One year after successfully consummating its business combination with the defunct
When
Three leaders of shareholder associations stood in for other shareholders at the AGM. They included: Sir
And obviously the shareholders were highly pleased and showered encomiums on board, management and staff. The first reason for their happiness was fact the decision to combine business with
For instance, Nwosu said
According to him, the future is very bright for the all shareholders considering the synergy the merger has brought to the bank and the expertise the management and staff is deploying the ensure
He also commended the leading efforts of
However, after the showering of praises on the board and management, the shareholders urged the bank to control its operating expenses. In his response, Group Managing Director of
According to him, having successfully integrated the operations of the two banks, they are now addressing the operating expenses using various strategies.
Wigwe said: "One of the areas we need to address very seriously and you will see it going into the future is our operating expenses. And for last year, the big jump that you saw came as a result of the merger. We decided to try, for once, a different way of treating a merger. This merger was different because we were bringing a large retail infrastructure and we did not want to lose customers.
"We have seen it happen before, so we told ourselves, let us move with the large infrastructure and gradually see how to manage down the cost. When we did the first merger (with
"We could not afford to do anything that will upset the customer, so we made sure that there was no issue of staff going away. We made sure that branch closure was done a very systematic manner not to irritate the customers because it is a very competitive market. Imagine that we had to carry a staff strength of 30, 000 right through the year, this made our expenses to rise than normal. But we have seen our first quarter still high, but we have taken very drastic measures and you will see the results come through in second and third and fourth quarter," he added.
According to Wigwe, "we know what to do when it comes to running our business and one thing we wanted to make sure that the benefit of this combination with
"As so we are not in mad rush to do what we would had typically done. So now, we are basically rationalising the branches, making all the adjustments necessary to ensure that you start seeing a steep reduction in cost as we move on particularly now that a global recession is staring us in the face. We are doing this to be sure that we manage our institution better," the GMD said.
Although
However, the management of
"This is malicious and a distraction from a genuine and compassionate plan to protect our staff and help keep jobs in the unfolding macroeconomic environment. We state that based on the impact of the COVID-19 pandemic, we do not expect that all our branches will be fully opened for in-branch services until later in the year. This has made it impossible for many of our outsourced workers to perform their duties as usual.
"Based on the above-mentioned circumstances, we have commenced engagement with various stakeholders with a view to ensuring that they provide the relevant services and optimum manpower as may be required by the bank on an on-going basis. As we navigate the new normal occasioned by the COVID-19 pandemic we wish to assure all our esteemed stakeholders that in our traditional manner the bank will continue to ensure that its actions and decisions are guided by fairness, justice, equity and good conscience," the bank said.
"At the onset of the COVID-19 pandemic lockdown, we suspended in-branch operations at different locations as directed by the CBN and in line with business continuity plans at vulnerable spots, whilst we continued to provide services through our alternative digital platforms. Beyond complying with the regulatory directive, this action was taken to ensure the health and safety of our customers and employees," it said.
For one, the closure of any bank branches requires the approval of the CBN. But
Yet industry analysts said
"But it is not doing so. It had the opportunity to do so when it merged with the now-defunct
Meanwhile, according to the
Gradually, a sour recollection of the great depression is springing up. The great depression was the worst economic downturn in the history of the industrialised world, that lasted from 1929 to 1939. When the economic depression reached its lowest point in 1933, about 15 million Americans were unemployed and nearly half the country's banks had failed.
"There is nothing in a bank restructuring its workforce to meet with new challenges. It is a common practice all over the world, just as there is nothing wrong with an employee resigning his appointment to take up another job opportunity elsewhere. The leadership of
And for anyone to come this far, he or she must be innovative, creative, forward looking and proactive. You can't find Wigwe wanting on this frontthe analyst concluded.
Still speaking on the benefits of the merger, Wigwe said the combination of
"The combination has birthed the largest bank in
Wigwe said they seek to create sustainable value by developing the opportunities embedded in their operations which represent the most attractive options.
"This is in addition to our existing commitment to sustainable business practices and demonstration of our ability to re-engineer the face of
Just as the shareholders expected, the first quarter results of
"Our resolve is to ensure that our customers have best in speed, service and security. We projected merger synergies of N153.9 billion (cost and revenue) over three years. In 2020, we expect to realise significant cost synergies, which will substantially cut down our cost and boost profitability. Being a systemically important Nigerian bank, we are aware that sustainable returns can only come from a sustainable and resilient business model. As such, our intent to embed resilience at the core of our financing activity is further strengthened, as we journey together to building a bank that is more than banking," Wigwe said.
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