By Ayomide Otitoju
FirstBank’s 130-year journey is a corporate handbook, its fortunes providing lessons as profound as its challenges. The leadership and choices of leaders offer fascinating chapters, validating the notion that each era is shaped by its leaders. This holds true across the corporate environment, especially for Nigeria’s premier bank.
With a diffused ownership structure, FirstBank’s leadership is particularly dynamic, adding variety to its journey. The confirmation of Olusegun Alebiosu as the new Chief Executive Officer is seen as a consolidation of the bank’s rich culture. At this critical juncture, FirstBank is ready to compete with new market entrants and reclaim its former dominance.
The bank is bolstering its adoption of digital banking, heavily investing in digital infrastructure. Alebiosu’s impact on Q1 performance was notable, with total assets rising by 28% year-on-year to N20.7 trillion and gross earnings surging by 178% to N682.5 billion, driven by a 33% increase in the credit portfolio since December 2023. Non-interest income doubled year-on-year to N224.6 billion, reflecting robust transactional platforms.
Under Alebiosu’s leadership, profit before tax grew by almost 300% to N209.8 billion, with profit after tax rising to N188.5 billion. These figures reflect a decade of strong performance for the banking group, now a favorite among investors.
FirstMobile, the bank’s digital banking application, has become a household name in fintech. From about 60,000 users in 2015, it has grown to over six million by last year, transforming FirstBank’s market perception from a traditional institution to an innovative digital bank. Today, over 85% of transactions are initiated via digital platforms, highlighting the bank’s shift towards a transaction-driven model.
FirstOnline has also seen significant growth, from about 90,000 users to over one million in less than a decade. USSD banking, targeting feature phone users and rural communities with low internet penetration, has grown by nearly 3,000% in the last eight years, reaching about 15 million users. This service has reconnected the bank with its original rural customer base.
Firstmonie Agent Banking, another success story, processed over ₦1.1 trillion in transactions last year, outperforming seven other big banks. The bank’s technological investments include the FirstDirect2.0 platform and the introduction of humanoid robots to the banking ecosystem.
Smart banking initiatives are complemented by Digital Xperience Centres (DXC) in Lagos, Ibadan, and Abuja, with plans for more. The bank’s digital evolution, supported by AI-driven commercials, has boosted its customer base from 0.6 million in 2015 to over 42 million in 2023. Former CEO Adesola Adeduntan predicts this number will double as the bank focuses more on transaction-led banking.
Last year, FirstBank’s holding company earned N171.8 billion from fees and commissions, a 46% year-on-year growth, demonstrating its success as a transaction-led bank. Operating profit jumped by 129% to N361.8 billion, leading to an earnings per share of N8.56k. Total assets grew by 60% to N16.3 trillion, a 300% increase from 2015 when they stood at N4.2 trillion. The customer base has also grown from 10.9 million to over 42 million in the past nine years, driving aggressive growth in fee and commission income.
