THE RATE AT WHICH FIRST BANK DEDUCTS MONEY FROM MY ACCOUNT MAKES ME WANT TO KEEP MONEY AT HOME...I PREFER DIAMOND

Pranxta:
h

For Hamechi Rotimi

SamuelAnyawu:
Lies inorder not to pay Dividends...

Corruption abounds in the private sectors too

Sounds like the truth.

I find it difficult to believe this news.

emekamigo:
This criminal bank is manipulating the accounts of all it's customers ,stealing everyday with their criminal and outrageous charges!

real criminals....... illegal change every now and then .

no wonder they r charging me "withdrawal fee" for withdrawing from my savings with them. its time to close my fbn account jare

They should just fold up and blame it on buharonomics and they inventor of that field will blame on GEJ;;;

No thanks to bubu

I hate this bank cos of their excessive charges.
imagine they charged me #40 twice for sms alert and I didn't receive a single alert.
I still prefer diamond any day

A dividend of 15k per unit of shares held was declared. Closure Date is 9th May, 2016.

YoursGEJ:
OP where did the GMD mention scarce forex as a reason for decline in his company's profits? These are financial results from the 2015 fiscal year. Forex scarcity began at the end of last year.

By the way, you did not ask yourself the question: which bank makes 82% of its profit by trading forex? You forgot to include the major reasons why banks are seeing a decline in profits. They are no longer keeping government money due to TSA which was implemented last year.

It's also happening with other banks
http://www.vanguardngr.com/2016/04/profits-5-banks-drop-n10-52bn-first-quarter/

It's just worst with first bank because they were the biggest beneficiary of Govt officials stashing MDA money in accounts to generate interest

@Bolded, yet their gross earnings surged 4.9 percent without MDA money.

Where did the statement says scarce forex is the sole reason? The statement simply says scarce forex and global slowdown, if you are a student of economics you should know that all these banks rely on oil companies huge fund a lot and a plunge in that industry is meant to affect them.

Another cogent fact you are missing is that in 2014 the bank recorded N481.8bn gross earnings, when conditions were more favourable and in 2015 that things were more difficult their gross earnings surged 4.9 percent to N505.2bn.

Now lets factor in exchange rates during the two period, naira was 150-155 to a dollar in 2014 and was raised 5 times in 2015 to 197-199 a dollar, that is around 33 percent increment. Which translate to higher exchange rate for the same transactions in 2015, so forex play pivotal role in this report. Again forex scarcity began in July, it was on 3rd of August that CBN restricted 41 items from accessing forex at official rate in order to reduce pressure on foreign reserves.

Sir I don't just write, I look into facts and analysis it to the best of my ability.

This has confirmed my fears that First Bank may be in financial distress. With the introduction of withdrawal fee and maintenance charge on Savings account, i have always suspected that all is not well with First Bank.

YoursGEJ:
OP where did the GMD mention scarce forex as a reason for decline in his company's profits? These are financial results from the entire 2015 fiscal year. Forex scarcity began at the end of last year.

By the way, you did not ask yourself the question: which bank makes 82% of its profit by trading forex? You forgot to include the major reasons why banks are seeing a decline in profits. They are no longer keeping government money due to TSA which was implemented last year.

It's also happening with other banks
http://www.vanguardngr.com/2016/04/profits-5-banks-drop-n10-52bn-first-quarter/

It's just worst with first bank because they were the biggest beneficiary of Govt officials stashing MDA money in accounts to generate interest

That's not the main reason they made the loss as reported.

Impairment charges skyrocketed, because of an increase of their NPLs ratio (Non-Performing Loans) to 21.5% (vs 5% regulators limit)

SamuelAnyawu:
Lies inorder not to pay Dividends...

Corruption abounds in the private sectors too

What are they doing with all the money deductions?
Bunch of thieves. My wife stop using her first bank savings account in February because of over deductions..she moved all her funds to another bank and left just #1200...dey have since debited the account to #746 right now. Between february and april..even after clearing the #200..they still proceeded to eat in to the #1000minimum requirement.
Imagine them doing this to almost all their customers?

