FCMB Certified as a ‘Great Place to Work’
Committed to Human Capital development, First City Monument Bank (FCMB) announced today that it has been certified as a great place to work by the independent analysts at Great Place to Work Institute, a global research firm, which produces the Fortune 100 Best Companies to Work For list and other top employer rankings. Great Place to Work surveys were sent to a random cross section of FCMB employees, and 84% agreed that the Bank is a great workplace, with majority saying they take pride in working for the organization. The certificate was presented to FCMB by GPTW Institute Africa at a ceremony on February 27, 2018 in Lagos.
Commenting on the certification, the Managing Director/Chief Executive of FCMB, Mr. Adam Nuru expressed delight at the recognition. According to him, “our employees are at the heart of FCMB’s mission. Creating an enabling environment where employees can pursue their career goals and thrive, while providing the best customer experience to our customers, and supporting the communities where we operate, have remained key priorities for us’’. Also speaking at the certificate presentation ceremony, the Senior Vice President and Divisional Head, Corporate Services, FCMB, Felicia Obozuwa, added that, “we want our employees to love working here, so we try to create the type of work environment that positively impacts our employees’ personal and professional lives. When looking for a company to work for, we have found that it is not all about salary anymore. People want to know that their work is valued, the opportunities for upward mobility, the training made available to learn new skills, they want to know that you have a strong supportive culture, their work will be challenging, and they will work with supervisors that motivate and inspire them. These are the areas we have focused our attention on over the years’’.
She further stated that, ‘’FCMB employees are the most dedicated, smart and hardworking. So, we support our people by creating an inclusive, respectful, high performance culture, bringing different perspective to bear, and making everyone feel valued’’. GPTW institute is a Global research firm that assess companies, based on a trust index survey (employees’ opinion about the workplace) and culture audit (management policies and practices), with the overall objective to promote excellence in the work place. The Institute operates in 50 countries, including Nigeria.
The certification of FCMB as a Great Place To Work follows an assessment exercise and an independent survey carried out by the Institute last year. The independent analysts looked in-depth at the Bank’s operation and found key strength in many areas. The survey showed that majority of FCMB’s employees took pride in their work and valued its supportive atmosphere, rewards and challenges associated with being part of the organisation. Among other parameters employees of FCMB rated the Bank highly in, include work-life balance, training and development, and celebration of good work. The employee survey responses revealed how well the Bank balances the needs of its diverse workforce, such as career management through a self-service career portal, mentoring programmes, talent development programmes, professional development opportunities, good medical support, employee health week providing nutrition advice, free health checks at branches etc, telephone counselling services for personal issues, and policies/benefits to reduce the financial burden on expectant and nursing mothers, newly married employees, bereaved employees, and children education grants for long serving employees.
On his part, Mr Michael Tosin Oni, a Director at GPTW Nigeria explained that the Certificate was instituted to promote human capital development. He stated that FCMB has distinguished itself by creating a great place to work for employees, measured through our analysis of the results of our Trust Index survey and Culture Audit questionnaire. Through the Trust Index, employees anonymously assess their workplace, including the honesty and quality of communication by managers, degree of support for employees personal and professional lives and the authenticity of relationships with colleagues. While expressing appreciation for the recognition, Felicia Obozuwa stressed that, ‘’getting this certification for 2017/2018 is a step in our journey to build a great workplace culture that attracts and retains talent. Our goal is to make FCMB a truly Great Place to Work for every single employee that puts in their best here’’.
FCMB Commits to Growth of Media Industry, as Expert Projects Positive Outlook for Nigerian Economy
Nigerian media industry by empowering its practitioners with the requisite tools and knowledge that promotes the values of professionalism and ethics in the discharge of their duties. This, according to the Bank, is as a result of the critical role the media plays in national development. FCMB gave the assurance at an interactive and capacity building forum it organized for media executives and correspondents based in Abuja and the Northern Region on February 9, 2018. The forum had a foremost financial and media expert who is also the Chief Executive Officer of RTC Advisory Services Limited and lecturer at the Lagos Business School, Mr. Opeyemi Agbaje, as guest speaker.
In his address at the event, the Group Head, Corporate Affairs of FCMB, Mr. Diran Olojo, explained that it is part of the Bank’s initiatives to further promote excellence, build capacity of media practitioners, spur ideas, deepen relationships and appreciate their contributions over the years to the success of the Bank since its establishment 34 years ago. According to him, ‘’at FCMB we recognize the strategic importance and role of the media not just in promoting our business, but in the areas of agenda setting, providing solutions and dissemination of quality and balanced communication that drives national unity and development in a sustainable manner. As an institution anchored on the culture of excellence and professionalism, we will continue to champion and execute initiatives that would assist the Nigerian media industry and journalists perform optimally as the fourth estate of the realm and key influencers. We therefore urge our media practitioners to reinvent themselves and expand the frontiers of their knowledge by adopting innovative skills that would help them meet the dynamics of the profession while upholding due diligence and ethics that conform with global best practices’’.
