manie:


They are the major financier in the Oil and Gas sector, their loan exposure to that sector is over N1 Trillion, how can a proactive management be concentrated to a sector.

They will not finance manufacturing, agriculture, infrastructure, affordable real estate, small businesses etc. Instead of giving a loan of $400million to a company, it makes sense and it is a good risk management policy to give such a huge to loan to 10,000 promising small businesses at an average of N8million loan per business

Exactly, concentrating on a sector alone is just poor management. how can you give such a huge amount to one entity, without weighing the risks involved. Now that the loan is in default (non-performing) and their provision is increasing in percentage, it just reduces their profit.

arabianights:



Hmmm..........Boss,get your facts right.Fbn invests in all the sectors that you claimed they avoid.

Talking about the proportion of the finance given to other sectors that can have multiplier effects on the economy. The problem of FBN is their over exposure to the Oil and Gas sector, and we are all aware of the current prices of oil in the international market.

arabianights:



Really? i dont know jack about fbn or its wealth ?ok.

you must not comment on what you have no idea on.Its not by force to sound intelligent.Look at,as big as you are,you dont know how to research and learn.

I believe i have dignified your presence enough.Wont respond to you after this as you clearly are not intelligent or making attempts to develop your self

I have been investing in FBN shares for more than 22 years, the current crops of managers of the company are very clueless, lazy, unintelligent and not proactive. I also have shares in GTB, Zenith and access, but the complacency of FBN management is second to non, checkout how shareholders wealth are been eroded by the actions and inactions of FBN mannagement.

ok....

manie:



I have been investing in FBN shares for more than 22 years, the current crops of managers of the company are very clueless, lazy, unintelligent and not proactive. I also have shares in GTB, Zenith and access, but the complacency of FBN management is second to non, checkout how shareholders wealth are been eroded by the actions and inactions of FBN mannagement.

I do agree with you on that.major share holders also encourage the attitute of the top management.Infact, they put their candidates who have little or no knowledge on banking to sit on sensitive positions.

Jaiz is threading on that line also

arabianights:


Lets wait and see. Is this the first time such is happening? can you remember longe's issue?They must have learnt from that mistake.
Mind you the many of the loans were set up before the loan limit was set

Loan limit are set by CBN right from the days of Soludo, it is also in the annual reports of banks. The board and management will pay dearly for this, I guess you are conversant with what shareholders did to Festus Odimegwu in 2006. Institutioanal investors and Pension funds are major shareholders in FBN, and they are not happy with the performance of the current management.

arabianights:



Really? i dont know jack about fbn or its wealth ?ok.

you must not comment on what you have no idea on.Its not by force to sound intelligent.Look at,as big as you are,you dont know how to research and learn.

I believe i have dignified your presence enough.Wont respond to you after this as you clearly are not intelligent or making attempts to develop your self

probably you took my post the wrong way, no insult was intended. all i am saying is you thinking it won't affect first bank is wrong, every decision and transaction entered into by a firm definitely has an effect on the firm. albeit, the issue of materiality is subjective.

Thavybe:
Exactly, concentrating on a sector alone is just poor management. how can you give such a huge amount to one entity, without weighing the risks involved. Now that the loan is in default (non-performing) and their provision is increasing in percentage, it just reduces their profit.

Maybe FBN should go and learn how banking without tears is done from Zenith and GTB. FBN is sitting on huge deposits and shareholders funds but they are not smart enough on how to grow and multiply shareholders wealth.

They need to as a matter of urgency constitute a recovery team. The legal department also needs to step up its game if the bank is actually set to weather the storm.

manie:



Loan limit are set by CBN right from the days of Soludo, it is also in the annual reports of banks. The board and management will pay dearly for this, I guess you are conversant with what shareholders did to Festus Odimegwu in 2006. Institutioanal investors and Pension funds are major shareholders in FBN, and they are not happy with the performance of the current management.

we are not discussing on loan limit set for banks.We are making points on the cap placed on loans within the bank for retail/corporate banking department within the bank .I believe we were arguing on whose head will roll, right?

