It has been a long journey for financial services provider, Meristem Nigeria, having started out as a boutique stockbroking firm over 16 years ago and morphing into a capital market conglomerate offering an array of diversified service and product offerings. The tale is similar for the art and culture doyen, Nike Okundaye-Davies whose humble beginning in traditional weaving and dying practice annealed her to the art world and art lovers.
At a graceful age of 70, she has achieved over 102 solo art exhibitions, 36 group art exhibitions, a permanent display of two of her works in the Smithsonian National Museum of African Art, a Harvard recognition and many other global acclaims. With four (4) art galleries spread across the country, and the Lagos center being the biggest art gallery in West Africa, she once told a Forbes journalist that her dreams are driven by careful financial planning as she reinvests at least two-thirds of her income in her business and art centers.
Meristem taps into her creative energy in this campaign, highlighting the shared story of growth and collaboration for both institutions, and the need to onboard the right partners to achieve long term financial goals and investment security.
Meristem, a capital market conglomerate and diversified financial services provider offering stockbroking, wealth management, asset management, trustee services and financial advisory. Over the past 16 years, Meristem has been consistent in value creation and innovation within the capital market space. The Nigerian stock exchange awarded Meristem as the best digital broker of the year. In 2018 also, Meristem became the first Nigerian asset management firm to attain compliance with the Global Investment Performance Standards (GIPS) by the CFA Institute. In 2017, Meristem handled the single largest trade in the history of the Nigerian Stock Exchange.
Download the Nairametrics News App
Heirs Holdings Appoints Dan Okeke as Group Executive Director
Mr Okeke joins Heirs Holdings following a distinguished three-decade career at the UBA.
Pan-African investment company, Heirs Holdings this week announced the appointment of Dan Okeke as Group Executive Director. The appointment took effect from August 01, 2020.
Mr Okeke joins following a distinguished three-decade career at the United Bank for Africa Plc (UBA), where he most recently served as an Executive Director, responsible for leading consumer, commercial and public-sector businesses. At HH, he will be responsible for business coordination and growth across Heirs Holdings’ portfolio of pan-African investments in the power, financial services, oil and gas, hospitality, real estate, healthcare, and financial technology sectors.
Heirs Holdings is a family-owned investment company committed to improving lives and transforming Africa. Our portfolio spans the power, oil and gas, financial services, hospitality, real estate, and healthcare sectors, operating in twenty-three countries worldwide. Driven by the Africapitalism philosophy of the Group’s founder, Tony Elumelu, which positions the private sector as the catalyst of African growth and seeks both social and economic returns on investment, Heirs Holdings invests for the long-term, bringing strategic capital, sector expertise, a track record of business turnaround accomplishment and operational excellence to companies within its investment portfolio. Celebrating its tenth anniversary this year, Heirs Holdings has recorded consistent business success across its portfolio of investments.
Commenting on the appointment, Chairman, Heirs Holdings, Tony Elumelu, stated: “As we continue to grow in scale and complexity, Dan’s appointment demonstrates our ongoing commitment to institutionalisation. We have always recognised the need to invest in human capital. This announcement is a clear demonstration of our intent and determination to create sustainable value in all our business operations.”
“I am delighted to take on this new challenge and look forward to contributing towards the fulfillment of Heirs Holdings’ objective of improving lives and transforming the Continent,” Mr Okeke stated on his appointment.
Rating agencies, Agusto and GCR affirm ‘AAA’ long term credit rating of Infracredit, with stable outlook
InfraCredit’s “AAA” rating, with a stable outlook reflects its operational uniqueness as a guarantee provider.
Reflecting the strong fundamentals and credibility of Infrastructure Credit Guarantee Company Limited (“InfraCredit”), foremost rating agencies, Agusto & Co (“Agusto”) and Global Credit Ratings (GCR) simultaneously reaffirmed the “AAA” credit rating of the premier infrastructure guarantee company. Notwithstanding the unprecedented impact of the COVID-19 pandemic, which continues to weaken global and domestic macroeconomic outlook, InfraCredit sustained its strong risk capital and broader balance sheet, with significant headroom to underwrite further guarantees in pursuit of its mission of unlocking long term local currency infrastructure finance in Nigeria’s real sector.