Mr. Olojo told the gathering that as an inclusive lender, FCMB will continue to offer and deliver cutting edge solutions that provide the best customer experience. He added that the Bank is resilient and focused on sustaining the momentum of its position as a top financial institution by supporting initiatives that would enhance the growth and achievement of the personal and business aspirations of its customers as well as the overall prosperity of Nigeria. In his paper titled, ‘’The Nigerian Economy and Financial Sector in 2018’’, the guest speaker at the media parley, Mr. Agbaje, observed that having overcome the recession in some critical areas, things were looking up for the nation’s economy going by the positive signals shown by several macroeconomic indicators, such as stable exchange rates, growing foreign reserves and inflation. The former Senior Banker however noted that, “there are a couple of areas of the economy – the non-oil economic sectors that require more passionate attention. They include the manufacturing, employment and the domestic food sectors. In addition, there are also a few fuel subsidy concerns. A lot of cleaning up is going on in the financial sector while portfolios and profitability are improving. From a number of indications, the economy should record incremental improvements in 2018, over 2017. However, the recovery is mainly powered by the oil sector. It is also imperative for our economic system to be skewed towards an investment-led growth strategy to facilitate sustainable development across all sectors’’.
Mr. Agbaje, a one-time Chairman of Convention on Business Integrity, also urged the media to brace up to the challenges of the profession by playing more active roles in not just reporting activities, but serving as a compass to society. He added that it is the responsibility of media practitioners to ensure diligence, ethics, fairness and professionalism in the discharge of their duties in order to promote peace, understanding and progress. Over the years, FCMB has organised series of initiatives to empower and build the capacity of the media industry. For instance, the Bank in 2016 hosted financial journalists to a parley under the theme ‘’Raising the Bar’’, which had the Chief Executive of Corporate Shepherds Limited, Mr. Idorenyen Enang, as guest speaker. In 2015, it organised a similar capacity building programme for journalists in the new media. Among the guest speakers was an international journalist, Mr. Inigo Gilimore, who spoke on the topic, ‘’Stimulating Responsible New Media Journalism: A Pathway to International Recognition’’.
In addition, FCMB in 2014 brought together media executives to a training programme on, “Sustainable Banking in Nigeria: The Role of the Media”. The session had theManaging Director of UK-based Sustainable Finance Advisory Limited, Carey Bohjanen, as guest speaker. First City Monument Bank (FCMB) is a member of FCMB Group Plc, which is one of the leading financial services institutions in Nigeria with subsidiaries that are market leaders in their respective segments.
FCMB Excites Nigerians with Banking on Love Campaign
First City Monument Bank (FCMB) is set to motivate about 100 customers among its youth segment with cash rewards, other exciting prizes and engagements to commemorate this year’s Valentine’s celebration. In its annual campaign tagged, “Banking on Love”, the lender said many young and even some older people view the February 14th Valentine Day celebration as solely defined by the day’s activities with their chosen partners and loved ones.
Today, First City Monument Bank (FCMB) Limited thinks differently. The Bank, speaking through its Head of Corporate Affairs, Mr. Diran Olojo, enjoined the youth to see love as a virtue that is all encompassing. FCMB said love is more about care, giving, commitment, passion, trust and responsibility for the comfort, protection, security and happiness of the next person with an open mind and genuiness of purpose. He stated that the position further goes to define some of the activities engaged in by the Bank which pays close attention to many segments of the Nigerian society. According to Mr. Olojo, “at FCMB, it is not all about business at all times. There is a strong propelling philosophy which also drives us to be concerned about the best way to positively affect our immediate environment. How best to reach and impact the less-privileged. We always think about the best strategies to adopt to help the needy people in our society. We care about the orphans, the widows, the aged people, our youths and the internally displaced persons (IDPs) who have been affected by insurgency, man-made and other natural disasters. We believe one of the positive outcomes of sound corporate governance, is impacting positively on lives and communities in Nigeria. Indeed, as businesses act responsively and boost their performance indices, they should also devote a part of their income to giving back to the society by engaging in various life-changing activities. At FCMB, we have been guided’’. This year’s Banking on Love campaign will include cash awards and some giveaways to many youth customers during and after Valentine celebration, a global event that climaxes on February 14th. N10,000 each is being given to 25 young people every week, throughout February, the month of Love. To be eligible to win, customers are required to carry out transactions with their cards that add-up to at least N5,000 in a week. Winners will be announced weekly.
