FCMB Group Plc reports N18.2bn Profit beforeTax in 2013, up 12% from Prior Year and Dividend of 30k per share

FCMB Group Plc has released its financials for the year ended December 31, 2013reporting a profit before tax (PBT) of N18.2billion, up 12% from prior year.  The group also returned to dividend payment, with proposed dividend of 30kobo/share.

The Group reported improved earnings growth in 2013, in spite of the challenging regulatory environment. Net revenue rose 16% to N84.2billion over prior year.  Successful execution of retail strategy, growth of bancassurance and FinBank merger synergies provided necessary revenue growth impetus.

The Group also reported a number of significant developments in key operating areas. In 2013, deposits grew 11% to N715 billion, aided by 21.1% growth in current and savings accounts, while fixed deposits declined during the year. Consequently, the banks funding mix has improved, with current and savings accounts now accounting for 73.9% of total deposits, which saw a reduction in the banks cost of funds during the year in spite of the fact that interest rates remained high throughout 2013.
Loans and advances also grew 26% to N451billion, retail lending, oil and gas and power sector financing were the largest contributors to this growth.  FCMB Plc’s total assets (excluding contingencies) now stand above N1trillion.
Individual and SME banking combined,now accounts for 44% of total deposits, 32% of risk assets and 19% of profits.

FCMB Limited, the banking subsidiary, continues to improve the soundness of its balance sheet and credit standing.  In the recently released 2013 financial statements, the bank exhibited abundant liquidity (liquidity ratio of 47%) and robust capitalbase (capital adequacy ratio of 18%), that protects against downside risks and supports future business growth, without immediate need for capital raising. The banking group subsidiary has also become one of the leading retail loan originators in the country. This has resulted in an increasingly diversified loan book and continually declining loan loss provisions over the last 3 years.

During the year, the UK subsidiary, FCMB (UK) Ltd, was granted approval by the Bank of England’s Prudential Regulatory Authority (PRA) to commence deposit taking activities for businesses and corporate organization, expanding its existing stock broking and corporate finance activities.

Speaking of these results, Mr. Peter Obaseki, Managing Director of FCMB Group Plc, had this to say:

“2013 saw the Group being able to record appreciable growth in profits and resume dividend payments. Returns on average equity and average assets fell by 4.3% and 16.6%, respectively, over the 2012 full year level, as a result of higher tax.

The Group’s  non-banking subsidiaries, CSL Stockbrokers (CSLS) and FCMB Capital Markets (FCMB CM), while contributing only 2% of group profits, not only enabled the bank grow its customer wallet share, but also won new customers through advisory services that eventually led to transaction banking relationships. These businesses also consolidated their market positions.  CSLS maintained its position as third largest broker, whilst increasing its market share. CSLS also saw a 100% growth in volumes traded on the Nigerian Stock Exchange (NSE).

Key highlights from FCMB CM’s year included deal flows of approximately N378 billion and net operating earnings growth of 206%, enabled by project and structured finance advisory and arrangement activities. FCMB CM also actively participated in buy-side advisory and capital-raising mandates in the Power sector’s privatisation and acted as the sole local advisor on the first Greenfield International Power Producer project financing, under the new tariff regime. The Euromoney award for ‘Project Finance Deal of the Year’ signified the end of a productive year for the company.”

Mr. Ladi Balogun, Group Managing Director/ CEO of FCMB Ltd, commented on the results thus:

“Inspite of the challenging regulatory environment which moderated profit growth, 2013 saw our commercial and retail banking activities benefit greatly from the merger that was concluded in 2012. Specifically, the improved liquidity profile of the bank provided an adequate buffer against the cash reserve withdrawals, and the enlarged branch network enabled us to achieve over 66% growth in retail loans, 22% growth in current and savings account balances and acquire over 400,000 new customers.

Cost of risk is also trending steadily downwards at 1.2% of total loans, whilst the net interest margin trend of 22% improvement indicates the effectiveness of the retail strategy we are pursuing.