Truth234:
First bank profit took a hit as forex scarcity and global slowdown continue to wipe-off banks’ profits.

The earnings report released on Tuesday showed the bank’s profit after tax stood at N15.1bn for the full year ended December 31, 2015. This represents a decline of 82 percent when compared with N84bn reported in December 2014.

Total profit before tax was N21.5bn, down by 77.1 percent year-on-year. However, gross earnings rose 4.9 percent to N505.2bn from N481.8bn reported a year earlier.

The bank also posted a net interest income of N265bn, up by 8.7 percent from N243.9bn recorded in December 2014, and operating expenses of N223.6bn, down by 5.6 percent year on year.

The bank’s total assets stood at N4.2tn, down by 4.1 per cent year-on-year (December 2014: N4.3tn); its customer deposits was N2.97tn, down by 2.6 per cent year-on-year (December 2014: N3.1tn); while customer loans and advances (net) were N1.8tn, down 16.6 per cent year-on-year (December 2014: N2.2tn).

Commenting on the bank’s financial results, the Group Managing Director, FBN Holdings, Urum Eke, said, “This has been a very difficult time in the history of our institution. Despite the tough macroeconomic and regulatory backdrop during the year, our underlying business remains strong as reflected in the gross earnings growth of 4.9 per cent to N505.2bn.

“Furthermore, the holding company platform has provided support in mitigating the impact of credit losses and the vulnerabilities experienced by our commercial banking business.”

“In coming periods, our primary focus is to drive efficiency and operational excellence across all operating companies. Key initiatives in achieving this, as we eliminate the value eroding factors and seek to reposition the group towards a new growth path, include enhanced focus on moderating risk appetite; risk management practices and culture; disciplined cost containment; asset optimisation; and synergy realization.”

http://investorsking.com/first-banks-profit-plunges-82-in-2015/

No wonder they want to use me recover their losses

YoursGEJ:
OP where did the GMD mention scarce forex as a reason for decline in his company's profits? These are financial results from the entire 2015 fiscal year. Forex scarcity began at the end of last year.

By the way, you did not ask yourself the question: which bank makes 82% of its profit by trading forex? You forgot to include the major reasons why banks are seeing a decline in profits. They are no longer keeping government money due to TSA which was implemented last year.

It's also happening with other banks
http://www.vanguardngr.com/2016/04/profits-5-banks-drop-n10-52bn-first-quarter/

It's just worst with first bank because they were the biggest beneficiary of Govt officials stashing MDA money in accounts to generate interest

He also did not disclosed that the.bank.made 100% provision of some of its hardcore...amounting to #120b

surestakes:
First bank too dey carry last.

Obviously not a Waffi company

I.gez u.wanna knw that the bank does not involve in sharp practices as other banks.Also the bank is for the masses where u open a.current acct with #2000.So the bank is more valuable to the commona which is the ideal...Can u open a current acct in zenith for #20,000 naira?

danjumakolo:


I.gez u.wanna knw that the bank does not involve in sharp practices as other banks.Also the bank is for the masses where u open a.current acct with #2000.So the bank is more valuable to the commona which is the ideal...Can u open a current acct in zenith for #20,000 naira?

GTB offer a zero account balance service. That means you can open an account without money.

Ja ra e

Mumu firstbank always deducting #100 from my savings account every month despite the fact that i don't carry out any transaction

So this is why they have resolved to start charging adulterated fees calling it spurious names.

For shareholders of this bank, nothing could have prepared them more for this disaster that this result portends for the future of the bank and their investments.

A very high NPL indicates the bank has a high proportion of loans in its books that have gone bad as borrowers have stopped paying. The Central Bank regulations for NPL’s is 5 percent meaning banks are only allowed to have no more than 5% of their loans as non performing.