The Flexx account is FCMB’s youth-centric banking product targeted at young people who are actively seeking platforms that allow them express their uniqueness, while building skills for financial success. This is summarized in the description of Flexx as, “An app, a card, an account”, which gives account holders the freedom to bank on the go, using the Flexx Mobile App. FCMB’s Executive Director, Retail Banking, Mr. Olu Akanmu while responding to an inquiry said, “Flexx is more than an account. It is a lifestyle platform that offers the customer experience centred around Fun, Future and Banking. FCMB serves this platform through digital channels that fit into the lifestyle of the Flexx target market which include the Mobile App, a Microsite and an Online Account Opening platform, all of which enable a potential Flexx customer open an account with FCMB without having to visit a branch″.
In a bid to define love beyond the euphoria of the moment, FCMB said the Bank is aware of the challenges faced by people and the society. It was for this reason that it consciously chose to bring hope and smiles to the people and communities. The Bank extended its hand of benevolence to internally displaced women in Maiduguri, Bornu State by providing training and financial support to 100 of them to start any small-scale businesses of their choice. The financial institution also organised skill acquisition and other capacity building programmes for the beneficiaries. FCMB’s intervention in economic empowerment is seen in its partnership with Wecyclers, an award winning company involved in recycling, on a waste-to-wealth franchise scheme. Through this collaboration, the Bank is helping to tackle the challenge of waste management by deploying an innovative recycling project aimed at job and wealth creation, while promoting health and sanitation. To further deepen the project, FCMB has put in place a monthly reward scheme for top recyclers. The first batch of winners emerged in May, 2017 and have been presented with their prizes. FCMB’s economic empowerment CSR activities have also impacted on youths. The Bank has instituted a capacity building programme for youths, tagged “Empowered for the Future”. The initiative focuses on peer-to-peer economic empowerment, sexual and reproductive health promotion for in- and out-of-school adolescents. It commenced with 50 youths who were trained on various aspects of human development. The beneficiaries are expected to reach out to 750 peers over a one-year period, with focus on financial literacy, skill acquisition, sexual and reproductive health, while undergoing vocational training, job shadowing and knowledge building programmes. Another of FCMB’s expression of real love is its Priceless Gift of Sight programme. The Bank has been sponsoring this project since 2009 in partnership with the Tulsi Chanrai Foundation (TCF), a Nigerian-Indian Non-Governmental Organisation (NGO). The programme involves eye screening tests, full ophthalmic medical examination, eye surgeries, provision of free medication, eye glasses and counselling for those suffering from cataract, an eye defect that could lead to blindness if not promptly treated. Over 100,000 people across Nigeria have so far benefited from it since the Bank took up the sponsorship 9 years ago. In 2017, FCMB also sponsored 500 eye surgeries in Kebbi, Cross Rivers and Imo states, while more than a thousand people underwent the screening for cataract during the programme. The 2018 programme nationwide is currently being planned. The Bank has previously carried out the programme in Katsina, Adamawa and Ogun states. To FCMB, this is love in action and not just words.
FCAM’s Legacy Short Maturity (NGN) Fund Holds AGM … Fund Returns 12.99% in Fund Year-ended 30 June, 2017
Unitholders of Legacy Short Maturity (NGN) Fund, a mutual fund managed by First City Asset Management Limited (FCAM), converged in Lagos on January 8, 2018 for the Annual General Meeting (AGM) of the Fund. FCAM is the wealth and investment management arm of FCMB Group Plc, one of Nigeria’s leading financial institutions. At the meeting, the unitholders approved the financial statements of the Fund for the year ended June 30, 2017, while also applauding it for generating returns of 12.99% despite the challenging operating environment. They also unanimously endorsed the payment of a dividend of 11kobo per unit as well as the name change of the Fund from Legacy Short Maturity (NGN) Fund to Legacy Debt Fund, among other resolutions passed at the meeting.
In the audited results for the year ended June 30, 2017, Legacy Short Maturity (NGN) Fund recorded a profit after tax of N100.487million, as against N50.343 million realised in the previous Fund Year. In addition, total revenue generated by the Fund rose from N63.422 million, to N119.005 million.
Speaking on the performance of the Legacy Short Maturity (NGN) Fund at the AGM, the Chief Executive Officer of First City Asset Management Limited, FCAM), Mr. James Ilori, stated that although the return of 12.99% was lower than the 16.82% return of the Fund’s benchmark, the Fund carried significantly lower interest rate risk relative to its benchmark. Also, the Fund’s risk-rating was upgraded by Agusto & Co. Fund performance is expected to improve significantly in the new Fund year.