Our focus in 2014 will be to improve operating efficiency by sweating the acquired branches, consolidating our leadership position in retail lending, whilst also growing corporate and commercial banking volumes in strategic sectors of the economy.”

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Asot Michael – The Anti-Corruption Mission

Corruption is found in the government when instead of thinking about the interests of the citizens as a whole, the members of the government are chiefly interested in promoting their own selfish interests.

Corruption is found in both public and private organizations and everyone starting from the clerk to the Managing Director of a company is corrupt in a way or the other. The clerk takes small bribes from the people who visit the office so that their work is finished early than the others who are waiting in a queue.

Parents offer bribes in schools and colleges to get their child admitted. There is no institution, no organization which is not corrupt in a way or the other.

But the question that arises is that can an anti-corruption movement be started and if yes, shall it be successful.

The answer depends largely on the adaptation of anti-corruption measures by both the government and the citizens.

This is the foundation on which the success of any anti- corruption measure will depend. Corruption is an incurable disease which all the citizens should try to combat by hook or by crook.

People should be allowed to re- elect the candidate they voted for if he fails to fulfill the promises that he made while contesting the elections. People are of the opinion that corruption is a way of life and nothing can be done to eradicate it. It is essential to understand that unless we as the citizens are not determined to do away with corruption from the roots, how we can expect the government to be corruption- free – Honorable Asot Michael

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FCMB (UK) Limited commences Commercial Banking Operations in London

First City Monument Bank Limited announced it has commenced commercial banking operations at its London subsidiary, FCMB (UK) Limited, following approval by the regulatory authorities in late 2013 to begin wholesale deposit taking for businesses and corporate organisations. These activities represent an expansion of its existing stock broking and corporate finance activities, which commenced in2009.
A statement by the bank said, FCMB (UK) Limited has received approval from the Prudential Regulation Authority, the UK financial services regulator, to carry out deposit taking and commercial banking operations. This represents the next step in FCMB’s plans to further internationalise its activities in the area of commercial banking.
Mr. Ladi Balogun, the Chief Executive Officer of the UK banking subsidiary’s parent company, First City Monument Bank, said. "We are pleased to be commencing banking operations in ourUK subsidiary. This will enable us to offer a more complete service to our Nigerian customers engaged in international trade and corporate clients resident in the United Kingdom. We look forward to offering the high service standards that our customers have come to expect from us. From our FCMB (UK) base we will also establish a pan-African financing platform, with special focus on natural resources and related value chains, an area where we have already established a leadership position in Nigeria.”
He also noted that the bank would continue to enhance its UK presence to provide international investors with access to investment opportunities across the African continent. Through CSL Stockbrokers, FCMB UK currently provides coverage of the major listed companies in Nigeria together with research on economic development and investment strategy.
First City Monument Bank Limited is a full service commercial bank with a strong retail focus. It is a member of FCMB Group, a financial services group with interests in Commercial & Retail banking, Investment banking and Asset Management.

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SEBI trying to ‘siphon off’ investor refund: Sahara

Sahara India has alleged that market regulator Securities Exchange Board of India (SEBI) is trying to "siphon off money from the funds" deposited by the group for refunding the investors of Sahara India Real Estate Corp Ltd (SIRECL) and Sahara Housing Investment Corp Ltd (SHICL). SEBI has claimed that it has spent close to Rs 60 cr in 2013-14 on locating genuine investors of Sahara group companies Sahara India Real Estate Corp Ltd (SIRECL) and Sahara Housing Investment Corp Ltd (SHICL).

Subrata Roy, founder of Sahara India Pariwar

"We have spent a huge chunk of our money on this and we are running out of money now. We had requested the Supreme Court to allow us to use the funds deposited by Sahara India so as we can meet the expenses incurred on this task," said a senior official from SEBI requesting anonymity.

The official explained that SEBI has spent a large amount on not just locating the investors but also on the storage of the documents submitted by Sahara. In an email response to The Sunday Guardian, Sahara India's counsel, Keshav Mohan, stated, "We suspect that this is a highly malicious campaign initiated by SEBI with a very clear intention to siphon off money from the funds that Saharas have deposited with SEBI, purely for the repayment to its investors. It is really unfortunate and unbecoming of a regulator, the way SEBI is blowing hot and cold, both at a time."

