Intercontinental Bank: Taking asset management to global standards

Odidison Omankhanlen, Lagos

Erastus Akingbola, GMD,
International BankIntercontinental Bank Plc, a world class financial institution is ranked 355th in the world by the Financial Times of London, making it the only Nigerian bank in the world’s top 500 banks and the second fastest growing bank in the world. Financial analysts have always predicted that the bank’s track records of superlative performance over the years puts it in good stead to achieve that feat. Without resting on its oars, the bank through its recent products and services and rebranding in general, has sent signals that it was committed to surpassing its current rating and realising its vision to becoming the number one both in Nigeria and Africa, and among the first one hundred in the world. One of such milestones is the unveiling of a new banking product, Intercontinental Bank Wealth Management. This is aimed at taking wealth management to another level in the country.

It is a service that is distinctly unique and comparable to the best around the world. It is benchmarked with global giants in wealth management and ensures that the wealth not only grows but is protected even for generations yet unborn. This special service takes a holistic and comprehensive approach to helping the people build and sustain their wealth. It gives them the confidence to make sound financial decisions, freedom to live the way they want to live their lives and x-rays a clear roadmap for their financial future. Towards this end, the bank has set up a flagship Wealth Management ‘Happy Centre’ and private banking suite in an upscale neighborhood in Ikoyi, Lagos, to cater for its exclusive clientele. The major business of the wealth management group is to help clients create, protect and transfer wealth to their beneficiaries.

The Wealth Management Group is equipped to provide upscale and world class services in the area of investment management, financial planning, retirement planning and estate planning for its customers. According to the bank’s Group Chief Executive Officer, Dr. Erastus Akingbola, the concept of wealth management involves a holistic and comprehensive approach to helping their clients achieve their goals in life, adding that it is structured to give them the confidence to make sound financial decisions, freedom to live life the way they want and a clear roadmap to their financial future. He noted that the purpose of wealth management is important because it goes beyond the primitive, but the accumulation of money to the overall peace, rest of mind, confidence, including spiritual, physical and mental wellbeing that comes from the knowledge that the hard earned wealth is not only growing but is secured and protected at all times by a trusted partner like Intercontinental Bank Plc.

According to him, “Any wealthy man will tell you that the accumulation of wealth, except it is obtained by fraudulent means or inherited, takes vision, initiative, hard-work, persistence, integrity and the investment of hard earned money over a long period of time. However, if the accumulation of wealth is difficult, the sustenance and protection of wealth is more difficult because wealth itself is volatile. Wealth, particularly when defined in monetary terms, is subject to the vagaries of spending habits, business collapse, inflation, taxes, mismanagement and even fraud. So, a very wealthy man can end up being poor if his wealth is not effectively managed,” he said. In choosing who to chairman the unveiling event, the bank went for the richest black man in Africa, Alhaji Aliko Dangote, Chairman, Dangote Group. According to him, Intercontinental Bank Plc is a great institution because the bank has transcended the rudimentary norms of banking, and has moved into the realms of global powerhouse.

“Intercontinental Bank Plc has moved from one success to the other and moving closer to its dream of becoming a truly intercontinental brand. It has positively pursued its goal of being a dominant player in global banking by exemplary positive and affirmative actions. Little wonder the bank has achieved so much in such a short while.” Sharing his experience, he stated that the term wealth management was quite interesting to him because it reminds him that no matter how wealthy one is, one still needs to manage that wealth in order to remain on top of wealth and even become wealthier. “A wealthy man must be proactive; you must be able to anticipate which direction investment wind is blowing. You must be visionary. Most times you take investment decisions based on tomorrow. By this, I mean you envisage what the economic climate will be in five to 10 years’ time or even more.”