The Legacy Short Maturity (NGN) Fund seeks to preserve capital and generate consistent income for unit holders. The Fund pursues its investment objectives by investing in high quality, Naira-denominated Money Market Instruments and short maturity bonds rated by a Securities & Exchange Commission (SEC) registered credit rating agency. Trading and Settlement is done on a best execution basis. In addition, the Fund is highly liquid and well diversified. Proceeds to investors, at the point of exiting the Fund, are tax free the Legacy Short Maturity (NGN) Fund rating was, in December 2017, upgraded by two notches, from BBB+(f) to A(f), by Agusto & Co, the foremost pan-African rating agency. The higher rating of A(f) indicates that Legacy Short Maturity (NGN) Fund has a low to moderate exposure to downside risk (impairment to the net asset value) in the medium term. According to Agusto & Co, the new rating was on account of the Fund’s good quality assets, adequate liquidity management strategies, conservative approach to credit risk & enhanced risk management, and zero currency risk exposure.
In addition, the rating agency stated that interest rate risk in the Fund was moderate in the short term, and that the Fund has a high quality portfolio management team with over 18 years’ experience across various financial fields. FCAM, a subsidiary of FCMB Group Plc, provides services that cut-across collective investment schemes such as mutual funds, which are predominantly for retail investors, as well as specialised discretionary portfolio management, for ultra-high and high networth individuals and institutional investors. The company has consistently focused on delivering superior wealth and investment management services, aimed at meeting investors’ desire for safety of investments and good returns. In October 2017, Legacy Short Maturity (NGN) Fund was nominated for “Best Fixed Income Fund” and Legacy Equity Fund won the award of ‘’Best Managed Fund in Equity’’, at the BusinessDay Banking Awards. FCAM’s market counterparties include CSL Stockbrokers Limited and First City Monument Bank Limited.
Legacy Pension Managers reorganizes Board.
Lagos: January 8, 2018 – The appointments of Mr. Balogun and James Ilori to the Board of Legacy Pension Managers (“Legacy Pensions”) come in the wake of the acquisition by FCMB Group of 60 percent of the company, raising its interest to 88%. The Central Bank of Nigeria, the National Pension Commission, and the Securities and Exchange Commission approved the transaction in November 2017. The board appointments have also received the approval of the National Pension Commission. Legacy Pensions has over N230 billion assets under management, which grew by 22% in 2017. It has over 350,000 pension contributors, whom it serves from 48 locations across the country.
The new Chairman of Legacy Pensions, Mr. Balogun, was until March last year the Chief Executive Officer of First City Monument Bank (the retail and commercial banking subsidiary of FCMB Group). He has over 23 years’ experience in the financial services industries in Europe, the United States of America and Africa. Mr. Balogun also holds a Bachelor’s degree in Economics from the University of East Anglia, United Kingdom and a Masters in Business Administration (MBA) from Harvard Business School, United States of America. His appointment in 2007 as the Managing Director of First City Monument Bank Limited saw the transformation of FCMB from an investment bank to a prominent mid tier Nigerian commercial bank and financial services group. By 2017, the banking group had 10,000 employees and contract workers, 4.3 million customers, 200 branches and a banking subsidiary in the United Kingdom. During this period, FCMB also birthed what became the country’s leading micro-lending institution, Credit Direct Limited. Mr. Balogun now runs FCMB’s holding company: FCMB Group plc.
Mr. Balogun serves on the board of several FCMB Group companies and chairs the board of Credit Direct Limited. Mr. Balogun also serves as Chairman of Tenet Investment Company, a private equity investment firm, focused on the food and agri-business value chain in West Africa.
Mr. James Ilori on the other hand has vast experience in Research, Business Development, Risk Management, and all areas of the investment decision-making process acquired from leading organisations in Nigeria and the United Kingdom. Before his appointment as the Chief Executive Officer of First City Asset Management (FCAM) in 2014, he worked as a fixed income fund manager with Crown Agents Investment Management in the United Kingdom.
Mr. Ilori, who is a CFA Charter holder, has successfully propelled FCAM to become a top-rated wealth management company. It provides services that cut-across collective investment schemes such as mutual funds and investment plans predominantly for retail investors, as well as specialised discretionary portfolio management, for high net-worth individuals and institutional investors, within and outside Nigeria. Mr. Ilori will also serve on Legacy’s investment committee as the pension fund manager seeks to continue its strong investment performance track record, whilst diversifying its portfolio.
The appointments signal Legacy Pension’s intent of tapping into the investment and distribution synergies that FCMB Group brings to Legacy Pensions. Analysts anticipate that the company will be better positioned to grow its market share, compete effectively, and also fulfill its ambition of bringing pension savings to Nigeria’s vast informal market. The company will leverage on the network and pedigree of FCMB Group Plc and its subsidiaries, which include First City Monument Bank Limited, FCMB Capital Markets, CSL Stockbrokers Limited, CSL Trustees Limited, First City Asset Management Limited, FCMB Microfinance Limited and now, Legacy Pension Managers Limited.
