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Infinity Trust Mortgage Bank to Raise Fresh Capital

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Infinity Trust Mortgage Bank

By Adedapo Adesanya

The management of Infinity Trust Mortgage Bank Plc (ITMB) has hinted that it could generate more funds for the company by offering its shares to interested investors.

This hint was dropped on Monday by Managing Director/CEO of Infinity Trust Mortgage Bank, Mr Onabanjo Obalaye, during the bank’s Facts Behind The Figures at the Nigerian Stock Exchange (NSE).

The company, which had the honour of beating the closing gong yesterday, was at the exchange to give explanation on its audited full year ended December 31, 2018, and the unaudited results for the seven months ended July 31, 2019.

Business Post reports that during the presentation, Mr Obalaye rolled out the bank’s expectations, results of operations, business prospects and opportunities considering the challenging operating environment, which he described as “very tough.”

According to Mr Obalaye, “Rising insurgency and terrorist activities in the North East and spreading South is affecting every business not only mortgage business.

“Concerns about safety and security of persons and goods is taking its toll on business operations.

“Also, lengthy court processes, absence of unified foreclosure law and government right to land.

“The policy initiative of government equally needs to be addressed if home ownership in Nigeria needs to be redeemed.”

Also looking at regulations, he noted that many regulators failed to understand the dynamics of the business environment leading to poor policy implementation.

Looking at the rising cost, Mr Obalaye said, “The drive of government to generate revenue without knowing if it kills businesses or not is equally adding to the cost of operating businesses in this environment.”

He, however, noted that despite the unfriendly factors, Infinity Trust Mortgage Bank has been able to move its total assets to N11 billion from was N7.39 billion in 2013 when it was listed on the exchange.

Mr Obalaye also disclosed that the Shareholders Funds has moved to N6 billion while its loans and advances is currently at N5.5 billion.

Looking at what the company has achieved when it became a public company in January 2013 to date, Mr Obalaye said, “We have moved our shareholders from 150 to 500 and we became a national mortgage bank.”

He said in recognition of the support of its shareholders, the bank has declared and paid dividends every year.

Analyzing the bank’s financials based on its Key Performance Indicators (KPIs) from 2013 to the full year of 2018 and inclusive of its seven months performance in 2019, the Managing Director said, ‘Total Assets in 2013 was N7.39 billion which moved to N10.35 billion in 2018 and is currently at N11.23 billion. Loan and Advances in its first year as a public company was at N1.31 billion which moved up to N3.8 billion in 2018 and is now at N5.05 billion so far, with investments rowing to N2 billion as at the period calculated in 2019.’

Speaking on the issued share capital, which has remained at  N2.085 billion since 2013, Mr Obaleye said, “We are working on how we are going to increase this”, disclosing that the bank was working with its investment partners, Cordros Capital.

Remarking on the performance, Obalaye noted that the growth was due to strong brand presence, improved customer confidence, efficient corporate governance, public and private housing initiatives among other drivers.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Banking

CBN Clears Otedola’s Nominee to Join FBN Holdings Board

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Julius B. Omodayo-Owotuga FBN Holdings

By Dipo Olowookere

After acquiring a significant stake in FBN Holdings Plc, oil mogul, Mr Femi Otedola, now has someone to protect his interest in the financial institution.

A few months ago, FBN Holdings was embroiled in a leadership tussle between Mr Otedola and the current chairman of the company, Mr Tunde Hassan-Odukale.

The Nigerian Exchange (NGX) Limited and other stakeholders had to intervene in the matter and it was clearly made known that Mr Otedola is the largest single shareholder of FBN Holdings, which is sometimes fondly called First Bank.

It was feared that Mr Otedola may topple his rival from the position when shareholders of the company meet at the Annual General Meeting (AGM) later this year.

On Tuesday, Business Post gathered that Mr Otedola’s nominee to the board has been cleared by the Central Bank of Nigeria (CBN) as a non-executive director.

The new member of the FBN Holdings board of directors is Mr Julius B. Omodayo-Owotuga, the deputy chief executive of Geregu Power Plc.

In 2018, Mr Otedola sold his 75 per cent stake in Forte Oil Plc, which later became Ardova Plc, to acquire Geregu Power Plc.

His confidence and trust in Mr Omodayo-Owotuga may have influenced his decision to send him to FBN Holdings to protect his interest in the financial institution.

Mr Omodayo-Owotuga was formerly with Mr Otedola at the defunct Forte Oil as the Group Executive Director in charge of Finance and Risk Management.

He is a finance expert with huge experience in Finance, Risk Management, Treasury, Internal Controls, General Administration, Procurement, and Information Technology.

While at Forte Oil, he was a member of the Executive Management Team that restructured a then moribund company into a vibrant industry player.

He equally led the capital restructuring, acquisitions, debt capital raise, maiden credit rating and divestment initiatives.

Prior to joining Forte Oil Plc, he had responsibility for the Asset and Liabilities Management function at the Africa Finance Corporation.

He is a KPMG trained finance professional who possesses extensive investment experience spanning Financial Services, Power and Oil & Gas sectors with a proven track record of significant achievements.

