By Ishaya Ibrahim
First Bank does not just have an elephant as its logo, it is elephantine on the Nigerian banking landscape it has bestrode for 125 years.
It is well placed in all indices used for evaluating a bank’s health.
Bankers Magazine in 2017 named it the second biggest bank in Nigeria, the 12th in Africa. In its 2018 edition, the magazine rated First Bank third in Nigeria, 16th in Africa.
“Nigerian banks are held down by the slow economic growth,” says Pita Ochai, a financial analyst.
Investment banker, broker and Managing Director of Business Hallmark, Teslim Shitta-Bey, adds that the vagaries of the Nigerian economy make it laudable to celebrate a bank that has been consistent since 1894.
“The most recent growth for GDP is 1.95 per cent, which means there was just an increase of 0.05 per cent, which is just five basis point.
“Five basis point growth is slow. We have seen countries doing eight per cent growth like Ghana,” he argued.
“Smaller African countries do 6 and 8 per cent growth and our economy is just doing less than 2 per cent, not forgetting the fact that the population is growing at 3 per cent.
“The service sector, which is a key driver of economic growth, has slowed significantly. The service sector produces a lot of the employment we are talking about. But it is still in recession.”
Despite sluggish economic growth, First Bank is consistent in other indicators, weathering the many storms that have consumed its peers.
In 2018, its total assets stood at N5.4 trillion, the second biggest in Nigeria. Customer deposit was N3.2 trillion, the largest in the country.
Moody, one of the world’s leading rating agencies, in October 2018 rated First Bank ‘stable’.
First Bank, knowing that over 90 per cent of businesses in Nigeria are small and medium scale enterprises (SMEs), developed an initiative to support this sector.
Tagged ‘SMECONNECT’, the initiative aims at lifting struggling businesses with ideas and funding.
First Bank Chairman, Ibukun Awosika, stressed at the launch of the second edition on August 2, 2018 that “the issue of unemployment of a huge population of young people is not going to be solved by the biggest corporates in Nigeria … it’s going to be solved by the SMEs.”
Looking into another 125 years, First Bank may be hoping to have the capacity to bankroll the kind of projects for which the Nigerian government goes abroad to seek funding.
Since 2013 the government has borrowed $3.1 billion for railway and airport projects from Chinese banks.
Ochai explained that the capacity for a Nigerian bank to fund such huge projects is possible only if the economy itself is that expansive.
“Banks become stronger and able to fund big projects if the economy is big enough. But for now, the Nigerian government has to look abroad because if they borrow from the local banks, interest on loans will spiral out of control, which is what we do not want,” he said.
First Bank is the oldest Nigerian Bank. It has more than 760 branches, and is the biggest employer in the financial sector with more than 7,000 work-force.
It has won numerous awards back-to-back for decades, such as Best Trade Finance Bank, and Best Foreign Exchange Bank awarded by Global Finance magazine.
Among other numerous accolades is Best Bank in Nigeria awarded by EMEA Finance magazine for four consecutive years.
Journey of 125 years
Modern banking began in Nigeria in 1894 with the establishment of Bank for British West Africa, now called First Bank Nigeria.
In the past five decades, the banking industry has contended with unprofessional acts by most bankers which have shown banks a better way of doing business.
However, new entrants hardly survive after being hit by the virus of bank distress. This robs depositors of savings in distressed banks.
Before the Central Bank of Nigeria (CBN) issued prudential guidelines in 1990, some bankers had thrown professional responsibilities overboard. Credits were churned out without adequate safeguard while the capital base of most banks eroded or were threatened.
Despite the controversy the prudential guidelines generated, they infused sanity into the banking industry.
Over the years, Nigerian banks have faced problems. Regardless, First Bank has remained the market leader since inception and played an active role in Nigeria’s economy.
It is known to be a strong and reliable player in the African and global competitive financial sector.
Driven by excellence and strict adherence to global best practices, First Bank ensures the safety of depositors’ money and places operations in a world class position to continue on its growth trajectory.
When on March 1, 2019 First Bank management hoisted its flag across Nigeria and other countries where it operates, commemorating its 125th anniversary, it sparked encomiums.
Its many stakeholders and associates have many reasons to celebrate.
Several factors have contributed to its brand building process over the years. Its evolution reveals the passion of its promoters for brand promise. They have stayed glue to the promise and worked to broaden it.
By age, by branding and by asset, by branches and by workforce, First Bank is Nigeria’s number one leading financial services solutions provider.
From early years to other seasons
First Bank was founded by Alfred Jones, a shipping magnate from Liverpool, England, who incorporated it as a limited liability company in London on March 31, 1894.
The head office was in Liverpool under the corporate name, the Bank of British West Africa.