FCMB Millionaire Promo Season 4 Ends with Excitement as Customers Win Big
First City Monument Bank (FCMB) Limited, through its reward scheme tagged ‘’FCMB Millionaire Promo Season 4’’, has rewarded and empowered a total of 2,576 of its customers within the eight months the promo ran. This was disclosed at the grand finale draws of the promo which took place at the four Regions and 25 Zones of the Bank across Nigeria on Thursday, November 30, 2017. The promo which targeted all existing savings account customers of FCMB with monthly account balance ranging from N10,000.00 to N50,000.00 was designed to give extra value and empowerment to customers of the Bank, while encouraging financial inclusion and savings culture. It was also a part of various initiatives of the lender to enhance customer experience and reward them for their loyalty and patronage over the years. The first draw of the promo this year was held in May, followed by the second in July and the third in September. At each of the draws, 644 qualified customers won various gifts, including four of them who smiled home with N1million each.
At the colourful and exciting grand finale draws ceremony witnessed by thousands of people, including customers of the Bank and officials of regulatory bodies, another set of 644 customers emerged as winners. While four lucky customers were each rewarded with the star prize of N2million, a total of 640 other account holders smiled home with LED television sets, generating sets, decoders, tablets, smart phones and other consolation prizes, at the end of the electronic selection exercise.
Adelagun Mary won the star prize of N2million at the Lagos regional draws, while Musa Ele won the same amount at the Abuja & North region. In addition, Chika Anaelechukwu emerged winner of N2million at the South-East/South-South draws, just as Adelaja George was rewarded with same amount, being the star prize winner at the South-west regional draws. The winners, customers and officials of the regulatory bodies commended FCMB for sustaining its empowerment and the support to the populace in the society. One of the winners of N2million Musa Ele expressed gratitude to the financial institution for being a true partner in progress. In an excitement-laden voice, he stated that, ‘’I am very grateful tp FCMB for coming-up this promo, because without it I will not have the opportunity to win this money. I am very grateful to FCMB and I believe the Bank will continue to help many people’’.
In his comment, the Zonal Co-ordinator of the National Lottery Regulatory Commission in Oyo State, Mr. Tayo Fasuhanmi, hailed the Bank for conducting the exercise with integrity. He stated that, ‘’FCMB followed due process from the beginning of the promo till the emergence of the various winners. We give commend the Bank for all it has done through this promo to empower Nigerians and bring happiness to the lives of customers’’. Speaking on the concluded promotion and its grand finale, the Executive Director, Retail Banking, Mr. Olu Akanmu, said FCMB had fulfilled the promise it made customers to reward those who participated and qualified for the promo during the four draws organised at the Bank’s various zones and regions nationwide.
According to him, ‘’one of the major objectives which characterised the promo was our commitment to drive financial inclusion and promote savings culture in the society, particularly the unbanked segment. I can boldly say, we achieved our aim, looking at the number of new to Bank customers recorded. May I once again thank all FCMB customers for their loyalty and belief in our financial institution and also congratulate all prize winners. I want to use this opportunity to reinstate our commitment to exceptional customer experience and excellent service delivery’’. Mr. Akanmu encouraged them to make wise use of their prizes, particularly the star prize winners and added that, ‘’FCMB promo is credible. The draws which took place in all the zones of FCMB across Nigeria, brought about winners emerging from every region, spreading across cities, towns and neigbourhoods all over the country. The FCMB franchise is strong across Nigeria with millions of customers doing their savings and banking transactions, using all our channels daily. We will continue to reward our customers for their patronage’’.
He further assured that FCMB will continue to offer the best in service and product offerings in line with its value as a simple, reliable and helpful financial institution. However, it was also confirmed that following positive feedback from customers and the general public, the Bank is making arrangements to launch FCMB Millionaire Promo Season 5 as soon as possible and the modalities may not be different from the previous seasons. First City Monument Bank (FCMB) Limited is a member of FCMB Group Plc, which is one of the leading financial services institutions in Nigeria with subsidiaries that are market leaders in their respective segments. Having successfully transformed to a retail and commercial banking-led group, FCMB expects to continue to distinguish itself by delivering exceptional services, while enhancing the growth and achievement of personal and business aspirations of its customers.
FCMB Group Completes 88.2% Acquisition of Legacy Pension Managers Limited with Completion Board Meeting
FCMB Group Plc has successfully completed the acquisition of an additional 60 percent equity stake in Legacy Pension Managers Limited (Legacy). The acquisition, which increases the holding company’s interest in the company from 28.2 percent to 88.2 percent, was concluded at the Completion Board Meeting of Legacy on Tuesday, November 21, 2017 in Abuja. The completion of the transaction follows the approvals of the Central Bank of Nigeria, the National Pension Commission, and the Securities and Exchange Commission. FCMB Group’s acquisition of Legacy is set to open a new vista of sustained growth for Legacy through the enhanced distribution and market presence.
