First City Monument Bank (FCMB), a member of FCMB Group Plc, is a
financial services
Financial services are the Service (economics), economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, acco ...
holding company headquartered in
Lagos
Lagos (Nigerian English: ; ) is the largest city in Nigeria and the List of cities in Africa by population, second most populous city in Africa, with a population of 15.4 million as of 2015 within the city proper. Lagos was the national ca ...
. FCMB Group Plc has nine subsidiaries divided among three business groups: commercial and retail banking, investment banking, and asset and wealth management.
As of December 2020, the Group's total assets were valued at US $5 billion (NGN: 2 trillion).
History
The entity from which the bank was founded, City Securities Limited (CSL), was established in 1977 by
Oloye
Oba means ″ruler″ in the Yoruba and
Bini languages of West Africa. Kings in Yorubaland, a region which is in the modern republics of Benin, Nigeria and Togo, make use of it as a pre-nominal
honorific. Examples of Yoruba bearers include Oba ...
Subomi Balogun
Chief Michael Olasubomi "Subomi" Balogun (born 9 March 1934) is a Nigerian Yoruba banker and philanthropist who founded First City Merchant Bank, a company that later became the FCMB group.
Balogun was a long time member of the council of the ...
, the Otunba Tunwashe of
Ijebu, a
Yoruba
The Yoruba people (, , ) are a West African ethnic group that mainly inhabit parts of Nigeria, Benin, and Togo. The areas of these countries primarily inhabited by Yoruba are often collectively referred to as Yorubaland. The Yoruba constitute ...
traditional aristocrat. First City Merchant Bank was established in 1982 with seed capital from CSL.
It was incorporated as a private limited liability company on 20 April 1982 and granted a
banking license
A banking licence is a legal prerequisite for a financial institution that wants to carry on a banking business. Under the laws of most jurisdictions, a business is not permitted to carry words like a ''bank'', ''insurance'', ''national'' in th ...
on 11 August 1983.
It was the first bank to be established in
Nigeria
Nigeria ( ), , ig, Naìjíríyà, yo, Nàìjíríà, pcm, Naijá , ff, Naajeeriya, kcg, Naijeriya officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf o ...
without government or foreign support. In 2001, the name of the bank was changed from First City Merchant Bank to First City Monument Bank Limited following the bank's transformation to a universal bank. A new subsidiary, FCMB Capital Markets Limited, was formed to support its corporate finance activities.
On 15 July 2004, FCMB changed its status from a private limited liability company to a public limited liability company and was listed on the
Nigerian Stock Exchange
The Nigerian Stock Exchange (NSE) now Nigerian Exchange Group is a Nigerian stock exchange founded in 1961 in Lagos. As of November 2019, it has a total of 161 listed companies, with 8 domestic companies on the premium board, 144 companies on the ...
(NSE) by introduction on 21 December 2004.
Credit Direct Limited, a non-bank subsidiary, was established in 2007.
As a result of the 2010 Central Bank of Nigeria (CBN) regulation, FCMB Group Plc was formed and became the financial holding company for FCMB’s direct subsidiaries.
In 2014, FCMB (UK) Limited, a branch of First City Monument Bank Limited, was authorized to operate in the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
. It is regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
In November 2017, FCMB Group acquired FCMB Pensions Limited (formerly Legacy Pension Managers Limited).
In July 2021, FCMB Pensions Limited acquired a 60% stake in AIICO Pension Managers Limited.
Subsidiaries
FCMB Group PLC is made up of nine subsidiaries that include:
# FCMB Capital Markets Limited – Investment banking & Advisory services –
Lagos
Lagos (Nigerian English: ; ) is the largest city in Nigeria and the List of cities in Africa by population, second most populous city in Africa, with a population of 15.4 million as of 2015 within the city proper. Lagos was the national ca ...
, Nigeria
# FCMB (United Kingdom) Limited – Investment banking –
London
London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
, United Kingdom
# CSL Stockbrokers Limited – Stock brokerage services – Lagos, Nigeria
# FCMB Pensions Limited (Formerly Legacy Pension Fund Administrators) –
Abuja
Abuja () is the capital and eighth most populous city of Nigeria. Situated at the centre of the country within the Federal Capital Territory (FCT), it is a planned city built mainly in the 1980s based on a master plan by International Plann ...
