Business
FirstBank: Empowering Staff, Driving Productivity against the Odds
By Segun Adams
As the coronavirus pandemic forces firms to downsize and cut their wage cost to cope with the adverse economic realities, First Bank of Nigeria Limited (FirstBank) is bucking the trend with a different approach that puts its staff first, writes Segun Adams.
In a pandemic year where employees are agreeing to pay cuts to keep their jobs and businesses are either downsizing or simply liquidating, First Bank of Nigeria Limited is an outlier, taking an unusual approach to demonstrate how organisations can still ensure the best outcomes for both employer and employees.
The first-tier lender last Friday promoted a crop of its staff across all levels in a rare show of corporate resilience in the banking industry and beyond, both locally and across the borders.
According to FirstBank, keeping staff motivated during these unprecedented times is not only crucial for the soul of businesses, but it also demonstrates corporate responsibility.
In the wake of the new coronavirus pandemic, there have been unprecedented layoffs across the world as companies went bust, unable to generate cash to sustain their operations.
The United States, the world’s biggest economy has recorded a historic rise in unemployment with over 45 million initial unemployment claims in the last three months.
In Britain, HSBC, a giant global bank, is reviving plans for a 35,000 job cut due to pre-existing problems thought to have been worsened by the pandemic. Big banks like Morgan Stanley, Deutsche Bank, Citigroup, Barclays, Société Générale among others have announced about layoffs exceeding 60,000 jobs.
In Nigeria, 38% of the workforce was jobless in April due to the virus and lockdowns, the National Bureau of Statistics (NBS) estimates. In the MSMEs sector, 50,000 jobs were lost and 10,000 businesses have shut down according to Auwal Bununu Ibrahim, the National Vice President, North Central of the National Association of Small and Medium Enterprises, (NASME) and in the Aviation industry, some 24,000 jobs were lost as of April.
While banks in the country have been barred by the Central Bank of Nigeria (CBN) from laying off staff without regulatory approval, there is no obligation for banks to implement promotions or raise pay. In fact, most lenders have initiated pay cuts to cope with the excess capacity arising from skeletal operations and depressed levels of economic activities in the economy which is reeling from the coronavirus and lockdown shocks.
But against the odds, FirstBank promoted its staff and didn’t cut down salaries.
In a recent article, Forbes stated that the manner in which firms treat their employees during the ongoing health and economic crisis will not only be remembered for years to come but have a direct effect on their productivity going-forward.
“How businesses respond will have a lasting impact on employee behaviour including, engagement, productivity and loyalty,” the American business magazine noted.
Hertzberg’s Two-Factor Theory also known as dual-factor theory postulates that career progression is a motivating factor for employees to work harder.
As the coronavirus pandemic continues to take a toll on the mental health and focus of employees in the country, and across the world, due to uncertainty of job status, lower income and a disruption to their career development, FirstBank stands out as a safe and rewarding place to work.
The stability and confidence enjoyed by the bank’s staff are the vital environment human resources experts say is necessary for firms that will successfully navigate the tides of current realities.
In a recent BusinessDay Webinar, Nkemdilim Begho, CEO, Future Software Resources Limited advised that businesses can engage their team and see how they can help in creating new ideas and products that the company can deliver. The resultant effect will be greater efficiency of staff and innovation whereas, elsewhere organizations are bound to struggle with a demotivated workforce which could lead to inefficiencies and higher costs for the businesses with adverse implications for bottom-line.
To realise optimal human resources contributions, Begho acknowledged the need for firms to sustain team bond and ensure that morale of their staff is high.
Even before current events, FirstBank has always proven to be conscious of the impact a stimulating and rewarding environment can have on the overall employee performance and thus, provided value accretion to shareholders, customers and other stakeholders.
From its competitive remuneration across cadres including mid-level and senior-level employees to benefits that cover medical insurance and disability insurance, sick leave and vacation, and retirement options, FirstBank puts its workforce first ensuring that they are well motivated and equipped to deliver higher productivity.
FirstBank has featured on some of the best workplace rankings including A Great place to Work and Jobberman. Last year, the big bank ranked among the Jobberman 2019 best 100 companies to work for in Nigeria, a list that scrutinizes over 60,000 companies to pick the best 100 based on strict metrics. The bank has enjoyed positive reviews from credible job/career sites like Indeed where it banks a 4.1/5 positive rating.
