FCMB, FinBank Merger, Now FCMB
This Effect took place on Monday, October 29, the two banks commenced operations under one brand – the FCMB brand with one group of staff who now share the same values. The larger entity has a combined customer base of about 2 million and a wider branch network of over 270 branches and 310 ATMS, the bank said in a statement on Wednesday.
An open statement signed by the bank’s Group Managing Director said “in simple terms, all FinBank account holders have become FCMB account holders, all FinBank branches are now FCMB branches, and our 2 million customers can transact across any one of our 275 combined branches and other channels, effortlessly and in real time”.
The merger process began immediately after the acquisition and was subject to approvals from shareholders of both banks, the Securities & Exchange Commission and the Federal High Court, all of which have now been received.
According to the statement, the successful integration of FinBank marks a pivotal moment in the life of FCMB. It creates a robust and durable platform for the larger bank to attain its immediate and future goals and pursue strategy that will enable the bank to provide a more convenient customer experience through a wider branch network and access to convenient services through alternate banking channels.
“FCMB as it is today will deliver significant benefits to all stakeholders. Customers, particularly in the retail segment will have improved access to credit facilities, whilst staff will have broader opportunities through a wider range of career options. This merger has allowed the platform to create a more profitable balance sheet and improved return on equity for shareholders,” the statement added.
Speaking on the merger, the Integration Director, Mr. Patrick Iyamabo said “Our vision is to be the premier financial services group of African origin. This, we will achieve through a combination of unquestionable ethics, exceptional service, accessible and affordable products. Delivery to the bank’s long term strategy will be the focus of the management team.
Now that we have gone through the process of integration, our key stakeholders will benefit from the value that is created. Our customers will have improved access to transactional banking through more focussed products across the banking divisions. Employees of FCMB will be part of a great company that provides solid career aspirations and shareholders will see an improvement in their returns- this merger will deliver a return on capital in excess of 20% in the medium term”.
Mr Iyamabo explained that the merger represents FCMB’s role in the next chapter of bringing transformational change and a sustainable banking platform to Nigeria’s banking industry.
“The merger is a representation of our ambition to play an inclusive role in transforming the landscape of the Nigerian banking sector. While it will be value accretive, it will allow us to invest in Nigeria’s economic upswing and benefit from the expansion of the middle and mass market that our country continues to experience” he also said.
The bank’s journey began in 1982 as First City Merchant Bank and as the first Nigerian bank to be established without government or foreign support. FCMB enjoyed unparalleled success as a merchant bank – by the end of the last decade it was one of the top two most profitable merchant banks in the country. After 18 successful years in investment banking, the bank got a universal banking licence, opening its doors to retail customers in 2001 as First City Monument Bank.
FCMB was listed on the Nigerian Stock Exchange in December 2004, raising over N16 billion. Throughout the consolidation of the Nigerian banking sector, FCMB has continued to protect and grow its capital base. Between its listing and the current merger with FinBank, FCMB has acquired three banks and is one of 25 banks to emerge from the consolidation of the Nigerian banking sector.