By Jeph Ajobaju, Chief Copy Editor
Grey hair signifies wisdom. That comes with age – if you think and reason. So, at 127 years old, First Bank has plenty grey hair, it reasons and, therefore, has wisdom.
Investment banker and Managing Editor of Proshare, Teslim Shitta-Bey, says the vagaries of the Nigerian economy make it laudable to celebrate a bank that has been consistent since 1894.
“Nigerian banks are held down by the slow economic growth,” adds Pita Ochai, a financial analyst.
But, despite sluggish economic growth, First Bank Nigeria soars in other indicators, weathering storms to support businesses and build the national economy.
Its bottom line speaks for the efforts. In financial year 2020, First Bank recorded the following results:
· Profit before tax – N70.8 billion
· Operating income – N294.4 billion
· Net income – N62.7 billion
· Total assets – N5.9 trillion
First Bank knows that over 90 per cent of businesses in Nigeria are small and medium scale enterprises (SMEs) and has a scheme that supports the sector.
Its SMECONNECT lifts businesses with ideas and funding. And peering into a round age of 130 years and beyond, First Bank hopes to possess the capacity to bankroll projects for which Abuja goes abroad to obtain loans.
Nigeria has agreed $5.6 billion loans with China alone for infrastructure projects. But as of March 2020, Beijing had disbursed $3.3 billion. With Nigeria already servicing the loans, $3.1 billion was outstanding as of then.
The capacity for a Nigerian bank to fund such huge projects is possible only if the economy itself is that expansive, Ochai says.
“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 explains.
First Bank is the oldest Nigerian bank. It has more than 750 branches, and is the biggest employer in the financial sector with more than 16,000 workforce.
Another indicator. It has for decades won numerous awards consecutively, such as Best Trade Finance Bank, and Best Foreign Exchange Bank given by Global Finance magazine.
Also in its kitty is Best Bank in Nigeria awarded by EMEA Finance magazine for four straight years.
Testament to dominance
First Bank was ranked the second ‘most admired financial services brand’ in Africa – for the second straight year – at the 2021 Brand Africa 100: Africa’s Best Brands Event, held on Africa Day on May 25.
Brand Africa is an intergenerational movement to inspire a great Africa through promoting a positive image of Africa, celebrating its diversity and driving its competitiveness.
The movement recognies that in the 21st century, brands are an asset and a vector of image, reputation, and competitiveness of businesses and of nations.
First Bank, woven into the social fabric for more than a century, is at the helm of promoting growth and development in Nigeria, and extending financial services – through subsidiaries – to over half a dozen other countries across three continents.
Its international presence includes First Bank in London, Paris, Republic of Congo, Ghana, The Gambia, Guinea, Sierra Leone, Senegal, and a Representative Office in Beijing.
Through the years, its leading digital banking services and innovative products like FirstMobile, USSD, Firstmonie Agent, among many others, have promoted cashless transactions in the digital age.
The digital savviness extends to social media platforms where First Bank is ranked by Financial Brand as the number one on Instagram in Nigeria and second globally based on the highest number of fan base/followers.
Its quest is to claim number one position across all parameters.
“We are grateful to Brand Africa for the back-to-back recognition as the ‘Second Most Admired Financial Services Brand in Africa,’” First Bank Chief Executive Officer (CEO), Adesola Adeduntan, says in appreciation of the award.
“This is a testament to the impactful role we are playing in promoting socio-economic development in Africa, which includes being at the forefront of bridging the financial inclusion gap as well as our commitment to supporting Small and Medium Enterprises [SMEs] because of the critical role they play in economic growth and development.”
According to him, First Bank has created a functional ecosystem for SMEs to thrive through various value adding solutions and value propositions.
Last month, First Bank also won the 2021 “Retail Banking CEO of the Year Nigeria’’, “Most innovative Retail Banking App Nigeria’’ and “Best CSR Bank Nigeria’’ by Global Banking and Finance magazine.
These awards recognise the role First Bank plays in deepening financial inclusion, advancing digital banking, as well as providing technology to people in its host communities as learning tools.
The Global Banking and Finance Awards reflect the innovation, achievement, strategy, progressive and inspirational changes in the global financial community.
The awards were created to recognise companies of all sizes which are prominent in different areas of expertise and excellence in the financial world.
Premier bank
First Bank is the premier bank in West Africa and the leading financial inclusion services provider in Nigeria for 127 years.
It boasts over 750 business locations and over 100,000 Banking Agents spread across 99 per cent of the 774 councils in Nigeria, providing comprehensive retail and corporate financial services to more than 30 million customers.
First Bank promotes digital payment and has issued over 10 million cards, the first bank to achieve such a milestone in Nigeria.
Its cashless transaction drive has garnered 10 million people on its USSD Quick Banking Service through its *894# code and over 4.5 million on its FirstMobile platform.
Since its establishment in 1894, First Bank has built relationships with customers focusing on good corporate governance, strong liquidity, optimised risk management, and leadership.
It has for years led the financing of private investment in infrastructure in the Nigerian economy by playing key roles in government privatisation and commercialisation schemes.