It had a paid up capital of 30,000 pound sterling. In the same year, it acquired its predecessor, the African Banking Corporation (ABC) established in 1892.
The bank has had 20 chairmen from Jones to the current Awosika. Its head office in Nigeria is on 35 Marina, Lagos Island.
The bank in its early years grew rapidly, working in close co-operation with the British colonial government in performing the traditional roles of a Central Bank in West Africa.
In 1912, it acquired its first competitor, the Bank of Nigeria (formerly Anglo-African Bank), established in 1899 by the Royal Niger Company.
In 1957, it changed its name from Bank of British West Africa (BBWA) to Bank of West Africa (BWA).
In 1966, following its merger with Standard Bank UK, it adopted the name Standard Bank of West Africa and in 1969 was incorporated locally as the Standard Bank of Nigeria in line with the Companies Decree of 1968.
The bank established the first offshore financial subsidiary of a Nigeria-owned bank in the UK in 2002 and by 2005 acquired MBC International Bank and FBN (Merchant Bankers).
The bank later floated the first-ever hybrid capital offering out of Africa in 2007.
In 1979, it changed its name to First Bank of Nigeria Limited, and in 1991 to First Bank of Nigeria Plc.
In 2012, it changed its name again to First Bank of Nigeria Limited as part of a restructuring resulting in FBN Holdings Plc (“FBN Holdings”), having detached its commercial business from other businesses in the First Bank Group, in compliance with new regulation by the CBN.
First Bank had 1.3 million shareholders globally, was quoted on the Nigerian Stock Exchange (NSE), where it was one of the most capitalised companies.
It also had an unlisted Global Depository Receipt (GDR) programme, all of which were transferred to its Holding Company, FBN Holdings, in December 2012.
Since inception, the bank has been through many seasons.
From being the only bank in Nigeria for decades that weathered the “banking explosion” of the 1930s to the 1950s, followed by an era of government ownership and control, to a flurry of consolidations, then the gradual growth in number of banks up to the early 1980s.
Another industry growth spurted in the early 1990s when the banking sector was deregulated, leading to a wholesale shake-up, which reduced the number of banks from 126 to 77.
Then there was resuscitation and growth to 89 banks.
But there was also the 1995 failed banks reform, the consolidation that culminated in the emergence of 25 banks in 2004 and then the 2009 reform necessitated by the global economic meltdown and huge non-performing loans, leading to the nationalisation of some banks.
All through these seasons, First Bank has remained resilient, dependable, dynamic and “truly the first” as it claims.
Response to industry dynamics
As the global operating environment has evolved so has First Bank kept pace, responding to the dynamic needs of its customers, investors, regulators, host communities, employees and other stakeholders.
Through a balanced approach to plan execution, it has consolidated its industry leadership by maintaining trans-generational appeal. It continuously boosts its customer base, which cuts across all segments in size, structure, and sectors.
The Nigerian banking business operates nationally and internationally, with active customer account base of 10 million served through a network of over 750 business locations, and more than 7.5 million cards in issue.
These diverse operations in the financial services industry, with widespread service outlets, ensure the foothold of First Bank as a foremost financial services provider in Nigeria, contributing to the growth of the national economy.
Leveraging a century of experience, First Bank builds relationships and alliances with key economic sectors that serve as building blocks for the wellbeing, growth and development of the country.
With its huge asset base and expansive branch network, as well as continuous re-invention, First Bank is Nigeria’s strongest banking franchise, maintaining market leadership on all fronts in financial services.
Its focuses on taking advantage of growth opportunities in the industry, pursuing business line expansion across strategic business units, implementing international expansion plan, sequencing growth initiatives across defined metrics, as well as building synergies and cross-selling across the First Bank Group.
This strategy supports its vision of being the leading sub-Saharan African financial services group. Continuous implementation of this strategy will produce long-term profitable growth as well as build great franchises and deliver value to all stakeholders.
Focus on expansion
First Bank focuses its international expansion on the financial services markets in sub-Saharan Africa.
In 1998, it launched a strategy driven by initiative as well as by technology. Century 2 is the code name and it is “Recharged for another century of operation”, a re-engineering process to remain contemporary and resilient.
It paid off as the long drawn transformation in the Nigerian financial services sector has distinguished First Bank as the country’s strongest financial services group, even now in the 21st century.
First Bank was the first quoted company in Nigeria to hit the trillion naira mark in market capitalisation.
In 2012, the First Bank Group adopted a holding company structure – FBN Holdings Plc – to retain the diversity of its businesses and provide a full range of financial services beyond commercial banking, to include investment banking, insurance and allied services.
The bank’s role in ensuring rapid economic transformation is strengthened through the First Bank Impact Series which encompass insightful, actionable and change-centered conferences, workshops, seminars, strategy sessions, and policy implementation road-shows to drive change in society.
