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FirstBank: The Embodiment of Corporate Responsibility and Sustainability

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FirstBank Headquarter - Investors King

Who should corporate responsibility and sustainability lessons be taken from? Some companies are still unclear about the concept but latching onto the sustainability mantra anyway, because it has become a marketing buzzword for business? Or a company through whose creed and deeds, over the many decades it has been around, people can see corporate responsibility and sustainability lived (first) and preached (subsequently)?

If the above set of questions constituted a question in an examination hall, it would be one of the easiest of questions to answer. Not one person would fail it. Outside the examination hall, the answer to this question that seems as easy and simple like the question of 2 + 2 may not be as easy and simple. It may be complicated by all the cleverly arranged noise and claims projected at people to make it difficult for them to see and accept the obvious.

So, it is incumbent on people who know, and care enough (like this writer), to keep stating and restating the obvious. This is in the hope that doing so would help others to take full cognisance of the obvious and not allow themselves to be bamboozled by image without substance and rhetoric without pedigree.

The concept of corporate responsibility and sustainability is not about the clever or manipulative use of marketing buzzwords by corporate citizens. It is about impact, net positive impact, in the lives of real, not imagined, people through the deliberate and well-planned activities of socially-responsible corporate citizens.

Even if history is no longer taught in most schools in Nigeria, the records are there. The records show that Nigeria has been blessed to have standing by her, at all times, a corporate citizen which understands the concept of corporate responsibility and sustainability.

This corporate citizen has been standing by Nigeria before the country’s founding, through its amalgamation, Independence and all the conflicts and crises Nigeria has gone through and still faces. Today, the corporate citizen still stands by Nigeria.

First Bank of Nigeria Limited, a lender of unmatched pedigree, a bank with a history of unparalleled support to Nigeria and Nigerians (right from the colonial era to date, even serving as Nigeria’s central bank at some stage of our national development), has been a corporate citizen like no other.

A brand that has backed innumerable groundbreaking projects across Nigeria and beyond, FirstBank has demonstrated that real impact that can be seen and felt by all, and not mere marketing buzzwords, is the real measure of an institution’s understanding of corporate responsibility and sustainability.

It is incontrovertible that whichever way corporate responsibility and sustainability is understood or defined, FirstBank is sure to tick all the boxes. Just name every parameter for assessing a company’s efforts in corporate responsibility and sustainability and match each against what FirstBank has been doing. Is there any parameter that FirstBank has not surpassed?

FirstBank has been living corporate responsibility and sustainability for most, if not all, of its existence as a going concern. Knowing it cannot do it alone, the bank has also devoted resources to efforts that will enable it to preach or pass the message so other corporate citizens, groups and individuals will emulate it.

One platform the bank has used effectively for this purpose is its Corporate Responsibility and Sustainability (CR&S) Week. The CR&S Week is a full working week that the FirstBank Group, in-country and across the world where it operates, dedicates to the promotion, execution and celebration of social responsibility initiatives.

The Sustainability Week also includes a huge kindness campaign to reorient citizens towards the right values and reignite acts of kindness in society. It is only one of the many ways FirstBank is living true to its brand promise to always put customers first.

And the Sustainability Week seeks to invite others (individuals and corporate citizens) to follow the bank’s example and begin to intentionally create positive impact in their immediate communities.

From the inaugural edition in 2017, where the theme was “Promoting Kindness: Putting You First”, the Sustainability Week has helped to reinforce FirstBank’s role as a nation-builder that is driving sustainable development across communities where it operates. It was an opportunity for the bank to encourage others (individuals and corporate citizens) to follow in its steps, even if all they can afford to take are small steps.

Taking small steps may have informed the choice of theme for the second edition of the Sustainability Week in 2018: “Touching Lives: You First”. The bank sought to debunk the notion that touching lives in meaningful ways and making an impact on society require big-ticket projects, whilst emphasising the power in the little things people do and the small steps they take.