It supports investors wishing to explore the vast business opportunities in Nigeria, as a competitive world-class brand and a credible financial partner.
Folake Ani-Mumuney, First Bank Group Head (Marketing & Corporate Communications), lists other accolades won by the bank to include:
· “Most Valuable Bank Brand in Nigeria” six times in a row (2011 – 2016) by The Banker Magazine of the Financial Times Group.
· “Best Retail Bank in Nigeria” for seven consecutive years (2011 – 2017) by the Asian Banker International Excellence in Retail Financial Services Awards.
· “Best Bank in Nigeria” by Global Finance for 15 years.
“Our brand purpose is always to put customers, partners and stakeholders at the heart of our business, even as we standardise customer experience and excellence in financial solutions across sub-Saharan Africa, in consonance with our brand vision ‘To be the partner of the first choice in building your future,’” she stresses.
“Our brand promise is always to deliver the ultimate ‘gold standard’ of value and excellence. This commitment is anchored on our inherent values of passion, partnership and people, to position You First in every respect.”
FirstMobile
First Bank – with 750 branches and 100,000 Firstmonie Agent network North and South – is at the forefront of bridging the financial exclusion gap, empowering Nigerians to do financial and business-driven activities.
FirstMobile has modern banking functions regularly upgraded for self-service to enable customers carry out transactions with ease.
The App is also embedded with card protection for customers to enable and disable cards on channels, account switch off, as well as second-factor authentication and device registration.
Customers can remotely initiate the request for a new debit card and replacement of one lost or damaged.
Surviving 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.
· It consolidates its industry leadership through generational appeal.
· It boosts customer base, which cuts across all segments in size, structure, and sectors.
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.
It leverages more than a century of experience to build relationships and alliances with 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 remains Nigeria’s strongest banking franchise, maintaining market leadership on all fronts in financial services.
· It takes advantage of growth opportunities in the industry
· Pursues expansion across strategic business units
· Implements international expansion plan
· Sequences growth initiatives across defined metrics
· Builds 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 growth, build franchises, and deliver value to all stakeholders.
Business diversity
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 Nigerian financial services 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 reach 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 encompasses 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 $131.7 mill;ion to the account of the Bureau of Public Enterprises (BPE) on behalf of International Investor (London) Limited (IIL).
The money was remitted in connection with the privatisation of Nigerian Telecommunication Limited (NITEL).
In May 2021, the Central Bank of Nigeria (CBN) also dissolved the board of First Bank, appointed new members, and reinstated Adeduntan as CEO, who had been removed by the old board.
But the bank has overcome all that, building on its solid foundation, and trudging on its lead in financing private investment in infrastructure.
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 more than $1 billion to 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 finances power projects, providing more than $220 million to fund acquisition of both generating companies (Gencos) and distribution companies (Discos).
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.
Historical certifications, awards
In its 127 years of continuous 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 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 won the “Best Bank in Nigeria” for 12 straight 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.
It also won the “Best Bank in Nigeria” awarded by EMEA Finance magazine for four straight years; 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, recognising 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.
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 got 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 subsidiaries, to reflect strategic direction and position to meet future market needs.
The elephant, an icon of its brand identity, was retained in the logo. However, the logo was reimagined with enhancements that convey 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 127 years on March 31, 2021.
As it competes for leadership with other brands in the financial sector in and outside Africa in the coming years, the questions that come to mind include
How can it survive the challenges in the Nigerian banking industry?
· 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?
Partnerships for social responsibility
First Bank supports various social activities nationwide to enhance its status as a responsible corporate organisation.
It partners with states through the Coalition Against COVID-19 (CACOVID) led by the private sector to encourage both health care workers and health care delivery in stamping out the virus.
It collaborates with the Lagos State government, Robert & John, IBM, and Curious Learning to promote e-learning by school children affected by pandemic lockdown.
“We are proud to be recognised with these awards, which speak to the investments we have made over the past years in bolstering our electronic platforms for our customers; enhancing financial inclusion through agent banking as well as empowering our communities in the education space especially by bridging the digital divide through e-learning initiative,” Adeduntan said.
“These awards are dedicated to all our customers, as the trust they reposed in us being their bank of first choice in meeting their business and financial needs has been instrumental to the success we have achieved in our existence of over 127 years.
“We remain committed to putting You, our customers, First as we contribute to the growth and development of our host communities.”
Genesis of First Bank
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 CBN issued prudential guidelines in 1990, some bank had neglected professional responsibility. They granted credits with little safeguard, and the capital base of most of them eroded.
The prudential guidelines triggered controversy. But they injected sanity into banks.
First Bank has being the market leader since inception, it plays an active role in the economy, and has reputation for being strong and reliable in African and global finance.
Driven by excellence and 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 the bank 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 stuck 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.
Early years to the present
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 pounds. In the same year, it acquired its predecessor, the African Banking Corporation (ABC) established in 1892.
Its head office in Nigeria is on 35 Marina, Lagos Island.
The bank in its early years grew rapidly, working in 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 as the Standard Bank of Nigeria in line with the Companies Decree of 1968.
The bank established the first offshore financial subsidiary of a Nigerian-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 CBN regulation.
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.
