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Intercontinental Bank: A good
wine that needs no push
Akin Adewakun, Lagos
From left, Mrs Anthonia Akingbola, Dr
Erastus
Akingbola,
Group Chief Executive,
Intercontinental Bank Plc, Alhaji
Aliko Dangote,
Chairman, Dangote Group and others at
the
unveiling of the bank’s new corporate identity
in
Lagos, recently.
ON Friday, November 16, 2007 , to be precise, at a
very elaborate event in Lagos , Intercontinental
Bank crossed another threshold of global corporate history when it unveiled a new brand identity, tagged Good to Great, as part of the bank’s rebranding efforts which it has embarked on for sometime now.
The launch of the new corporate logo which has the hexagon as its primary identity icon with two dominant colours of blue and yellow, indicative of the bank’s bold international growth all over the globe, according to the bank’s management, was in tune with the need to change and flow with the times in the advent of global competition , which has greatly altered the status quo in banking and indeed, other businesses, adding that the new identity was in line with its new vision of being number one bank in Nigeria, Number one in Africa and among the world’s top 100 banks.
The new corporate identity is, no doubt, a reflection of the bank’s status as an emerging force in global banking, especially when viewed against the backdrop of the giant strides it has recorded in the past few years, with particular reference to the post consolidation period.
The hexagon, which is the shape of the bank’s new corporate identity icon, is symbolic of the bank’s foremost attributes. It is the strongest shape known in nature. When hexagons form a mesh, the strength of the bonding is exceptional. The bank’s strength therefore lies in the power of its relationships as it bonds in an ever-growing mesh with its stakeholders. The new corporate identity, with six sides, symbolises the bank’s global vision to register its presence in the six continents of the world as reflected in its corporate name, Intercontinental Bank.
Not a few believe that the launch of a new corporate logo would go a long way in boosting the bank’s impressive profile which it had built in the last few years. Rated as one of Nigeria’s biggest banks by capital, the fifth biggest bank in Africa and the only Nigerian bank among the world top 500 banks and currently, the second fastest growing bank in the world, by The Banker Magazine, a subsidiary of Financial Times of London, the bank, which started its journey into leadership in the nation’s financial landscape at Aggey House, 12, Beckley Street, Lagos, has over the years been unequivocal of its determination to take the nation’s financial landscape by storm.
Established in February 1989 as a merchant bank, the bank, which commenced business with a paid-up ordinary share capital of N12 million, has risen to the status of the Most Improved Bank by Thisday Newspaper, won the Pearl Award for Sectorial Leadership in Banking and the best performer in the Nigerian Stock Market (Banking sub-sector) in 2006, won the Nigerian Stock Exchange President’s merit Award in the banking/finance sector, 2006 and awarded the African Commercial Bank of the year, 2007 by World Bank/ IMF Annual Meetings Daily.
Besides, the bank’s outstanding performances were also acknowledged by international rating agencies including Fitch, which rated the bank A+, Standard & Poor’s BB-, Global Credit Ratings of South Africa, AA, while it also bagged the AA rating of the respected local agency, Agusto & Co.
While explaining the rationale behind a new corporate logo, the bank’s Chief Executive Officer, Dr Erastus Akingbola, argued that the new logo represented the stronger and more dominant role the bank now plays in the global banking landscape, adding that the drive for an insightful partnership with its customers and other stakeholders actually informed the recent rebranding exercise embarked upon by the bank.
According to him, the rebranding was underscored by the need to be more visible and bold in reshaping Intercontinentral Bank brand in the eye of the public. “Our bank’s essence is solidly founded on strong brand muscles which form the core of our leadership style and is driving our outstanding partnership with our customers and indeed all stakeholders,” adding that the rebranding would raise the bar of customer service, continually delight customers with services and products and consistently guarantee customers’ safety and personalised service.
He highlighted other attributes of the brand as follows: safety, stable and solid, personal, supportive and understanding, visionary, fresh, original and responsive as well as in touch with all stakeholders.
The Chairman of the Bank, Dr Raymond Obieri, had earlier noted in his address that the nation’s banking industry was on the threshold of a new revolution, of global competition and partnership, stressing that in the new dispensation, only the bank that was a compelling brand on a global scale, one with strong financial muscle and outstanding managerial competence, would compete effectively and favourably.
He explained that tbe decision for the rebranding exercise was as a result of the bank’s vision to enthrone a truly world class and intercontinental bank with a presence in all the continents of the world, adding that the new identity would help put the brand in good stead for global competition.
He stated that the bank had been executing a bold enhancement strategy of all its processes in line with the highest international standard-customer service, I.T and e-banking, expansion of its business lines and strengthening of risk management.
No doubt, the recent unveiling of the New Face of Leadership identity is an addition to the bank’s growing list of accomplishments which it has recorded in the past few years. Coming from a humble beginning of N12million in 1989 to become a financial behemoth today, with one of the largest shareholders fund in the country of N177billion, a network of 300 branches all linked by cutting edge IT infrastructure and a total asset base of over N818billion, the bank has demonstrated its determination to give banking in Nigeria a new face. Events in the next few years may make it nearer its corporate vision of becoming the number one financial institution in Nigeria , number one in Africa and among the top 100 banks in the world, earlier than expected.
One cannot but agree with Rev. Olu Odejimi, a doyen of the stock exchange, while giving an appraisal of the bank’s performance in the last few years, that the bank had met the required standards of corporate visibility and consistent returns. “You do not need this dinner to advertise your bank.When it was unfashionable for banks to come to the stock market, you came. Your directors are visible, you’ve consistently made a reasonable return on capital.Intercontinental Bank is no doubt a good wine that requires no push.”
