Lagos - The First Bank of Nigeria Plc on Monday changed its structure from a commercial banking to a holding company with the dominant financial services group in the Sub-Saharan Africa.
Mr Bello Maccido, Managing Director, First Bank Nigeria Holdings (FBN), said that the company’s new structure would enhance service delivery, performance and profitability for the group’s customers, shareholders and investors.
He said this at the bank’s “Fact behind the listing” of its shares at the Nigeria Stock Exchange (NSE) in Lagos.
Maccido said: “We have created an operating model that will drive service excellence; and profitably grow the group’s presence in the commercial banking and non-banking financial services.
“This is to achieve the aspiration to be the dominant financial services group in the Sub-Saharan Africa within the next five years.”
Maccido said that FBN Holdings comprised First Bank of Nigeria Ltd.; FBN Capital Ltd.; FBN Life Assurance Ltd.; FBN Insurance Brokers Ltd.; and FBN Microfinance Bank.
The News Agency of Nigeria (NAN) reports that the group emerged after the bank was delisted last week from the NSE.
It was in compliance with the Central Bank of Nigeria (CBN)’s regulation requiring the separation of commercial banking business from other financial services businesses.
Maccido said that the customers of the group’s banking and non-banking subsidiaries would continue to experience the service in keeping with the First Bank’s culture.
He said that the shareholders of the holding company would benefit from the entire businesses in the group.
“The holding company structure is designed to enhance the group’s competitiveness, streamline and coordinate various operations across non-bank financial services, and further exploit opportunities for synergies between subsidiaries.
“What we now have is a structure that has the potential to do much more for our customers and protect and preserve shareholders’ value through retention of good investments.”
According to Maccido, FBN Holdings will operate a corporate centre with responsibility for setting strategic direction and providing group-wide oversight through the constitution of a governing board and committees at the group level.
He said that the holdings company structure does not change the rights and ownership of the existing shareholders of First Bank of Nigeria Plc.
He said their shareholding would be migrated to FBN Holdings Plc in exchange for receiving ordinary shares in FBN Holdings equal to the number of shares they held in the bank.
Maccido said this would be done immediately before the restructuring could take effect.