FBN Holdings moves to acquire merchant banking licence

FBN Holdings Plc says it is making arrangement to acquire a merchant banking licence through their Investment Banking and Management subsidiary.

FBN Holdings Group Chief Executive Officer Mr Bello Maccido made the announcement on Monday in Lagos at the company’s “Facts Behind the Figures” held at the Nigerian Stock Exchange (NSE).

The News Agency of Nigeria (NAN) quotes Maccido as saying that the anticipated banking diversification would enable the company to enhance project finance potential.

It will also enhamce access to the fixed income and foreign exchange trading market segment.

According to him, the initiative will strengthen the company’s funding base and boost the dividend accruable to the shareholders.

On the group’s 2014 to 2016 strategic plans, Maccido said that it would invest in its subsidiaries to drive growth and leverage contributions from the non-banking subsidiaries.

He said the company would ensure synergies and improved customer services within the group and increase cross-sales across the subsidiary companies.

Maccido also said that the company would commence general insurance business with the acquisition of Oasis Insurance Plc.

He said that FBN Holdings suffered an estimated revenue loss of N32.5 billion in 2013 due to regulatory policies.

Maccido identified the 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.

He also said that increase in the Asset Management Company of Nigeria (AMCON) levy from 0.3 per cent to 0.5 per cent of total assets affected the company’s revenue.

The chief executive officer said that the company paid N13.6 billion as AMCON levy in 2013 against N7.4 billion in 2012.

“The tough operating environment notwithstanding, the consolidated results for the group overall showed marginal growth across all the key indices buoyed by improving performance of our non-banking subsidiaries,” Maccido said.

He said that the company’s net interest income grew by 1.5 per cent to N230.12 billion against N226.61 billion achieved in 2012.

The growth of the group’s net income, he said, was due to improved performance of its non-banking subsidiaries.

He, however, said that its profit before tax declined by 2.8 per cent to N91.34 billion compared with N93.9 billion posted in 2012.

Its profit after tax stood at N70.63 billion against the N76.80 billion posted in 2012.

He also said that the commercial banking group posted a profit before tax of N87.46 billion, compared with N87.14 billion achieved in the preceding year.

Maccido said the banking group witnessed 8.9 per cent growth in gross earnings from N341.96 billion in 2012 to N372.56 billion within the period under review.

Earlier, the Chief Executive Officer of the NSE, Mr Oscar Onyema, commended FBN Holdings for their commitment in providing the market with investment driven information.

He said that FBN Holdings information on their activities had become an index for dealing members to assess the performance of other holdings, and especially the banking industry.

Onyema also said that contrary to other opinions, information provided by listed companies had become a major tool in examining economic policies of the nation. (NAN)