FBNQuest Merchant Bank

Last updated
FBNQuest Merchant Bank
Type Subsidiary
Industry Finance
Founded1995;28 years ago (1995)
Headquarters,
Key people
Bisi Onasanya (Chairman), Laoye Jaiyeola (MD & CEO)
Products Financial services
Parent First Bank of Nigeria
Website fbnquest.com

FBNQuest Merchant Bank previously known as Kakawa Discount House is one of the five operational discount houses in Nigeria which serves as government financial tools and acts as a middle access points between all other banks in Nigeria and the Apex bank of Nigeria, the Central Bank of Nigeria. FBN Quest Merchant bank is a subsidiary of First Bank of Nigeria.

Contents

As with all discount houses, trade in governments bonds and treasury bills are the primary business functions.

History

Foundation of the discount houses

The Discount Houses sub-sector of the Nigerian financial services industry was birthed in 1995 [1] and came as an offspring of the federal government of Nigeria through the Central bank of Nigeria (CBN).

Discount Houses became the venue through which banks were able to channel excess liquidity and access same to and from the CBN. A secondary market was created through the discount houses particularly for the trading of Treasury bills and other commercial bills. The name Kakawa came from the street (Kakawa Street) in which the headquarters of their single largest shareholder was located (First Bank of Nigeria). [2]

The shareholders at that time were First Bank of Nigeria Plc, Guaranty Trust Bank Plc, Sterling Bank Plc, First City Monument Bank, Skye Bank, and Unity Bank. [3]

Expansion

Kakawa evolved from being primarily a mono-product institution into being the pioneer for the marketing of Treasury bills to individual investors through the introduction of its proprietary the Treasury Bill Backed Investment (TBBI) product in 1997. In 1998, Corporate Finance was identified and it established an advisory services unit (Wealth Management Unit).

Kakawa Asset Management (KAM) was incorporated in 2004. Prior to its incorporation, KAM had operated as a department of Kakawa since 2001. KAM was primarily established out of the need to provide clients who had worked with Kakawa over time, with longer-term investment options in the financial services market. KAM was registered with the Securities and Exchange Commission (Nigeria) (SEC) as a portfolio/fund manager and Investment Adviser.

Acquisition by First Bank Of Nigeria

The remaining shares of Kakawa Discount House were acquired by FBNQuest in 2015, and the company was renamed as FBNQuest Merchant Bank, the brand name of the Merchant Banking and the Asset management businesses of FBN Holdings Plc. [4] It commenced merchant banking operations on 2 November 2015. [5] [6]

Related Research Articles

<span class="mw-page-title-main">Nomura Securities</span> Japanese financial services company

Nomura Securities Co., Ltd. is a Japanese financial services company and a wholly owned subsidiary of Nomura Holdings, Inc. (NHI), which forms part of the Nomura Group. It plays a central role in the securities business, the group's core business. Nomura is a financial services group and global investment bank. Based in Tokyo, Japan, with regional headquarters in Hong Kong, London, and New York, Nomura employs about 26,000 staff worldwide; it is known as Nomura Securities International in the US, and Nomura International plc. in EMEA. It operates through five business divisions: retail, global markets, investment banking, merchant banking, and asset management.

HSBC Bank Bermuda Limited, previously the Bank of Bermuda Limited, is a financial services company in Bermuda providing retail and corporate banking, investment, custody and fund administration services to international and local clients. In 2004 the HSBC Group acquired the Bank of Bermuda, which has since become a focus for certain fund management and private banking activities. The bank sold much of its Cayman operations in 2014, and disposed its private banking operations at the end of April 2016. The three remaining divisions are retail banking wealth management, commercial banking and global banking and markets. These three businesses represent over 90% of total revenues.

<span class="mw-page-title-main">Central Bank of Nigeria</span> Central Bank of Nigeria

The Central Bank of Nigeria is the central bank and apex monetary authority of Nigeria established by the CBN Act of 1958 and commenced operations on 1 July 1959. The major regulatory objectives of the bank as stated in the CBN Act are to: maintain the external reserves of the country, promote monetary stability and a sound financial environment, and act as a banker of last resort and financial adviser to the federal government. The central bank's role as lender of last resort and adviser to the federal government has sometimes pushed it into murky regulatory waters. After the end of imperial rule, the desire of the government to become proactive in the development of the economy became visible, especially after the end of the Nigerian civil war, the bank followed the government's desire and took a determined effort to supplement any show shortfalls, credit allocations to the real sector. The bank became involved in lending directly to consumers, contravening its original intention to work through commercial banks in activities involving consumer lending.

Kaupthing Singer & Friedlander was a financial services provider offering corporate and investment banking services to small and medium-sized companies, as well as wealth management services for high-net-worth individuals. Primary areas of activity were treasury, investment management, capital markets services, asset finance, and private banking. The company was created in August 2006 by the merger of Singer & Friedlander Plc and Icelandic Kaupthing Bank. The UK government put the company into administration in October 2008 in response to the failure of its parent as a result of the financial crisis of 2007–08.

<span class="mw-page-title-main">First Bank of Nigeria</span> Nigerian multinational bank

First Bank of Nigeria Limited is a multinational bank and financial services company in Lagos, Nigeria. First Bank is owned by FBN Holdings PLC, which in itself has diversified ownership with over 1.3 million shareholders.