Analysts have hailed the decision of FCMB Group to acquire majority stake in Legacy Pension as a significant development that would enhance the future performance of both organizations. They anticipate that Legacy Pension will be better positioned to grow its market share, compete effectively upon the onset of Retirement Savings Account portability, and also enter the micro-pensions segment in the informal market by leveraging on the network of First City Monument Bank, the retail and commercial banking arm of FCMB Group.
FCMB Group Plc’s subsidiaries include: First City Monument Bank Limited, FCMB Capital Markets, CSL Stockbrokers Limited, CSL Trustees Limited, First City Asset Management Limited, FCMB Microfinance Limited and now, Legacy Pension Managers Limited. FCMB Group has over 4.3 million customers and 204 branches in Nigeria and a banking subsidiary in the United Kingdom through FCMB Bank (UK) Limited (which is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA in the United Kingdom). Legacy Pension Managers Limited is licensed by the National Pension Commission, to carry on business as a Pension Fund Administrator (PFA). It has over N220 billion assets under management comprising, retirement savings accounts, retiree accounts as well as privately managed pension funds for institutions. It has over 350,000 pension contributors which it services from 48 locations across the country.
A Feature Story: PFAs as the Next Investment Destination, FCMB Group’s Example with Legacy Pension
Group Chief Executive (GCE) of FCMB Group Plc, Mr. Ladi Balogun
MD of Legacy Pension, Mr. Misbahu Yola
If a pension is deemed to be an invaluable source of income for the retired, and the Federal Government of Nigeria so motivated, introduced the Pension Reform Act of 2004, it should not be a surprise that within 13 years from inception, the pension industry has already risen to N6.02 trillion assets under management. The rate of growth is quite remarkable when compared to the 125-year-old Nigerian banking industry that stands at slightly over N30 trillion. Putting aside, the rapid growth of the sector, to what extent have the Pension Funds Administrators delivered on the expectations of their retiring beneficiaries? What stands out about Legacy Pension Limited? Why has FCMB Group Plc decided to increase its stake from 28.2% to over 88% equity holding in this pension firm?
Our guest Market Opinions Analyst, Emefu Ibeayoka, writing from Abuja, the Federal Capital Territory reflects on FCMB Group’s history from City Securities Limited and First City Merchant Bank to its current form of a diversified financial services group with its deep knowledge and experience in the investment space. The recent announcement on the floor of the NSE of its intention to increase participation in the pension industry seems a natural next step for the group as the pension industry is set to rival the banking sector in terms of size and economic importance over the next decade. The Pension Reform Act has restored discipline and trust for retirement savers. It has also limited employers’ pension liability and enhanced retirement benefits administration. No Pensioner has lost their savings due to mismanagement and the industry continues to grow at a healthy pace. A lot of this credit accrues to the National Pension Commission (Pencom). A cursory survey of stakeholders would probably score Nigeria’s pension reform and pension industry performance high. The only complaint seems to be coming from capital market operators and providers of infrastructure, that are clamouring for pension fund managers to allocate more of their resources to these sectors in need of further development. Looking at the volatility of our stock market and the challenges of power sector privatisation (due largely to non-cost reflective tariffs), we must commend the PFAs and their regulator that they have remained conservative in their investment strategy.
Further reports are quoted to reveal that in spite of the macro-economic headwinds experienced last year, the Nigeria Pension Industry’s AUM grew by 16%, one percent higher than growth in the previous year. Despite the contraction in monthly contributions, growth in AUM was largely driven by the higher yield offered in the fixed income market. Figures from May 2017, Nigeria Pension Industry Survey revealed 12.1% of respondents have decided to move to another PFA when the transfer window opens whilst 35.4% remain undecided. The level of competition amongst PFAs in Nigeria is set to intensify, with the opening of the transfer window and implementation of the Micro Pension Scheme (MPS). FCMB Group’s announced intention to acquire a super majority of Legacy Pension Limited will broaden its service offerings with the group already offering commercial and retail banking, investment banking, asset management, and trusteeship services. The successful completion of this transaction will bring FCMB Group’s shareholding in the company to 88.2%, thus becoming its largest shareholder. The development follows months of negotiations, regulatory reviews, approvals and pending final clearances of all relevant authorities. it is on record that FCMB Group Plc, which is a holding company, has one of the richest predigrees in financial services in Nigeria. The broadening of its holdings to include a controlling stake in a PFA will most certainly open a new vista of growth and stability to its income streams. The bank’s reported 4 million customers, 200+ branch network and strong digital presence are fertile grounds for the rapid growth of this new addition to its portfolio.
