About The Bank
The history of First City Monument Group is synonymous with, and showcases the interesting growth of Nigeria’s financial services industry.
As an indigenous financial services firm, the Bank ventured very early into the domain of investment banking, a niche area hitherto occupied by foreign firms operating in the Nigerian environment.
Local Beginning, Global Aspirations
First City Monument Bank plc (FCMB) was the first bank established without government support in Nigeria. Licensed in 1982, the Bank was one of the leading merchant banks in Nigeria till its transformation at the turn of the 21st century.
In 2001, FCMB transformed into a universal bank and opened it doors to retail clients. In 2004, FCMB became a public limited liability company and its shares were listed on the Nigerian Stock Exchange (NSE). The Bank is the flagship of First City Monument Group, Nigeria’s leading comprehensive financial services provider. The Bank accounts for over 2% of total assets in the banking industry and has over 130 branches across Nigeria.
The Bank’s antecedents however began with the successful primary issues business of City Securities Limited which was established in September 1977. City Securities Limited was the first Nigerian financial institution to combine new issues with stock broking and share registration services.
The Bank began operations with an issued and fully paid-up ordinary share capital of N2 million in 1983; and in less than two decades, specifically by 30th April, 2007 its paid-up share capital had grown to N4.7 billion, while shareholders’ funds stood at N30.6 billion.
One of the earliest landmark achievements of the Bank was the completion of the first public loan syndication of N70 million (US$75 million) for the then National Fertilizer Company of Nigeria (“NAFCON”) in 1986 – the largest ever at the time.
In November 1988, the Bank signed a Technical Services and Cooperation Agreement with Morgan Grenfell & Co Limited (now integrated into Deutsche Bank) to provide technical services to the Bank with provisions for biennial renewal.
In 2001, the Bank became a full-fledged commercial bank, having collaborated with a few other banks to spearhead the campaign for the adoption of a universal banking system in Nigeria. In anticipation of the adoption of universal banking, the Bank sought and obtained approval from the Central Bank of Nigeria in December 2000 to change its name to First City Monument Bank Limited; this took effect from January 2001. The Bank became a Public Liability Company in August 2004 and also successfully raised over N16 billion via its Initial Public Offering in 2005. That same year, the Bank completed its merger with Cooperative Development Bank plc and Nigerian-American Bank Limited, and also acquired Midas Bank Limited.
Post Consolidation Successes
Pursuant to the recapitalisation and consolidation exercises in the Nigerian banking industry in 2005, the Bank has been posting superior financial performance. Gross earnings increased by 307.29% from N6.121 billion at the end of the 2005 to N24.93 billion as at 30th April, 2007. Total assets grew by 411.58% from N51.318 billion to N262.53 billion over the period. Profit before tax also increased from N1.093 billion to N7.569 billion within the same period, a growth of 592.50%. Profit after tax also grew by 641.96%, from N801.791 million to N5.949 billion over the period.
In recognition of the Bank’s improved operating performance, FCMB was assigned ratings of A1 and A+ in the short and long term respectively by Global Credit Rating (“GCR”) of South Africa.
The Bank entered into a Management Services Agreement with Sabre Capital Worldwide (Mauritius) Limited (“Sabre Capital”), a leading global private equity and financial services company on 20th January, 2007. Under the terms of the agreement, Sabre Capital will provide FCMB with the requisite technical and managerial support to facilitate the development of a strong consumer banking franchise.
This led to the appointment of Mr. Anurag Saxena, formerly a Director with Barclays Bank plc, United Kingdom, as an Executive Director and Chief Operating Officer of the Bank, with a mandate to expand FCMB’s consumer banking business.
The impact of this strategic alliance is already being felt as a host of innovative consumer banking products, recently launched into the market are already surpassing all projections whilst several other initiatives are being developed to complement, support and further expand the Bank’s retail coverage.
Solid Global Partnerships
On account of the our strong ties with Sabre Capital, as well our improved operating performance, FCMB has attracted a host of credible foreign institutional investors in the first half of 2007. These investors carried out a detailed due diligence on the Bank following which significant investments were made.
Helios Investment Partners
The first group of investors was led by Helios Investment Partners (a United Kingdom based private equity fund with $300million under management), and this group invested about $50 million.
Commonwealth Development Corporation (CDC)
The Commonwealth Development Corporation, an investment arm of the British government, has also recently committed significant investment in our Bank.
GLG Investment Partners
GLG Investment Partners (a multi-billion dollar and leading investment manager based in London) has invested about $26 million in the Bank.
Consequent to these investments, the strategic investors are being represented on the board of directors of the Bank by Mr. Tope Lawani (co-founder and Managing Director of Helios Investment Partners). These investors are committed to providing technical, strategic as well as financial support to the Bank.
Link with HSBC
In addition to the foregoing, the Bank signed a $90 million credit linked facility with HSBC in March 2007 and a further $100 million Nigerian Naira linked facility also with HSBC in August 2007. These credit lines have provided the Bank with stable, well priced liabilities to fund term lending activities.
Hunt for Talent
In line with the goals and objectives of these strategic moves, the Bank is attracting quality talent from home and abroad. This pro-active hunt for the best minds in the market is also with a view to enhancing its deal structuring and execution capabilities.
Leveraging on Relationships & Quality Product Delivery
Due to its investment banking antecedents, the Bank has continued to leverage extensively on its traditional client base of multinationals and leading local corporates.
Other key segments of the Bank’s client base include financial institutions, government (at federal, state and local government levels) and high net worth individuals (HNIs). The Bank thus continues to strengthen its relationships with its target markets by constantly revamping its suite of services in line with the discerning demands of the market.
The Bank is also well respected for its excellent financial products and ability to serve and cater to the banking requirements of the employees, suppliers and distributors of its traditional corporate and institutional clients.
Future Focus
In view of the Bank’s recent remarkable growth, strong future prospects as well as Nigeria’s rising profile and reputation as a destination for foreign portfolio and direct investment, FCMB has continued to elicit considerable interest from a number of foreign institutional investors.
The Bank has, in the year, attracted well over $300 million in direct investment as well as on-lending facilities from leading international institutions such as HSBC, CDC, OPIC and the IFC amongst others.
Beyond its solid heritage, the FCMB franchise has arrived on the verge of a glorious future …