A former employee of the bank Aderemi Adebiyi commended the institution for its keen interest in the welfare and career progression of its employees. “I worked in the Bank for 15 years and do not regret it. It’s fast-paced, performance-driven with varied streams of career development,” Aderemi said. “The company also offers paid trainings.”
FirstBank’s talent management strategy is aimed at supporting employee engagement, employee motivation and increased productivity, and leadership development across all levels of employees within the organization, according to its website. As a tenet of career development, FirstBank has devoted itself to creating a culture of continuous learning tailored to the needs and aspirations of the employees and the business itself.
The bank’s FirstAcademy and learning centres strategically located around the country allows for e-learning, mobile learning, physical classrooms and virtual libraries to allow all employees the opportunity to equip themselves for future roles that benefit both them and the organization. This means pandemic or not, learning is continuous and uninterrupted.
FirstBank also prides itself as an equal opportunity employer so that qualified persons irrespective of gender, culture, age, nationality, sexual orientation, disability or social background can participate in its business.
At the same time, FirstBank remains a performance-driven organization and merit-based, allowing individual talents to be rewarded for their hard work and contribution to overall organisational goals.
With people as one of the bank’s greatest assets, it strives to maintain a pool of multi-skilled and well-rounded employees relying on initiatives like Job Shadowing, Coaching, Counselling, Mentoring, Succession Planning and Career Maps to develop and retain talents at all levels of the organisation’s operations.
Business
UBA Expands Operations to Saudi Arabia, France, to Focus on Digital Transformation, Others in 2025
Africa’s Global Bank, United Bank for Africa (UBA) Plc, has outlined its roadmap for the 2025 financial year, with a strong focus on innovation, digital transformation, physical and financial strength as well as its global reach.
On the back of its full-year financial performance for the year 2024, which was released to stakeholders on Tuesday, the bank disclosed plans to accelerate growth through strategic investments in technology, enhanced risk management frameworks, and capital efficiency.
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, who was speaking to its global investors during the Full year 2024 Investors Conference Call, which held at the UBA Head Office on Thursday, explained that the performance reflected broad-based growth across its core businesses, surpassing previous records and reinforcing its status as a leading global financial institution.
At the end of the 2024 full-year, the bank delivered an exceptional financial performance as the results showed an impressive rise in the bank’s profit after tax which went up by 26.14 percent to close the year at N766.6 billion up from N607.7 billion recorded at the end of the 2023 fiscal year.
Its Gross earnings also grew significantly from N2.07tn recorded at the end of the 2023 financial year to N3.187tn in the period under consideration, representing a 53 percent growth.
Despite the highly challenging global economic and business environment, UBA recorded a profit before tax of N803.72 billion representing a 6 percent increase from N757.68 billion recorded at the end of the 2023 financial year.
Consequently, UBA Group Shareholders’ Funds rose from N2.030 trillion as at December 2023 to close the 2024 financial year at N3.419 trillion, achieving an impressive growth of 68.39 percent.
As a result of the impressive performance the bank proposed a final dividend of N3.00 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2024.
Alawuba told the investors at the meeting that the bank is set to further surpass its growth projection through strategic investments in technology, enhanced risk management frameworks, and disciplined capital efficiency.
“We will continue to push the frontiers of innovation and technology adoption to build sustainable value for shareholders by making strategic investments in technology. Our team of committed and motivated workforce will continue to work assiduously to sustain our performance and propel the bank in delivering high-impact, customer-centric product offerings,” Alawuba stated.
He disclosed that the bank is on course to sustain the momentum that it has achieved in the past years, adding that “We shall remain focused on best-in-class risk management strategies in navigating emerging market uncertainties while ensuring financial strength, full regulatory compliance, and long-term sustainability.”
This performance underscores UBA’s ability to generate sustainable revenue growth through core operations, including increased loan book growth, deposit mobilization, and transaction banking.
While disclosing the Bank’s finalisation of its planned expansions to France and Saudi Arabia, he said that the Bank’s ex-Nigeria (Rest of Africa & International) operations have expanded significantly over the past five years, now contributing 51.7% of Group revenue, up from 31% in 2019, “delivering diversification benefits and further boosting long-term shareholder value. This will continue to grow, as we further explore strategic markets that align with our overall vision.”
UBA’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, said the bank recorded triple digit growth in net interest income, resulting in remarkable improvement in net interest margin from 6.83 percent in 2023 to 9.14 percent, while also recording strong double-digit growth in fee and commission income lines of 91.66 percent.