, Nigeria
# Credit Direct Limited – Microfinance lending – Lagos, Nigeria
#FCMB Microfinance Bank – Microfinance banking – Lagos, Nigeria
#FCMB Limited – Commercial and retail banking services - Lagos, Nigeria
#FCMB Asset Management Limited – Asset and wealth management - Lagos, Nigeria
#FCMB Trustees Limited - Asset administration and transfer – Lagos, Nigeria
The Bank
In November 2010, IFC, a member of the World Bank Group, announced a $70 million investment in FCMB. That same month, both
FinBank and First City Monument Bank (FCMB) announced that FCMB has expressed interest in acquiring shareholding and become the strategic investor in FinBank, another Nigerian commercial bank that was undercapitalized. In February 2012, following regulatory approval, FCMB acquired 100% shareholding and began the integration of Finbank in its existing operations.
By 2017, FCMB had 4.3 million customers, 220 branches, and a banking subsidiary in the United Kingdom. In 2021, the bank’s customer base reached almost 8 million.
In October 2020, the bank joined Open Banking Nigeria, a nonprofit that advocates for a common standard for open Application Programming Interface (API) within the Nigerian financial ecosystem.
In 2021, FCMB was named the Best SME Bank in Africa and the Best SME Bank in Nigeria at the Asian Banker Middle East and Africa Regional Awards.
Small and medium scale Enterprises (SMEs)
FCMB’s SME Advisory Service provides small and medium scale enterprises (SMEs) with market intelligence, technical assistance, and intervention funds. In 2019, the bank launched Hub One, a co-working space to give start-ups internet access. In 2020, FCMB secured a $50 million loan facility from the IFC to help the bank expand their SMEs loans to support businesses during the
coronavirus pandemic
The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identified ...
.
By 2021, it had provided over N23 billion loan guarantees to SMEs with inadequate collateral coverage or those in a start-up stage.
In 2021, FCMB received a $50 million loan from the African Development Bank (AfDB) to support the agribusiness, manufacturing, healthcare and renewable energy sectors, with 30% of the funds going to women-owned businesses. It also received a $10 million loan from Oikocredit to fund agricultural businesses, especially in low-income areas impacted by the COVID-19 pandemic.
Agriculture
FCMB has several programs in the agribusiness industry to help provide better access to finances, research, and manpower development.
As of May 2021, the bank had helped 100,000 farmers increase food production through partnerships with individuals, groups, and other stakeholders.
These include partnerships with outgrower and
smallholder
A smallholding or smallholder is a small farm operating under a small-scale agriculture model. Definitions vary widely for what constitutes a smallholder or small-scale farm, including factors such as size, food production technique or technology ...
farmers with Babban Gona (Great Farm), which has grown from 100 to over 20,000 farmers;
a partnership with Psaltry International Limited, which produces and markets cassava products; and Plantation Industries Limited, a company that processes raw cocoa beans into cocoa liquor, cocoa butter, cocoa cake and cocoa powder.
The bank also gave N300 million to Tractor Owners and Hiring Facilities Association of Nigeria (TOHFAN) so that the group could provide tractors to farmers in Kaduna.
Women-owned businesses
In March 2019, FCMB launched SheVentures, a program that helps women-owned or managed SMEs access financing, training, mentoring, and networking.
Beneficiaries receive loans between N500,000 to N5 million and pay zero interest.
Since 2019, the program has helped more than 15,000 women-owned SMEs.
Youth
In 2015 FCMB launched Flexx, a banking account that helps youths make healthy banking decisions.
Flexx Hubs are banks for students on different campuses around Nigeria including Lagos State University Teaching Hospital (MediLag), the Lagos State Polytechnic (Lapsotech) and others.
In 2018, the bank sponsored 1,000 members of the National Youth Service Corps (NYSC) in the Youth Entrepreneurship and Empowerment Program.
In 2021, FCMB partnered with WeForGood and Slum Art Foundation to work with 200 children in the slum of Ijora-Badia, Lagos, teaching them art and painting.
Renewable energy
In 2021, FCMB executed credit enhancement agreements worth N20.9 billion to support renewable energy projects in Nigeria.
The bank also developed a product for mini-grid developers under an initiative offered by the World Bank/Rural Electrification Agency (REA).
Ownership
The shares of
stock
In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...
of First City Monument Bank are listed on the
Nigerian Stock Exchange
The Nigerian Stock Exchange (NSE) now Nigerian Exchange Group is a Nigerian stock exchange founded in 1961 in Lagos. As of November 2019, it has a total of 161 listed companies, with 8 domestic companies on the premium board, 144 companies on the ...
, where they trade under the symbol: FCMB. The current detailed shareholding in the bank, following the merger with
FinBank, is not publicly available.