After all, is it not little drops of water that make a mighty ocean, like the saying goes? And does the journey of a thousand miles not begin with a (small) step, like another saying puts it?

Just take a look at SPARK (Start Performing Acts of Random Kindness), a values-based initiative that raises consciousness promoting kindness to one another in society, which the bank started during the inaugural Sustainability Week in 2017.

Aimed at reinforcing FirstBank’s corporate culture of encouraging giving and volunteering among its staff and the larger society, its magnitude today and the many kind initiatives it has sparked off across the country could not have been imagined when the seed was planted five years ago. Incalculable manhours and financial resources from FirstBank staff and partners have been contributed willingly.

Children in orphanages, internally displaced persons (IDPs) in various IDP camps, widows and other underprivileged or vulnerable groups have been visited and their challenges alleviated if not totally eliminated. Scores of career counselling sessions with secondary school pupils across Nigeria has also been organised as part of the Sustainability Week, which has been the first of its kind in Nigeria’s financial services industry.

In 2019, the third edition of the Sustainability Week with the theme: “Ripples of Kindness: Putting You First” enunciated the values (or pillars) of the SPARK initiative to include Compassion, Civility and Charity. FirstBank believes that these values and the acts of kindness that flow as a result of embracing the values are critical to promoting and building peaceful co-existence and prosperity in society.

Among the key highlights of the 2019 Sustainability Week was a “Nice Comments Day” that was a day set aside to foster words of encouragement, support and kindness to people around one, regardless of ones’ familiarity or close ties, in recognition of the instrumental role kind words play in lighting up people’s day and bringing out the best in them.

Another highlight was the SPARK School Engagement that promoted the SPARK initiative in schools, with the objective of embedding the values of SPARK amongst school children at a young age so the values become part of, and habitual to, them as they develop into adulthood.

Due to COVID-19 pandemic and government-imposed lockdown, the year 2020 witnessed no edition of the Sustainability Week. Any attempt to stage the kinds of activities and events that usually accompany the Sustainability Week would have been counterproductive, spreading infections and possibly deaths instead of kindness and joy that the Sustainability Week has become synonymous with.

However, FirstBank’s avowed commitment to corporate responsibility and sustainability would not allow it fold its hands and just watch while COVID-19 and its debilitating effects tried to make living and learning difficult for most Nigerians.

Working virtually or remotely and, where it could not do otherwise, physically but in strict adherence to COVID-19 safety protocols, FirstBank executed several initiatives meant to ameliorate the very difficult situation in Nigeria then.

The bank contributed to efforts to provide palliatives to vulnerable Nigerians, announced a moratorium on repayment of loans, set up a special loan fund for businesses run by women, established another for school proprietors in collaboration with a state government and drove an e-learning initiative that sought to move one million school children to a safe online learning platform so their educational progress would not be set back due to COVID-19 restrictions, government-ordered lockdown and the closure of educational institutions for the greater part of 2020

“Kindness: A Way of Life” was the theme for the fourth edition of the Sustainability Week held in 2021. Highlights of activities of the 2021 Sustainability Week, designed to entrench a culture of kindness, included a practical-oriented training webinar for staff to embed a culture of kindness in the bank by driving understanding of how kindness (or the lack of it) can impact the workplace, the marketplace and the communities in which staff live and work.

Another important feature of the Sustainability Week was the “Kind Comments Days” that ran all week to inspire a consciousness of kind choice of words and consideration for others. There was also a dedicated programme in secondary schools designed to institutionalise SPARK by using school SPARK champions (including students and teachers) alongside other partners such as Junior Achievement Nigeria (JAN) and Lagos State government to inculcate the SPARK values in school children.