Cbn is not responsible for the bad loans given out by the staff.Am fully aware on who the major share holders are but i doubt any coup will take place,Not the way any average man will want any way.Heads will roll but not enough to cause great changes withing the bank,which i believe they seriously need.Certain people will be asked to resign and not thrown out

arabianights:



we are not discussing on loan limit set for banks.We are making points on the cap placed on loans within the bank for retail/corporate banking department within the bank .I believe we were arguing on whose head will roll, right?

Cbn is not responsible for the bad loans given out by the staff.Am fully aware on who the major share holders are but i doubt any coup will take place,Not the way any average man will want any way.Heads will roll but not enough to cause great changes withing the bank,which i believe they seriously need.Certain people will be asked to resign and not thrown out

I said a loan of $400 million can only be approved by the board, in that case all members of the board are guilty of negligence, lack of due diligence, lack of risk management and they all have a case to answer.

arabianights:



we are not discussing on loan limit set for banks.We are making points on the cap placed on loans within the bank for retail/corporate banking department within the bank .I believe we were arguing on whose head will roll, right?

Cbn is not responsible for the bad loans given out by the staff.Am fully aware on who the major share holders are but i doubt any coup will take place,Not the way any average man will want any way.Heads will roll but not enough to cause great changes withing the bank,which i believe they seriously need.Certain people will be asked to resign and not thrown out

The heads that will roll are those of the top management and some directors, because they were not diligentent in their fidiciary and oversight functions

manie:



I said a loan of $400 million can only be approved by the board, in that case all members of the board are guilty on negligence, lack of due diligence, lack of risk management and they all have a case to answer.

Boss,the board is going no where,lets accept this.At worst a few people will be asked to resign thats all.We also cannot accuse them of negligence,lack of risk management etc..........this is strictly business and in busines, there are some unforseen factors.

manie:



The heads that will roll are those of the top management and some directors, because they were not diligentent in their fidiciary and oversight functions

Boss,you seem to be really pained by this loss.Any..............secret u wish to divulge?

manie:



The heads that will roll are those of the top management and some directors, because they were not diligentent in their fidiciary and oversight functions

The bank needs to be careful in sacking them.They dont want a well publicised legal issue hanging over their heads,Not good for the image of the bank.

I strongly believe that the heads to roll will have a solid case.I dont mind representing them as i sure will win the case.

arabianights:



Boss,the board is going no where,lets accept this.At worst a few people will be asked to resign thats all.We also cannot accuse them of negligence,lack of risk management etc..........this is strictly business and in busines, there are some unforseen factors.

How come the unforseen factors did not affect GTB, Zenith even UBA, it shows the level of experience , innovation and sophistication of FBN board.
The whole board cannot go, into going to be a gradual phase out, but the executive directors have questions to answer. How I wish, we can have an extra-ordinary general meeting. The next AGM is in June or July 2016, a lot will happen in the affairs of FBN between now and that date.

arabianights:


Boss,you seem to be really pained by this loss.Any..............secret u wish to divulge?

I am a professional shareholder, i did similar thing when Oando started their corporate recklessness some years ago. I work hard for my money, and will not allow clueless insiders to run my investment.


This is what I wrote to NSE, SEC and PENCOM about Oando in 2012



https://www.nairaland.com/1065198/corporate-misgovernance-management-recklessness-corporate

arabianights:


The bank needs to be careful in sacking them.They dont want a well publicised legal issue hanging over their heads,Not good for the image of the bank.

I strongly believe that the heads to roll will have a solid case.I dont mind representing them as i sure will win the case.

If you want the share price of FBN to increase by 100% in the next 12 month, let 6 memebrs of the top management resign or get sacked and see the improvement you will see in the share price of FBN.
Institutional investors, foreign investors and retail investors like me have lost confidence in the current management of the company.

manie:


How come the unforseen factors did not affect GTB, Zenith even UBA, it shows the level of experience , innovation and sophistication of FBN board.
The whole board cannot go, into going to be a gradual phase out, but the executive directors have questions to answer. How I wish, we can have an extra-ordinary general meeting. The next AGM is in June or July 2016, a lot will happen in the affairs of FBN between now and that date.

Boss, fbn is Assuming that it will be classified as non performing loans,that is not to say that it wont be other wise.
With all due respect sir, you cant compare other banks to fbn,Highly impossible.