On the other hand, Legacy Pension Managers Limited, whilst being a conservative player with a strong presence in Abuja and the North has steadily grown its assets under management to over N220 billion. The company has maintained a strict investment policy and achieved decent returns since inception. Co-incidentally, FCMB Group’s equity mutual fund (known as the Legacy Equity Fund), won the BusinessDay Best Managed Fund (Equity Based) Award in October 2017, returning 52% year to date. It is expected that FCMB’s over 40 years of investment experience will complement and enhance Legacy Pension Managers proposition to existing and prospective customers. with the synergies from enhanced distribution and investment expertise, analysts have hailed the decision of FCMB Group to acquire majority stake in Legacy Pension Managers by describing it as a significant development that would not only shake up the pension industry, but also enhance the future performance of FCMB Group. Analysts anticipate that Legacy Pension Managers will be better positioned to grow its market share, compete effectively upon the onset of Retirement Savings Account portability, and also enter the micropensions segment in the informal market that will leverage the distribution and marketing muscle of a commercial bank within the group. These are interesting times for FCMB Group, Legacy Pension Managers and the pension industry as a whole.
Prepare Yourself for the Future Through Savings, FCMB Urges Youths
First City Monument Bank (FCMB) has tasked youths in Nigeria to key into the financial system by adopting savings culture and other financial management techniques that would help secure their future. The Bank made the clarion call at an outreach programme it organised for thousands of students in thirty secondary schools spread across the six geo-political zones in Nigeria to commemorate this year’s World Savings Day on October 31, 2017 The highly exciting and educative mentoring sessions, which are in line with FCMB’s Corporate Social Responsibility (CSR) and sustainability philosophy, were anchored by top executives of the Bank at the thirty schools. This is the second consecutive year the lender is carrying out this exercise in partnership with the Bankers’ Committee of the Central Bank of Nigeria (CBN), under the theme, ‘’Learn, Earn, Save’’. Last year, FCMB executed a similar programme in twelve schools nationwide.
The World Savings Day is aimed at teachingand reinforcing the key fundamentals of financial literacy, savings culture as well as entrepreneurial skills in theyouth. This is part of the Bank’s strategic contributions towards securing the future of young Nigerians by encouraging theadoption of savings and other financial management techniques at an early age to enhance their general well-being. Speaking during the mentoring session for students of Holy Child Girls College, Calabar in Cross River State, FCMB’s Manager, Calabar Road branch, Mr. Charles Emefiele, said that imbibing financial principles at an early age will go a long way to help students and young ones manage their resources effectively, appreciate how money works and how it can be channeled to productive ventures now and in the future. ‘’When you regularly put aside a portion of the money you are given or earn in a safe place that pays interest, this is what is known as savings. Saving money from early age guarantees financial independence, prudent management, planning and overall success of individuals and society’’, he explained. Mr. Emefiele further told the students that, ‘’the money saved should be placed in a financial institution for safekeeping and to earn interest on your money. This reduces the risk of spending, theft and gives your money the chance to grow’’.
Also mentoring the students of Government Science School in Lafia, Nasarawa State, the Manager, Lafia branch of FCMB, Mr. Ibrahim Ogah, pointed out that,‘’by being financially literate, students and indeed youths will be able to build capacity for future business endeavours, thereby securing their future and guaranteeing freedom from poverty’’. He advised the students to pass the message to their friends, parents and other family members. Commenting on the significance of FCMB’s involvement in the annual World Savings Day, the Group Head, Corporate Affairs of the Bank, Mr. Diran Olojo, said that it is an extension of its commitment to drive and deepen prudent and effective management of resources among the populace, especially youths. ‘’We want our young ones, who are the hope and future drivers of Nigeria, to understand and appreciate the importance of prudent management of resources and other initiatives that have the capacity to positively impact lives and by extension, the society. This is to ensure their financial security and independence in future’’, he added. Mr. Olojo assured that FCMB will sustain its support to the promotion of financial literacy and inclusion because, ‘’this is one of the most effective ways to build and empower a new community of Nigerians and a robust country through the very important initiative’’.
Over the years, FCMB has been actively involved in the efforts towards enhancing financial literacy and inclusion among various segments of the population by organising mentoring and capacity building programmes. The Bank has also raised the bar in this direction by donating various items to schools to boost teaching and learning. For instance, in 2016, the FCMB adopted Government Girls Secondary School, Akure in Ondo state and donated a power generating set to the school as part of the Financial Literacy Day. In 2015, the Bank organised a mentoring session for students of Girls College, Dala in Kano state. It used the opportunity of the programme to renovate and equip the school hall as part of measures to provide a conducive environment for the students. First City Monument Bank (FCMB) Limited is a member of FCMB Group Plc, which is one of the leading financial services institutions in Nigeria with subsidiaries that are market leaders in their respective segments. Having successfully transformed to a retail and commercial banking-led group, FCMB expects to continue to distinguish itself by delivering exceptional services, while enhancing the growth and achievement of the personal and business aspirations of its customers.
