FIRSTBANK MAINTAINS IMPRESSIVE PERFORMANCE, POSTS N238.53BN PBT IN Q1 2024

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

FBN Holdings Plc declared N238.53 billion profit before tax (PBT) in its unaudited first quarter (Q1) ended March 31, 2024 results, which was about 325.2percent growth from the N56.1 billion reported in Q1 ended March 31, 2023.

The Q1 2024 results was a reflection of 2023 impressive performance as one of the oldest banks in Nigeria sustained its fundamentals amid domestic and foreign challenges.  From its Q1 2024 profit & loss figures, the Group declared N208.1 billion profit, which was about 315.8 per cent compared with the N50.1 billion reported in Q1 2023.

The group announced N730.3 billion gross earnings in Q1 2024, which was an increase of 181.4 per cent from N259.5 billion in Q1 2023.

Amid hike in Monetary Policy Rate (MPR), the financial institution declared N455 billion interest income in Q1 2024, a growth of 153.3 per cent from N179.6 billion in Q1 2023, while interest expenses closed Q1 2024 at N226.42 billion, representing 234.1per cent increase from N67.76 billion reported in Q1 2023.

On the backdrop of a double-digit inflation rate, operating expenses moved from N111.2 billion in Q1 2023 to N212.80 billion reported in Q1 2024.

Total assets from the balance sheet position stood at N21.58 trillion as of March 2024, which was a 27.4 per cent increase from the N16.94 trillion recorded in 2022.

As FBNHoldings declared N8.42 trillion Customer loans & advances (Net) as of March 2024 from N6.36 trillion in 2023, full financial year, its customer deposits stood at N13.27 trillion as of March 2024, an increase of 24.4 per cent from N10.66 trillion reported in 2023 financial year.

The Group Managing Director, FBNHoldings, Nnamdi Okonkwo in a statement said, “FBNHoldings’ strong start to the year reinforces the confidence in achieving targets and delivering sustained value for our shareholders. “Our commitment to optimising the Group’s earnings capacity and maximising operational efficiencies has again delivered outstanding results.

“Underpinned by strong revenue growth and improved operational efficiency, our key financial metrics have shown significant improvement. Remarkably, gross earnings grew 181.4per cent to N730.3 billion, while profit before tax increased by 325.2per cent to N238.5 billion while our total assets increased by 27.4per cent in three months to N21.6 trillion.”

He added that the Group remained focused on its strategic initiatives towards further improving profitability, enhancing excellence in performance and surpassing stakeholders’ expectations.

However, the shareholding structure of FBNHoldings showed, the Group Chairman, Mr. Femi Otedola direct and indirect stake in the Group stood at 2,517,282,140 as of March 2024 from 1,999,342,376 March 2023.

The stock price of FBNHoldings closed March 27, 2024 at N21.1 per share on the floor of the Exchange.

Culled from ThisDay

ZENITH BANK TRANSFORMS AJOSE ADEOGUN ROUNDABOUT WITH STATE-OF-THE-ART DIGITAL DISPLAY

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Zenith Bank Plc, on Thursday, 30th May 2024, launched a state-of-the-art digital/LED screen at Ajose Adeogun Roundabout, solidifying its commitment to innovation and community engagement.

The monumental digital installation, an upgrade from its previous LED screen launched in 2013 at the same location, features a resolution of 3936×960 pixels compared to the previous 1024×256 pixels.

Measuring 6.4×6.4 metres, it represents a significant investment in enhancing the urban landscape while providing a dynamic platform for advertising, information dissemination, and public engagement. Positioned strategically at one of Lagos’ busiest intersections, the screen will captivate audiences with high-definition visuals and dynamic content.

Speaking during the launch, the outgoing Group Managing Director/Chief Executive of Zenith Bank Plc, Dr. Ebenezer Onyeagwu, expressed his delight in the landmark digital infrastructure and lauded the efforts of Institutional Quantum for facilitating the project. He remarked, “When the idea of upgrading this LED screen came up earlier this year, I was initially sceptical, believing our current standard was sufficient.

However, once presented with a graphic illustration of the proposed upgrade, I had no choice but to agree, asking, ‘How soon can we have this installed?’ I want to thank Quantum for their foresight and innovative spirit, which has resulted in this imposing and outstanding LED screen.

It has been about 13 years since we installed the old screen, and the transformation is remarkable. The previous screen had a resolution of 1024×256 pixels, while the new one boasts 3936×960 pixels—a 14-fold increase in resolution, density, and visual capabilities. The new screen offers a 3D effect, making it a live, illuminating, and exciting display that leaves a lasting impression on viewers.”

He added, “At Zenith, our focus is not solely on profit; we also prioritise community welfare. From its inception, Zenith has been a digitally-led organisation, a vision our Founder instilled. Our motto, ‘People, Technology, and Service,’ guides our actions. It’s not just about the messages we send but about the connections we create with people. This facility is captivating and enriching, creating bonds and attractions.”

Mr. Bardia Olowu, a representative of Institutional Quantum, also spoke, expressing gratitude to Zenith Bank’s management for their unwavering support. He said, “We at Institutional Quantum sincerely thank Zenith Bank, particularly Dr Ebenezer Onyeagwu, for his tremendous support over the years. We commend his innovative mindset, which consistently keeps Zenith at the forefront. We are proud to launch this 3D screen under his leadership.”