Fbn takes alot for granted and takes alot of risks.some have generated huge profits whilst others have caused sleepless nights,visits to juju,night vigils as well as termination of appointments.Every business must suffer loss the bigger you are, the worst it becomes

The risk fbn takes,other banks will crumble if they even attempt it.In my own humble opinion,Fbn has very good economists and strategic unit.
Mind you,its fbn that put that information out there for you to know but mark my work ,they will turn it around.

Have your Agm,it will come out in favour of the management.Most times,i cant stand them but i give it to them.

Level of sophistication ,experience is why they have been standing for over 100 years.Please dont underestimate that bank.They have bad eggs but they stand tall and proud.They know what they are and other banks know also.

Other banks?..................... i laugh.just how any investments do they have? how many banks have they bought internationally?............................lets not argue on the obvious.

I DONT WORK FOR FBN,BUT I FOLLOW THEIR ACTIVITIES CLOSELY AND HOPE TO MEET THOSE WHO MAKE THE INVESTMENT DECISIONS IN THAT BANK.GREAT STRATEGIC MINDS

manie:



If you want the share price of FBN to increase by 100% in the next 12 month, let 6 memebrs of the top management resign or get sacked and see the improvement you will see in the share price of FBN.
Institutional investors, foreign investors and retail investors like me have lost confidence in the current management of the company.

Thank God you said management, but not the institution,right?Share price will increase in due course

arabianights:



Boss, fbn is Assuming that it will be classified as non performing loans,that is not to say that it wont be other wise.
With all due respect sir, you cant compare other banks to fbn,Highly impossible.

Fbn takes alot for granted and takes alot of risks.some have generated huge profits whilst others have caused sleepless nights,visits to juju,night vigils as well as termination of appointments.Every business must suffer loss the bigger you are, the worst it becomes

The risk fbn takes,other banks will crumble if they even attempt it.In my own humble opinion,Fbn has very good economists and strategic unit.
Mind you,its fbn that put that information out there for you to know but mark my work ,they will turn it around.

Have your Agm,it will come out in favour of the management.Most times,i cant stand them but i give it to them.

Level of sophistication ,experience is why they have been standing for over 100 years.Please dont underestimate that bank.They have bad eggs but they stand tall and proud.They know what they are and other banks know also.

Other banks?..................... i laugh.just how any investments do they have? how many banks have they bought internationally?............................lets not argue on the obvious.

I DONT WORK FOR FBN,BUT I FOLLOW THEIR ACTIVITIES CLOSELY AND HOPE TO MEET THOSE WHO MAKE THE INVESTMENT DECISIONS IN THAT BANK.GREAT STRATEGIC MINDS

I am emotional attached to FBN, my grand parents had FBN accounts, my parents have FBN shares and account, my wife and I have FBN shares and account, my children also have FBN shares and accounts.
Hope you now understand why I am pained by how the current management is running and ruining the bank.

manie:




I am emotional attached to FBN, my grand parents had FBN accounts, my parents have FBN shares and account, my wife and I have FBN shares and account, my children also have FBN shares and accounts.
Hope you now understand why I am pained by how the current management is running and ruining the bank.

why not take a page from one of the dailies? Fbn will call u immediately.They hate negative publicity

Just so you lot know, Bisi Onasanya the current GMD of FBNL will be leaving this december. So hopefully, some better manager may step in.

Truth be told, while FirstBank continues to post huge gross earnings year on year (case in point is the half year results recently published); the operating expenses continue to spiral outta control. There is also a feeling that most of the bad loans in the banks books must have direct input of some members of the board as there are insider dealings going on.

arabianights:



Thank God you said management, but not the institution,right?Share price will increase in due course

Resignation or sack of the current management will definitely restore investors' confidence. All things being equal, this is a stock that should be selling for a minimum of N15 because FBN is sitting on huge fund ie deposits and equity, loyal customers, large customer base, pedigree etc but the current management are yet to maximally leverage on these

arabianights:



why not take a page from one of the dailies? Fbn will call u immediately.They hate negative publicity

I needed a loan of about N1million to be repaid in 100 days, I have a good security but my loan was not approved as at when due only for them to call me today when I have succeeded in getting fund elsewhere.