One other feature was the ground-breaking ceremony for the Lagos State government’s OCAAT (One Community At A Time) initiative to provide the Primary Health Care Centre at Ijedodo community in Alimosho LGA. Set up as an initiative to improve the health and welfare of the members of various communities in Lagos State, FirstBank partnered the government on the project as part of its contribution to global efforts to meet some specific Sustainable Development Goals (SDGs).

There were also webinars: a general webinar with the sub-theme: “Education: Does Kindness have a Role?”; and a millennial webinar with the sub-theme: “Making the Cyber World a Kinder Place” which sought to proffer solution to the question of how people could become kinder on social media platforms.

All the past editions of FirstBank Sustainability Week highlight the longstanding and relentless commitment of FirstBank not only to continue to live but also to preach the message of corporate responsibility and sustainability.

Given its unmatched pedigree in corporate responsibility and sustainability, FirstBank has earned the right to address all other corporate organisations as well as individuals and groups on matters of sustainability. The bank has earned its right to the people’s audience.

It is against this backdrop that FirstBank’s forthcoming 2022 Corporate Responsibility and Sustainability Week should be welcomed by other banks and corporate citizens, irrespective of industry, as an opportunity to come together and take lessons from Nigeria’s foremost corporate citizen with regard to corporate responsibility and sustainability.

FirstBank does not consider itself too big to take lessons from other corporate citizens in areas where they have distinguished themselves. So other corporate citizens should not feel too big to take lessons from FirstBank in this area where the bank stands highly distinguished.

Or can anyone claim not to know that if the concept of corporate responsibility and sustainability were to be represented by one corporate citizen per country on a world map where countries are denoted by their foremost corporate entities, it is unarguable that FirstBank would be the company eminently representing Nigeria on that map?

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Banking Sector

Central Bank of Nigeria Mandates Cybersecurity Levy on Transactions

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Central Bank of Nigeria (CBN)

In a bid to bolster cybersecurity measures within the financial sector, the Central Bank of Nigeria (CBN) has issued a directive mandating banks and financial institutions to implement a cybersecurity levy on transactions.

The circular, released on Monday, outlines the commencement of this levy within two weeks from the date of issuance.

According to the circular, all commercial, merchant, non-interest, and payment service banks, as well as other financial institutions, mobile money operators, and payment service providers, are instructed to enforce this cybersecurity levy.

The directive is a follow-up to previous communications dated June 25, 2018, and October 5, 2018, emphasizing compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.

The levy is to be applied at the point of electronic transfer origination and subsequently deducted by the financial institution.

This deducted amount will then be remitted to the designated Nigerian Cybersecurity Fund (NCF) account domiciled at the CBN. Customers will see a deduction reflected in their account statement with the narration, ‘Cybersecurity Levy’.

Exemptions from this levy include certain transactions such as loan disbursements and repayments, salary payments, and intra-bank transfers among others.

The CBN aims to streamline and fortify cybersecurity efforts across the financial sector through the implementation of this levy.

This move by the CBN aligns with recent efforts to enhance regulatory oversight and mitigate risks within the financial ecosystem.

It follows closely after directives barring fintechs from onboarding new customers and warnings against engaging in cryptocurrency transactions.

Also, the Federal Government’s directive for the deduction of stamp duty charges on mortgaged-backed loans and bonds demonstrates a broader push for fiscal transparency and regulatory compliance.

The introduction of the cybersecurity levy underscores the CBN’s commitment to safeguarding digital transactions and ensuring the integrity of Nigeria’s financial infrastructure amidst evolving cyber threats.

As financial institutions gear up for implementation, the levy is poised to play a pivotal role in fortifying the nation’s cybersecurity resilience in an increasingly digitized landscape.

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Banking Sector

GTCO Plc’s Profit Before Tax Grows by 587.5% to N509.35 Billion in Q1, 2024

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GTCO Commemorates Listing on Nigerian Exchange - Investors King

Guaranty Trust Holding Company (GTCO) Plc, one of Nigeria’s leading financial institutions, has unveiled its first quarter (Q1) financial results for the period ending March 31, 2024.