Notably, InfraCredit’s “AAA” National Scale Rating, which is at par with the Nigerian Sovereign and reinforce the unparalleled credibility of its unconditional irrevocable guarantees, partly reflects the support of its shareholders and capital providers, which include the Nigeria Sovereign Investment Authority (NSIA), Africa Finance Corporation, GuarantCo (a Private Infrastructure Development Group company), and reputed multilateral institutions, including KfW Development Bank, who are committed capital providers. In addition, InfraCredit’s balance sheet and guarantee programmes are further supported under risk-sharing arrangements with the United States Agency for International Development (USAID), amongst other development finance institutions.
In arriving at its rating decision, Agusto reiterated that “the rating assigned to InfraCredit recognises its strategic importance and developmental role in the provision of local currency guarantees to enhance the credit quality of debt instruments issued to finance creditworthy infrastructure assets in Nigeria”. The foremost rating agency further noted that “the assigned rating reflects InfraCredit’s quality guarantee and investment portfolios, backed by an acceptable risk management framework, good return on investments and an experienced management team”.
Similarly, GCR emphasized, “InfraCredit’s “AAA” rating, with a stable outlook reflects its operational uniqueness as a guarantee provider, strong ownership and management profile, demonstrated financial flexibility, strong liquidity position, and profitability track record so far”. “The asset quality (in terms of issued guarantees) is sound, with nil non-performing exposure recorded from inception till date”, GCR analysts added.
Noteworthy, InfraCredit maintains the highest national scale rating accorded to any financial institution by Agusto and GCR, having recorded nil recourse on all its guarantee exposures since inception, reinforcing the quality of its obligors, ingenuity of the financing structures and strong governance oversight. Credited for its innovative approach to infrastructure financing, InfraCredit is creating capital access for infrastructure corporates in the real sector of the Nigerian economy whilst unlocking investable assets for pension funds, insurance firms and asset managers. As the premier infrastructure credit guarantee company, InfraCredit is committed to its vision of playing a catalytic role in engendering market confidence and stimulating financial inclusion for real sector-induced growth and the sustainable development of Nigeria’s economy.
Speaking on the ratings actions, InfraCredit’s Managing Director/CEO, Chinua Azubike said, “we are pleased with the simultaneous affirmations of InfraCredit’s “AAA” rating, with stable outlook, by the duo foremost credit rating agencies, Agusto and GCR. This assertion, which follows the thorough independent assessments by these reputed institutions, is a testament of our balance sheet capacity, impeccable quality of our guarantees and sound risk management practice. We would continue to adhere to global best practice in transaction structuring, governance, and market development, as we continuously strengthen our capitalization and broader capacity in pursuit of our vision to catalyze real sector growth through innovative infrastructure financing. Notwithstanding the challenges presented by the current COVID-19 pandemic, we continue to preserve our strong fundamentals, as we are committed to unlocking domestic credit to the private sector for infrastructure development that will create jobs and promote local economic growth.’’
InfraCredit is a ‘AAA’ rated specialised infrastructure credit guarantee institution backed by the Nigeria Sovereign Investment Authority, GuarantCo (a Private Infrastructure Development Group company), KfW Development Bank and Africa Finance Corporation to provide local currency guarantees and mobilize long term debt financing for infrastructure in Nigeria. InfraCredit’s guarantees act as a catalyst to attract domestic credit from pension funds, insurance firms and other long-term investors into credit-worthy infrastructure projects, thereby deepening the Nigerian debt capital markets. InfraCredit operates on a commercial basis with a developmental role and benefits from private sector governance.
InfraCredit maintains the highest domestic financial strength ratings accorded to any financial institution by Agusto & Co. and Global Credit Ratings Co., two of the major domestic credit rating agencies.
