First Bank Looks to Build on Momentum with Another Decade of Growth

First Bank Looks to Build on Momentum with Another Decade of Growth

By prince Benson Davies

As the Nigerian banking landscape continues to evolve, First Bank of Nigeria Limited has demonstrated its resilience and determination to thrive, despite the complexities of the financial industry. With a rich history spanning over 128 years, First Bank has consistently shown its ability to adapt and innovate, leveraging its expertise and resources to drive growth and expansion. As the bank enters a new decade, it is poised to build on its momentum, driven by a forward-thinking strategy and a commitment to delivering exceptional value to its customers.

In the first nine months of last year, the earnings per share (EPS) of FBNHoldings Plc, the parent company of First Bank of Nigeria Limited, as well as its profit grew by 125 percent year-on-year (Y/Y).

But there is much more to where the premier bank stands in core banking, and its profitability is not a mere accretion of transaction charges but that it has also increased its commitment to financial intermediation. In the three quarters, its interest income, which gives a clue of sustainable profit run, grew by as much as 165 percent to N1.63 trillion.

And these are not just a random progression; neither are they products of white noise in its corporate journey. It has shown consistency of growth in both top and bottom-line metrics in the last few years, giving an expression to the tagging of its post-2015 crisis era as the ‘decade of miracle’ in the investment market.

For instance, from 2019 to 2023, its most recent audited financial, its EPS has expanded by over fourfold—from 195 kobo to 859 kobo, one of the fastest growing in Nigeria’s capital market. In the same period, it grew its yearly operating profit by over 320 percent, from a mere N73.8 billion to N310.5 billion.

On the top line, its earnings nearly tripled, growing from N623 billion to N1.6 trillion in five years, during which its total assets jumped by N10.7 trillion to close last year at N16.94 trillion. In the half-decade, according to data obtained from its books, its total shareholder’s equity even grew faster, expanding from N661 billion to N1.75 trillion, or 163 percent.

As a key growth driver, its loans to customers saw a whopping rise of 243 percent in the period to hit N6.36 trillion as of December 2023. Its facilities, according to information gleaned from its financials, are spread across key sectors, including oil and gas, manufacturing, agriculture, agroservices, construction, and real estate, among others.

Whereas the five-year cycle has demonstrated robust growth, last year’s operations demonstrated even more resilience, with the awaited full-year result promising to trump the previous ones. On key profitability indices, last year’s nine months exceeded the 2023 comparative period or full year by wide margins.

For instance, its earnings in the first nine months of 2024 were N2.25 trillion, or N655 billion, higher than the entire 2023 figure and 134 percent higher than its comparative period, pointing to an annualised gross of N2.8 trillion. While the interest income showed remarkable growth, its non-interest income was also 82 percent up from the 2023 three quarters’ N320.5 billion.

The lender’s recent migration to transaction-led banking is paying off with the reinvention of its digital payment system. At the close of last September, First Mobile subscribers had hit 6.9 million, while over 23 million had subscribed to a potpourri of online platforms.

With its new 10-year vision, which was articulated in 2023 and billed to consolidate these gains, the ‘decade of miracle’ might as well serve as the launch pad of the new FirstBank. But the recent boardroom intrigue and the dispute with General Hydrocarbons Limited (GHL) are a costly distraction the bank cannot afford. Hence, many stakeholders are seeking faster and less confrontational solutions to the crisis.

Amidst the conflicts, the Chief Executive of FirstBank Group, Olusegun Alebiosu, described a 10-year vision of the bank as a major stand in its Vision 2033, which would push the Nigerian premier financial institution to the top three universal banks in Africa across retail, wholesale, and wealth management customer segments.

“Given that the 10-year vision aspiration is still very market-relevant, and I was also an integral part of the process that birthed it, I intend to focus on ensuring its disciplined execution during my tenure as the Chief Executive Office.

“As the CEO, I have a clear vision for FirstBank Group, and I am confident that with the strong support of the rest of the management team and board, we will deliver a franchise that will continue to be the pride of Nigeria and Africa within the financial services landscape,” the chief executive, who has told the market that his risk management background means nothing short of sustainable growth, said.

At the 12th AGM of FBNHoldings held on November 14, 2024, shareholders approved another N350 billion capital raise action, which the bank said would be executed in a blend of approaches this year. Plus, with the previous N150 billion rights issues, FirstBank is expected to exceed the new N500 billion minimum capital requirements well ahead of the 2026 deadline to keep its international license.

A major speed slowing the pace of the traditional banks today is the natural advantage that digital-first banks like Opay, MoniePoint, and others have been cloud natives. Sadly, the brick-and-mortar toga poses a legacy constraint for traditional banks. But FirstBank, the first fruit of the conventional banks, has gone ahead with a digital evolution campaign.

Today, the CEO said, over 90 percent of FirstBank’s customer-induced transactions happen on the digital channels—FirstMobile, FirstOnline, Lit App, *894#, FirstDirect, and ATMs—where it has a comparative advantage.

“As the bank implements its cloud strategy, we are focused on building a nimbler, always-on, and resilient financial services group that leverages its rich legacy to serve its customers’ current and emerging needs,” Alebiosu believes.

Interestingly, 2025 is the takeoff of the bank’s 2025 to 2029 strategic planning cycle. The bank intends to “double down” on its dominant position across all the markets where we operate. Part of the program is strategic investments to improve customer experience to make it easier for existing and prospective customers to interact and do business on its offline and digital platform, deploying new technologies, and ramping up artificial intelligence deployment to scale up digital operations.

But as it turns out, FirstBank and its sister organisations also have a responsibility to urgently put behind the current distractions to continue consolidating the gains of the ‘decade of miracles.’.