnings results of FCMB Group Plc.

According to him,  “Third Quarter 2015 earnings as at September 2015, will be materially below earnings for the same period in 2014, due to two factors:  a spike in impairments particularly in the energy sector and the significant reduction in trade finance-related revenues due to foreign exchange illiquidity.

“This trend continued in Fourth Quarter 2015 and largely emanated from wholesale banking activities’’.

He further stated that, ‘’we will increase focus on cost efficiencies (opex, funding and risk) in order to restore earnings levels”.

FCMB Group, as a holding company, is one of the dominant players in the Nigerian financial landscape with subsidiaries that are market leaders in their niche segments.

First City Monument Bank (FCMB) Limited, which is the flagship of the Group, has evolved to emerge as the largest retail lender in the country, granting over 278,000 loans a year, while also providing the necessary financial support to other activities.

Commenting on the growth recorded by the bank over the years and its aspirations, the Group Managing Director/Chief Executive Officer of the Bank, Mr. Ladi Balogun, said, ‘’we will continue to do the things we are doing well; driving low cost deposit growth, in order to bring down the cost of funds, through increased acquisition and collections.

“We will also continue to raise our performance in customer service by building a vibrant, credible and relevant banking brand that everyone wants to bank with. Overall, we are confident this progress and momentum will be sustained, as we continue to grow our market share through service excellence while improving our efficiency ratios’’.

One of the Group’s subsidiaries, FCMB Capital Markets Limited is rated as one of the top-leading investment and advisory firms across diverse sectors of the Nigerian economy, including oil & gas, power, commercial real estate, financial services, consumer goods and telecommunications. Its services include, but are not limited to financial advisory, debt and equity capital raising (including initial public offerings), mergers and acquisitions, project and structured finance.

The company has been involved in landmark transactions in Nigeria over the past three decades; combining innovative advice and proven execution skills, to domestic and multinational clients. For instance FCMB Capital Markets was the sole arranger for the Naira equivalent of US$150 million finance facility for the ongoing 1,120 megawatts Azura-Edo Independent Power Plant in Edo state which is expected to begin producing electricity in early 2017. FCMB Capital Markets has won several laurels, which includes the ”Best Local Investment Bank in Nigeria” at the 2014 African Banking Awards, organised by EMEA Finance.

CSL Stockbrokers (CSLS) Limited, the third subsidiary in the FCMB Group, has over 30 years operating history on the Nigeria Stock Exchange (NSE) and is among the top three stockbroking firms. It provides institutional and corporate brokerage services to investors and select issuers. At the heart of CSLS is a robust research platform which supports local and international investors who desire in-depth coverage of the Nigerian capital markets and the economy as a whole. The firm’s brokerage platform is accessible through its offices in Lagos, London, and New York.