Banking
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.
Banking
Millions of customers still stranded worldwide 24 hours after GT Bank online operations suffered attacks
By Yemie ADEOYE
GT Bank, one of Nigeria’s leading banks, with operations across Africa and the United kingdom, and with an asset base of about US$3.11 trillion is under a cyber attack which has left millions of its customers across the world stranded in the last 24 hours.
The bank which was renowned for its seamless online operations at inception has suffered dwindling online efficiency in recent years and this current attack didn’t come as a surprise to many of its numerous customers. However, it is becoming worrisome that over 24 hours after its online operations went down, the bank has not been able to arrest the situation and restore its online services.
Several customers of the bank took to their X (formerly known as twitter) handles to express their frustrations at the bank, as several of the customers in the diaspora are unable to access their accounts and carry on with their transactions. A customer , Jeff55 who lamented on his X handle about the development, stated that it is a thing of shock that a bank of this size couldn’t afford to have the necessary tools and experts to ensure a full protection of its online operations in this age and time.
Another customer Dimma stated that while Cybersecurity training may seem tedious, the recent #GTBank hack is a stark reminder that everyone is just a click away from a devastating attack.
Several media organisations had reported that hackers have stolen GT Bank website, and intercepted customers Data in massive phishing operation.
At the time of filing this report, Biztellers.com.ng checks on the banks website shows that it is still down and unaccessible, and neither GT Bank media and communications unit nor any of its agencies or surrogates have commented officially on the development.
Banking
Tinubu commends increased crude production to 1.61 mbpd
Says output surge buoyed by reforms he announced in May 2024 to address gaps in PIA
President Bola Ahmed Tinubu on Sunday declared a resurgence in the oil & gas industry, commending the increased crude production to 1.6 million barrels per day.
The president, who said this in a national broadcast, maintained that the resurgence was buoyed by the reforms he announced in May 2024 to address the gaps in the Petroleum Industry Act (PIA).
Nigeria’s crude oil output got a boost to 1.61 million barrels per day in July 2024 through the president’s directive and the industry leadership provided by the Nigerian National Petroleum Company Limited (NNPCL).
Acknowledging what he called a resurgence of the once-declining oil and gas industry in his Sunday-morning broadcast to the nation, President Tinubu said that oil investors are coming back to Nigeria.
He said; “Our once-declining oil and gas industry is experiencing a resurgence on the back of the reforms I announced in May 2024 to address the gaps in the Petroleum Industry Act. Last month, we increased our oil production to 1.61 million barrels per day, and our gas assets are receiving the attention they deserve. Investors are coming back, and we have already seen two Foreign Direct Investments signed of over half a billion dollars since then.
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“Fellow Nigerians, we are a country blessed with both oil and gas resources, but we met a country that had been dependent solely on oil-based petrol, neglecting its gas resources to power the economy.
We were also using our hard-earned foreign exchange to pay for and subsidise its use. To address this, we immediately launched our Compressed Natural Gas Initiative (CNG) to power our transportation economy and bring costs down.
This will save over two trillion Naira a month, being used to import PMS and AGO and free up our resources for more investment in healthcare and education.
“To this end, we will be distributing a million kits of extremely low or no cost to commercial vehicles that transport people and goods and who currently consume 80% of the imported PMS and AGO.
“We have started the distribution of conversion kits and the setting up of conversion centres across the country in conjunction with the private sector. We believe that this CNG initiative will reduce transportation costs by approximately 60 per cent and help to curb inflation.”
Banking
FBN Holdings On Course For AGM
Plans are in top gear for the 11th Annual General Meeting (AGM) of the FBN Holdings Plc.
The management made this disclosure in a notice it filed with the Nigerian Exchange Limited (NGX) on Thursday, where it averred that it has not been served with any court order against the proposed AGM.
According to notice, which was signed by the acting Company Secretary, Adewale Arogundade, FBN Holding said, “The attention of FBN Holdings Plc (the Company) has been drawn to recent media reports purporting that the Company has received a Court Order stopping it from holding the Annual General Meeting (AGM) scheduled for August 15, 2023.
“We confirm that this assertion is a false narrative as the Company has, as at the date hereof, not been served with any court order to stop the forthcoming AGM.
“Suffice to mention that the AGM is a statutory meeting of Shareholders that must be held in accordance with the law, further to which the Company will notify the regulators and the public as appropriate if there is any lawful order to restrain the Company from conducting same.
“We hereby assure our esteemed Shareholders that the AGM shall hold on August 15, 2023, as planned and we look forward to their attendance and active participation at the meeting.”
However, court orders published in national dailies showed that the Federal High Court in Lagos had issued an order against the financial institution, barring it from holding its 11th AGM.
The order was entered pursuant to a petition by Olusegun Onagoruwa, in suit No: FHC/L/CP/1271/2022. It was addressed to the bank and some other bank officials.
It read, “Take notice that unless you obey the directives in the judicial order contained in the order made on July 15, 2022, by the Federal High Court, Lagos, by refraining from proceeding with the 11th Annual General Meeting of FBN Holdings Limited proposed for August 15, 2023, from seeking approval to issue or raise share capital in any manner whatsoever, from appointing or confirming the appointment of new directors, or in any other manner taking any step towards implementing, actualising enforcing resolution of the 10th Annual General Meeting of FBN Holdings Plc held on June 20, 2022, or in any other manner overreaching, disobeying or undermining the said order of a court, you will be guilty of contempt of court and you will be liable to be committed to prison and to there imprisoned.”
Biztellers brought you a report that a segment of shareholders had staged a protest at the headquarters of the bank on Monday, calling for the AGM to be held, as well as soliciting regulatory interventions.
It is expected that at the AGM, FHN Holdings is poised to breathe life into plans to seek shareholders’ approval to raise N150bn fresh capital via a rights issue and elect new directors including billionaire, Femi Otedola and Samson Ariyibi among other resolutions.