He further pointed out that on Thursday, the counsel for SEBI had argued in the Supreme Court that SIRECL and SHICL issues were public issues, while now SEBI has made a plea that Sahara's investors are untraceable. "We ask SEBI to disclose the basis of their contention, else withdraw their statement. The fact is that, when SEBI sent letters to about 20,000 account numbers and did not receive any responses for them, we immediately got affidavits from a large number of such investors and submitted to SEBI the affidavits, authentic Know Your Customer (KYC) documents and photographs of almost all those investors, who the regulator had tried to contact. Those who were already paid, confirmed that they had received redemption of their investments to their full satisfaction," Mohan noted.

In a strong rebuttal to SEBI's allegations, Mohan further added that the market regulator has not been following directions and has not refunded even Rs 1 cr to the investors, in the last 15 months. "It is not known, why SEBI is not following this direction, and why it is only interested in extracting money from Sahara...SEBI's intentions are unfair and acutely malafide."

Mohan also pointed out to the fact that on 4 March, SEBI told the court that it had completed the scanning and digitisation of the 3.03 crore investors' documents provided by Sahara. Therefore the verification process has still not started.

Mohan also recounted that the Minister of State for Finance, Namo Narayan Meena in a reply to a question in Parliament had said that the money given by Sahara is for refund to the investors only and the money would not be utilised for any other purpose. "The money received by SEBI will only be used for the repayment of the investors and till now SEBI has only refunded only Rs 1 cr. This is a sinister attempt by SEBI to eat away investors' money. Till now, in Saharas' case SEBI has not shown any intention to protect the interest of investors, for which it has been constituted... we will not let SEBI make this another Golden Forest Case where investors have still not got their hard earned money and will stand and fight till the end in the interest of our investors."

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Take better tea for keep healthy

Blood circulation system of body is also improved by consuming green tea. It proves to be helpful in maintaining blood vessel health. Another benefit of Green tea is that it prevents arthritis. It has anti-oxidants that inhibit enzymes which assault and damage bones.

Sainsbury Typhoo also helps to decrease the effects of arthritis in the patients suffering for arthritis if they drink green tea.  Green tea also serves as an effective anti-aging product. Free radicals have negative effects on the human body that are the reason for wrinkles and othersymptoms of aging. Green tea comprises of defensive antioxidants which detoxify the body and keeps a check on the destructive effects of free radicals.

High Sainsbury Typhoo is a more down to earth affair, which stems from Victorian working class culture.  In fact, it was originally a substantial meal that was eaten when workers returned home, after a day of hard graft down the mines, or at the mills. So, etiquette dictates that one should never confuse the two.

The favorable conditions for the growth, and therefore, harvesting this beverage are normally at high elevations with sufficient amount of rainfall. The perfect climate for growing this drink also requires

Cooler mornings with a light fog to help protect the plants from the sun because the excessive sunlight slows down the maturity process of Sainsbury Typhoo. In addition, the growth also needs a land with high acidic concentration in the soil.

Tea is being provided in different types of packing for easy preparation. As a traditional way of preparation, water is boiled by adding tea leas and sugar in it. Thereafter, milk is added to the boiled water. As soon as the whole mixture of tea starts boiling, it is sieved into a cup. An aromatic flavor of Sainsbury Typhoo can be tasted this way. In present times, people prefer an easy way of preparing tea by adding tea bags to the boiled water.

The Sainsbury Typhoo is a best and useful product that gives you fully freshness. This tea is available online and you can purchase its bags from visit at mysupermarket.co.uk/sainsburys-price-comparison/tea/typhoo_tea_bags_240_per_pack_750g.html.

Sainsbury's Typhoo

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Hon. Asot Michael on Boundary Changes Parliament Debate 14 Jan 2014

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Hon. Asot Michael Budget Debate Contribution Feb 2014

Read More : http://headlineswatcher.blogspot.in/2014/02/hon-asot-michael-contribution-to-budget.html

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