<span class="mw-page-title-main">CIMB</span> Malaysian Universal Bank

CIMB Group Holdings Berhad is a Malaysian universal bank headquartered in Kuala Lumpur and operating in high growth economies in ASEAN. CIMB Group is an indigenous ASEAN investment bank. CIMB has a wide retail branch network with 1,080 branches across the region.

<span class="mw-page-title-main">First City Monument Bank</span> Nigerian bank

First City Monument Bank (FCMB), a member of FCMB Group Plc, is a financial services holding company headquartered in Lagos. FCMB Group Plc has nine subsidiaries divided among three business groups: commercial and retail banking, investment banking, and asset and wealth management. As of December 2020, the group's total assets were valued at US$5 billion.

<span class="mw-page-title-main">Zenith Bank</span> Nigerian commercial financial services company

Zenith Bank Plc is a large financial service provider in Nigeria and Anglophone West Africa, headquartered in Victoria Island, Lagos. It is licensed as a commercial bank by the Central Bank of Nigeria, the national banking regulator.

<span class="mw-page-title-main">Guaranty Trust Holding Company PLC</span> Multinational financial services group

Guaranty Trust Holding Company PLC also known as GTCO PLC is a multinational financial services group, that offers retail and investment banking, pension management, asset management and payments services, headquartered in Victoria Island, Lagos, Nigeria. GTCO Plc was created in July 2021 following the corporate reorganization of Guaranty Trust Bank PLC into a Holding Company.

<span class="mw-page-title-main">Ecobank Ghana</span> Ghanaian commercial bank

Ecobank Ghana PLC is a commercial bank in Ghana. It is one of the commercial banks licensed by the Bank of Ghana, the national banking regulator. In 2022, the bank retained its position as the largest bank in Ghana in the 2023 Ghana Banking Survey by PricewaterhouseCoopers (PwC). LIMA Partners also named the bank as the biggest bank by total assets in the Ghana Banking Industry Report.

Aderemi Waheed Babalola is a banker and former minister of the Federal Republic of Nigeria.

<span class="mw-page-title-main">Polaris Bank Limited</span> Nigerian commercial Bank

Polaris Bank Limited is a commercial bank based in Nigeria. It is licensed by the Central Bank of Nigeria, the country's banking regulator. In October 2022, the bank was acquired by Strategic Capital Investment Limited (SCIL).

<span class="mw-page-title-main">FirstRand</span> South African financial service provider

FirstRand Limited, also referred to as FirstRand Group is the holding company of FirstRand Bank, and is a financial services provider in South Africa. It is one of the financial services providers licensed by the Reserve Bank of South Africa, the national banking regulator.

Fidelity Bank, also known as Fidelity Bank Plc., is a commercial bank in Nigeria headquartered in Victoria Island, Lagos. It is licensed as a commercial bank with international authorization, by the Central Bank of Nigeria (CBN), the central bank and national banking regulator.

Stanbic IBTC Holdings, commonly referred to as Stanbic IBTC, is a financial service holding company in Nigeria with subsidiaries in Banking, Stock Brokerage, Investment Advisory, Asset Management, Investor Services, Pension Management, TrusteesInsurance Brokerage and life Insurance businesses. The company's corporate headquarters, I.B.T.C. Place, is situated at Walter Carrington Crescent, Victoria Island, Lagos. Stanbic IBTC Holdings is a member of the Standard Bank Group, a financial services giant based in South Africa. Standard Bank is Africa's largest banking group ranked by assets and earnings, operations in 20 African countries and 13 countries outside Africa.

<span class="mw-page-title-main">Discovery Limited</span> South African-based financial services group

Discovery Limited is a South Africa-based financial services group that is listed on the Johannesburg Stock Exchange (JSE) with its headquarters in Sandton.

Adesola Kazeem Adeduntan is a Nigerian business executive. He is the managing director and chief executive officer of First Bank of Nigeria Limited and Subsidiaries a position to which he was appointed from his former role as group chief financial officer and an executive director with the bank. He began his career with Afribank Nigeria Plc. in 1994, after which he worked with KPMG Professional Services, Citibank Nigeria, and the Africa Finance Corporation (AFC) before joining FirstBank in July 2014.

Harriet-Ann Omobolanle (Bola) Adesola is the senior vice-chairman at Standard Chartered Bank Group where she was previously the CEO of Standard Chartered Bank for Nigeria and West Africa. Adesola has over 25 years of experience in the banking sector.

<span class="mw-page-title-main">Laoye Jaiyeola</span> Nigerian Economist

Laoye Jaiyeola is a Nigerian economist who is currently the CEO of the Nigerian Economic Summit Group.

References

  1. The year kakawa was formed retrieved 26 June 2007 from http://www.kakawa.com/whoweare/history.asp
  2. "The name, kakawa" . Retrieved June 25, 2007.
  3. "Kakawa Discount House - Who we are". Kakawa.com. Retrieved 2012-04-28.
  4. "FBN Holdings acquires Kakawa Discount House Limited". Daily Post Nigeria. 10 November 2014. Retrieved 10 January 2018.
  5. "FBN Merchant Bank Limited". fbnmerchantbank.com.
  6. "FBN Merchant Bank records 29% increase in profit". Vanguard. 7 May 2017. Retrieved 10 January 2018.