First Bank of Nigeria
Encyclopedia
First Bank of Nigeria is a Nigeria
n bank
and financial services
firm.
First Bank traces its ancestry back to the first major financial institution founded in Nigeria; hence the name. The current chairman is Dr. Ayoola Oba Otudeko, OFR
. The bank is the largest retail
lender in the nation, while most banks gather funds from consumers and loan it out to large corporations and multinational
s, First Bank has created a small market for some of its retail clients.
At the end of September 2011, the bank had assets totaling approximately US$18.6 billion (NGN:2.9 trillion). The bank's profit after tax, for the nine months ending 30 September 2011 was approximately US$270.2 million (NGN:42.2 billion).
First Bank of Nigeria maintains a subsidiary
in the United Kingdom
, FBN Bank (UK), which has a branch in Paris. The bank also has representative offices in South Africa
and China
. In October 2011, the bank acquired Banque International de Credit (BIC), a leading bank in the Democratic Republic of Congo (DRC).
The company was named the best bank in Nigeria by Global Finance magazine in September 2006. The firm's auditors are PricewaterhouseCoopers(Chartered Accountants). The firm has solid short and long term ratings from Fitch
and the Global Credit Rating Company partly due to its low exposure to non-performing loans. The firm's compliance with financial laws has also strengthened with the Economic Financial Crimes Commission giving it a strong rating.
. The bank originally served the British shipping and trading agencies in Nigeria. The founder, Alfred Lewis Jones
, was a shipping magnate who originally had a monopoly on importing silver
currency into west Africa through his Elder Dempster shipping company. According to its founder, without a bank, economies were reduced to using barter and a wide variety of mediums of exchange, leading to unsound practices. A bank could provide a secure home for deposits and also a uniform medium of exchange. The bank primarily financed foreign trade, but did little lending to indigenous Nigerians, who had little to offer as collateral for loans.
In 1965, Standard Bank
acquired Bank of West Africa and changed its acquisition's name to Standard Bank of West Africa. In 1969, Standard Bank of West Africa incorporated its Nigerian operations under the name Standard Bank of Nigeria. In 1971, Standard Bank of Nigeria listed its shares on the Nigerian Stock Exchange and placed 13% of its share capital with Nigerian investors. After the end of the Nigerian civil war
, Nigeria's military government sought to increase local control of the retail-banking sector. In response, now Standard Chartered Bank
reduced its stake in Standard Bank Nigeria to 38%. Once it had lost majority control, Standard Chartered wished to signal that it was no longer responsible for the bank and the bank changed its name to First Bank of Nigeria in 1979. By then, the bank had re-organized and had more Nigerian directors than ever.
In 1982 First Bank opened a branch in London
, that in 2002 it converted to a subsidiary, FBN Bank (UK). Its most recent international expansion was the opening in 2004 of a representative office in Johannesburg
, South Africa
. In 2005 it acquired MBC International Bank Ltd. and FBN (Merchant Bankers) Ltd. Paribas and a group of Nigerian investors had founded MBC in 1982 as a merchant bank; it had become a commercial bank in 2002.
In June 2009, Stephen Olabisi Onasanya was appointed Group Managing Director (CEO), replacing Sanusi Lamido Sanusi
, who had been appointed governor of the Central Bank of Nigeria
.
Onasanya was formerly Executive Director of Banking Operations & Services.
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
n bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
and financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
firm.
First Bank traces its ancestry back to the first major financial institution founded in Nigeria; hence the name. The current chairman is Dr. Ayoola Oba Otudeko, OFR
Orders, decorations, and medals of Nigeria
Nigerian National Honours are a set of orders and decorations conferred upon Nigerians and friends of Nigeria every year. They were instituted by the National Honors Act No...
. The bank is the largest retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
lender in the nation, while most banks gather funds from consumers and loan it out to large corporations and multinational
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
s, First Bank has created a small market for some of its retail clients.
At the end of September 2011, the bank had assets totaling approximately US$18.6 billion (NGN:2.9 trillion). The bank's profit after tax, for the nine months ending 30 September 2011 was approximately US$270.2 million (NGN:42.2 billion).
First Bank of Nigeria maintains a subsidiary
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, FBN Bank (UK), which has a branch in Paris. The bank also has representative offices in South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
and China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
. In October 2011, the bank acquired Banque International de Credit (BIC), a leading bank in the Democratic Republic of Congo (DRC).
