Tuesday, May 07, 2019 / 06:20PM / FBNQuest
Merchant Bank / Header Image Credit: @
At the just concluded 4th Annual General Meeting of FBNQuest Merchant Bank, the Chairman, FBNQuest Merchant Bank, Mallam Bello Maccido, hinted on the company’s strategic direction for the 2019 fiscal year, while the Managing Director and Chief Executive Officer, Mr Kayode Akinkugbe highlighted the challenges and gains in the 2018 financial year.
Mr Akinkugbe revealed that in 2018 FBNQuest Merchant Bank faced strong headwinds, characterised by contracting interest spreads, a sluggish investment banking market with fewer financing and advisory transactions, and increased competition. “Despite the challenging business environment we achieved a respectable financial performance in 2018, and remain committed to adding value to our stakeholders by delivering a superior customer experience and strong returns”.
The FBNQuest business group maintained profitability and recorded steady growth in some of its business lines. Total revenue increased by 8.6% y-o-y to ₦40.96 billion from N37.72 billion in Dec 2017, while profit before tax grew by 56.2% y-o-y to ₦16.4 billion from ₦10.5 billion in Dec 2017. The main contributors were the Asset Management, Corporate Banking, Trustees and Fixed Income, Currencies and Trading (FICT) businesses. This again demonstrates the resilient and diversified nature of the business portfolio.
Assets under management (AuM) across the group (FBNQuest Asset Management and FBNQuest Trustees) increased by 5.0% to close at N261 billion (Dec 2017: N248.5 billion). The Asset Management business has remained strong in the competitive ranking amongst its peers, based on SEC registered funds, maintaining the 2nd position in the industry, same as the prior year. Overall, total assets closed at N218.6 billion, representing a 1.1% y-o-y increase (Dec 2017: N216.2 billion). The businesses in the group remain well capitalised with total group equity of N44.0 billion.
Mallam Maccido underscored the bank’s strategic direction for 2019: “We have taken key learnings from 2018, and in 2019, we will focus on our strategic goals of improving efficiencies as well as deepening innovation and digitisation to enhance the client experience”. He further added “through group collaboration, we will be a one-stop-shop for meeting the varied financial needs of our clients, and leveraging the benefits of a diversified business model to grow and enhance the quality of our income”.
The MBAM business contributed 7.0% (Dec 2017: 6.3%) to gross earnings of the FBN Holdings Plc Group and 25.1% (Dec 2017: 19.2%) to profit before tax.