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FCMB to originate N140bn mortgages in five years


October 26, 2006/punch




2006-10-26 00:32:55

The Managing Director, First City Monument Bank Plc, Mr Ladi Balogun, has said that the bank intended to originate over N140bn of mortgages over the next five years. He said multilateral and long-term funding from the international and domestic capital markets would fund the scheme. In a statement made available to our correspondent on Wednesday, Balogun said the bank was already at an advanced stage of securing the first N20bn of dedicated funding for the mortgage scheme.

The mortgage proposal is among the segment of financial services the bank has chosen to participate in. On the corporate segment, he said it would be on high margin low risk activities such as cash management, foreign exchange and treasury services, project and structured trade finance and investment banking services through the FCMB Capital Market Limited. According to him, ÃÃâ€

’¢â‚¬Å“We will continue to leverage on alliances and the relationships with our affiliate-City Securities Limited as channel partners and a means of enhancing customer loyalty through cross selling. We will also continue to develop alliances particularly with world-class international partners that will add skill, distribution and even greater financial capacity to our proposition.ÃÃâ€

’¢â‚ÃÃ2006-10-26 00:32:55 In the consumer segment, which is expected to account for not less than 50 per cent of the bank’s profits by 2011, Balogun said particular focus would be on mortgage lending, other consumer loans and wealth management. He added that, ÃÃâ€

’¢â‚¬Å“A major alliance entered into soon after the end of the financial year, is the Memorandum of Understanding entered into with Sabre Capital Worldwide, a private equity and management exercise boutique focused primarily on consumer banking. This relationship has now crystallised into a substantive agreement, which will see Sabre Capital arranging significant capital to support our consumer business, identifying world-class talent to drive this side of business and providing strategic and corporate governance support over a period of five years.ÃÃâ€

’¢â‚¬Â Balogun also declared that a detailed five-year consumer banking strategic plan had been developed with the support of Sabre Capital and it is expected that the partnership with FCMB would become the leading consumer banking franchise in the country.

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