First Bank of Nigeria

Infobox Company
name = First Bank of Nigeria
type = Public
foundation = 1894, Re-named 1979
location = Lagos
key_people = Umaru Mutallab, Chairman
industry = Finance
branches = 396
products = Financial Services
revenue = 67 billion Nigerian Naira (2006) (about $500 million (US))
homepage = [http://www.firstbanknigeria.com/ firstbanknigeria.com]

First Bank of Nigeria is one ofweasel_word the largest financial groups in Nigeria. First Bank traces its ancestry back to the first major financial institution founded in Nigeria; hence the name. The current chairman is Umaru Mutallab. 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 multinationals, First Bank has created a small market for some of its retail clients. ["Nigeria - Unexplored Territory - With 84% Of Money In Circulation Outside The Banking System, Banks Have Little Impact On Nigeria's Population, Providing Few Consumer Retail Services And Virtually No Consumer Lending", The Banker, April 1, 2006]

At the end of August 2006, the bank had assets totaling 650 billion Naira or $5 billion dollars. The bank was also the most highly capitalized stock on the Nigerian Stock Exchange, and had about 10 billion outstanding shares.

The company was named the best bank in Nigeria by Global Finance magazine in September 2006. ["FIRST BANK HAULS GLOBAL FINANCE AWARDS," Vanguard (Nigeria) September 13, 2006] The firm's auditors are Akintola Williams Deloitte & Touche (Chartered Accountants) and KPMG Audit (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.

History

Pre-independence

The Bank traces its history back to 1894 and the Bank of British West Africa. [Richard Fry: Bankers in West Africa, The Story of the British Bank of West Africa] 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. [Alfred Jones: Banking in West Africa. The Journal of African Society] 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-indepedence

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 of South Africa acquired Bank of West Africa and changed its acquistion'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.

References

External links

* [http://www.firstbanknigeria.com/ Official site]