First Bank has now more than tripled this limit to 18%, a border line that could have sunk most banks. Fortunately for shareholders it appears the bank has the balance sheet to absorb the loans as it still managed to eke our some profits at the end of the financial year.

Despite this, the lender’s net income dipped by 82 percent to N15.10 billion to end 2015 financial year much lower (based on audited financial statements), compared to N84 billion at December 2014.

The reason for the sharp drop largely attributed to a 361 percent sharp rise in impairment charge for credit losses to N119.30 billion. Impairment charges or loan loss expenses occurs when it is probable that the Bank will be unable to collect all or some of the amounts due, including both the contractual interest and principal payments under a loan agreement. An impairment charge is thus an admission by the bank that a sum of N119.3 billion out of its total loans of N2.2 trillion may not be recoverable.
The bank explained the reason for the impairment as follows;


This was attributable to the recognition of impairment on some specific accounts as well as collective exposures following reassessment of the loan book in the commercial banking business due to the sharp decline in global oil prices, the volatile macro environment, and fiscal and monetary headwinds which have resulted in marked reduction in domestic output.

Active remedial actions on the specific impaired accounts have commenced. The main sectors impacted are oil and gas, real estate and general commerce; contributing 59.7%, 12.3% and 10.2% to the impairment charge respectively.



The bank actually declared a fourth quarter loss of N35 billion as N72.6 billion out of the impairment charge came in the fourth quarter alone. The aforementioned dent at the bottom lines hindered the bank from utilizing the resources of shareholders in generating higher profit as post-tax return on average equity fell to 2.7 percent in December in 2015 as against 16.9 percent as at December 2014.

This results signals a porous risk management strategy for the bank a problem that has plagued this bank since it became a bank holding company. The bank admitted this much saying that;

A critical review of the culture and practice of our risk management function has been undertaken. We are implementing structural initiatives as we retool and reshape the ethos of the underwriting practice towards building a resilient loan portfolio under a new leadership.


Ironically FBNH still managed to propose a dividend per share of 15 kobo mostly from the profits it made from its other subsidiaries. However out of the N59 billion in profits posted about N41.6 billion came from its commercial banking business and another N10.7 billion from its Merchant Banking Business.

This result in a nutshell confirms analysts fears about First Bank’s exposure to the beleaguered oil and gas sector. Loans to major upstream companies were disbursed at a time when the price of oil was above $100 to local upstream companies who had just acquired license from IOC’s.

Some analysts we spoke to also believe this may not be the end as more loans are likely to be provisioned in the coming quarters. The company also released its 2016 Q1 results reporting that it has provisioned another N12.8 billion in loans impaired for the quarter. To understand how significant this is, rival Tier 1 Banks, GTB and Zenith Bank reported a full year impairment of N12.4 billion and N15.6 billion respectively in the whole of 2015.

A lot of banks may have collapsed with this results. However, FBNH manages to stay afloat and still reporting profits and paying dividends. While this may sound as a respite to shareholders, history suggest when banks take impairment charges of the sort we have seen it is likely an indication of what is to come next.

First Bank (FBNH subsidiary) still has over N2 trillion in loans suggesting that there could be more dirtbags to be provided for.

Aha, I knew it...82percent decline jesus!!!........I'v been soo eager to hear bout their results. Abeg make firstbank no go bust o.

First Bank's decline is primarily due to NPLs (Non Performing Loans) - not Forex or TSA. First Bank was highly exposed to the Oil ad Gas sector, and when the oil price tanked, a lot of the guys in that sector, have since found it hard to maintain their loan repayments. If you dirve along Marina often, you would probably see an Oil Rig anchored by the road (I think its called Oritsemeyin) - that's one of FBN's bad bets.

Tough times....

Simply the first among the worst banks in the land.
Filled with incompetency and unnecessary charges not to say stealing from there customers nation .

SamuelAnyawu:
Lies inorder not to pay Dividends...