He advised, “In everything you do, you need direction and planning. For you to sustain wealth, you need good heads to help you plan. You need vision to anticipate the way the economic wind will blow next. There is no better place to go than Intercontinental Bank: they have it all.” Dangote added that his confidence is premised on the bank’s track records of spectacular growth in market share, profitability, highly successful and thriving subsidiaries, global expansion and returns on investment, adding that it has the human resources to provide strong strategic guidance and ensure adherence to strict corporate governance practices. One of the product include Personal Advice and Service, where a personal wealth advisor is appointed for the customer. It assesses the financial situation and goals in life. It also appraises the customer’s needs and risk involved in investments. It is set to make business investment failure a thing of the past. Customised Services: This helps to create long term strategies appropriate; comprehensive guidance for each stage of life and solution for all the wealth management needs.

Only recently, the bank’s CEO said the bank was poised to surpass this record. ‘‘We are encouraged by our drive, vision and capacity to double, year on year, all the performance indica-tors of the bank. We intend to beat our record and we shall,’’ he said. Going by the bank’s numerous products such as these and financial performance, it is fully set to achieve the goal. The bank posted a superlative profit before tax of N22.9 billion for the nine months ended November 30, 2007. This is about 178 per cent increase over the N12.8 billion posted for the corresponding period of 2006. It also recorded impressive 169 per cent growth in gross revenue which stood at N99.6 billion against N59.1 billion in the corres-ponding period of 2006. Its total asset and contingent as at the third quarter stood at over N1.1 trillion represen-ting about 188 per cent increase compared to the N606 million recorded in the previous year.

Oceanic Bank: Leading in real sector development

Lanre Oyetade, Group Business Editor

For the umpteenth time, Oceanic Bank International Plc was recognised as the best bank in real sector development. The new award, from Vanguard Media, basically reinforced the numerous previous awards won by the bank on its efforts at developing the nation through adequate and effective funding of the sector, which many considered the engine growth of any economy. Going through history lane, it will indeed be true to state categorically that no bank has done more than Oceanic Bank in funding the critical introduction of Small and Medium Enterprises Equity Investment Scheme (SMEEIS) in 2001 by the Bankers’ Committee.

It will be recalled that the Bankers’ Committee directed banks to set aside ten per cent of their Profit Before Tax (PBT) for the purpose of funding the real sector and ultimately developing the economy. Oceanic Bank’s huge contributions to the real sector in relations to its asset base and shareholders’ fund gave it the coveted prize in real sector financing in 2003, the first of its kind in the Nigerian financial sector. Rather than rest on its oars after being adjudged the bank with the highest commitment to the real sector development byCBN Bankers Committee on Real Sector Finance Award in 2003, it further intensified its disbursement speed, all with the aim of creating a better country, by effectively empowering more Nigerians, especially the youths in the area of job creations.

As attested to by the apex bank, the bank’s effort in developing the real sector is monumental, especially as its investments on the various companies have yielded positive impacts on the nation’s economy in terms of both economic and social returns via creation of fresh employment and high return to shareholders. From agriculture, oil & gas sectors to heath care sector and even the media, among others, the bank has effectively imprinted its footsteps by judiciously disbursing its set aside funds and developing the real sector of the economy. These efforts have also translated to a better profitability for the bank, making it close as the most profitable bank in the country as at the end of its second quarter, ending on March 31, 2008. Among the many companies that have benefited immensely from the funds of Oceanic Bank are Nigerian Army Small Scale Drugs Manufacturing Unit (NASDMU); Wordsmithes Printing; Gasoil Engineering Limited; Larnagold Limited; Golden Lad Industries; DVI Telecoms; Hydro Resources Industries; Atobi Metals and Paper Industry; Gazetta Communications; and Cyrus Woodcrafters Limited. Others include Golden Astoria; Kwara State Government; Card Technology and Meggito Ventures Limited,among many others.

