The Group Managing Director/Chief Executive Officer, First City Monument Bank (FCMB), Mr. Ladi Balogun, has revealed that the growth recorded by the bank in its recently released unaudited half year results for 2014 affirmed its growing market share.
This, according to the bank chief executive was also driven significantly by its expanding retail franchise, which he said had led to over 50,000 account openings by customers and 20,000 loans disbursement on a monthly basis.
Commenting on the results, a statement from the bank quoted Balogun to have said the quality of the financial institution’s earnings had been diversified.
Specifically, FCMB recorded five per cent in growth earnings despite regulatory policies such as the 75 per cent and 15 per cent cash reserve requirements in public sector and private sector deposits respectively between the second half of 2013 and first quarter of 2014.
Consequently, FCMB had to increase cash reserve on which it earned zero interest, from N55 billion as at June 2013 to N145 billion as at June 2014.
Balogun however acknowledged that the monetary policy measures were desirable for the economy at large as well as bank’s customers to help stabilise the exchange rate and also reduce the cost of performing banking transactions.
“The increased patronage is therefore gradually providing compensating income and we should see a much stronger growth in the second half relative to the same period prior year, as we believe things have now settled on the policy front,” he said.
Elaborating on the nature of FCMB’s investment banking under a holding company arrangement which the group now operates, the bank CEO reiterated that investment banking at FCMB is about helping to develop the economy on one hand while increasingly helping to preserve the wealth of the society on the other.
“Most importantly for our customers, the HoldCo structure allows us to earn a larger wallet share. We advise companies on how to raise capital across both the money market and the capital markets and we can participate in both.
“We saw this recently in the landmark Oando-Conoco Phillips transaction. We can also help individuals pay school fees and invest in long term investment plans to meet future educational expenses for dependents through our investment products. We get a complete view of the customer and we are working hard to ensure we become more relevant and helpful,” he added.
He emphasised that FCMB is currently expanding its asset management business, because it had recognised that as prosperity increases in Nigeria, it should be reinvested safely and professionally in the country.