He explained that as the bank navigates evolving risks, its management remains focused on responsible growth, delivering customer-focused value propositions, whilst ensuring compliance with regulatory requirements in all jurisdictions.
United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group wide and serving over 45 million customers globally. Operating in twenty African countries and the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.
In line with its upward growth trajectory, leading financial institution, Fidelity Bank Plc, has posted an impressive 120.1% growth in Profit Before Tax from N17.9bn at the end of Q1 2023 to N39.5bn for Q1 2024. This was made known in the Bank’s unaudited financial statements released on the issuer portal of the Nigerian Exchange (NGX) on Tuesday, 30 April 2024.
According to the statement, Gross Earnings increased by 89.9% yoy to N192.1bn from N101.1bn in Q1 2023. The increase was led by a combination of interest income (90.7% yoy) and non-interest income (84.0% yoy).
Growth in interest income was primarily spurred by a higher yield environment and strong earning assets base, while the increase in non-interest income was led by double-digit growth in account maintenance charges, FX-related income, trade, banking services, and remittances, supported by increased customer transactions.
Commenting on the results, Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc stated, “We are pleased to report another quarter of strong financial performance driven by our strategic focus on customer-centricity, digital innovation and operational excellence. Despite the challenging macroeconomic environment, we remained resilient and agile, delivering double-digit growth on key income lines while advancing our business sustainability agenda.”
In the period under review, the bank grew Net interest income grew by 89.5% yoy to N99.6bn from N52.6bn in Q1 2023, driven by interest and similar income as the yield on financial instruments improved to 14.7% from 10.1% in Q1 2023 (2023FY: 11.6%). In line with the steady rise in interest rates through the year, average funding cost increased by 80bps ytd to 5.2%. However, NIM came in at 8.8%
compared to 8.1% in 2023FY, as increased yield on earning assets surpassed funding cost to 15.1% from 13.3% in Q1 2023 (2023FY: 13.5%).
Similarly, Total Deposits increased by 17.2% ytd to N4.7tn from N4.0tn in 2023FY, driven by double-digit growth across all deposit types (demand, savings and term). Net Loans and Advances increased by 21.2% to N3.7tn from N3.1tn in 2023FY.
“Beginning the year on this inspiring note reaffirms our strategy of helping individuals to grow, inspiring businesses to thrive and empowering economies to prosper. We are committed to our guidance as we build a more resilient business franchise with a well-diversified earnings base in 2024,” explained Onyeali-Ikpe.
Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged customer commercial bank with over 8.5 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.
The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.
Guaranty Trust Holding Company Plc (GTCO) has announced its audited financial results for the year ending December 31, 2024, with a remarkable surge in profit before tax (PBT). The results, submitted to the Nigerian Exchange Group (NGX) and the London Stock Exchange (LSE), reveal a PBT of ₦1.266 trillion—marking a 107.8% increase from the ₦609.3 billion recorded in 2023.
The financial statement highlights GTCO’s strong earnings momentum, supported by a well-balanced revenue mix, solid risk management frameworks, and disciplined capital allocation. The company saw broad-based growth across key financial indicators, maintaining a strong and diversified balance sheet.
Key performance metrics show a 12.3% rise in the Group’s net loan book, from ₦2.48 trillion in December 2023 to ₦2.79 trillion in December 2024. Deposit liabilities also climbed by 37.8%, reaching ₦10.40 trillion from ₦7.55 trillion in the previous year. Additionally, total assets and shareholders’ funds closed at ₦14.8 trillion and ₦2.7 trillion, respectively. The Group sustained robust capital adequacy, closing the year at 39.3%, while asset quality remained stable, with IFRS 9 Stage 3 Loans at 3.5% at the Bank level and 5.2% for the Group, compared to 2.5% and 4.2%, respectively, in 2023.
GTCO’s Group Chief Executive Officer, Segun Agbaje, attributed the outstanding performance to a well-diversified earnings base spanning both banking and non-banking subsidiaries. He emphasized the Group’s ability to generate sustainable, high-quality earnings while maintaining asset quality and operational efficiency.
“Our 2024 results reflect the strength and adaptability of our business model. We have successfully provided for all forbearance loans ahead of the June 2025 deadline and fully accounted for the windfall tax, reinforcing our balance sheet and financial stability,” Agbaje stated.
GTCO continues to position itself for long-term growth, leveraging strategic investments and sound financial management to drive value creation for stakeholders.