Governance
FCMB Group Plc (FCMB) remains committed to institutionalizing corporate governance principles as part of the Group's corporate structure. It continues to ensure adherence to the implementation of corporate governance rules of the Central Bank of Nigeria, the Nigerian Stock Exchange and the Securities and Exchange Commission.
The board of directors of FCMB Group Plc is composed of a chairman and nine directors (three executive directors and six non-executive directors) in line with international best practice, which requires the number of non-executive directors to be more than the executive directors. There is a clear separation of duties between the Group Chief Executive and the chairman of the board.
The Board meets regularly to set broad policies for the Group's business and operations, and it ensures that an objective and professional relationship is maintained with the Group's auditors to promote transparency in financial and non-financial reporting. Directors' emoluments, as well as their shareholding information, are disclosed in the Group's Annual Report and Accounts .
Leadership
In 2017,
Ladi Balogun was appointed Group Chief Executive of FCMB’s holding company, FCMB Group Plc.
He had previously been the Managing Director of FCMB.
Under his leadership from 2007-2017, the bank grew to be one of Nigeria’s top 10 commercial banks. Balogun serves on the board of several FCMB Group companies, chairs the board of Credit Direct Limited, and serves as Chairman of Tenet Investment Company and Chairman of Legacy Pension Managers Ltd.
In January 2021,
Yemisi Edun, FCMB’s Executive Director and Chief Financial Officer, was named Acting Managing Director after the Managing Director at the time, Adam Nuru, stepped down.
In July, the appointment became official, making her FCMB’s first female CEO.
Edun first joined the bank in 2000 as the Divisional Head of Internal Audit and Control.
She has a Bachelor’s degree in
Chemistry
Chemistry is the science, scientific study of the properties and behavior of matter. It is a natural science that covers the Chemical element, elements that make up matter to the chemical compound, compounds made of atoms, molecules and ions ...
from the
University of Ife
Obafemi Awolowo University (OAU) is a federal government-owned university that is located in the ancient city of Ile-Ife, Osun State, Nigeria. The university was founded in 1961 and classes commenced in October 1962 as the University of Ife ...
, Ile-Ife, and a Master’s degree in International Accounting and Finance from the
University of Liverpool
, mottoeng = These days of peace foster learning
, established = 1881 – University College Liverpool1884 – affiliated to the federal Victoria Universityhttp://www.legislation.gov.uk/ukla/2004/4 University of Manchester Act 200 ...
,
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
.
She is a fellow of the Institute of Chartered Accountants of Nigeria and a
Certified Financial Analyst, CFA.
She is also a
Certified Information Systems Auditor
ISACA is an international professional association focused on IT (information technology) governance. On its IRS filings, it is known as the Information Systems Audit and Control Association, although ISACA now goes by its acronym only. .
FCMB Group Plc's nine subsidiaries are headed by:
# Yemisi Edun, Managing Director, First City Monument Bank Limited
# Colin Fraser, Chief Executive Officer, FCMB (UK) Limited
# Akinwande Ademosu, Managing Director, Credit Direct Limited
# Adetunji Lamidi, Managing Director, FCMB Microfinance Bank Limited
# Abimbola Kasim, Ag. Managing Director, FCMB Capital Markets Limited
# Abiodun Fagbulu, Managing Director, CSL Stockbrokers Limited
# Christopher Bajowa, Ag. Managing Director, FCMB Pensions Limited
# James Ilori, Managing Director, FCMB Asset Management Limited
# Samuel Adesanmi, Managing Director, FCMB Trustees Limited
See also
*
List of banks in Nigeria
This is a list of commercial banks with International Authorization in Nigeria, arranged alphabetically:
# Access Bank Plc
# Fidelity Bank Plc
# First City Monument Bank Limited
# First Bank of Nigeria Limited
# Guaranty Trust Holding Company ...
*
Economy of Nigeria
The Economy of Nigeria is a middle-income, mixed economy and emerging market with expanding manufacturing, financial, service, communications, technology, and entertainment sectors. It is ranked as the 27th-largest economy in the world in term ...
References
External links
FCMB Group websiteFirst City Monument Bank (FCMB) at AlacrastoreFirst City Monument Bank (FCMB) at BloombergFirst City Monument Bank (FCMB) at Nigerian Stock Exchange
{{Authority control
Companies listed on the Nigerian Stock Exchange
Banks of Nigeria
Banks established in 1982
Companies based in Lagos
Nigerian companies established in 1982
Multinational companies based in Lagos
Banks of Africa
Holding companies of Nigeria
Nigerian brands
Financial services companies of Nigeria
Financial services companies established in 1982
Investment banks
Banks of the United Kingdom
Microfinance banks