For more information please visit www.infracredit.ng
FCMB Group records impressive half year results as Profit Before Tax rose by 26% to N11.1 billion
The Group recorded an increase in gross revenue by 9% to N98.2 billion.
FCMB Group Plc has again proved its resilience and capability to deliver outstanding performance and returns to customers and shareholders going by the half year results of the financial institution released recently. For the six months ended June 30, 2020, the Group’s profit before tax (PBT) rose by 26% to N11.1 billion compared to N8.8 billion in the corresponding period in 2019. Profit after tax increased by 29% Year-on-Year to N9.7 billion. This translates to a return on average equity (RoAE) of 9.4% and earnings per share of 49 kobo, a Year-on-Year improvement of 16% and 29%, respectively.
FCMB Group is a holding company divided along three business groups; Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Corporate & Investment Banking (the Corporate Banking Division of the Bank, FCMB Capital Markets Limited and CSL Stockbrokers Limited) as well as Asset & Wealth Management (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited).
The half year results also showed that the Group recorded an increase in gross revenue by 9% to N98.2 billion as against N89.8 billion for the same period last year. Net interest income equally rose by 17% for the first half of 2020 to N45.4 billion from N38.7 billion posted in the first half of 2019, while non-interest income stood at N17.5 billion, an increase of 14% compared to N15.3 billion within the six months period last year.
Moreover, the financial institution intensified the tempo of its strong commitment and support to the growth of businesses and the Nigerian economy in general. For example, loans and advances grew by 29% Year-on-Year and 4% Quarter-on-Quarter to N794.6 billion. Customer deposits went up by 28% Year-on-Year and 11% Quarter-on-Quarter to ₦1.1 trillion in June 2020, implying a significant increase in confidence in the institution. Total assets surged upward by 31% Year-on-Year and 4% Quarter-on-Quarter to ₦1.97 trillion as at June 2020. The Group’s capital adequacy ratio stood at 17.3%, which is above the minimum requirement set by the Central Bank of Nigeria. Liquidity ratio was 32.2%. Customer base across the Group grew by 29% Year-on-Year from 5.9 million to 7.7 million.
The subsidiaries of FCMB Group, who are market leaders in their respective segments, also performed satisfactorily within the six months period. The Commercial and Retail Banking arm (comprising First City Monument Bank Limited, FCMB UK, Credit Direct Limited and FCMB Microfinance Bank) reported a 42.9% Year-on-Year increase in PBT. This was due to an increase in net interest income, fixed income instruments, trading income and foreign exchange income. PBT also improved by 4.1% Quarter-on-Quarter due to an increase in fixed income instruments, trading income and FX Income, as well as a decrease in expenses due to operational efficiency.
Corporate & Investment Banking (comprising the Corporate Banking Division of the Bank, FCMB Capital Markets Limited and CSL Stockbrokers Limited) saw its performance improve Quarter-on-Quarter. This was driven by an increase in net interest income and non-interest income. CSL Stockbrokers returned to strong and sustainable profitability, moving from a PBT of N18 million in half year 2019 to N201million in half year 2020, representing a 1034% Year-Year growth.
Investment Management (comprising FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited) grew its Assets Under Management (AUM) by 7% Quarter-on-Quarter and 28% Year-on-Year to N455 billion. The growth in AUM reflects the increasing effectiveness of product sales strategy, which leverages the FCMB Group’s distribution strength and digital innovation. The Group’s Pensions business contributed 75% of half year 2020 AUM, compared with 83% within the same period in 2019. Other business lines accounted for 53% of the N99 billion Year-on-Year growth in AUM.
Analysts are of the opinion that with this impressive performance despite the challenging operating environment, FCMB Group is on a stronger pedestal to sustain its leading position in the financial industry and the Nigerian economy.
Over the years, the institution has created tremendous opportunities and added significant value to customers, shareholders and other stakeholders through innovation and its customer-focused approach anchored on its culture of excellence.
For more information about FCMB Group Plc, visit www.fcmbgroup.com