FCMB Group Plc Wins Big at BusinessDay Banking Awards
The number of awards in the kitty of FCMB Group Plc has received another boost. This is because, two of its subsidiaries, First City Monument Bank (FCMB) and First City Asset Management Limited (FCAM), have emerged as the, ‘’Most Improved Retail Bank in Nigeria’’ and ‘’Best Managed Fund in Equity’’, respectively, at this year’s BusinessDay Banking Awards held on October 14, 2017 in Lagos. In 2015, FCMB won the “Most Customer Friendly Bank” award at the BusinessDay Banking Awards. The latest development is a confirmation of the giant strides being recorded by FCMB Group and its subsidiaries in the Nigerian financial services industry. It is also a testimony that the various initiatives being driven by the subsidiaries in the areas of service, products offering, operations and value addition to enhance customer experience are yielding the desired results and appreciated. While First City Monument Bank (FCMB) is the retail, commercial and corporate banking arm of the Group, First City Asset Management Limited (FCAM) is the investment management services arm of CSL Stockbrokers Limited, another subsidiary of the Group.
The BusinessDay Banking Awards, organized annually by BusinessDay (Nigeria’s premier financial newspaper), identify, acknowledge and commend those who have contributed tremendously to the nation’s banking sector and the growth of the nation’s economy in each financial year. The Awards Committee employed qualitative and quantitative criteria in the process of identifying and selecting winners. The parameters used for the conferment of the awards on FCMB and FCAM include loan growth, loan/deposit ratio, capacity adequacy ratio, analysis of distribution of loans across sectors, return on average assets, performances across business segments, timely release of financial results and presence of investor/analyst’s presentation on corporate website. According to the organizers, FCMB was adjudged as the, ‘’Most Improved Retail Bank in Nigeria’’ as a result of its remarkable transformation from an investment bank to become a leader in the retail banking segment in less than 10 years. For instance, the Bank has increased the number of its branches nationwide to over 200, while its alternate channels provide prompt, secure and convenient banking services, among other benefits to millions of customers on the conferment of the award as ‘’Best Managed Fund in Equity’’ on FCAM, the committee said that the company’s flagship product, Legacy Equity Fund, had witnessed consistent growth in unit price and net asset value to become the best performing, predominantly equity-based mutual fund in Nigeria.
Speaking on the award, the Executive Director, Retail Banking of FCMB, Mr. Olu Akanmu, said, “we are proud to have come tops as the Most Improved Retail Bank in Nigeria at the 2017 edition of BusinessDay Banking Awards. This goes a long way to confirm our unequaled commitment in offering exceptional quality service to our teeming customers and the Nigerian public. Our retail banking capability enables us to offer excellent and value-added services to millions of Nigerians directly and indirectly, whilst also supporting their personal and business aspirations. We dedicate this award to our customers who have made FCMB what it is today’’.
Mr. Akanmu assured that, ‘’we will continue to expand our reach and upscale the simple, helpful and reliable banking services we are known for at all our touch points, which are driven by excellent technology and inclusive lending practices’’. On his part, the Chief Executive Officer of FCAM, Mr. James Ilori, said that, ‘’we dedicate this award to investors in Legacy Equity Fund, and thank them for believing in our ability to generate superior return for unit holders, safely. Legacy Equity Fund is a well-diversified portfolio of high quality stocks, with relatively lower volatility. The Fund seeks to achieve capital growth and generate stable income over the long-term, and is a good hedge against inflation’’.
He added that, “at FCAM, our team of skilful and internationally experienced investment professionals understand that products should always be matched with the investment objectives of investors. Our products, including Legacy Short Maturity (NGN) Fund, are designed with the investor in mind. We will continue to act in the best interest of our clients’’. FCMB has transformed itself over the last 10 years from Nigeria’s leading investment bank to a leading retail bank with a valuable franchise in this space. It has raised the bar in products and service offerings which resonates with the needs and lifestyles of the various socio-economic and demographic segments in Nigeria. The Bank acquires an average of 55,000 new customers and disburses 20,000 new loans monthly.
First City Asset Management Limited (FCAM), as an investment management company, provides services that cut-across collective investment schemes such as mutual funds and investment plans, which are predominantly for retail investors, as well as specialised discretionary portfolio management, for high networth individuals and institutional investors, within and outside Nigeria. FCAM has consistently focused on delivering superior wealth and investment management services, aimed at meeting investors’ desire for safety of investment and good return.