His two decades of work experience spans blue-chip companies such as KPMG; Standard Chartered Bank; Africa Finance Corporation (AFC); Forte Oil Plc, MBC International Bank (Now First Bank of Nigeria Limited) and Geregu Power Plc.

Mr Omodayo-Owotuga is an alumnus of Oxford University’s Said Business School, United Kingdom, IE Business School, Madrid, Spain and the University of Lagos, Lagos, Nigeria.

He has a B.Sc. in Accounting and a Masters in Business Administration (with distinction). He is a CFA Charter Holder; a Fellow of The Institute of Chartered Accountants of Nigeria (ICAN), The Chartered Institute of Taxation of Nigeria (CITN) and The Institute of Credit Administration.

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Banking

Fidelity Bank Customers Win Millions of Naira in GAIM 5 Promo

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Fidelity Bank Customers GAIM promo

By Modupe Gbadeyanka

On Thursday, January 27, 2022, some Fidelity Bank customers had the opportunity to win millions of Naira in the month’s draw of the lender’s Get Alert in Millions savings promo, season 5 (GAIM 5).

It was gathered that no fewer than 10 customers of the financial institution became N1 million richer. They were from several branches across the six geo-political zones of Nigeria and presented with their prizes at an event held at Fidelity Bank, Awolowo Road, Ikoyi, Lagos.

One of the winners, Stanley Okpoto, who could not hide his joy, said, “I am more than happy to receive this cash prize from Fidelity Bank.

“Being a long-time customer and follower of the bank, I feel special and grateful that as little as 2K earned me so much money. I am looking forward to how this money will further transform my business. I encourage my friends and family to take advantage of this life-changing opportunity.”

Also speaking at the well-attended event, the promo Chairman and Executive Director in charge of the bank’s Lagos and South-West Directorate, Dr Ken Opara, said the ceremony marked a special celebration for the bank being the first prize presentation for the year and therefore sets the tone for the remaining prize presentations to be held in the year.

“It gives me great pleasure to announce the presentation of the sum of N1 million to Ajoma Rachael Iyowo and Stanley Sunday Okpoto who emerged winners in the second GAIM 5 monthly draw which held last week.

“Asides Stanley and Ajoma, eight other customers of Fidelity Bank will receive cash prizes at similar events holding simultaneously at some of our branches across Nigeria. These customers only had to maintain a minimum of N2,000 in their Fidelity Bank accounts to emerge winners. That is the beauty of the GAIM 5 savings promo.

“As a bank, we remain committed to empowering our customers with the resources, expertise and solutions they need to meet their strategic business goals. Whether it is the right loan product, appropriate payment channel or in this case, the benefits for saving their money with us, we are all about providing platforms and solutions to help our customers grow,” explained Dr Opara, who was represented by the bank’s Chief Digital Officer, Lanre Showunmi, stated.

The GAIM campaign is an 8-month long scheme that was launched in November 2021. So far, Fidelity Bank has enriched the lives of over 520 customers with cash prizes ranging from N10,000 to N1 million in weekly consolation draws and monthly draws respectively.

Qualifying requirements for the scheme are maintaining an account balance of at least N2,000 in a Fidelity Bank savings account and activating a debit card. According to the bank, the promo employs a ticketing approach whereby each N2,000 in customers’ accounts represents a ticket in the draws.

In operation since 1988, Fidelity Bank is a full-fledged commercial bank with a growing customer base of over 6 million customers across Nigeria. The bank is known for exceptional customer service and digital innovation.

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Banking

Subscription for N20bn FSDH Merchant Bank Series 6, 7 CP Ongoing

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FSDH Merchant Bank

By Dipo Olowookere

FSDH Merchant Bank Limited is currently selling the series 6 and 7 of its commercial paper and it plans to raise about N20 billion from the exercise.

Business Post gathered that subscription for the corporate debt instrument commenced on Wednesday, January 26, 2022, and will end on Monday, January 31, 2022.

The exercise is under the financial institution’s N40 billion commercial paper programme issuance, which would be used to finance the company’s short-term working capital requirements and general corporate purposes.

According to details of the sales, the series 6 is with 181-day maturity with a discount rate of 9.00 per cent and an implied yield of 9.42 per cent, while the series 7 is a 268-day tenor with a discount rate of 9.75 per cent and an implied yield of 10.50 per cent.

FSDH Merchant Bank is the subsidiary of FSDH Holding Company Limited. It operates as a private limited liability company duly licenced by the Central Bank of Nigeria (CBN) to carry on merchant banking activities in the country.

The firm said investors can subscribe to the papers as they are free and clear of withholding taxes, though the minimum subscription is N5 million, with multiples of N1,000 thereafter.

A look into the books of the lender indicated that its liquidity profile is above-average as its liquid assets accounted for about 60 per cent of its total assets in the 2021 financial year.

However, in the accounting year, the gross earnings fell year-on-year by 15.48 per cent to N13.79 billion, with interest income contributing about 80 per cent to the revenue.

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