As financial systems in sub-Saharan Africa open up to new prospects, First Bank of Nigeria Limited is preparing for its next growth phase, building on its longstanding position in the region.
First Bank of Nigeria Limited is seeking to grow into several additional nations, including Ethiopia, Angola, and Cameroon, more than ten years after going on an acquisition binge that increased its presence in sub-Saharan Africa.
In December, while attending the Africa Financial Industry Summit (AFIS), Deputy Managing Director Ini Ebong spoke to The Africa Report, saying: “There are a number of large economies with large banking pools that are of interest to us because their financial markets are opening up.
“So, you look at countries like Ethiopia and Angola. In francophone West Africa, we want to expand our presence in places like Côte d’Ivoire and Cameroon. The market opportunity is there, and we seek to continue to exploit it,” he added.
Following a vote by MPs in December, Ethiopia, the second most populous country in Africa, is ready to partially open its banking sector to foreign banks. A majority in parliament approved the new banking law, which permits international banks to establish subsidiaries in Ethiopia.
According to the Ethiopian daily magazine Addis Standard accessed by BrandSpur banking and finance news desk, foreign companies will only be permitted to possess 49% of the shares.
Mamo Mihretu, the Governor of Ethiopia’s Central Bank, stated at a panel discussion at AFIS that the nation had spent the previous year draughting the legislation that would ultimately allow foreign competition in the banking industry. According to him, the biggest economy in East Africa is “open for business” for any banks wishing to enter the nation following the parliament’s passage of the Act. Before his appointment in June 2024, Ebong was the executive director in charge of international banking and treasury. He stated that the growth of financial systems akin to
Continuing, Ebong said: “What we saw in the early 2000s in some of the larger African markets.
“We believe it is an opportune time to take part in the phase of growth that we see,” he added.
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After purchasing Banque International de Credit, one of the top banks in the Democratic Republic of the Congo, in 2011, FirstBank, which has been doing business in Nigeria for 130 years, started setting up subsidiaries in other African markets. It acquired International Commercial Bank Financial Group Holdings AG (ICBFGH) businesses in Ghana, Guinea, Sierra Leone, and The Gambia in November 2013. The following year, it completed the acquisition of ICBFGH’s West African activities and assets by acquiring ICB Senegal.
In addition, First Bank maintains a representative office in Beijing, China, and a subsidiary in the United Kingdom with offices in London and Paris, France. The pretax profit of its parent firm, FBNHoldings, increased from N267.88 billion to N610.86 billion ($395 million) in the first nine months of 2024.
FirstBank, Nigeria’s third-largest lender, accounted for 10.7% of banking sector assets at the end of 2023, according to a July report from Fitch Ratings last year, which partly reads: “Its strong franchise supports a stable funding profile and low funding costs. Revenue diversification is significant, with non-interest income typically exceeding 40% of operating income.”
