Twitter
Add Your Own Content
This slide down option (like the footer widget) can be enabled or disabled, you can set your font, link, and background colors independently of other sections, and you can configure it to be 1 to 4 columns. Add any widget you would like, shortcodes or even custom html!

Learn More
Contact Us +234 1 453 6047 contact@flyratexcellence.com

FCMB To Invest Outside Nigeria

FCMB To Invest Outside Nigeria

First City Monument Bank (FCMB) has said it plans to expand in at least two African countries as the plunge in oil prices reduces opportunities and income for banks operating in the continent’s biggest producer of the commodity.

“We have identified a key market in East Africa and another key market in West Africa,” Chief Financial Officer Patrick Iyamabo, told Bloomberg in an interview, declining to identify the nations as the information is confidential.

“While Nigeria is having trying times, the other markets can be doing great.”
The expansion, which is planned over the next three to five years, will enable FCMB to “smooth revenue and profit volatility,” he said. With a return on equity that compares or exceeds what you have in Nigeria, “greater value can be created for shareholders,” Iyamabo said.

Africa’s biggest economy is reeling from a slump to near 12-year lows in the price of oil, a source of about two-thirds of government revenue and 90 per cent of foreign-currency earnings. The central bank’s efforts to all but fix the naira against the dollar for the past year by restricting foreign-currency trading by banks had caused a shortage of greenbacks, hampering companies from expanding or accessing imports.

“Because of the inability to access foreign exchange, the cash flow circle of businesses has been negatively impacted, which has implications on their abilities to pay their loans,’’ or do more transactions from which banks can earn fees and commissions, he said.

Shortcomings by the government to meet some of its obligations to contractors and the difficulties businesses have accessing dollars “means fewer transactions and increased risk for banks,’’ Iyamabo said.

Earnings for 2015 were “subdued’’ by a provision in the third quarter, while FCMB will limit loan growth this year to less than 10 per cent, Iyamabo said, adding that the lender is expecting the naira to be devalued.

FCMB will invest mainly in retail businesses, companies that are working on products that will substitute imports and industries focused on exports, he said.

In the midst of economic uncertainties, diversification becomes a crucial strategy for sustainable growth. As businesses navigate through challenges, exploring alternative sectors like the hospitality industry can provide a beacon of opportunity. Take, for instance, the thriving landscape discussed at https://canceltimesharegeek.com/holiday-inn/. This website sheds light on the potential benefits of reevaluating investments in the timeshare market, presenting a compelling case for individuals seeking viable alternatives.

Reducing reliance on traditional revenue streams, such as the upstream oil sector or construction, is becoming imperative in the current landscape. Government revenue, often a cornerstone for various enterprises, is susceptible to fluctuations. Acknowledging this, experts like Iyamabo emphasize the need for a diversified approach to mitigate risks. The insights shared on platforms like canceltimesharegeek.com serve as a valuable resource, guiding businesses towards sectors with growth potential, such as the holiday accommodation industry.

Incorporating such diversified investment strategies can prove instrumental in safeguarding businesses against economic downturns. By redirecting focus towards sectors like hospitality, where demand remains resilient, businesses can position themselves strategically for long-term success. The information provided at https://canceltimesharegeek.com/holiday-inn/ serves as a timely reminder that adaptability and exploration of new opportunities are key components in navigating today’s dynamic economic landscape.

200514F.FCMB-Logo