According to the report submitted to the Nigerian Stock Exchange (NGX), GTCO recorded a 587.5% growth in profit before tax (PBT) to N509.35 billion.

This substantial increase in pre-tax profit represents a significant jump from the N74.089 billion reported in the corresponding period of the previous year.

The financial statement also revealed a 227.93% rise in income tax to N52.213 billion, compared to N15.922 billion in the same period of 2023.

As a result, GTCO’s profit after tax (PAT) for the first quarter of 2024 rose to N457.134 billion, an exceptional growth of 685.9% from N58.167 billion recorded in the first quarter of the previous year.

The strong performance of GTCO can be attributed to several key factors. The Group’s loan book increased by 21.9% rising from N2.48 trillion recorded in December 2023 to N3.02 trillion by March 2024.

Similarly, deposit liabilities grew by 26.0% from N7.55 trillion in December 2023 to N9.51 trillion in March 2024.

Despite the challenging economic environment, GTCO’s balance sheet remained well-structured, diversified, and resilient.

Total assets closed at an impressive N13.0 trillion while shareholders’ funds stood solid at N2.0 trillion.

Commenting on the outstanding financial results, Mr. Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, expressed optimism about the future.

He said the robust performance across all business verticals reaffirmed the value of the Holding Company Structure.

“Our first quarter results reflect the unfolding value of what we have created in all our business verticals through the Holding Company Structure – from Banking and Payments to Funds Management and Pension,” said Mr. Agbaje.

“We are positioned to compete effectively on all fronts and fulfill all our customers’ needs under a unified, thriving financial ecosystem.”

The growth in profitability underscores GTCO’s resilience, strategic focus, and unwavering commitment to delivering superior value to its stakeholders amidst evolving market dynamics.

As the Group continues to leverage its strengths and innovative capabilities, it remains well-positioned to navigate the ever-changing landscape of the financial services industry with confidence and resilience.

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Banking Sector

UBA Plc Reports 166% Surge in Q1 Profit to N143 Billion

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UBA House Marina

United Bank for Africa (UBA) Plc has made a significant leap in its financial performance, reporting a 166% surge in its first-quarter profit to N143 billion.

The details, disclosed in the financial services group’s unaudited report for the first quarter, showed a robust growth trajectory despite challenging market conditions.

This surge translates to a 169.4% year-on-year increase in earnings per share (EPS) to N3.96 in the first three months of the year, up from N1.47 reported in the same quarter of 2023.

According to the financial results, interest income rose by 129.7% year on year to N440.76 billion. The bank also witnessed a significant uptick in investment, reporting a 147.1% year-on-year growth.

UBA’s interest expense saw an increase of 93.9% year on year to N140.09 billion. This was attributed to higher costs incurred on deposits from customers, deposits from financial institutions, and borrowings.

Despite this, customers’ deposits grew by 112.6% year on year to N18.38 trillion.

Net interest income also grew by 151.3% year on year to N300.68 billion from about N120 billion in the previous year.

Furthermore, non-interest income advanced by 38.9% year on year to N77.91 billion, fueled by expansions in net fees and commission income and net FX trading income.

At the end of Q1, UBA’s operating income stood at N373.31 billion, a 122.5% year-on-year increase.

However, operating expenses saw an uptick of 104.1% year on year, driven by expansions in employee benefits, regulatory costs, and inflationary pressures.

Despite these challenges, the group’s profit-before-tax surged by 154.7% year on year to N156.34 billion from N61.37 billion a year ago.

Net profit also increased by 166.1% year on year to N142.58 billion from N53.59 billion in the previous year.

UBA’s stellar performance in the first quarter underscores its resilience, strategic positioning, and commitment to delivering value to shareholders amid evolving market dynamics. As the bank continues to navigate challenges and seize opportunities, it remains poised for sustained growth and value creation in the financial services sector.

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