Welder:
Just so you lot know, Bisi Onasanya the current GMD of FBNL will be leaving this december. So hopefully, some better manager may step in.

Truth be told, while FirstBank continues to post huge gross earnings year on year (case in point is the half year results recently published); the operating expenses continue to spiral outta control. There is also a feeling that most of the bad loans in the banks books must have direct input of some members of the board as there are insider dealings going on.

That is why I said the board is negligent in their fiduciary and oversight functions.

Welder:
Just so you lot know, Bisi Onasanya the current GMD of FBNL will be leaving this december. So hopefully, some better manager may step in.

Truth be told, while FirstBank continues to post huge gross earnings year on year (case in point is the half year results recently published); the operating expenses continue to spiral outta control. There is also a feeling that most of the bad loans in the banks books must have direct input of some members of the board as there are insider dealings going on.

Some executive directors will go with Onasanya, we will see new faces on the board during the AGM in 2016 by His grace.

Intresting thread

manie:



Some executive directors will go with Onasanya, we will see new faces on the board during the AGM in 2016 by His grace.

Onasanya is not going in 2016, he is going soon. Infact a new GMD will take over before the end of this year.

manie:



I have been investing in FBN shares for more than 22 years, the current crops of managers of the company are very clueless, lazy, unintelligent and not proactive. I also have shares in GTB, Zenith and access, but the complacency of FBN management is second to non, checkout how shareholders wealth are been eroded by the actions and inactions of FBN mannagement.

I agree with you on the quality of FBN management.
They have not been prudent enough with shareholders' funds and risk management in loan disbursement.
The banks are busy publishing their respective managements' prudence aka Debtor's list.
To me the debtors' list is a report card of the Management of the Banks. I was somewhat impressed at the comparatively low levels of NPLs , and the lower average of NPL value per debtor for a few entities. I was not impressed at all with these indices for FBN.
I wonder the criteria they use in advancing these mega and "bega" Naira loans that went bad.
In summary, I think the CBN should look into the circumstances surrounding the advancing of these big loans with a view to improved pre-emptive regulation.
A look at this list shows that the Banks are major contributors in asphyxiating SMEs that should be the bedrock of economic output.
Imagine the billions the banks where advancing to some corporate entities. Worst still there seems not to be sufficient collateral in many cases. In my opinion a good chunk of those are irrecoverable.
I saw very little NPLs of value less than 20 million NGN, meaning that the small borrowers pay up while the big guys default.
1 Billion NGN is enough for the banks to advance loans of 5,000,000.00 NGN to 200 small businesses, or 1,000,000.00 NGN to 1,000 small businesses, but the find it difficult to give even with some collateral, but risk billions without due diligence. I doubt that more than 20% of loans in this range will become NPLs.
I think the government needs to do something to motivate or compel the Banks to be attentive to SMEs especially in the light of the fact that the government spent trillions bailing the banks in 2009 (barely 6 years ago) and they are gradually going back to same situation.

manie:


I needed a loan of about N1million to be repaid in 100 days, I have a good security but my loan was not approved as at when due only for them to call me today when I have succeeded in getting fund elsewhere.

Imagine that!
And they can afford to give out 100s of millions and billions they can not get back 30% of what they lent.

Excellent7:
I saw very little NPLs of value less than 20 million NGN, meaning that the small borrowers pay up while the big guys default.
1 Billion NGN is enough for the banks to advance loans of 5,000,000.00 NGN to 200 small businesses, or 1,000,000.00 NGN to 1,000 small businesses, but the find it difficult to give even with some collateral, but risk billions without due diligence. I doubt that more than 20% of loans in this range will become NPLs.

Don't conclude so fast...if banks have to publish the names of all their chronic debtors, newspapers would not be able to publish any news/article for that day or even days. There are so many smaller debtors in our banks ranging from salary account holders to different shades of SMEs.

What happened is this: most banks benchmarked their list to say "from N50m and above", "N20m and above", and so on. Besides, CBN has compelled them to publish list of delinquent loans on a quarterly basis. Cc: manie