Designed to seamlessly blend with the urban environment, the digital/LED screen boasts advanced technology, ensuring optimal visibility day and night, regardless of weather conditions. From vibrant advertisements to holiday greetings, the screen will serve as a dynamic platform for communication and engagement.

Zenith Bank’s track record of excellent performance, especially in innovation and technology, has earned the brand numerous awards. These include being recognised as Best Bank in Nigeria for the fourth time in five years (2020 to 2022 and 2024) in the Global Finance World’s Best Banks Awards; Best Bank for Digital Solutions in Nigeria in the Euromoney Awards 2023; Best Commercial Bank, Nigeria; and Best Innovation in Retail Banking, Nigeria in the International Banker 2022 Banking Awards.

Fidelity Bank gets Highest Corporate Governance Rating on Stock Market

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

idelity Bank Plc complies with the highest corporate governance standards as the leading commercial bank adheres promptly to all full disclosure requirements and global best practices.

Fidelity Bank is awarded CG+, the highest rank under the Corporate Governance Rating System (CGRS), which screens quoted companies against prescribed best practices and standards.

A review of the latest compliance report showed that Fidelity Bank sustains its highest-ranking rating of CG+, with shareholders and market pundits commending the high corporate standards of the bank.

Head, Listings Regulation Department, NGX Regulation (NGXRegco), Mr. Godstime Iwenekhai, explained that the CGRS was designed to strengthen the governance structures of listed companies and provide a valid basis for discerning investors to differentiate between listed companies on the basis of their compliance with acceptable standards of corporate governance.

“In our view, corporate governance promotes ethical business practices, transparency and fair competition,” Iwenekhai said.

He pointed out that the special character combination “CG+” underlined compliance with best practices and highest corporate governance standards, which entitle the rated companies to special privileges at the stock market.

Corporate governance compliance at the stock market includes prompt submission of detailed operational results from period to period as required by the market rules, full disclosures of all material and regulated information and accurate rendition of reports and accounts.

Also, compliance includes ensuring that the company’s shares are not encumbered in a way that impinges on free float or number of shares available to the general investing public for efficient price discovery, compliance with all investor-protection safeguards in communication with shareholders and organizing statutory meetings as required among others.

The Nigerian Exchange (NGX) noted that compliance tracker was aimed at maintaining market integrity and protecting the investors, noting that listed companies are required to adhere to high disclosure standards.

“Financial information which is periodic disclosure and on-going material events disclosure should be released to NGX in a timely manner to enable it efficiently perform its function of maintaining an orderly market,” NGX stated, referencing some of the criteria for its corporate governance rating.

Market experts and shareholders agreed that corporate governance compliance is a major factor in deciding on investing in a public and the safety of such investment.

Managing Director, Arthur Steven Asset Management, Mr. Olatunde Amolegbe, said corporate governance compliance rating is “extremely important” as it indicates to the investing public the quality of compliance of a company to listing requirements.

“As you know, stock prices are driven primarily by available information and the NGX has a minimum level of disclosure expected of quoted companies. This disclosure helps the public make qualitative decisions as to the state or performance of the companies they are seeking to invest in. These markers are therefore the initial indicators as to whether the companies are meeting their disclosures and other regulatory obligations or not,” Amolegbe, a former president of Chartered Institute of Stockbrokers (CIS), said.

Managing Director, APT Securities & Funds, Mallam Garba Kurfi, said the corporate governance rating “shows the extent companies are in compliance with corporate governance”.

“High rating means very good in doing right thing timely while low rating discourages foreign investors from investing in such companies,” Kurfi, a leading market operator and member of the board of Securities and Exchange Commission (SEC), said.

Managing Director, HighCap Securities, Mr David Adonri, noted that “CG+ means excellent corporate governance rating”.

“When a company is organised and uphold good corporate governance, the benefit to stakeholders is maximized,” Adonri said.

Investors said its high corporate governance was one of the compelling reasons they chose to invest in Fidelity Bank.

President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar said Fidelity Bank has a very good corporate governance structure that reassures investors of the safety of their investments.

According to him, while the bank has good succession plan, the calibre of the independent non-executive directors on the board gives shareholders strong confidence of the kind of board oversight they will be expecting.

National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude, said Fidelity Bank’s impressive performance over the years had been built on good corporate governance.

“My appeal to the board is to continue to imbibe good corporate governance in order to sustain this growth,” Igbrude said.

National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs. Bisi Bakare, said Fidelity Bank has created a “very excellent impression” in the minds of shareholders.

According to her, the bank has continually showcased exemplary leadership with continuous impressive results, with successive growths over the past five years.

“Fidelity Bank is a very good bank that shareholders are very happy with their investments and we have never regretted buying into Fidelity Bank,” Bakare said.

National Coordinator, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie said good corporate governance was the cornerstone of Fidelity Bank’s sustained growth and impressive returns over the years.

“Fidelity Bank remains one of the best stocks that investors should look forward to invest in for better returns. I’m very optimistic of the bank’s healthy strong assets. With its good corporate governance and excellent customers’ service, there is every reason to hope for more promising future,” Okezie said.

The NGX tags defaulting companies for poor corporate governance and also applies various monetary and non-monetary sanctions, including fines ranging between N100,000 to N100 million, partial or full suspension of trading, naming and shaming with a red alert tag and compulsory delisting in extreme cases.