The company was named the best bank in Nigeria by Global Finance magazine in September 2006. The firm's auditors are PricewaterhouseCoopers(Chartered Accountants). The firm has solid short and long term ratings from Fitch
Fitch Ratings
The Fitch Group is a majority-owned subsidiary of FIMALAC, headquartered in Paris. Fitch Ratings, Fitch Solutions and Algorithmics, are part of the Fitch Group....
and the Global Credit Rating Company partly due to its low exposure to non-performing loans. The firm's compliance with financial laws has also strengthened with the Economic Financial Crimes Commission giving it a strong rating.
Pre-independence
The Bank traces its history back to 1894 and the Bank of British West AfricaBank of British West Africa
Bank of British West Africa was a British Overseas bank that was important in introducing modern banking into the countries that emerged from the UK's West African colonies...
. The bank originally served the British shipping and trading agencies in Nigeria. The founder, Alfred Lewis Jones
Alfred Lewis Jones
Sir Alfred Lewis Jones , British ship-owner, was born in Carmarthenshire, Wales.At the age of twelve he was apprenticed to the managers of the African Steamship Company at Liverpool, making several voyages to the west coast of Africa. By the time he was twenty-six he had risen to be manager of the...
, was a shipping magnate who originally had a monopoly on importing silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
currency into west Africa through his Elder Dempster shipping company. According to its founder, without a bank, economies were reduced to using barter and a wide variety of mediums of exchange, leading to unsound practices. A bank could provide a secure home for deposits and also a uniform medium of exchange. The bank primarily financed foreign trade, but did little lending to indigenous Nigerians, who had little to offer as collateral for loans.
Post-independence
In 1957, Bank of British West Africa changed its name to Bank of West Africa (BWA). After Nigeria's independence in 1960, the bank began to extend more credit to indigenous Nigerians. At the same time, citizens began to trust British banks since there was an 'independent' financial control mechanism and more citizens began to patronize the new Bank of West Africa.In 1965, Standard Bank
Standard Bank (historic)
The Standard Bank was a British overseas bank, which operated mainly in Africa from 1863 to 1969. It merged with the Chartered Bank in 1969 to form Standard Chartered.-History:...
acquired Bank of West Africa and changed its acquisition's name to Standard Bank of West Africa. In 1969, Standard Bank of West Africa incorporated its Nigerian operations under the name Standard Bank of Nigeria. In 1971, Standard Bank of Nigeria listed its shares on the Nigerian Stock Exchange and placed 13% of its share capital with Nigerian investors. After the end of the Nigerian civil war
Nigerian Civil War
The Nigerian Civil War, also known as the Nigerian-Biafran War, 6 July 1967–15 January 1970, was a political conflict caused by the attempted secession of the southeastern provinces of Nigeria as the self-proclaimed Republic of Biafra...
, Nigeria's military government sought to increase local control of the retail-banking sector. In response, now Standard Chartered Bank
Standard Chartered Bank
Standard Chartered PLC is a multinational financial services company headquartered in London, United Kingdom with operations in more than seventy countries...
reduced its stake in Standard Bank Nigeria to 38%. Once it had lost majority control, Standard Chartered wished to signal that it was no longer responsible for the bank and the bank changed its name to First Bank of Nigeria in 1979. By then, the bank had re-organized and had more Nigerian directors than ever.
In 1982 First Bank opened a branch in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, that in 2002 it converted to a subsidiary, FBN Bank (UK). Its most recent international expansion was the opening in 2004 of a representative office in Johannesburg
Johannesburg
Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa...
, South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
. In 2005 it acquired MBC International Bank Ltd. and FBN (Merchant Bankers) Ltd. Paribas and a group of Nigerian investors had founded MBC in 1982 as a merchant bank; it had become a commercial bank in 2002.
In June 2009, Stephen Olabisi Onasanya was appointed Group Managing Director (CEO), replacing Sanusi Lamido Sanusi
Sanusi Lamido Sanusi
Mallam Sanusi Lamido Sanusi was appointed Governor of the Central Bank of Nigeria on 3 June 2009.He is a career banker and ranking Fulani nobleman, and also serves as a respected Islamic scholar....
, who had been appointed governor of the Central Bank of Nigeria
Central Bank of Nigeria
The Central Bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1959.The major regulatory objectives of the bank as stated in the CBN act of 1958 is to: issue legal tender, maintain the external reserves of the country, promote monetary stability and a sound...
.
Onasanya was formerly Executive Director of Banking Operations & Services.