Corruption abounds in the private sectors too

If you have read their annual report you would have noticed that they propose a dividend of 15Kobo.( Just for your information )

Truth234:


@Bolded, yet their gross earnings surged 4.9 percent without MDA money.

Where did the statement says scarce forex is the sole reason? The statement simply says scarce forex and global slowdown, if you are a student of economics you should know that all these banks rely on oil companies (huge fund)a lot and a plunge in that industry is meant to affect them.

Another cogent fact you are missing is that in 2014 the bank recorded N481.8bn gross earnings, when conditions were more favourable and in 2015 that things were more difficult their gross earnings surged 4.9 percent to N505.2bn.

Now lets factor in exchange rates during the two period, naira was 150-155 to a dollar in 2014 and was raised 5 times in 2015 to 197-199 a dollar, that is around 33 percent increment. Which translate to higher exchange rate for the same transactions in 2015, so forex play pivotal role in this report. Again forex scarcity began in July, it was on 3rd of August that CBN restricted 41 items from accessing forex at official rate in order to reduce pressure on foreign reserves.

Sir I don't just write, I look into facts and analysis it to the best of my ability.

the main reason for the decline is not forex or MDA funds.

The bank made a provision of almost N120 billion towards non performing loans as a result of over exposure to the oil sector.

We all know what's going on in the oil sector at the moment. If you go through the accounts you will notice that both gross earnings and operating earnings actually went up. The sizeable provision expense is the reason for the huge decline

The former MD, Onasanya, keeps buying and developing multi-billion Naira properties in Ikoyi, Banana Island, Lekki and Victoria Island. I know some of these properties. He owns an estate developer (name withheld) currently developing super luxurious properties in Banana Island, Ikoyi and Lekki (in the neighbourhood of Jakande Shoprite).

I have no problem with people making prudent investment with their money. But when such is done at the wake of the destruction in First Bank, then Im definitely not impressed. First Bank investors like myself have lost a substantial portion of our life savings to these crooks. Former MDs Ajekigbe and Sanusi left a very solid FBN.

What happened all of a sudden with Onasanya at the helm?

Which Sanusi? Just on Marina you will see the SeaWolf (na real WOLF) deal done when Sanusi was the Chief Risk Officer. A rig on water with no preservation for over 3 years!

The current CBN Deputy Governor use to be CFO and ED at First Bank. He is building properties/hotels all over the place. He is planning to be Oyo State governor in 2019. You need to ask where that war chest is coming from.

They were just chopping shareholders money anyhow!

livgenius:


the main reason for the decline is [b]not forex [/b]or MDA funds.

The bank made a provision of almost N120 billion towards non performing loans as a result of over exposure to the oil sector.

We all know what's going on in the oil sector at the moment. If you go through the accounts you will notice that both gross earnings and operating earnings actually went up. The sizeable provision expense is the reason for the huge decline

Where does the money they used to offset non performing loans comes from? The article mentioned two factors forex scarcity and global economic slowdown. Oil glut led to forex scarcity in Nigeria, the 120 billion is part of operating capital which is clearly started in the article.

Please look at it from a bigger picture.

Truth234:


Where does the money they used to offset non performing loans comes from? The article mentioned two factors forex scarcity and global economic slowdown. Oil glut led to forex scarcity in Nigeria, the 120 billion is part of operating capital which is clearly started in the article.

Please look at it from a bigger picture.

Don't believe everything you read in an article. Journalists are not accountants or finance experts. I'm a chartered account.

To answer your question, you do not use money to offset non performing loans per say. Basically when a bank gives a loan, they expect to get it back. That loan is an asset to a bank and is recorded in their accounts as an asset. Not an expense. When it is observed that the loan is not likely to be repaid, a provision is made and expensed in the accounts. The loan is also removed from assets and it becomes an expense.

The oil price drop lead to oil companies defaulting on loans which lead to banks experiencing non perfoming loans which has resulted in the huge provision which has resulted in the huge drop in profits

Caracta:


Interesting.

the kingto.m effect.