FBN Holdings Plc, the
parent company of First Bank Nigeria Limited, is planning to cut about 1000
jobs and focus less on providing loans to the oil industry in a bid to
reverse the 2015 financial year’s 82 per cent slump in profit.
The lender
expects to boost its return on equity, a key measure of profitability, to
between 11 per cent and 14 per cent in 2016 from last year’s “really bad”
figure of three per cent, according to the Chief Executive Officer of First
Bank of Nigeria Limited, FBN’s main subsidiary, Mr. Adesola Adeduntan.
He said the
company was also targeting a cost-to-income ratio of 55 per cent in two years
time from 59 per cent, Bloomberg reported.
“ROE will be
much better than last year,” Adeduntan said in a telephone interview from Lagos
on Wednesday.
“At a
minimum, we should triple it. We do not shy away from taking difficult
decisions. We used to have above 8,000 people. We’ll push it down, gradually to
7,000,” he added.
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