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First Bank aims to join world’s top 100 banks

Posted by By OMODELE ADIGUN on 2007/06/02 | Views: 627 |

First Bank aims to join world’s top 100 banks


First Bank Plc, the first bank in the country to float N100 billion offer, will soon make another history by becoming the first Nigerian bank to rank among the world’s top 100 banks.

First Bank Plc, the first bank in the country to float N100 billion offer, will soon make another history by becoming the first Nigerian bank to rank among the world’s top 100 banks.

Its Managing Director, Mr Jacobs Ajekiigbe, disclosed this on Thursday in Lagos while presenting the facts behind its offer on the floor of the Nigerian Stock Exchange (NSE).

According to him, the bank would not rely on organic growth alone to achieve this feat as it has ruled out mergers and acquisition, even with Ecobank Transnational Incorporated (ETI), whose planned corporate marriage with FBN was widely reported to have collapsed.

He stated: "Through many seasons since 1894, First Bank has remained the national champion and is set to ultimately become the first Nigerian bank to be among the top 100 world banks. Clearly, organic growth alone will not be sufficient to become the first Nigerian bank to be among the top 100 world banks and to take advantage of the various emerging value creation opportunities. Indeed, to participate fully in these emerging markets, banks will need to source long term capital and develop longer dated products to extend the maturities of their liabilities."

On the performance of the bank on the stock market, Ajekiigbe said that Fist Bank stock had outperformed its peer group in the last two years because of its superior operating ratios and returns on investment.

He added: "Clearly, First Bank stock presents a very attractive ‘buy’ at current prices and the significant interest expressed in the bank’s equity, following the recent road show for the debut 10-year $175 million bond (also known as surbonated 10NC5 Lower Tier 11 offering) attests to this. Market data showed that banks with higher ROEs (returns on equities) are favoured with higher price-book value multiples and that First Bank shows strong potential for future growth in market capitalization."

He then called on the investing public to go for FBN’s ongoing public offer, saying: "Invest in the stock with significant growth potential and strong profitability track record, combined with best corporate governance and management; invest in Nigeria’s biggest offer and the best banking stock in West Africa."

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Fay(Katy, Texas, US)says...

Actually translates to bravehearted.