What seemed like a clog in its operation was during the government’s privatisation and commercialisation scheme, when the then Managing Director, Bernard Longe, approved and remitted $131,700,000 to the account of the Bureau of Public Enterprises on behalf of International Investor (London) Limited (IIL).
The money was remitted in connection with the privatisation of Nigerian Telecommunication Limited (NITEL).
But the bank overcame with resilience, built on its solid foundation and has since continued to trudge on its lead in financing private investment in infrastructure in the Nigerian economy.
It supports acquisition of stakes in Oil Mining Leases (OMLs), financing oilfields, financing cash calls for both operating and capital expenditures through Strategic Alliance Contracts.
First Bank has provided over $1 billion to part-finance acquisition of interests, as well as capital to OMLs; and an aggregate $500 million for construction and completion of gas pipelines to marginal fields and cement plants.
It is in the forefront in financing power projects and has provided over $220 million to part-finance the acquisition of both generating companies and distribution companies under the privatisation of the power sector.
First Bank is also involved in the agricultural sector and has been a major financier of various types of assets for the establishment, expansion and modernisation of agricultural enterprises.
Certifications and awards
In its 125 years of uninterrupted operations, First Bank has received numerous recognitions and awards.
They include ISO/IEC 27001:2005 certification, the world’s highest accreditation for information protection and security from the International Organisation for Standardisation (ISO).
First Bank is the first company in Nigeria to achieve ISO 27001, which affirms that it adopts the highest known standards in information security globally.
After three years of certification, First Bank implemented the recertification of ISO/IEC 27001:2005 in 2013.
The bank again became the first to be awarded BS25999 certification, the highest accreditation in Business Continuity Management, received from the British Standard Institute.
The certifications confirm its ability to safeguard its assets, staff well-being and customers’ investments, and favourably respond to incidents and business disruption to ensure business continuity at all times.
It won the Annual President’s Merit Award from the Nigerian Stock Exchange (NSE) for the best financial report in the banking industry a record 13 times.
This feat received additional impetus when the bank in 2011 was bestowed with the “Best Financial Reporting Company” award by Africa Investor.
It was also named the “Most Innovative Bank in Africa” by African Banker Awards, given to an African bank that has demonstrated original and practical uses of technology to provide customer convenience, better and cheaper services, and greater access to financial services.
First Bank has been the back-to-back winner of the “Best Bank in Nigeria” for 12 years, “Best Trade Finance Bank in Nigeria”, and “Best Foreign Exchange Bank in Nigeria” for seven consecutive years – all awarded by Global Finance magazine based in the United States.
The bank has also been the back-to-back winner of the “Best Bank in Nigeria” awarded by EMEA Finance magazine for four years; winner of the “Best Banking Group in Nigeria”, awarded by World Finance Banking Awards; “Best Investment Bank”; and “Best Private Bank” five times.
First Bank received the “ICT Telecoms Deal of the Year Award” awarded by the Ai CEO Infrastructure Awards 2012, a recognition of its role in the EMTS (Etisalat) $650 million Syndicated Term Loan 2011; and named “The Bank of the Year in Nigeria” in The Banker Awards 2012.
For six straight years, from 2011 to 2016, the bank was named “Nigeria’s Number One Banking Brand” by Brand Finance Top 500 Banking Brands and “Best Retail Bank in Nigeria” from 2011 to 2016 by the Asian Banker International Excellence in Retail Financial Services Awards.
In 2013, First Bank was awarded the “Best Bank in Nigeria” in the Euromoney Awards for Excellence, “Best Bank in West Africa” in the African Banker Awards, and Best Foreign Exchange Services in Africa in the EMEA Finance Treasury Services Awards.
On January 27, 2014, it unveiled a refreshed corporate identity, including that of all subsidiaries, designed to reflect the company’s strategic direction and position it to meet the future needs of the market.
The African elephant, a respected and instantly recognisable icon of its brand identity, was retained. However, it was re-ignited with a number of enhancements that communicate a robust evolution relevant to today’s marketplace.
First Bank brand purpose is to always put stakeholders, customers and partners at the heart of its business, even as it is poised to standardise customer experience and excellence in financial solutions across sub-Saharan Africa, in line with its brand vision “To be the partner of first choice in building your future”.
First Bank clocked 125 years on March 31.
As it competes for leadership with other brands in the financial sector in and outside Africa in the next 125 years, the questions that come to mind include
How can it survive the challenges in the Nigerian banking industry?
How can the leadership keep its promises?
How can the leadership uphold the vision of the founders?
How can the bank maintain market leadership?
How can it keep the trust of stakeholders and deliver safety and security?
.Additional report by Eugene Onyeji