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A vote for good corporate governance in banking industry
Akin Adewakun, Lagos
The thematic focus of the three-day seminar held
for finance correspondents and business
editors in Enugu, the south eastern part of the country, recently, was instructive enough.
The need for a good corporate governance among Nigerian companies, with special emphasis on the nation’s banking industry.
The general consensus was that the nation’s banking industry was in dire need of a good corporate governance, the absence of which had wrecked havoc on the sector before the Central Bank of Nigeria ’s reforms.
Participants at the seminar, which included Professor Charles Soludo, Governor, Central Bank of Nigeria; Mr Ignatius Imala, Director of Banking Supervision, CBN and Prof. Peter Umoh, Executive Director, Operations, Nigeria Deposit Insurance Corporation and the nation’s finance correspondents, had argued that the nation might witness another doom in the financial sector if the tenets of good corporate governance are not imbibed.
That the banking sector, which is the bedrock of economic development, was bereft of this vital tool of economic growth,especially before consolidation, is no longer news. For instance, it was widely believed that the general downturn witnessed in the sector before July 6, 2004 , when the Central Bank of Nigeria unfolded its 13-point agenda of the on-going financial sector reform consolidation was partly due to unethical practice of those saddled with the responsibilities of running those financial institutions that dotted the nation’s financial landscape then.
While tracing the origin of the current interest in corporate governance to three major developments of high-profile scandals in Enron, US, Parmalat in Italy and Cadbury in Nigeria, Professor Soludo argued that the increasing participation of institutional investors across national frontiers and increased shareholders’ activism, coupled with poor corporate governance, was at the root of bank failures in the past, and this had made it imperative to give the issue of good corporate governance the utmost attention it deserves.
The apex bank governor believes the fundamental corporate principles of responsibility, accountability, transparency and fairness, must be adhered to to ensure good corporate governance.
According to him, “Following the consolidation exercise, the CBN in March 2006 introduced a code of corporate governance for banks effective April 2006 in order to deal effectively with identified weaknesses of corporate banks in the drive towards safeguarding the interest of all stakeholders. The major weaknesses were ineffective board oversight, weak internal controls, non-compliance with rules, laws and regulations, poor risk management practices.”
While stating that the apex bank had made strenuous efforts to ensure compliance with the code of corporate governance for banks in Nigeria, the CBN governor stressed that the apex bank had been bogged down by factors such as government equity ownership, family membership of boards, appointment of independent directors, tenure of directors and of auditors and directors related non-performing facilities.
But, Prof. Peter Umoh, Executive Director Operations, Nigerian Deposit Insurance Corporation, NDIC, believes banks need to have excellent corporate governance in order to protect depositors, customers and the banking system. It is also needed to protect and increase shareholders value/ rights, inspire stakeholder confidence, reduce corporate risk exposure and protect entity from abuse.
Unfortunately, he stated, corporate governance abuses had been responsible in the distress recorded in some of the nation’s banks before consolidation. For instance, he stated that there were high ratio of director’s non-performing loans in 12 of the nation’s liquidated banks, a factor which he said was responsible for the demise of these financial organisations. A breakdown of the insider loans to the banks’ total loans put the figures at: FMB 66.89, Republic, 64.90,UCB,81. per cent Credite 76 per cent, Prime 80.70 per cent, Group 77.60 per cent, NMB 99.4per cent, Royal 69prr cent, Alpha 55 per cent, Commerce 52per cent Atb 61per cent and Afex 95per cent.It also established that some directors did not disclose interest in loans, office or property rented/sold to the bank contrary to BOFIA (18)(3), while some directors of those banks did not declare interests in services provided by own companies to the bank (Code of Corporate Governance, CBN).
While attributing some of the failure factors by financial institutions to bad loans and advances, fraudulent practices, undercapitalisation, changes in government policies, bad management and inadequate supervision, Prof. Umoh argued that the directors of the banks in the past had contributed in no small measure to the distress of those banks through unethical behaviour. He stated that some directors failed to sign blank share transfer forms to transfer share ownership to the bank for debts owed, contrary to CBN Circular dated 13/11/01 , but instead, received dividends even when indebted to the bank.
While stressing that the relationship between ownership structure and good corporate governance is not neutral as evidenced from prior bank failures in Nigeria , Prof Umoh believed there was the need for the media, especially finance correspondents, to tell the public what to think about and set an agenda.
CBN’s Director of Banking Supervision, Mr Ignatius Imala, in his address, described the level of corporate governance in Nigerian banks as very low, adding that only an enhanced corporate governance could solve the attendant problems generated by the issue of under-capitalisation of banks.
The CBN director said that the apex bank had insisted on enhanced corporate governance as a way out of the attendant risks occasioned by its decision to address the issue of under-capitalisation.
He argued that in addition to issuing out a Code of Conduct for directors of banks, there should be a conscious effort towards enforcing the rules as specified in the Code of Conduct. “It is not enough to issue out codes. What do we do to the minds of those running the institutions?,” he questioned.
He noted that a good corporate governance should be able to take care of the interests of all stakeholders in the business.
Imala stressed that there was the need for the nation’s companies and banks to imbibe the culture of good corporate governance since a number of studies by global bodies had established a strong link between good corporate governance, profitability and investment performance.
He maintained that for the nation’s banking industry to sustain their giant strides, there was the need for the independent directors of banks to be men of integrity who would not rely on the banks for survival. “He must have been somebody that has overcome the fight against poverty,” he stated.
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