Market analysts are of the view that Oceanic Bank, with its heavy investment in the real sector, is out to revamp the nation’s ailing economy with a view to effectively rebuilding the nation. Aside the need to create more job opportunities for the youths through effective funding of small industries, Chief Executive of the bank, Dr. (Mrs.) Cecilia Ibru, also believed that no nation has ever recorded an appreciable growth without a corresponding development of the real sector. To that end, she said Oceanic Bank, with its determination to partner the government in the art of nation building, would effectively fund the sector to ensure that its spiral effects positively affect all segments of the economy.

The apex bank’s governor, Chukwuma Soludo, also recently lauded the efforts of the Oceanic Bank’s management for its drive to contributing to building a stronger Nigeria, through its funding of the real sector. He said Oceanic Bank’s contribution to the real sector is commendable, especially as the bank won the maiden edition of the award in 2003. He however urged the bank’s Management to continue with its vision of building a stronger Nigeria through the funding of the real sector, noting that real economic growth and development could only be achieved through a viable real sector. In her acceptance speech, after winning the Bank of the Year Award for the Nigerian category, said the vigour of the bank in transforming the country through lending to the real sector was borne out of its decision to build a stronger Nigeria. Editor-in-Chief of The Banker, Stephen Timewell, had earlier said the Bank of the Year Award was given to Oceanic Bank partly because of its focus on the funding of the real sector of the economy. He said, “Ultimately, Oceanic Bank was singled out by judges for its willingness to lend to the real sector, especially SMEs (Small and Medium Entreprises).”

By spending heavily on the real sector, the bank seems to be doing itself much good as its financials have continued to improve significantly on a yearly basis. The patronage from its customers, in terms of deposits base, signifying customers’ confidence on both its management and board, has also continued to improve. For example, the amount of money kept in the coffers of the bank increased from N49.4 billion in 2003 to N693.9 billion in 2007. Feelers from the bank also indicated that the deposit base might hit about N1 trillion this financial year. The bank’s efforts at funding the real sector have adequately enhanced its financial performance. For the first six-months of its operations this financial year, the bank posted superior financial results with the group’s gross earnings hitting N66.47 billion, representing an increase of 129 per cent compared to the gross earnings of N29.08 billion recorded in the corresponding period in 2006/2007 financial year.

According to the un-audited six months report recently released to the public, profit before tax (PBT) rose to N25.1 billion from the N9.97 billion in the corresponding period in the last financial year and represents a growth of 151 per cent. Profit after tax (PAT) was also on the upward swing, increasing to N20.30 billion from N8.28 billion, indicating a 145 per cent. The bank paid a tax of N4.76 billion to the government, an increase of 181 per cent compared to N1.70 billion it paid as tax in the previous year. The bank’s individual result in the six month period also indicated significant improvement in all performance measurement indicators. Gross earnings surged by 134 per cent to N65.18 billion compared to N27.82 billion at the preceding period. Profit before tax (PBT) rose from N9.57 billion to N22.70 billion indicating a growth rate of 137 percent. With the bank coughing out N4.33 billion as tax, profit after tax came to N18.39 billion representing N7.95 billion or 131 percent growth.

Commenting on the result, Ibru attributed the performance to the new strategies put in place by the management to drive the new initiatives of the institution through customer focused banking services tailored to suit individuals and corporate services for improved national economy. She praised the efforts of all stakeholders whose contribution, she said, had made the higher profit possible, pointing out that Oceanic Bank has once again demonstrated its leadership position as a big time player in the national and global economies. The performance, she said, should delight the shareholders as it indicates better high rate of returns to the shareholders. Ibru assured that the bank would not rest on its oars but would continue to take banking to another level through innovative products and services consumers can leverage on.

The bank’s ability to consistently sustain this remarkable performance on all financial indices over the years has been attributed to its sound management, continuous quest for innovation, robust ICT platform and human capital development. Financial analysts have also attributed the success recorded by the bank so far to the strict adherence of all the management and staff to the bank’s core values, tagged: TEAMS, an acronym of Transparency, Equal Opportunity, Accountability, Merit and Service excellence.