FBNH to strengthen digital footprint, increase int’l visibility with rights issue

FBN Holdings Plc has announced that 9.85 per cent of the capital raised, approximately N14.73 billion, would be channelled toward upgrading its digital banking infrastructure and automation systems.

The bank also disclosed that it has allocated N29.5 billion (19.7 per cent of the proceeds) towards increasing its international visibility.
At the facts behind the rights issue held in Lagos, yesterday, the Group Managing Director of the bank, Nnamdi Okonkwo said N77.34 billion would be allocated to corporate lending, while N25.78 billion will target the retail segment.

The bank is raising ₦150 billion from existing shareholders. The rights issue commenced on November 4 and will end on December 12, 2024.
He assured shareholders that the bank would attain a N770 billion capital base by the first quarter of 2025 to exceed the Central Bank of Nigeria’s (CBN) N500 billion requirements.

Okonkwo said the Group’s capital base currently at N270 billion would be bolstered through its ongoing rights issue and subsequent capital-raising strategies, which had already been outlined.

“This initial phase is all about securing N150 billion through our Rights Issue by offering 5.98 billion ordinary shares of 50 kobo each at N25.00 per share to existing shareholders based on one new ordinary share for every six ordinary shares held as of October 18, 2024,” he said.

The bank would seek shareholder approval to raise an additional N350 billion at the upcoming Annual General Meeting (AGM), ultimately reaching the N770 billion capital target by early 2025.

“When we are done, we will be over N230 billion higher than the regulator-stipulated capital. We will be recapitalising our flagship, First Bank with a certain portion of the money and deploying the rest for innovation and digitisation across our franchise. What will be critical to our longevity for another 130 years is for us to focus on sustainable finance, diversity, inclusion, climate action, and community development,” he said.

He said the bank plans to deepen its footprint in strategic markets, including key African economies and its existing presence in the United Kingdom, France and China.

According to him, the bank will also focus on enhancing synergies across its subsidiaries and leveraging its stronghold in commercial, merchant banking, asset management, insurance brokerage and other financial services.

In terms of performance, he said, the Group posted impressive financials for the first nine months of 2024, with net interest income increasing by 132 per cent to N873 billion and non-interest income climbing 82.5 per cent to N585 billion.

The bank’s total assets grew by 62 per cent to N27.5 trillion, while the loan book expanded 47 per cent to N9.4 trillion, and customer deposits increased by 57 per cent to N16.7 trillion.

Meanwhile, its banking subsidiary has announced its sixth annual Fintech Summit, themed ‘Banking on Partnerships’, scheduled to be held on November 13 and 14.

This year’s edition will bring together renowned subject matter experts, innovators and industry leaders from around the world to explore the latest trends and advancements in financial technology, a statement by the bank said.

Since its inception in 2016, the FirstBank Fintech Summit has established itself as a premier event, attracting top subject matter experts in digital innovation from Nigeria and around the globe. While the summit transitioned online in 2020 due to the COVID-19 pandemic, this year’s event is to be hosted as a hybrid affair, enabling participants from around the world to engage with renowned speakers and insightful discussion.

A key highlight of this year’s summit is the launch of the Fintech Innovators Pitch Programme, designed to empower early-stage fintech startups and cultivate innovation within the financial services ecosystem.

Selected startups are to benefit from intensive training and mentorship, culminating in an opportunity to pitch their groundbreaking solutions to FirstBank, prominent investors and industry experts. Winning startups will receive essential support from FirstBank to propel their products to market, including strategic guidance, resources, and access to a vast network.

Speaking at the Summit, the CEO of FirstBank Group, Olusegun Alebiosu said: “This year’s summit provides a platform to unite industry leaders, innovators, regulators, and thought leaders to explore how collaboration and partnerships can shape the future of financial services and technology.